City Expands Local Preference Program for Procurements to Enhance Opportunities for Long Beach Businesses

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PRESS RELEASE

Long Beach, CA - The City of Long Beach has expanded its Local Preference Program to include contracts for goods and services that are awarded through a Request for Proposal (RFP) process. Long Beach businesses and nonprofits will now receive an additional 5 to 10 percentage points in the 100-point rating system the City uses to rank proposals. The updated Program expands preference for local vendors to include all procurement methods that are used to purchase goods and services by the City and is designed to increase opportunities for Long Beach businesses and strengthen the local economy.

"Long Beach businesses are an indispensable asset to our local economy, and we remain dedicated to ensuring their success," said Mayor Rex Richardson. "By prioritizing local spending in our procurement process, we are able to invest more of the City's resources back into our community."

To qualify, vendors must have a place of business that is located within Long Beach city limits, as well as a valid business license issued by the City and a seller's permit issued by the State of California, if applicable.

In addition to expanding the Program, the City is further reducing barriers for vendors by increasing the threshold for small-dollar purchases from $25,000 to $40,000. This increase provides vendors the opportunity to do business with the City at a higher dollar amount and more efficiently, utilizing a streamlined process by supplying quotes for goods and services instead of bids or proposals.

Long Beach-based vendors will now receive the following preferences:

• For goods or services purchased though an RFP where a contract is awarded based on vendor's ability to provide the best value to the City, 5 percentage points will be added to the overall score for home-based businesses and 10 percentage points will be added for retail or commercial (non-residential) businesses.
• For goods purchased through an Invitation to Bid (ITB) where a contract is awarded to lowest responsible bidder, local bidders will receive a 10% preference, up to a $50,000 discount on their bid.
• For small-dollar purchases ($40,000 or less) that are handled through an informal procurement process where the City selects a vendor who submits the best quote (which could be lowest responsible or best value), local businesses will receive a 10% preference when compared to other quotes.

City departments will work to obtain local quotes as often as possible with assistance from the City's Inclusive Procurement Outreach Coordinator, a new position created to expand outreach and tailored support to local businesses that are under-represented in the City's current vendor base.

This program expansion was in direct response to Long Beach City Council direction to increase local preference support for local businesses as part of the Extreme Procurement Makeover Project, including expansion to incorporate RFPs. This item was brought forward in March 2022 by Second District Councilwoman Cindy Allen, co-sponsored by Sixth District Councilwoman Dr. Suely Saro and former Fifth District Councilwoman Stacy Mungo and was approved by the City Council.

"As a former small business owner, I understand the challenges our businesses face when it comes to working with the City. This expansion of our Local Preference Program shows we are committed to creating more opportunities for our local businesses to thrive," said Vice Mayor and Second District Councilwoman Cindy Allen. "Local Preference is about making our businesses feel welcome here, ensuring they have the resources they need and building a stronger and more vibrant local economy."

These expansions in procurement opportunities underscore the City's commitment to providing the best outcomes for Long Beach businesses. The Department of Financial Management, which oversees the City's procurement processes, was awarded the prestigious 2024 Achievement of Excellence in Procurement Award from the National Procurement Institute. The award recognizes agencies that demonstrate a commitment to procurement excellence through innovation, professionalism, productivity, e-procurement and leadership.

"This award is a testament to the City's commitment to transparency, efficiency and equity in our procurement process," said City Manager Tom Modica "I am proud of the work we have done to create a system that not only meets the needs of our city and its residents, but also supports our local businesses."

Businesses and nonprofits are encouraged to register on the City's e-procurement platform, Long Beach Buys, to view upcoming opportunities and submit proposals. Additionally, current and prospective vendors are invited to attend the monthly Doing Business with the City webinar to learn more about the City's procurement process and preview upcoming opportunities. The webinar is held every third Thursday at 11 a.m. with the next occurrence scheduled for Oct. 17. Participants will receive Zoom meeting details upon completion of the registration form.

About the City of Long Beach
Long Beach is nestled along the Southern California coast and home to approximately 466,000people. As an award-winning full-service charter city, Long Beach offers the amenities of a metropolitan city while maintaining a strong sense of individual and diverse neighborhoods, culture and community. With a bustling downtown and over six miles of scenic beaches, Long Beach is a renowned tourist and business destination and home to the iconic Queen Mary, nationally recognized Aquarium of the Pacific and Long Beach Airport, award-winning Long Beach Convention and Entertainment Center and world-class Port of Long Beach.

For more information about the City of Long Beach, visit longbeach.gov. Follow us on social to keep up with the latest news: Facebook, X, Instagram and YouTube. More information about the Department of Financial Management's Purchasing Division is available at longbeach.gov/purchasing.

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