Local PreferencePROCUREMENT OF GOODS & GENERAL SERVICES January 11, 2022
ECONOMIC DEVELOPMENT SUBCOMMITTEE
1 Definition
A local preference occurs when a local firm is favored in a procurement over non-local firms for reasons unrelated to the procurement itself, typically to support the local economy.
May be applied to GOODS and/or to SERVICES.
2 Types of Preferences
Second Chance Bids: when a local firm is offered the chance to match the lowest bid Tie Bids: when the bid of a local bidder is the same as a non-local bid Percentage Bids: when the local bid falls within a certain percentage of that of the lowest non-local bid Reciprocal Bids: when the local bid is reciprocal to that of a non-local bid Absolute Bids: where the bid is awarded to the local bidder even if it’s not the lowest bid; can be applied to certain commodities Bidding or Value Credits: credits/discounts that augment a local firm’s actual bid for the purpose of bid comparisons 3 Current Local Preference Code
City Code Chapter 3-08.130.I
1% preference in determining low monetary bid – up to $5,000 Business entity must prove principal place of business within Santa Rosa Only applies to formal written solicited bids for goods and general services Does NOT apply to Public Works (precluded by law) and Professional Services contracts Complies with Prop 209 – prohibits consideration of race, sex, or ethnicity(Federal mandates re: minority/women owned procurement goals exist in Transit and CIP) 4 Definitions
5 Goods: a tangible or physical product
General Services: work performed, or services rendered by an independent contractor (e.g., custodial services, building and equipment maintenance, equipment rental, etc.) Professional Services: e.g., architects, engineers, attorneys, and other consultants or individuals possessing a high degree of technical skill DBE: Disadvantaged Business Enterprise Small business where socially and economically disadvantaged individuals own at least 51% of the business and control management and daily business operations.
MBE: Minority Business Enterprise51% of business is owned by minority individuals, and management and daily operations are controlled by those minority group members.
WBE: Women Business Enterprise51% of business is owned by, and management and daily operations are controlled by women.
Registered Vendors & Awards
2019 REGISTERED VENDORS
2017-2019 BID AWARDS
6 Discussion
7 What objectives do we want to achieve?
What vehicles to achieve objectives? (is the local preference the right tool?) What criteria? (in alignment with legal constraints)
What administrative requirements should be considered?
NEXT STEPS:
Proposed March revisit based on discussion today