PROCUREMENT | HOME | POLICIES AND PROGRAMS

Since the early 2010s, the City of Austin has maintained separate Local Business and Small Business Preference Procurement Programs to encourage and promote additional opportunities for Local and Small Businesses to participate under City contracts. At the request of Austin City Council in the Fall of 2022, the City’s Local Business and Small Business Preference Procurement Programs were recently streamlined and enhanced. Beginning October 1, 2023, and continuing for a two (2) year pilot period, the City’s “Small Business Program” will operate as follows.

Small Business Program.

The City defines Small Business as any person or corporate entity holding a recognized certification that, among the certification’s requirements, includes compliance with the US Small Business Administration’s Small Business Size Standard. Currently, the City recognizes the following certifications in determining a Small Business for purposes of this program:

City of Austin           

·            Minority-owned Business Enterprise (MBE)

·            Women-owned Business Enterprise (WBE)

·           Small Business Enterprise (SBE)

State of Texas

·            Historically Utilized Business (HUB)

·           Small Business Enterprise (SBE)

US Federal Government

·            Disadvantaged Business Enterprise (DBE)

·            Women-owned Small Business (WOSM)

·            Economically Disadvantaged Women-owned Small Business (EDWSB)

·            Veteran-owned Small Business (VOSB)

·            Service-disabled Veteran-owned Small Business (SDVOBS)

·            Airport Concession Disadvantaged Business Enterprise (ACDBE)

Program Notes.

(1)    Professional Services.  Professional services contracts are not included in the Small Business Program.

(2)    Subcontractors.  Subcontractors are not included in the Small Business Program.

(3)    Preference Points.  When Small Business Offerors participate in Invitations for Bids (IFB) or Request for Proposals (RFP) issued by the City, their bids or proposals will be subject to the following preferences points:

(4)    Best Value Competition.  Best Value competition under IFBs and RFPs are very similar. In both solicitation methods, the contract will be awarded to the Offeror submitting the bid or proposal that represents the best value to the City by virtue of receiving the most points.

(4.1)     Invitation for Bids (IFB).  The price criteria weight is fixed at 90 points. Bids may not be revised, and no negotiations are allowed.

(4.1.1)     IFB Example:  Each bid will be evaluated based on the following criteria:

(4.2)     Request for Proposals (RFP).  Price criteria weight is variable. In addition to criteria for Local and Small Business, there will be other evaluation criteria. Proposals may be revised, and negotiations are allowed.

(4.2.1)     RFP Example:  Each proposal may be evaluated based on criteria similar to:

(5)    Price Points.  IBFs will include 90 points for price. RFPs will include a lower amount of price points.  For both IFBs and RFPs, the low price will receive all price points. All other bids or proposals will receive a proportionate amount of the price points depending on their price’s relative distance from the low price, based on the following formula: ( Low Price / Each Price ) X 90 Points

(5.1)     IFB Example:  A solicitation receives four (4) bids. Price points are allocated as follows: