Agenda

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INTERNAL OPERATIONS COMMITTEE

Meeting Date:	09/09/2019
Subject: Small Business Enterprise & Outreach Program and Local Bid Preference Program Reports for Jan-Jun 2019
Submitted For:	Brian M. Balbas, Public Works Director/Chief Engineer
Department:	Public Works
Referral No.:	IOC 19/1; 19/4
Referral Name:	Small Business Enterprise and Outreach Programs; Local Bid Preference Program
Presenter:	David Gould, Purchasing Services Manager	Contact:	David Gould (925) 957-2491

Information

Referral History:

Contra Costa County values the contributions of small business in the County and has developed programs to assist in the solicitation and awarding of contracts. The Board of Supervisors has adopted these programs to enable small and local businesses to compete for a share of the County's purchasing transactions.

SBE and Outreach Programs. The Board of Supervisors has set a goal of awarding at least 50% of eligible product and service dollars to small businesses. The Small Business Enterprise (SBE) Program applies to: (1) county-funded construction contracts of $100,000 or less; (2) purchasing transactions of $100,000 or less; and (3) professional/personal service contracts of $100,000 or less. The SBE Program's objective is to have at least 50% or more of the total eligible dollar base amounts be awarded to SBEs. A Small Business Enterprise, as defined by the California Government Code, Section 14837, Chapter 3.5 must be:

Independently owned and operated business, which is not dominant in its field of operation
Principal office of which is located in California
Officers of which are domiciled in California, and which together with affiliates, has 100 or fewer employees
Average annual gross receipts of fourteen million dollars ($15,000,000) or less over the previous three tax years, or a manufacturer with 100 or fewer employees.

Local Bid Preference Program. 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.

Reporting Requirements
It is the responsibility of each department to track and compile the data on purchasing and outreach activities so that a countywide report can be provided to the Board of Supervisors. It is the responsibility of the Purchasing Services Manager to comply with and report on the Local Bid Preference Program. The Board receives reports for six month increments, and the last report received by the Board was for the period ending December 2018. The attached report constitutes the next report due for the time period of January 1 through June 30, 2019.

Since adoption, the IOC has continued to monitor the effects of these programs through annual reports, currently prepared and presented by the Purchasing Services Manager.

Referral Update:

Attached is the SBE, Outreach, and Local Bid Preference Programs report for the period January 1 through June 30, 2019.

Recommendation(s)/Next Step(s):

ACCEPT the Small Business Enterprise, Outreach, and Local Bid Preference Programs Report, reflecting departmental program data for the period January 1 through June 30, 2019.

Fiscal Impact (if any):

None. This is an informational report.

Attachments
1 SBE, Outreach and Local Bid Programs Report for January-June 2019
SBE, Outreach and Local Bid Programs Report for January-June 2019- - Attachment A