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1 RiversideCA.gov
1 RiversideCA.gov
LOCAL VENDOR PREFERENCE
PROCUREMENT POLICY EXPANSION
UPDATE
Economic Development, Placemaking and
Branding/Marketing Committee
January 18, 2024
FINANCE DEPARTMENT
RiversideCA.gov
2 •Discuss and expand local preference
procurement policy.
•Direct staff to incorporate decisions
into policy and legislative revisions.
Recommendation Overview
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2 RiversideCA.gov
3 “Evolution of Local Preference Policies”
1991: 1% local preference for goods purchases.
2003: Local preference increased to 5% for goods.
2012: Community Benefit Program template for Design-Build contracts.
2020: Overview presented to Committee.
2021: Organizational plan received and filed.
2023: Finance Department outlines existing policies and recommendations.
Background
RiversideCA.gov
4 "Exploring Local Vendor Preference (LVP) Implementation" • NIGP Recommendations
• Review of Local Preference Policies
• Flexible Percentage Preferences
• Tiered Thresholds for Informal Solicitations
• Good Faith Effort for Informal Bidding
• Handling Multiple Qualified Local Vendors
• Data-Driven Decision-Making
Discussion
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3 RiversideCA.gov
5 "NIGP's Stance and Proposed Integration"
• **Conflict with impartiality and full competition.
• **Incorporate as a criterion within 'best value'
evaluation.
• Align with economic and social values.
NIGP Recommendations
RiversideCA.gov
6 "Diverse Landscape of LVP Implementation"
• City vs. County Policies
• Flexible Percentage Preferences
• Tiered Thresholds for Informal Solicitations
• Good Faith Effort for Informal Bidding
• Handling Multiple Qualified Local Vendors
• Data-Driven Decision-Making
Local Preference Policies Review
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7 "Optimizing Local Vendor Preferences with Data"
• Analysis of Table 1 (July 2020 - June 2023)
• LVP for Informal Procurement
• Increased Application by 28%
• Enhanced Participation in Different Procurement
Categories
Data-Driven Decision-Making
RiversideCA.gov
8 City Procurement Patterns
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5 RiversideCA.gov
9 "Strategic Application of Local Vendor Preference (LVP)" • LVP for Goods
• LVP for Services and Professional Services
• New Level One (Up to $10K)
• New Level Two ($10K - $50K)
• Level Three (Over $50K)
• Informal Procurement
• Formal Procurement
Finance Recommendations
RiversideCA.gov
10 "Balancing Preferences with Practicality"
• LVP Exceptions:
– Water, Sewer, or Refuse operations.
– Cooperative purchasing agreements.
– Contracts funded by entities prohibiting local preference. – Emergency or noncompetitive situations.
– Services with an estimated cost of $10,000 or less.
– Discretionary waiver by City Council.
Exceptions to Local Preference Policy
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6 RiversideCA.gov
11 "Aligning Procurement for Economic Growth"
• Strategic and data-driven LVP application.
• Recommendation within a 'best value' framework.
• Benefits to economic growth and community
development.
Conclusion
RiversideCA.gov
12 STRATEGIC PLAN ALIGNMENT
ECONOMIC OPPORTUNITY
CROSS-CUTTING THREADS
Equity
Innovation
Community Trust
Fiscal
Responsibility
Sustainability
and Resiliency
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7 RiversideCA.gov
13 That the Economic Development, Placemaking and
Branding/Marketing Committee:
1. Discuss and provide input for local preference procurement policy expansion; and
2. Direct staff to incorporate discussion decisions, as well as discuss determinations for policy and legislative revisions.
Recommendations
RiversideCA.gov
14 "Open Floor for Questions and Discussion"
Q&A
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