At its September 13, 2011 meeting, the Board of Supervisors increased the County’s bid preference from five percent to eight percent for certified, local small businesses which bid on county contracts. The change goes into effect November 1.
Local small businesses are currently eligible for a bid price reduction or ‘preference’ on the cost component of their submission. The County is required to select the lowest responsible and responsive bid for projects and services. Today’s Board action lowers the bid of a small business by eight percent. This preference is used only to determine the lowest bid during evaluation and does not change the amount of the contract award.
“Small businesses are a huge employer in Los Angeles County and play a vital role in our economy,” said Supervisor Don Knabe. “During these challenging times, when jobs are absolutely critical, we know that two out of three jobs in this County are created by small businesses. Our action today will help small vendors who want to do business with the County and we’re going to see them get more contracts. This supports small businesses, encourages them to hire more employees and boosts our local economy.”
Other County incentives for small businesses include a 15-day prompt pay turnaround on invoices for certified vendors. Also, County buyers are authorized, on a spot purchase basis, to acquire up to $5,000 in goods or services without getting the required three quotes only if purchased directly from a certified local small business.
Several small business programs are administered by the County Office of Small Business which conducts training and workshops for local businesses, as well as certifies small businesses to be eligible for bid preferences and other benefits of the program. More information is available at Office of Small Business’ website at www.laosb.org or 855-230-6430.