New contract process has begun; learn how to hire vendors for work under $100,000
A new program has begun that will increase opportunities for small businesses competing for contracts with the City. The Target Market Program gives small businesses priority in competing for City contracts under $100,000. It aims to diversify City suppliers, increase competition and stimulate the local economy by helping small businesses compete on a more level playing field for City work.
Going forward, all City purchases of commodities, construction and professional services under $100,000 will be subject to the Target Market Program ordinance passed by the City Council. When you have a purchase to make under $100,000, send the scope of the work to Procurement. Use this listing of purchase categories to look up which buyer you should contact in Procurement.
Based on the scope of work, Procurement will find suppliers enrolled in the Target Market Program who meet the following criteria:
- Are independently owned and controlled.
- Are for profit.
- Have their principal place of business located within the 13-county Twin Cities metro area.
- Meet the federal Small Business Administration size standards.
- Perform a commercially useful function.
- Have average annual gross receipts for the previous three fiscal years that do not exceed limits for their industry categories.
For commodities and construction, Procurement will get quotes or manage an informal bid process for you, making the bid process available only to Target Market Program suppliers. For procuring professional services, Procurement will send you a list of small businesses to choose from that meet the Target Market Program requirements based on the scope of work. You will request a proposal from those businesses on the list, and choose the one that best fits your needs.
If the number of suppliers enrolled in the Target Market Program for the product or service you need is fewer than three, it is no longer a Target Market Program purchase, however Procurement will request that any Target Market Program suppliers that are available be notified of the opportunity. If there are no suppliers enrolled in the Target Market Program for the particular commodity or service you need, Procurement will open the opportunity to all businesses.
The program is race and gender neutral and is just one part of an overall supplier diversity strategy.
Benefits of the program
Getting a City contract can be a huge boost for a business – it guarantees a set amount of work and income, which can help a business grow. Business growth, in turn, benefits the City because it strengthens our local economy.
Help make the program a success
You can help the Target Market Program achieves its goal of increasing opportunities for local small businesses.
- Make sure any qualified suppliers you work with are enrolled in the program. If there are suppliers that you already have relationships with, encourage them to enroll in the Target Market Program so that they can continue responding to bids or RFPs you issue. Here are talking points to help. For more information about eligibility criteria and for the link to the enrollment form, go to the Target Market Program website.
Visit the Target Market Program page on CityTalk. Procurement will also hold a series of workshops and labs on the Target Market Program in January. Look for more information on these events in Minneapolis Matters and on CityTalk.
You can also learn more about the program by reading these frequently asked questions.
If you have questions about the Target Market Program, contact Procurement at TargetMarket@minneapolismn.gov or 612-673-2500 or talk to your department or division contract manager.
Published Jan 12, 2017