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Firms Outside Ariz. Get State Contracts

POSTED: 12:09 pm MST May 12, 2009
UPDATED: 4:13 pm MST May 12, 2009

Arizona awards roughly $6 billion in contracts to outside companies every year; however, some of those dollars are going to companies outside the state, despite the fact that more than 245,000 residents are unemployed.

Sporting goods, insurance consulting and architectural and engineering contracts are all going to firms in states like California, Colorado, Florida, Missouri and Maine.

According to Jean Clark from the Arizona Procurement Administration, the state does not give preference to Arizona-based companies because it would result in less competition and higher prices for goods and services paid for by taxpayers.

"The state of Arizona does not have any preference laws," Clark said. "Really, what we're trying to do is get the best value for the state of Arizona to ensure that we're paying the lowest cost possible for what the product or services are that meet our needs."

Additionally, preference laws could result in a backlash in other states, making it more difficult for Arizona companies to do business outside the state's borders.

It is unconstitutional to require all state contracts be awarded to Arizona companies.

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