Agenda 06/08/2010 Item #10A
Agenda Item NO.1 OA
June 8, 2010
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation to accept staff's two year report and recommendations to
the Board regarding the County's Local Vendor Preference Policy.
OBJECTIVE: To update the Board as to the results and impacts of the local
vendor preference policy to date and to receive direction from the Board as to the
future status of the policy.
CONSIDERATIONS: On June 10, 2008, the Board of County Commissioners
adopted a local vendor preference policy. The policy has been generally applied
to purchases transacted under the invitation to bid (ITB) and request for
proposals (RFP) processes, excepting for services subject to the Consultants'
Competitive Negotiation Act. The process has also been applied in a more
limited way to the informal price quotation process for smaller purchases.
Under Section XI.(7) of the County's purchasing policy, the Purchasing
Department is to provide the Board with an update regarding the results and
impacts of the policy to date so that the Board can determine whether to "sunset"
the policy, continue the policy "as is" or continue to use the policy, but with
modifications. Accordingly, staff has prepared this report to assist the Board in
evaluating this program.
Staff has compiled data from the first two years of the local vendor preference
policy period. A summary of the distribution of vendor participation and contract
awards under the policy follows:
Sealed Bids (ITBs):
r Participation by Collier vendors has increased from 40.1 % to 41.0% during
the two year program period versus the three years preceding the program.
r Awards to Collier vendors have increased from 36.3% to 41.2% during the
same time.
>- To date, the policy has directly altered the outcome of seven of 183 awards.
Requests for Proposals (RFPs):
>- Participation by Collier vendors in the RFP process has increased from 22.3%
to 30.5% when comparing the three years prior to the program with the two
year program period.
,. RFP awards to Collier vendors have increased from 26.5% to 40.5% during
the same time.
>- To date, the policy has directly altered the outcome of two of 52 proposal
awards.
Agenda Item NO.1 OA
June 8, 2010
Page 2 of 4
General:
" The percentage of dollars spent with Collier vendors has increased
considerably from an average of 39.7% annually for the three fiscal years
preceding the policy to 50.5% during the two year program period (or from
$171 Million per year to $213 Million per year, an increase of $42 Million).
" In the second year of the program, the Purchasing Department initiated
vendor outreach efforts through the Greater Naples and Marco Island
Chambers of Commerce respectively. As a result, the Naples Chamber is
publishing the County's current ITB and RFP solicitations on a weekly basis.
Staff has met with various members of the Marco Chamber, which has
resulted in several discussions between their members and various County
departments regarding specific contract opportunities.
" Due at least in part to current economic conditions, several vendors and
contractors that traditionally did not compete for County work have begun to
do so.
Neqative Ramifications:
" During the first year of the program, staff surveyed prospective bidders who
declined to bid on County contracts and found that 13% decided not to do so
due to the local preference policy.
" Over the life of the program, staff is aware of at least two instances where a
Collier vendor lost a contract award in another County directly as a result of
the Collier local preference policy.
" Throughout both years of the program, the Purchasing Department has
received letters and/or calls from multiple vendors (primarily construction
contractors) indicating that they were withdrawing from the bidding process
for specific County projects due to the local preference policy.
);> There have been multiple protests of award pertaining in part or in whole to
the local preference policy. If the Board desires to continue use of the policy,
staff would recommend removing the requirement for obtaining and holding
an occupational license for one year prior to competing for County business.
Based on the information in this report, staff would recommend the Board elect
one of the following options regarding the future course of this policy:
1. Continue the policy "as is" with no changes at this time; or
2. Continue the policy, but encourage greater participation by replacing the
current right to match step with a best and final offer step wherein the
apparent lowest bidder and all local vendors that bid within 10 percent of the
lowest bid are afforded the opportunity to submit a best and final offer; or
Agenda Item No, 10A
June 8. 2010
Page 3 of 4
3. Continue the policy, but minimize some of the negative ramifications by
making the following modifications:
a. Reduce the current right to match range from 10 to five percent; and
b. Reduce the minimum points for location in the competitive proposals
process from 10 points to five points; or
4. "Sunset" the policy in recognition of the fact that Collier vendors are receiving
more County business and that the County and some local businesses have
experienced unintended negative consequences due to the policy.
FISCAL IMPACT: None directly associated with this action.
GROWTH MANAGEMENT IMPACT: There is no impact on the Growth
Management Plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County
Attorney's Office and is legally sufficient for Board action. CMG.
RECOMMENDATION: That the Board of County Commissioners makes a
determination as to the future need for or course of the County's local vendor
preference program.
PREPARED BY: Steve Carnell, Purchasing/General Services Director
Agenda Item No, 10A
June 8, 2010
Page 4 of 4
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Meeting Date:
10A
Recommendation to accept staffs two year report and recommendations regarding the
County's local vendor preference policy, (Steve Carnell, Purchasing Director)
6/8/20109:00:00 AM
Item Number:
Item Summary:
Approved By
Steve Carnell
Director - Purchasing/General Services
Date
Aclmimstrative Services
Division
Purchasing & General Services
5128120102:57 PM
Approved By
Colleen Greene
Assis.tant County Attorney
Date
County Attorney
County Attorney
5/28120104:03 PM
Approved By
Len Golden Price
Administrator - Administrative Services
Date
Administrative Services
DIvision
Administrative Services Division
5/26120104:09 PM
Approved By
Scott R. Teach
Deputy County Attorney
Date
County Attornev
County Attorney
5/28120104:22 PM
Approved By
OMS Coordinator
Date
County Manager's Office
Office of Management & Budget
6/1/2010 10:03 AM
Approved By
Therese Stanley
Manager - Operations Support - Trans
Date
Office of Management &
Budget
Office of Management & Budget
611/201010:45 AM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
6/1120104:38 PM