Currently, the City of Savannah’s Purchasing Ordinance (Sec. 2-4061(7)) offers the opportunity for responsive, responsible local bidders to match a non-local vendor’s low bid for purchases exceeding $25,000.00. The current local preference ordinance allows for local vendors to match a non-local low bidder’s price in the following circumstance:

1. If a local vendor’s bid is within 2% or $10,000.00, whichever is less, or $500.00 of the non-local low bidder’s pricing, the local vendor shall be offered the opportunity to match the non-local low-bidder’s pricing.
2. If a local MWBE vendor’s bid is within 3% or $10,000.00, whichever is less, or $500.00 of the non-local low-bidder’s pricing, the local MWBE vendor shall be offered the opportunity to match the non-local low-bidder’s pricing
3. If a local vendor located within a community development block grant (CDBG) target area offers a bid within 3% or $10,000.00, whichever is less, or $500.00 of the non-local low-bidder’s pricing, the local vendor located within a CDBG target area shall be offered the opportunity to match the non-local low-bidder’s pricing.
4. If a local MWBE vendor located within a CDBG target area offers a bid within 4% or $10,000.00, whichever is less, or $500.00 of the non-local low-bidder’s pricing, the local MWBE vendor located within a CDBG target area shall be offered the opportunity to match the non-local low-bidder’s pricing.
5. In the event that more than one bid meets these criteria, the opportunity to match the non-local low-bidder’s pricing shall be afforded first to the low vendor who is a local MWBE located in a CDBG target area, second to the local vendor located within a CDBG target area, third to the local MWBE vendor, and fourth to the local vendor.

The proposed changes to this ordinance would eliminate local preference for MWBE businesses and businesses located within CDBG target areas, and instead would align the local preference ordinance with the Savannah Business Enterprise and Disadvantaged Business Enterprise programs, which went into effect on January 1, 2018. The proposed changes to the ordinance would instead offer local vendors the opportunity to match a non-local bidder’s pricing under the following circumstances:

1. If a local vendor’s bid is within 7% of the non-local low-bidder’s pricing, the local vendor shall be offered the opportunity to match the non-local low-bidder’s pricing.
2. If a Savannah Business Enterprise (SBE) vendor’s bid is within 10% of the non-local low-bidder’s pricing, the SBE vendor shall be offered the opportunity to match the non-local low-bidder’s pricing
3. If a local Disadvantaged Business Enterprise (DBE) vendor’s bid is within 10% of the non-local low-bidder’s pricing, the local DBE vendor shall be offered the opportunity to match the non-local low-bidder’s pricing.
4. In the event that more than one bid meets these criteria, the opportunity to match the non-local low-bidder’s pricing shall be afforded first to the low bidder who is an SBE, second to the local DBE vendor, and third to the local vendor.

First reading of this ordinance was held the Meeting of February 14, 2018. If approved by Council, this change would take effect on April 1, 2018 and would apply to all bidding opportunities issued after that date.

Approval