.04 Reciprocal Preferences — Supplies or Services.

A. Definitions.

(1) In this regulation, the following terms have the meanings indicated.

(2) "Preference" means:

(a) A percentage preference;

(b) An employee residency requirement; or

(c) Any other law, policy, or practice that favors a resident over a nonresident.

(3) "Resident business" means a business whose principal office or principal base of operations is located in the State.

(4) "Services" means services, construction-related services, or energy performance contract services.

B. Conditions. A procurement agency may give a preference to a resident business if:

(1) The resident business is a responsible:

(a) Bidder, under a competitive sealed bid;

(b) Offeror, under a competitive sealed proposal; or

(c) Provider of architectural or engineering services;

(2) A responsible bidder or offeror whose principal office or principal base of operations is in another state submits the lowest responsive bid or the most advantageous offer;

(3) The state in which the nonresident's principal office is located or the state in which the nonresident has its principal operation through which it would provide the goods or services gives a preference to its residents through law, policy, or practice; and

(4) The preference does not conflict with a federal law or grant affecting the procurement contract.

C. Application. A preference under this regulation shall be identical to the preference that the other state, through law, policy, or practice, gives to its residents.