The City of San Diego recently announced that it is giving serious consideration to a proposal to provide greater advantages to smaller businesses located within the city limits of San Diego when they compete for contracts to provide goods and services to the City. The measure intends to increase the percentage of contracts that go to small businesses under a long-standing program designed to support this segment of the market. In 2014, only 2% of the city’s contracts went to vendors under the existing program.
The new initiative would change the process for local vendors by increasing the amount of “preference points” they would receive as they compete for city contracts. To qualify, a business must be at least a year old, have its offices “principally located” within the city limts of San Diego, and 25% of its workforce must live within the city of San Diego. There are limitations on annual revenues in order to qualify for the program, including:
- Construction Firms – $5 Million
- Trucking Companies – $3 Million
- Professional Service Companies – $2
We are encouraged by the City’s proposal, and believe that any action taken to strengthen small business in San Diego boosts all business in San Diego. The Watkins Firm has long been a proponent of entrepreneurs and small businesses, and serves as a business coach and general counsel for many local companies. We invite you to contact us for a free and substantive consultation at 858-535-1511 to learn what we can do to help your company grow and prosper.
