The County understands that supporting local businesses has a positive impact on the local economy by supporting local jobs and investments, and increased local retention of tax dollars.
Chapter 2.89 of Title 2 of the San Mateo County Ordinance Code Regarding Procurement Preference for Local Businesses is a preference applied to local, local small, and local micro vendors when they apply to goods or professional solicitations of $10,000 and above. The preference is for evaluation purposes only and is effective as of July 1, 2025.
How do vendors qualify for the preference?
For the local vendor preference, vendors need to complete the self-attestation form in OpenGov to show their principal office (headquarters) is located in San Mateo County.
For the local small or micro business preference, vendors need to complete the self-attestation form in OpenGov to show their principal office (headquarters) is located in San Mateo County AND provide their certification number that indicates that they have been certified as a small or micro business by the State Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS).
For local small or micro non-profit organizations, vendors need to complete the self-attestation form in OpenGov to show their principal office (headquarters) is located in San Mateo County AND provide the latest filed IRS 990 form to corroborate their annual revenue.
How are the preferences applied?
If a qualified local business of any size headquartered in the county applies, they will receive a 5% bid discount (price-based solicitation); or 5% additional evaluation points (best-value solicitation).
If a certified local small business applies, they will receive an 8% bid discount (price-based solicitation); or 8% additional evaluation points (best-value solicitation).
If a certified local micro business applies, they will receive an 10% bid discount (price-based solicitation); or 10% additional evaluation points (best-value solicitation).
NOTE: Non-profit organizations competing in solicitations with for-profit businesses will be eligible for the proposed preferences.
What are the definitions of local, local small and local micro businesses and non-profits?
“Local Business” means any for-profit business which has its principal place of business, or is headquartered, in San Mateo County.
“Small Business” means any business which holds a Small Business Certification awarded by the California Office of Small Business and Disabled Veteran Business Enterprise Services (OSDS).
“Micro Business” means any Small Business certified by the OSDS which is automatically designated by the OSDS as a Micro Business due to gross annual receipts falling below the OSDS-designated dollar amount.
“Local Non-Profit" means a tax-exempt public charity organization (within the meaning of section 501(c)(3) of the Internal Revenue Code) that is formed for purposes other than making a profit, is exempt from paying federal income taxes on the income generated for their exempt purposes, and has its principal place of business, or is headquartered, in San Mateo County.
“Small Non-Profit" means a Local Non-Profit with an annual revenue of $1,000,000 to $2,500,000 according to its most recently filed IRS Form 990.
“Micro Non-Profit" means a Local Non-Profit with an annual revenue of less than $1,000,000, according to its most recently filed IRS Form 990.
What are the exemptions?
The exemptions are as follows:
- The award of contracts for public works, as defined in the California Public Contract Code.
- Where such a preference is preempted by local, state, or federal law or regulation.
- The award of contracts funded in whole or in part by a grant, donation, or gift to the County where the conditions attached to the grant, donation, or gift conflict with this Chapter.
- The award of contracts where all bids or proposals received are from Non-Profit Organizations.
- The award of contracts exempt from competitive solicitation requirements in accordance with County policy or other controlling legal authority.