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INTERNAL OPERATIONS COMMITTEE

Meeting Date:	10/12/2015
Subject: ANNUAL REPORT ON THE LOCAL BID PREFERENCE PROGRAM
Submitted For:	Julia R. Bueren
Department:	Public Works
Referral No.:	IOC 15/4
Referral Name:	LOCAL BID PREFERENCE PROGRAM
Presenter:	David Gould, Procurement Services Manager	Contact:	David Gould (925) 313-2151

Information

Referral History:

On August 10, 2004, the Board of Supervisors referred to the Internal Operations Committee (IOC) the creation of a policy to grant a five percent preference to Contra Costa County vendors on all sealed bids or proposals, except with respect to those contracts which state law requires to be granted to the lowest bidder, and review of an ordinance to be drafted by County Counsel to enact this policy. The 2005 IOC proposed a new ordinance to the Board of Supervisors, and the Board adopted the local bid preference ordinance to support small local business and stimulate the local economy at no additional cost to the County. The ordinance provides that if the low bid in a commodities purchase is not a local vendor, any responsive local vendor who submitted a bid over $25,000 that was within 5% percent of the lowest bid has the option to submit a new bid. The local vendor will be awarded if the new bid is in an amount less than or equal to the lowest responsive bid, allowing the County to favor the local vendor but not at the expense of obtaining the lowest offered price.

The ordinance defines a local vendor as any business that has its headquarters, distribution point, or locally-owned franchise located within the county for at least six months immediately prior to the issuance of the request for bids, and holds a valid business license by a jurisdiction in Contra Costa County.

Since adoption, the IOC has continued to monitor the effects of the program through annual reports prepared and presented by the Purchasing Agent or designee. The Public Works Department made its last status report in September 2014 and also made a presentation to the Board of Supervisors in November 2014 regarding how County dollars spent locally have a positive impact on the local economy in terms of small business support, job creation, new spending and additional tax revenue. The department had set a goal to utilize available technology to increase the visibility of local businesses that offer services needed by County departments.

Referral Update:

Attached is the FY 2014/15 Local Bid Preference Program report prepared by the Procurement Services Manager. Six bids met the program criteria in 2014/15 and awards were made under the program to local bidders in four of the six cases. This experience demonstrates that the program works for procurements that meet the program criteria. The challenge remains for local businesses become more competitive with out-of-county businesses.

Recommendation(s)/Next Step(s):

ACCEPT annual report prepared by the Public Works Department on the County's Local Bid Preference Program.

Fiscal Impact (if any):

No fiscal impact, as this is only an informational report. The program itself results in no financial loss to the County because purchase orders are still awarded to the lowest bidder. The program merely gives a second opportunity for local bidders who are within 5% of the lowest bid to meet or beat the lowest bid. The objective of the program is to stimulate the local economy and job creation.

Attachments
FY 2014/15 Local Bid Preference Program Annual Report