New contract process begins in 2017; learn how the updates will affect the way you do business
A new program starting in 2017 will give small businesses more opportunities to compete for contracts with the City. The Target Market Program will help small businesses compete on a more level playing field with firms of comparable size, increasing competition and stimulating the local economy.
The Target Market Program aims to diversify City suppliers by changing how the City handles contracts. Beginning Jan. 1:
- The threshold for contracts using the City’s standard agreement form will increase from $50,000 to $100,000.
- All purchases of commodities, construction and professional services under $100,000 will be subject to the Target Market Program ordinance.
- Procurement will provide a list of eligible vendors to supply the goods or provide services for purchases subject to the Target Market Program.
Based on the scope of work, Procurement will send a list of suppliers to choose from who are independently owned and controlled, are located within the 13-county metro area, meet the federal Small Business Administration size standards, and have average annual gross receipts for the previous three fiscal years that do not exceed limits for their industry categories. The program is race and gender neutral.
The development of the program follows significant outreach work by the City’s Supplier Diversity efforts to gather feedback from the small business community. Staff surveyed more than 200 businesses, held a focus group and attended vendor fairs to gather insights about how to increase awareness about contracting opportunities.
Of businesses surveyed, 45 percent had never done business with the City. Seventy-four percent of businesses said they were likely to participate in the new Target Market Program. The vast majority were businesses with gross receipts under $1 million and fewer than 20 employees.
Department contract managers, City leaders and any interested employees should sign up in COMET for training. The training will be offered in the training room at 330 S. Second Ave. (formerly the Towle Building) from 9 a.m. to noon Thursday, Dec. 29.
To sign up for the training:
- Log in to COMET-HR.
- Click on “Learning and Development.”
- Search for the keywords “Understanding Contract Management” in the “Search for Learning” box.
- Click “Enroll” then “Submit Enrollment.”
Look for workshops and labs on contract management coming in January.
Published Dec 14, 2016