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Local Business Preference Ordinance <br />March 5, 2012 <br />Page 4 <br />State Contracts. Becoming a certified small business can be done online through the state's e- <br />procurement website free of charge. Once a business is certified it will be electronically notified of <br />available state bid solicitations as well as receive a five percent preference on State contracts. <br />There are currently 128 Santa Ana businesses already certified by the California Department of <br />General Services as a Small Business. <br />The local preference ordinance will give preference to businesses during the procurement for <br />both bids for materials, supplies, labor and equipment and requests for proposals for professional <br />services. The following are examples of how the local preference ordinance will apply in these <br />two scenarios: <br />Example 1. Bid for materials supplies labor and equipment: <br /> Santa Ana Business Orange County <br />Business Other Lowest Bid <br />Bid Amount $95,000 $93,000 $90,000 <br /> 7% local preference 4% local preference N/A <br />Amount used for selection <br />of contract awarded $88,350 $89,280 $90,000 <br />In the above scenario, the Santa Ana business would be awarded the contract. The contract <br />amount would be the original bid of $95,000. <br />Example 2. Requests for proposals for professional services: <br />In a Request for Proposal (RFP) for professional services price alone may not be criterion upon <br />which a contract is awarded. In this example, the local preference will increase the total <br />evaluation points a business receives. These evaluations are typically done on a 0 to 100 point <br />scale. <br /> Santa Ana Orange County Other Highest <br /> Business Business Evaluation <br />Original evaluation points <br /> <br />received 91 95 97 <br /> 7% local preference 4% local preference N/A <br />Total evaluation points after <br /> <br />local preference added 97.4 98.8 97 <br />75B-4