My company recently bid on a construction project for the City of Lewisville. This was a traditional low bid process and no unique decision criteria were listed. After the bid we were the appearant low bidder and the Parks Department and the Purchasing Mangager recommended our firm to the Council for this project. During the evaluation the second low bidder who is domiciled in the local municipality introduced an obscure piece of code that indicates that if the second bidder is withing 5% of the low bid and they are domiciled in the municipality that the council can choose to award to either the low bidder or the second bidder if it can be determined that the second bidder provides additional economic impact/value. It appears that the council is going to choose the later route.

Is this rule being applied for its intended purpose? Are there any members who are aware of this piece of code?

I have copied and pasted it here for review. Any feedback is appreciated

� 271.9051. CONSIDERATION OF LOCATION OF BIDDER'S PRINCIPAL PLACE OF BUSINESS IN CERTAIN MUNICIPALITIES. (a) This section applies only to a municipality with a population of less than 250,000 that is authorized under this title to purchase real property or personal property that is not affixed to real property.
(b) In purchasing under this title any real property, personal property that is not affixed to real property, or services, if a municipality receives one or more competitive sealed bids from a bidder whose principal place of business is in the municipality and whose bid is within five percent of the lowest bid price received by the municipality from a bidder who is not a resident of the municipality, the municipality may enter into a contract with:
(1) the lowest bidder; or
(2) the bidder whose principal place of business is in the municipality if the governing body of the municipality determines, in writing, that the local bidder offers the municipality the best combination of contract price and additional economic development opportunities for the municipality created by the contract award, including the employment of residents of the municipality and increased tax revenues to the municipality.
(c) This section does not prohibit a municipality from rejecting all bids.
(d) This section does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153.

Also here is the list of definitions provided.

� 271.003. DEFINITIONS. In this subchapter:

(1) "Conservation and reclamation district" means a

district or authority organized or operating under Article III,

Section 52, or Article XVI, Section 59, of the Texas Constitution.

(2) "Contract" means an agreement entered into under

this subchapter but does not mean a contract solely for the

construction of improvements to real property.

(3) "Governing body" means the board, council,

commission, agency, court, or other body or group that is

authorized by law to acquire personal property for each respective

governmental agency.

(4) "Governmental agency" means a municipality,

county, school district, conservation and reclamation district,

hospital organization, or other political subdivision of this

state.

(5) "Hospital organization" means a district,

authority, board, or joint board organized under the laws of this

state for hospital purposes.

(6) "Net effective interest rate" means, with

reference to a contract, the interest amount considered by the

governing body of a governmental agency to accrue on a contract.

(7) "Net interest cost" means the total of all

interest to accrue and come due on a contract through the last date

a payment is due on the contract, plus any discount or minus any

premium included in the contract price or principal sum.

(8) "Personal property" includes appliances,

equipment, facilities, and furnishings, or an interest in personal

property, whether movable or fixed, considered by the governing

body of the governmental agency to be necessary, useful, or

appropriate to one or more purposes of the governmental agency. The

term includes all materials and labor incident to the installation

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