Local vendors vying for City contracts could have a leg up over nonlocal vendors under new changes requested by the City Council Tuesday, March 1.
The City is currently undergoing an “Extreme Procurement Makeover Project” that will update the city’s procurement policies and processes.
While that happens, the council requested that the city manager look into some changes to the City’s local preference policy, including weighting local preference applications by 20% (rather than the current 10%). The current policy only applies to purchases up to $100,000, which the request hopes to increase.
Of the requested changes, which city staff will study over the next 180 days, are: removing the cap on the maximum local preference amount, increasing access to information about contracts (who gets them and their job impact) and incorporating local preference in eligible requests for proposals.
“We all understand the importance of keeping spending locally, and this policy has not been updated for over a decade,” said Councilmember Cindy Allen, who authored the item. “This is something I’m very passionate about. Local businesses are the heart of the city and we need to make sure we give them preference.”
Since she was elected in 2020, Allen has been an outspoken supporter of local preference, often peppering in support of local hire during her council comments.
Allen herself has benefitted from contracts with the City. Her advertising agency ETA, which she sold before joining the council, had over $1 million in City business. The agency’s clients included the Port of Long Beach, Public Works, Long Beach Transit, and the Long Beach Water Department.
“I just know—from my past life in business and doing a lot of procurement with the City and other municipalities across the state—how important it is for these cities to focus on their local vendors,” Allen said, noting that the procurement policy hasn’t been updated in over a decade. “I’m telling ya, it does make a difference. It’s better for our city. It’s better for our workers.”
Councilmember Roberto Uranga suggested adding an educational component to the item so business owners are more familiar with the procurement process and how to apply for contracts.
Vice Mayor Rex Richardson agreed that the procurement process was “hard to navigate,” and looked forward to streamlining the program through the extreme procurement makeover.
