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    LegalEase Newsletter | FAQs by Subject

    News Article | February 16, 2026

    County Finances

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    Legal Guidance

    “We need to go out for bids, but I really want the contract to go to one of our local mom-and-pop shops. Can we only take bids from businesses in the county?”

    Can the county restrict its bids to local businesses?

    The Texas attorney general has opined that requiring a bidder to be located within the county is an illegal restriction on competition. See Tex. Att’y Gen. Op. No. JH-1086 (1977). However, the attorney general also noted that circumstances may exist where the proximity of the bidders determines who the lowest responsible bidder is.

    For more information, see our updated Procurement Handbook.