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 embodiment of our county’s values and an investment in the future of more thriving local businesses in this county. I am excited to see the positive impacts this will have on our community now and for decades to come,” said Supervisor Noelia Corzo, who co-sponsored the measure with Board President Warren Slocum.
In this regard, they noted 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 like this: When a San Mateo County-based company bids for goods or services, that bid is considered 5 percent cheaper, and therefore more attractive, than bids from non-local competitors.
In addition, an additional 3 percent preference (for a total of 8 percent) would be granted if the bidder is a small local business, while those certified as "microenterprises" would 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 employment, 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 non-local bids by $10,000 or “if it is determined that the county’s best interest would be served.”
The local preemption 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
