I don't think a local school district is considered a government. I know it's a taxing body, and when I think about the enormous tax bill I pay, and how much of that tax bill goes to the school district, I would rather see my money go to a local business, with local employees who use local materials.
If that means taking a higher bid, then let the taxpayers know why you have chosen that bidder.
And I believe most taxpayers would be fine with it.
But when the district is less than transparent and is continuously mired in rumors of nepotism, scandal, shady plans and back door deals, it makes the taxpayers leery and suspicious.
I don't believe anyone who has a spouse, adult child or relative currently teaching within the district should be allowed to be on the board. It screams conflict of interest.