Opening Doors for Local Businesses: Supervisors Give Local Preference in Bids for Certain Goods and Services

Redwood City -To open doors for local businesses, the Board of Supervisors voted unanimously today to give preference to San Mateo County-based businesses in certain competitive bids.

"This is a huge realization of our county's values and an investment in the future of more thriving local businesses in this county. I'm excited to see the positive impacts this will have in our community now and in the decades to come," said Supervisor Noelia Corzo, who co-sponsored the measure with Board President Warren Slocum.

The ordinancecreates more opportunities by providing a formula that gives local businesses an advantage when bidding on contracts for goods or services.

Local preference works like this: When a San Mateo County-based firm submits a bid for goods or services solicitations, that bid is considered as if it were 5 percent cheaper (and that much more attractive) than those submitted by nonlocal competitors.

An additional 3 percent preference (for a total of 8 percent) would be given if the bidder is a local small business. Bidders that are local and certified as a "micro business" would receive a 5 percent preference (for a total of 10 percent).

"We know that our County is one with a lot of prosperity - but that prosperity isn't shared by all," Slocum said. "We think that a small preference for local enterprises will lift up so many workers by opening doors for local businesses to thrive right here in their own front yard."

Corzo and Slocum said many local businesses face competitive disadvantages when bidding on government contracts due to the area's high rents and operating expenses.

"Keeping money in the local economy and supporting our small businesses is good for our business, good for local employment, our County values and our communities," Slocum said.

A study commissioned by the County prompted the initiative.

The 2024 Supplier Diversity Studyfound many local small businesses and those operated by racial and ethnic minorities, women, the LGBTQIA+ community and other underrepresented groups face barriers and are underutilized in County procurement.

While trying to open doors for local businesses, the Board also put in place safeguards for taxpayers. The local preference, for example, can be waived if a bid exceeds nonlocal bids by $10,000 or "if it is determined that the best interest of the County would be served."

The local preference ordinance will go into effect on July 1, 2025.

Under the local-preference rules, the following applies:

• "Local Business" means any for-profit business with the headquarters in San Mateo County.
• "Small Business" means any business which holds a Small Business Certification awarded by the California Office of Small Business and Disabled Veteran Business Enterprise Services.
• "Micro Business" means any small business that meets certain standards as applied by the California Office of Small Business and Disabled Veteran Business Enterprise Services.

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