HomeMy WebLinkAboutIR 054 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-054
To the Mayor and Members of the City Council March 22, 2022
Page 1 of 2
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*a SUBJECT: LOCAL PREFERENCE PROGRAM IN THE PROCUREMENT OF
rrn GOODS AND SERVICES
On September 28, 2021, Informal Report 21-10676 was presented to City Council regarding Local
Preference. The Informal Report described when the City is able to consider the location of a bidder's
principal place of business when awarding contracts for goods and services under State Law.
State law generally requires awarding competitively procured contracts to the Lowest Responsible Bidder
or the bidder who is determined to provide the City with the Best Value based on the criteria set forth in the
bid document. State law explicitly allows, under certain conditions, for the City to consider a bidder's
locality when evaluating bids based on lowest responsible bidder.
Local Preference allows a municipality to consider a bid from a bidder whose principal place of business is
in the municipality and whose bid is within the 3%-5% (see chart below) of the lowest bid price received
by the municipality from a bidder who is not a resident of the municipality. State Law establishes criteria of
when Local Preference can apply based on the amount and type of contract amount.
Statutory Limits
Contract Amount Goods and Real Property Services(Non- Construction Contracts
Professional)
$50,000 or less No preference No preference No preference
$50,000.01-$99,999.99 5%preference 5%preference 5%preference
$100,000-$499,999.99 5%preference 5%preference No preference
$500,000 or more 3%preference No preference No preference
If the municipality receives a bid in which a Local Preference would apply, the municipality can either
award to:
1. The lowest bidder; or
2. The bidder who is located in the municipality so long as the City Council determines in writing that:
a. The bidder is a local bidder;
b. The local bidder offers the best combination of contract price and additional economic
development opportunities.
Lowest Responsible Bidder Procurements
On March 5, 2013, the City Council adopted a Local Preference ordinance based upon State Law for bids
that are awarded to the Lowest Responsible Bidder with one change highlighted below:
Adoption of Local Preference by the City of Fort Worth
Contract Amount Goods and Real Property Services (Non- Construction
Professional
$50,000 or less No preference No preference No preference
$50,000.01-$99,999.99 5%preference 5%preference No preference
$100,000-$499,999.99 5%preference 5%preference No preference
$500,000 or more 1 3%preference I No preference I No preference
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 22-054
To the Mayor and Members of the City Council March 22, 2022
Page 2 of 2
i
i7 Y
*a SUBJECT: LOCAL PREFERENCE PROGRAM IN THE PROCUREMENT OF
rrn GOODS AND SERVICES
As stated in IR 21-10676, the adopted ordinance excluded Local Preference for construction between
$50,000-$99,999.99 since smaller construction projects are grouped together and procured through annual
Job Order Contracts (JOC) and remodel contracts.
Best Value Procurements
As discussed in IR 21-10676, the City Code does not currently allow the use of Local Preference in bids
using the Best Value evaluation criteria.
Staff Recommendations
After the IR was presented to Council last fall, the City Manager's Office and the Departments that manage
construction projects met to explore whether Local Preference should be expanded for construction projects
between $50,000.01 - $99,999.99 and for Best Value procurements.
After the discussions, Staff recommends revising the local preference ordinance to follow State Law for
lowest responsible bidder procurements as outlined above.
In addition, Staff recommends adopting an ordinance that allows City Departments to consider Local
Preference when awarding a contract for services using Best Value when appropriate.
Purchasing Staff will work with the City Attorney's Office to draft an ordinance and present it to the City
Council for approval on April 26, 2022.
If you have any additional questions,please contact Cynthia Garcia, Assistant Director, at 817-392-8525 or
Cynthia.Garcia(cr�,fortworthtexas. og_v_
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS