Board of Supervisor’s President David Chiu introduced legislation to support LBE Contracting with the City..

1. require departments to set aside contracts worth $400,000 or less for the Micro-Local Business Enterprise Set Aside Program;
2. create a pilot Graduated Local Business Enterprise program that will enable graduated firms to receive a 5% bid discount; and
3. allow bidders and proposers the flexibility of meeting the participation goal by either achieving adequate good faith efforts or by meeting and/or exceeding the participation goal based on the availability of MBEs, WBEs, and OBEs.

(http://www.sfgov.org/site/uploadedfiles/bdsupvrs/committees/materials/090320tdr.pdf)

On Monday, April 6th, the Small Business Commission will discuss components of a complimentary ordinance to place mandatory goals on prime vendors to purchase goods and services from LBE’s.  Since a majority of the prime vendors doing business with the City are located outside of San Francisco and few LBE’s are not currently contracting with the City, an ordinance should be put in place to move some of the dollars spent with prime vendors into the local economy.  We can learn from corporate best practices and implement a measurement that would mandate a minimum spend of contract into LBE’s without negatively impacting administration.  . A corporate supplier diversity executive will present to the Commission and tell how they increased small business participation and how the City can benefit from a similar plan.

This can be a groundbreaking ordinance for our local business community.

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