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 The
City of San Jose's new local preference policy will encourage local companies
to do business with the City and speed the growth of jobs for San Jose residents.
The policy builds on the City's ongoing work to improve the City's systems
for purchasing goods and services.
Bids for goods and services from businesses located in Santa Clara County
will now be viewed more favorably than non-local competitors while still including
factors such as cost and experience. Small businesses with 35 or fewer employees
will also benefit. For bids on goods, local businesses will have a 2.5% cost
advantage and small, local companies a 5% cost advantage. In reviewing services
provided through a request for proposal process local businesses will receive
a 5% point advantage and small, local companies a 10% point advantage.
The new policy will help grow new jobs for residents by keeping more of
the City of San Jose's spending within the regional economy. This model is
based on successful implementation by other communities with additional local
improvements suggested through the public input process.
These changes are part of a larger City of San José program to make it easier
for businesses to sell products and services to the City through increased
outreach and process improvements. This effort, called the Small
Business Opportunity Program (SBOP), has also begun tracking the City's
performance in achieving higher rates of small business participation in contracts
and purchasing agreements. The San Jose City Council adopted the Local Preference
Policy on May 18, 2004 and it became effective on June 18, 2004.
City Council memorandums are available with specific details.
Small
and Local Business Contracting FY 05-06 (pdf)
Local Preference, (pdf)
(Local Preference Procurement
Supplement, (pdf))
Small Business Opportunity Program-
September 2003 (pdf), (Diagram-attachment,
(pdf))
Small Business Opportunity Program
- January 2003 (pdf)
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