Fiscal Note
Implementation of this local preference purchasing policy will establish new administrative responsibilities for staff in Information Services, central Purchasing and in the many operating departments who participate in the daily purchasing activities of City government. IS would be responsible for developing an on-line system for vendors to identify themselves as "local" and to maintain a list of these vendors on the City's web site for use by City staff and the public. Central Purchasing would be responsible for modifying current bid and RFP document formats to incorporate local preference criteria into the standard vendor selection processes for purchases over $25,000. Staff in all City agencies that make purchasing decisions over $5,000 would be responsible for incorporating the same criteria into their competitive selection processes when making vendor selections. Based on the proposed policy structure and the 4-month implementation timeline, it is likely that the necessary implementation work can be accomplished with available staff resources.
The policy also creates a 1% price preference or a 5% scoring preference for local vendors responding to non-public works bids, requests for quotations and requests for proposals. To the extent that these preferences result in the award of bids and contracts to other than the lowest price or highest scoring vendors, there is likely to be an increase in the price paid by the City for products and services. The extent of this potential increase is not known at this time, but Central Purchasing staff does not anticipate a substantial increase in costs given past experience. Following implementation of this policy, staff would attempt to accumulate and report the extent to which the award of bids and contracts has been influenced by the new policy.
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AMENDED - Adopting the Local Preference Purchasing Policy dated March 20, 2007.
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PREAMBLE
Local preference purchasing policies, or Bu...
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