SUBJECT
Title
EXPANDING OPPORTUNITIES FOR LOCAL BUSINESSES TO PARTICIPATE IN COUNTY CONTRACTS (DISTRICTS: ALL)
Body
OVERVIEW
In Fiscal Year 2022-23, the County of San Diego (County) had a total procurement spend of over $1.9 billion. The Department of Purchasing and Contracting (DPC) is responsible for coordinating efforts to improve the County’s contracting process, including the development of standard procedures for the selection of contractors, standard contract provisions, and contract administration practices. In recognition of the investments that the County makes into the community through contracted services and supply purchases, DPC has significantly increased its proactive approach to engaging local, small businesses into its processes and procedures.
There are several existing policies that guide the inclusion of local and small businesses, as well as Veteran Owned Businesses and Disabled Veterans Business Enterprises. These programs and policies aim to increase accessibility to the County’s procurement process and help provide that the County’s resources are being invested in community businesses.
Although the County recognizes the value of offering opportunities to local businesses on a Countywide level, more can be done to provide local businesses opportunities to respond to, and potentially be awarded, County procurements located in their own communities. With community engagement being at the core of the County’s General Management System, we recommend that the County investigate opportunities to expand the County’s reach to local businesses through outreach, education and review of current programs that enhance the ability of local business to participate in County procurements.
RECOMMENDATION
CHAIRWOMAN NORA VARGAS AND SUPERVISOR JOEL ANDERSON
Direct the Chief Administrative Officer to investigate and report back to the Board within 180 days on opportunities to expand the County’s reach to local businesses through outreach, education, and review of current programs that enhance the ability of local businesses to participate in County procurements.
EQUITY IMPACT STATEMENT
By seeking additional opportunities to conduct business with small, veteran and disabled veteran owned businesses, the County can further uplift underserved members of our community who have historically faced barriers to entry and fewer opportunities to succeed.
SUSTAINABILITY IMPACT STATEMENT
The County has undertaken several actions to advance sustainability throughout the enterprise by contracting with external vendors to obtain necessary goods and services. This allows the County to fulfill its mission while maximizing the use of resources. By encouraging additional vendors and competition, the County can continue to realize cost savings and other benefits while providing additional vendors an opportunity to conduct business with the County.
FISCAL IMPACT
There is no fiscal impact associated with this recommendation. There will be no change in net General Fund cost and no additional staff years. There may be fiscal impacts associated with future related recommendations which staff would return to the Board for consideration and approval., This would include identification of any future costs and funding source(s).
BUSINESS IMPACT STATEMENT
The County has historically encouraged disadvantaged and small businesses to participate in County contract opportunities and has recognized the importance of our local business community. The County can continue to amplify the impact of these actions and provide business opportunities by expanding outreach, education, and programs that enhance the ability of local businesses to participate in the County’s procurement processes.
ADVISORY BOARD STATEMENT
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Details
BACKGROUND
Community engagement is vital to the success of the County of San Diego’s (County’s) procurement processes. This is highlighted by the Department of Purchasing and Contracting’s (DPC’s) Operational Plan Objectives for Fiscal Year 2023-24, which includes an increased focus on accessibility to procurement and contracting opportunities for small, local businesses.
DPC has ingrained accessibility to procurement and contracting opportunities into its daily operations by hosting and attending outreach events and providing information to assist businesses in engaging in the County’s contracting process. For example, in Fiscal Year 2022-23, DPC participated in 41 vendor and supplier outreach sessions in cooperation with local business associations and provided 12 procurement technical assistance workshops in partnership with the North San Diego Small Business Development Center (SBDC) and the San Diego, Orange, Imperial APEX Accelerators. All workshops and one-on-one support from SBDC and APEX are available at no cost and open to all those who are interested.
In an effort to reduce barriers, the County is also a Reciprocity Partner with the State of California and accepts the State’s Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) certification. This partnership allows SBs and DVBEs to go through a single certification process so that their certification is valid both with the State of California and the County. DPC receives a monthly report of newly certified SBs and DVBEs and reaches out to these organizations to invite them to register on BuyNet, the County’s procurement portal, and to visit their website to get additional information on how to do business with the County. Because of this dedicated effort, the County was recognized by the State of California Department of General Services and awarded the 2023 Reciprocity Partner of the Year.
In Fiscal Year 2022-23, the County had a total procurement spend of over $1.9 billion. DPC is responsible for coordinating efforts to improve the County’s contracting process, including the development of standard procedures for the selection of contractors, standard contract provisions, and contract administration practices. In recognition of the investments that the County makes into the community through contracted services and supply purchases, DPC has significantly increased its proactive approach to engaging local, small businesses into its processes and procedures.
The County can continue to build off its track record in recognizing the value of providing opportunities to small, local businesses. However, more can be done to enhance competition and increase participation in the County’s procurement and contracting process at the community level. We are recommending that the County investigate opportunities to expand the County’s reach to local businesses through outreach, education, and programs that enhance the ability of local businesses to participate in County procurements.
LINKAGE TO THE COUNTY OF SAN DIEGO STRATEGIC PLAN
The proposed action supports the County of San Diego’s 2024-2029 Strategic Plan Community (Engagement) Initiative by encouraging local businesses to respond to contract opportunities based on incentivizing potential vendors located and operating throughout the County.
Respectfully submitted,
NORA VARGAS JOEL ANDERSON
Supervisor, First District Supervisor, Second District
ATTACHMENT(S)
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