Bay Area/ San Jose

San Mateo County Empowers Local Businesses with Competitive Bidding Incentives

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Published on November 19, 2024
San Mateo County Empowers Local Businesses with Competitive Bidding IncentivesSource: County of San Mateo

The San Mateo County Board of Supervisors has unanimously voted to give local businesses a leg up in the competitive bidding process for certain goods and services, according to an announcement made by the board. Supervisors Noelia Corzo and Board President Warren Slocum, who co-sponsored the measure, hailed the decision as a reflection of the county’s values and a strategic investment in the growth and sustainability of local business endeavors.

The new ordinance, set to take effect on July 1, 2025, offers a pricing advantage to San Mateo County-based firms that submit bids for county contracts. This formula will consider their bids as effectively 5 percent less costly than their nonlocal competitors. Meanwhile, local small and micro businesses will enjoy an even greater preference of 8 percent and 10 percent, respectively. These incentives are a tangible expression of the county's commitment to fostering an ecosystem where local enterprises don't just survive but thrive despite the region's steep operating costs, as underscored by Supervisor Slocum and Corzo, who pointed to the high rents that often put these businesses at a disadvantage.

During discussions about the ordinance, Slocum highlighted the stark disparity in prosperity within the county, saying, "We know that our County is one with a lot of prosperity – but that prosperity isn’t shared by all," a sentiment echoed by the County of San Mateo. The 2024 Supplier Diversity Study, commissioned by the county, informed this policy shift after findings suggested that local small businesses, especially those run by underrepresented groups, were not adequately utilized in county procurement processes.

With taxpayer interests in mind, the board has also implemented some safeguards. For instance, the local preference can be waived if a local bid significantly overshadows nonlocal offers by upwards of $10,000 or if leveraging such a preference would not serve the county’s best interests. In the statement obtained by the county, it was underscored that these measures are not merely about preferential treatment; they are about nurturing the local economy and, by extension, taking a step toward equality in economic success within the county's communities.