Listen to this note:
In order to open the doors to local companies, the Board of Supervisors voted unanimously Tuesday to give preference to companies based in San Mateo County in certain competitive bidding processes.
"This is a tremendous realization of our county's values and an investment in the future of thriving local businesses in this county. I'm excited to see the positive impacts this will have on our community now and in the future," said Supervisor Noelia Corzo, who co-sponsored the measure with Board Chairman Warren Slocum.
In this regard, they warned that the ordinance creates more opportunities by providing a formula that gives local companies an advantage when bidding for contracts for goods or services.
Local preference works by saying that when a company based in San Mateo County submits a bid to purchase goods or services, that bid is viewed as being 5 percent cheaper and therefore more attractive than bids submitted by non-local competitors.
In addition, an additional 3 percent preference (for a total of 8 percent) will be granted if the bidder is a small local business, while those certified as "micro-enterprises" will receive a 5 percent preference (for a total of 10 percent).
"We know our county is a place of great prosperity, but that prosperity is not shared by everyone," Slocum said. "We believe that a little preference for local businesses will help many workers by opening the doors for them to prosper right here in their own front yard."
Corzo and Slocum said many local businesses face competitive disadvantages when bidding for government contracts because of 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 jobs, our county values and our communities," Slocum explained.
The initiative was prompted by the 2024 Supplier Diversity Study, which found that many small, local 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 the initiative attempts to open the doors to local businesses, the board also sets safeguards for taxpayers. Local preference, for example, can be waived if a bid outbids nonlocal bids by $10,000 or "if it is determined that the best interest of the county will be served."
The local preference ordinance will go into effect on July 1, 2025.
You may be interested in: Learn about some of the measures approved by San Mateo County residents