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 “Local Preference Program” will operate as follows.
Local Preference Program.
The City defines Local Business as any person
or corporate entity with headquarters located in Greater Austin (“Austin-Round
Rock-San Marcos Metropolitan Statistical Area”) including the counties of
Bastrop, Caldwell, Hays, Travis, and Williamson. The City defines headquarters
as the location where:
(1) the company’s owners or
leadership direct the company’s operations, or
(2) the company’s central
administrative operations occur.
Program Notes.
(1)
Professional
Services.
Professional services contracts are not included in the Local Preference
Program.
(2)
Subcontractors. Subcontractors
are not included in the Local Preference Program.
(3)
Preference
Points.
When Local 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:
Contract Scopes |
Total Value |
Small Points |
Goods, General
Services & Construction |
$50K to $100K |
5 |
Goods & General
Services |
$100K to $500K |
5 |
Goods & General
Services |
$500K to $50M |
3 |
Goods & General
Services |
Above $50M |
0 |
(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:
Criteria |
Points |
Price |
90 |
Local Business
Preference |
Up to 5 |
Small Business
Preference |
Up to 5 |
Total: |
Up to 100 |
(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:
Criteria |
Points |
Proposed Products and
Service |
25 |
Company Qualifications
and Experience |
25 |
Key Personnel
Qualifications and Experience |
20 |
Price |
20 |
Local Business
Preference |
Up to 5 |
Small Business
Preference |
Up to 5 |
Total: |
Up to 100 |
(5)
Price Points. IFBs 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:
Offerors |
Prices |
Price Points |
Point Allocations |
Offeror A |
$200,000 |
90 |
90.00 |
Offeror B |
$250,000 |
72.00 |
|
Offeror C |
$550,000 |
32.73 |
|
Offeror D |
$50,000,100 |
0.36 |