State Procurement Restrictions in Agreements

backgrounder(yellow)

The 38 states committed to open procurement under international agreements can deny access to purchases that fall under exclusions and restrictions applicable to all states. Furthermore, many states reserve certain procurement for local suppliers based on state-specific exclusions.

General Exclusions of State Procurement:  State procurement that is not open to parties to the WTO Government Procurement Agreement (GPA) and free trade agreements (FTAs) includes the following:

  • Procurement under state programs promoting the development of distressed areas and businesses owned by minorities, disabled veterans and women.
  • Procurement by a covered state entity on behalf of a non-covered entity at a different level of government.
  • Procurement for highway, railway and transit projects that are undertaken with federal grants, which impose Buy America restrictions. Foreign suppliers may participate in such projects, provided they meet the domestic content restrictions.
  • Procurement of services excluded by the United States for all state and federal entities, as well as printing services.

In addition, a state may apply restrictions in its procurement that promotes its general environmental quality, as long as the restrictions are not disguised barriers to international trade.

State-Specific Exclusions:  The states that have qualified their coverage of procurement with specific exclusions and their exclusions are set out in the following chart, along with the states that have not taken any  exclusions.

STATE      State-Specific Exclusions of Goods, Services & Construction Services

Arizona None
Arkansas Construction services
California None
Colorado None
Connecticut None
Delaware Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Florida Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Georgia Beef, compost, mulch
Hawaii Construction services, software developed in state
Idaho None
Illinois Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Iowa Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Kansas Construction services, automobiles, aircraft
Kentucky Construction services
Louisiana None
Maine Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Maryland Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Massachusetts None
Michigan Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Minnesota None
Mississippi Services
Missouri None
Montana Goods
Nebraska None
New Hampshire Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
New York Construction-grade steel (including requirements on subcontracts), motor vehicles, coal; procurement by public authorities and public benefit corporations with multi-state mandates; transit cars, buses and related equipment
Oklahoma Construction services, construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Oregon None
Pennsylvania Construction-grade steel (including requirements on subcontracts), motor vehicles, coal
Rhode Island Boats, automobiles, buses, related equipment
South Dakota Beef
Tennessee Services, including construction services
Texas No exclusions in GPA, Chile FTA or Singapore FTA; exclusions of motor vehicles, travel agencies located in state and certain rubberized asphalt paving in other FTAs
Utah None
Vermont None
Washington Fuel, paper products, boats, ships, vessels
Wisconsin None
Wyoming Construction-grade steel (including requirements on subcontracts), motor vehicles, coal

Jean Heilman Grier

October 14, 2014

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