City of Austin adjusts preference program

TX News - Published Sep 18, 2023

The City of Austin is embarking on a two-year pilot program of changes to its current Small Business Procurement Program (SBP Program). Currently, the SBP Program offers a 5 percent bid preference (not to exceed a total $50,000) for businesses meeting the U.S. Small Business Administration (SBA) criteria for being designated a small business. There is also a Local Business Preference Program (LBP Program) offering a 5 percent preference for contracts under $100,000.

Changes proposed to the LBP Program include requiring businesses to have their headquarters within the local area (under prior rules, they only needed to have a branch office) but expanding to surrounding counties. Changes proposed to the SBP Program include expanding to include State and federal SBEs within the eligibility criteria.

Both programs will allow for a 3 percent preference for contracts valued at over $500,000. The programs taken together and overall would be capped at $50 million worth of preferences.

Currently, the revised programs are scheduled to go into effect on October 1, 2023.

Find the City's presentation on the program changes at https://services.austintexas.gov/edims/document.cfm?id=414077.

Find the City's document on the SBP Program at https://services.austintexas.gov/edims/document.cfm?id=100938.

Find a presentation from the City on the LBP Program at https://services.austintexas.gov/edims/document.cfm?id=232710.