In an effort to help stimulate the local economy and encourage growth of area businesses, the City of Sacramento now offers a local business preference for city contracting opportunities. The incentive program gives a 2 percent bidding preference to local companies located within the city or unincorporated county of Sacramento. In addition to this new program, the city has also helped to streamline the contracting process through contracting changes and technology implementation.

“We understand that our local business community’s viability is essential to an economic turnaround,” Jim Rinehart, Economic Development Director. “This local business preference encourages and supports local vendors who reside in city limits or in the unincorporated Sacramento County. In the end, it will boost our local economy.”

The program is similar to other incentives offered throughout California, including the bay area. Eligible businesses will receive a 2 percent bidding advantage for procurement contracts below $100,000 and the same advantage to firms offering professional services on contracts of $100,000 or more. The local business preference is similar to the City's existing emerging and small business program, which provides a 5 percent preference to small businesses that are registered in the program. Qualified companies can take advantage of both the local and small business preference to receive a combined 7 percent advantage when competing for city contracts.

“Making Sacramento even more business-friendly is our goal to creating increased economic vitality," Rinehart said. "In addition to this new local business preference, we are also streamlining our contract process and introduced technology to make response to bidding even easier."

As part of this streamlined process, the City recently simplified standard contract forms for professional and non-professional services for $25,000 and less, by combining related provisions, eliminating non-relevant provisions or exhibits, and placing standard contract provisions and exhibits on the City’s website and incorporating these exhibits and provisions by reference, where applicable. This has reduced 17-18 page contracts down to 3-4 pages.

In addition, the Procurement Division of General Services recently unveiled “Planet Bids”, an online bidding system that permits electronic bid submission, reducing both submission time and errors in the bidding process. Combined these new efforts enable small businesses to be more competitive for city contracting opportunities and create an easier contracting process.

Companies interested in more information should contact the City's Economic Development Department, www.cityofsacramento.org/econdev.