(a) The Director shall develop and implement a pilot neighborhood, hyper-local preference program, outlined in subsections (b)-(e), to encourage participation by neighborhood businesses on City public works projects located in their neighborhood.
(b) Eligible Contracts. This neighborhood LBE program shall apply to Administrative Code Chapter 6 Contracts for projects located within the jurisdictional boundary of San Francisco estimated to cost over $10,000 and less than $10,000,000. The program shall not apply to Job Order Contracts (JOC), As-Needed contracts, or other contracts where no specific project location is specified at the time of Bid.
(c) Eligible Businesses. The program preferences as described in subsection (d) shall be available to LBEs who meet one or both of the following criteria:
(1) Project Zip Code LBE. A “Project Zip Code LBE” means a certified Small or Micro-LBE whose principal place of business is located in the same zip code as the zip code in which the project is located; or
(2) Neighborhood LBE. A “Neighborhood LBE” means a certified Small or Micro-LBE whose principal place of business is located in the same Neighborhood as the Neighborhood in which the project is located, where “Neighborhood” is defined as any one of the 11 Supervisorial Districts as defined and established in the San Francisco Charter, Appendix E at time of Bid.
(d) Amount of Discount. Contract Awarding Authorities shall apply the following Bid Discounts to eligible contracts:
(1) A 1% Discount to Bids from a Neighborhood LBE when bidding on a Contract where the project is located in the same Neighborhood as the Neighborhood LBE’s principal place of business.
(2) A 1.5% Discount to Bids from a Project Zip Code LBE when bidding on a Contract where the project is located in the same zip code as the Project Zip Code LBE’s principal place of business.
(3) A 0.5% Discount to Bids from any bidder if the LBE subcontracting participation in the submitted Bid includes participation by Neighborhood LBEs of at least 50% of the LBE subcontracting participation requirement.
(4) A 1.5% Discount to Bids from any bidder if the LBE subcontracting participation in the submitted Bid includes participation by Zip Code LBEs of at least 50% of the LBE subcontracting participation requirement.
(e) The Discounts provided under this Section 14B.22 shall be combined with each other and/or any other Discounts authorized under this Chapter 14B, except that a bidder cannot receive cumulative Discounts based on either (1) and LBE’s status as both a Neighborhood LBE and Project Zip Code LBE simultaneously or (2) a bid that includes LBE subcontracting participation by both Neighborhood LBEs and Project Zip Code LBEs. Contract Awarding Authorities shall apply these Discounts to each evaluation stage of the selection process, as applicable.
(f) Final Report. Four years and six months after the start of the pilot program, the Director shall submit a report on the efficacy of the program to the City Administrator.
(g) This program shall sunset five years from the operative date of the ordinance in Board File No. ______, which created the pilot program.
(Added by Ord. 203-21, File No. 210835, App. 11/12/2021, Eff. 12/13/2021, Oper. 7/1/2022)