Local Preference
October 13, 2025
Jennifer Myles
Purchasing Agent, CPPB, NIGP-CPP
Scott Wagner
Interim CFO
Current Local Preference
Ordinance approved in 1993, 1% (current local preference only applies to the procurement of goods and general services)
Limited to a maximum of $5,000
T o qualify, bidders must submit proof their principal place of business is located within the City limits, and a copy of their City business tax certificate
Public works and Professional Services contracts not included Adopted to promote local business activity
Based on 1% sales tax return
Advantages and Challenges
Advantages:
◦ Support Local Economy.
◦ Meet Potential Agency Policy Goals.
◦ Potential Increase in Tax Revenue.
◦ Local preference may encourage local businesses to be more competitive.
Challenges:
◦ Increase in Cost: Agency may experience increased costs, higher prices for goods and services.
◦ Reduced Competition: Limiting competition by discouraging non-local businesses from bidding and reducing competition.
◦ Potential Favoritism: May create a perception of favoritism, lack of equal opportunity, or reciprocity with other jurisdictions.
◦ Lower Quality: May compromise highest quality goods and services if non-local bidders offer better value.
◦ *Resources: National Institute for Government Procurement (NIGP) 2015 Position Paper: Local Preference in Public Procurement Current Registered Vendors
Local Vendor Bid History
Since December 2013, a total of 838 bid awards
were made with a total value of $84,753,199.58.
Of the 838 bids awarded, 162 bids were
awarded to local vendors at a value of
$22,719,146.20 (26.81%).
Classification Awards Award Amount Percent
Local 162 $22,719,146.20 26.81
DBE 18 $1,833,278.32 2.16
CADIR 145 $19,114,195.19 22.55
SRL 94 $5,850,230.12 6.90
None 311 $28,380,062.02 33.49
PQual 17 $784,799.51 0.93
FSD 37 $1,777,772.22 2.10
MBE 27 $3,223,942.26 3.80
WBE 27 $1,069,773.74 1.26
Overall 838 $84,753,199.58 100
Comparative Agency Policy
Name of Agency %Preference
City of Alameda 5%
City of Bakersfield 3%
City of Redding 5%
City of Mountain View 0%
City of Roseville 0%
City of Rohnert Park 0%
City of Sacramento 5%
City of San Leandro 10%
City of Santa Clarita 0%
City of La Mesa 0%
City of Berkeley 5%
City of Napa 3%
City of Camarillo 0
City of Hayward 0
City of Corona 0
City of Carlsbad 1%
City of Santa Rosa 1%
Questions
and Comments?