To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Approval of Small Business Enterprise Program Policy
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
ABOLISH the 1990s Outreach and 2006 eOutreach Programs, which were superseded by the County’s Purchasing Policy, and APPROVE updates to the Small Business Enterprise Program as recommended by the Internal Operations Committee.
FISCAL IMPACT:
No fiscal impact.
BACKGROUND:
The County maintains policies and ordinances outlining requirements and thresholds for the procurement of materials, supplies, and services to assist County departments. Over the past 25+ years, the Board approved Small Business Enterprise (SBE) and Outreach Programs at various thresholds. In 2023, the Board approved a new Purchasing Policy and Procedures, which were promulgated to County departments by the County Administrator in a policy bulletin, and an increase to SBE Program thresholds.
The recommendations in this report and the Small Business Enterprise Program Policy reconcile the requirements of four distinct County purchasing programs:
• Small Business Enterprise Program (2000),
• Outreach Program (1990s),
• E-Outreach (2006),
• Purchasing Policy and Procedures (2023).
Small Business Enterprise Program History
The Board approved the SBE and Outreach Programs in the late 1990s and early 2000s. The Outreach Program requires broad outreach to SBEs for service contracts and purchasing of goods and supplies and applies to the following transactions:
1. Professional/Personal Services of $2,500 or more; and
2. Purchasing transactions for goods and supplies that exceed $10,000; and
3. Construction contracts that exceed $100,000.
The E-Outreach Program was approved by the Board in 2006 and requires an internet-based platform to be used to conduct outreach for purchases and contracts that meet specific thresholds. In 2012, a pre-award, two-step appeal procedure for service contracts exceeding $100,000 was added to the Outreach Program requirements.
On June 27, 2023, the Board approved what is now Administrative Bulletin No. 600, “Purchasing Policy and Procedures” and directed the Purchasing Agent and Equal Employment Opportunity Officer to consolidate all Small Business Enterprise (SBE) and Outreach policies into a single policy.
Administrative Bulletin 600, “Purchasing Policy and Procedures” approved in 2023, and current Purchasing Division technologies and practices have effectively replaced and superseded the 1990s Outreach Program and the 2006 E-Outreach Program. For example, the 2023 Purchasing Policies and Procedures include solicitation thresholds and requirements for contracts and the purchase of goods and supplies. Purchases equal to or below $25,000 do not require solicitation, however Departments are encouraged to purchase from a SBE. Purchases above $25,000 and equal to or below $100,000 require a minimum of three quotes with at least one quote from a SBE.
Moreover, Purchasing has for many years used cloud-based programs that allow vendors to register at no charge to view County solicitations for goods and services. The Purchasing Manual includes procedures for bid protests that are similar to an appeal procedure.
For the foregoing reasons and to avoid confusion between older and newer policies, staff recommends abolishing the 1990s Outreach and 2006 eOutreach Programs in favor of Administrative Bulletin 600. The 2000 SBE Program remains relevant in its current form with recommended changes and can stand alone.
SBE Program Policy Exemptions
The Board has long recognized that some business transactions cannot feasibly be targeted to small businesses. Such transactions were described under a list of Board approved exemptions and modified from time to time over the last 25+ years. Staff recommends that the following exemptions be added to the Purchasing Manual with direction to the Procurement Manager to review the exemptions periodically and make any recommendations to modify the exemptions to the County Administrator for approval.
The following goods and services are recommended as continued exemptions from the SBE program reporting requirements.
• postage, courier services provided by national companies, i.e., FedEx, UPS;
• bus fares, Bay Area Rapid Transit District tickets, fares for other forms of public transportation and bridge tolls;
• lodging, hotels;
• registration for conferences and conference booths;
• permits, fees, and licenses paid to government agencies;
• pre-employment screening and fitness for duty exams;
• utility services and installation fees;
• intergovernmental agreements;
• newspaper and publication services;
• print legal briefs, legal notices, law books, and publications;
• contracts between divisions within a department or contracts between two departments/divisions;
• purchases or contracts with other public (local, state, and federal) agencies
• group purchasing contracts;
• services provided by private non-profit organizations
• medical publications, journals, subscriptions;
• medical devices and equipment, rental or repair parts;
• medical supplies, lab chemical and reagents, vaccines, orthopedic supplies, therapy supplies, implant devices, etc.;
• maintenance agreements for medical equipment;
• warrant requests;
• procurement card transactions;
• purchases and services through the Contra Costa Clean Water Program.
The Warrant Request and Procurement Card Programs were created to provide departments with a simplified process for doing low value purchases. In 2017, the Procurement Services Manager reviewed Procurement Card transactions for a six-month period and the majority of transactions were determined to be exempt from SBE reporting. The Procurement Services Manager is currently working with the County Administrator’s Office to propose updates to the Procurement Card Manual which may include changes to allowable procurement card purchases. The Procurement Services Manager will evaluate the changes, potential impacts to the SBE Program, and make a recommendation to the County Administrator’s Office to determine if they should be exempt from SBE reporting requirements.
Internal Operations Committee Review
On June 27, 2023, the Board directed the Purchasing Agent and Equal Employment Opportunity Officer to consolidate all Small Business Enterprise (SBE) and Outreach policies into a single Administrative Bulletin and referred this item to the Internal Operations Committee. The Internal Operations Committee customarily hears issues related to County operations, including policy recommendations related to the Small Business Enterprise and Outreach Programs.
On October 14, 2024, the Internal Operations Committee received a report (Agenda Item No.6) from the Public Works Department on the recommended changes to the Small Business Enterprise and Outreach Program. The Committee approved staff’s recommendations.
CONSEQUENCE OF NEGATIVE ACTION:
The updates recommended to the Small Business Enterprise Program policy will not be approved by the Board of Supervisors and result in confusion among older and new policies.
ATTACHMENTS
Outreach Program
E-Outreach
Administrative Bulletin 600 - Purchasing Policy and Procedures
SBE Program
SBE Program Policy Draft