E/SBE BID PRICE & POINT PREFERENCES
BID PRICE PREFERENCES -
As a tool to stimulate small business opportunities, the City of Sacramento provides a 5% bid price preference to certified Emerging Business Enterprise (EBE) and Small Business Enterprise (SBE) firms when bidding for contracts or agreements governed by Sacramento City Code, Title 3, Chapter 3.56.020(C) (Purchasing of Supplies and Services).
How does the preference work? On any contract or agreement up for bid for the purchasing of supplies or non-professional services, the City takes 5% off the lowest bid amount received from an EBE- or SBE-Certified small business. The resulting bid amount is then evaluated against all other bids received to determine the lowest bidder.
For Example:
| Lowest Non-Certified Firm |
Lowest Certified EBE or SBE Firm |
| Bid is |
$100,000 |
Bid is |
$103,000 |
| |
x .05 |
$5,150 |
| |
Resulting Bid: |
$97,850 |
In this example, with a 5% bid preference of $5,150,
the Certified EBE or SBE firms wins with the lowest bid of $97,850
(versus the $100,000, otherwise lowest bid from a non-certified firm). |
NOTE: The City will pay the $103,000 award, with the difference between
the $100,000 bid and the $103,000 bid,
being the cost the City is willing to incur to advance the ESBD Program commitment. |
| Another Example: |
| Lowest Non-Certified Firm |
Lowest Certified EBE or SBE Firm |
| Bid is |
$100,000 |
Bid is |
$110,000 |
| |
x .05 |
$5,500 |
| |
Resulting Bid: |
$104,500 |
In this example, with a 5% bid preference of $5,500, the non-certified firm wins the bid - despite the preference.
NOTE: The bid preference does not apply to bids let under the Sheltered Market Program or when all bids received are
from EBE- or SBE-certified firms.
BID POINT PREFERENCES
E/SBE-certified firms making proposals for professional services (covered by Sacramento City Code, Title 3, Chapter 3.64), will receive a 5% point preference when being compared to non-certified firms making the same proposal.