DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: Citywide
SUBJECT:
Amendment to Local Preference Program
SUMMARY:
This Ordinance will amend the Local Preference Program to expand its application to additional types of contracting categories. Since the implementation of this program on May 1, 2013, opportunities have been identified to expand the scope of the program.
BACKGROUND INFORMATION:
Ordinance 2013-03-21-0167 established the Local Preference Program allowing the City to grant contracting preferences to local businesses in circumstances when price alone determines the winning bid for personal property, non-professional services and construction services. Under the current program, a contract would be awarded to a City-located business in instances where the City receives a bid from a local firm that is within a certain percentage of the lowest bid price received by a non-City business. Additionally, provisions were included in the current ordinance granting preferences to local businesses in certain discretionary contract solicitations.
In the seven months the Local Preference Program has been in effect, the Finance Department has identified potential changes to expand application of the program. The original ordinance applied a preference to contracts for goods and non-professional services that are governed by Title 8 of the Texas Local Government Code, and awarded based solely on price (i.e. low bid contracts). This amendment will expand the application to any contract for goods and non-professional services where the City chooses to conduct a solicitation process and to award on the basis of price. For example, the preference would apply to procurements utilizing the health or safety exemption found in Chapter 252, Texas Local Government Code, when the City seeks offers from multiple suppliers. It would also apply when the City seeks offers from multiple vendors who have contracts wi...
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