Agenda

Return

C. 64

To:	Board of Supervisors
From:	INTERNAL OPERATIONS COMMITTEE
Date:	November 17, 2015

Contra

Costa

County

Subject:

ANNUAL REPORT ON LOCAL BID PREFERENCE PROGRAM

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 11/17/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:	David Gould 925.313-2151
cc:	Public Works Director Purchasing Services Manager IOC Staff

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: November 17, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ACCEPT 2014/15 report prepared by the Public Works Department on the County's Local Bid Preference Program.

FISCAL IMPACT:

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.

BACKGROUND:

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 IOC, on October 12th, received the attached report from the Public Works Director indicating that 67% of the purchase orders done via formal solicitation and meeting the program criteria were awarded to local vendors, at a total value of more than $275,442. Generally, of the more than $115 million in purchase orders issued in 2014/15, 20% were issued to Contra Costa County businesses and another 18% were issued to other Bay Area businesses. This compares favorably to the prior year, in which 15.5% of these purchase orders were issued to Contra Costa County businesses and another 13% were issued to other Bay Area businesses.

The Committee accepted the attached staff report and asked the Purchasing Services Manager to provide more information in future reports about how the Local Bid Preference Program meshes with the Small Business Enterprise and Outreach Programs. The Committee recommends no changes to the program.

CONSEQUENCE OF NEGATIVE ACTION:

None. This is an informational report only.