How to sell to North Carolina counties

North Carolina has 100 counties. Its purchasing law in General Statutes chapter 143 applies to every county and other political subdivision, so the same thresholds hold statewide. County purchasing policies add detail below the thresholds. North Carolina has no state prevailing wage law.

At a glance

Who buys

Each county is governed by an elected board of county commissioners. The board may delegate authority to award purchase contracts to the county manager or chief purchasing official, subject to conditions it sets (G.S. 143-129(a)). Most counties have a finance or purchasing officer who runs bids.

Goods and services

Informal bids go to the "lowest responsible, responsive bidder" (G.S. 143-131). Reverse auctions and electronic bidding are allowed for goods (G.S. 143-129.9).

Construction and public works

On informal building projects, counties must do minority business outreach and report to the state Office for Historically Underutilized Businesses (G.S. 143-131). Rules for single-prime, multi-prime, construction manager at risk and design-build delivery were not confirmed here.

Bid security. Formal construction and repair bids need a deposit of at least 5%: cash, a cashier's or certified check, or a bid bond from a surety licensed in North Carolina. The county keeps the deposit if the winner doesn't sign within 10 days (G.S. 143-129(b)).

Bonds. Performance and payment bonds of 100% each are required from any contractor or construction manager at risk whose contract is over $50,000, when total contracts for the project exceed $300,000. The county may require bonds on any contract (G.S. 44A-26).

Retainage. See Getting paid below.

Notice and award

Notice. Formal bids are advertised in a newspaper with local circulation, electronically or both. Electronic-only advertising needs governing board approval at a regular meeting. Notice must run at least 7 full days before bid opening (G.S. 143-129(b)). Informal bids need no formal advertisement (G.S. 143-131).

Award. Contracts go to the "lowest responsible bidder(s)," taking into account quality, performance and the time specified for performance. The county may reject all bids for a valid reason. If all bids exceed available funds, it may negotiate with the lowest responsible bidder (G.S. 143-129(b)). See lowest responsible bidder.

Prevailing wage

North Carolina has no state prevailing wage law (U.S. Department of Labor table as of 2014). Federally funded projects may carry Davis-Bacon rates; check the solicitation.

Getting paid

Construction payments. Final payment is due within 45 days after acceptance, certified completion or occupancy. Interest of 1% per month runs from day 46. Late periodic payments earn interest from their due date. Primes must pay subcontractors within 7 days (G.S. 143-134.1). We found no local government prompt payment statute for goods and services invoices. See prompt payment.

Retainage. No retainage may be held on projects under $150,000. Otherwise, retainage is capped at 5% of each periodic payment. Once the project is 50% complete and performance is satisfactory, no more is withheld, with the surety's consent; the owner may hold up to 2.5% in total. Retainage is released within 60 days after substantial completion, less up to 2.5 times the value of remaining work (G.S. 143-134.1).

Cooperative purchasing and state contracts

Formal bidding is not required for (G.S. 143-129(e), (g)):

• Purchases from another governmental unit or the federal government.
• Competitive group purchasing programs.
• State contracts, if the vendor offers the same or better terms, and federal contracts.
• "Piggybacking" on a vendor that won a substantially similar public bid in the past 12 months. This needs board approval at a regular meeting, with notice published at least 10 days before.

See cooperative purchasing.

Preferences and required certifications

• E-Verify. A county may not contract unless the contractor and its subcontractors comply with the state E-Verify law. Goods-only contracts, state and federal contract purchases and piggyback purchases are exempt (G.S. 143-133.3).
• Iran. Companies on the State Treasurer's Iran list are ineligible to contract with any political subdivision, and contracts signed with them are void (G.S. 147-86.60).
• Restricted companies. Companies on the restricted list are ineligible to contract with any political subdivision (G.S. 147-86.82). How the list ties to an Israel boycott is not confirmed.
• Architect and engineer reciprocity. Resident firms get a reciprocal preference that matches the other state's rule (G.S. 143-64.31(a)).

Local or in-state preferences for goods and construction, veteran preferences and non-collusion affidavits were not confirmed; check the solicitation.

Architects and engineers

North Carolina's mini-Brooks Act applies to "all public subdivisions and Local Governmental Units." It covers architect, engineer, surveyor, construction manager at risk, design-build and public-private partnership services. Firms are selected on demonstrated competence and qualifications without regard to fee, other than unit prices. The county then negotiates a fair fee with the best-qualified firm and must make good-faith efforts to notify minority firms (G.S. 143-64.31). A county may exempt, in writing, a specific project with an estimated fee under $50,000 (G.S. 143-64.32). See qualifications-based selection.

Practical tips for North Carolina

• Get on informal bid lists. Goods from $30,000 to $90,000 and construction up to $500,000 use informal bids, often from vendors the county already knows.
• Watch for short notice periods. Formal bids can be advertised just 7 full days before opening.
• Watch for piggyback notices. A county must publish notice 10 days before approving a piggyback purchase.
• Check North Carolina counties for each county's bid platform, contacts and agendas.