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Local Business Preference Ordinance March 5, 2012 Page 4 State Contracts. Becoming a certified small business can be done online through the state's e- procurement website free of charge. Once a business is certified it will be electronically notified of available state bid solicitations as well as receive a five percent preference on State contracts. There are currently 128 Santa Ana businesses already certified by the California Department of General Services as a Small Business. The local preference ordinance will give preference to businesses during the procurement for both bids for materials, supplies, labor and equipment and requests for proposals for professional services. The following are examples of how the local preference ordinance will apply in these two scenarios: Example 1. Bid for materials supplies labor and equipment: Orange County Santa Ana Business Other Lowest Bid Bid Amount $95,000 $93,000 $90,000 7% local preference 14% local preference I N/A Amount used for selection $88,350 I $89,280 $90,000 of contract awarded In the above scenario, the Santa Ana business would be awarded the contract. The contract amount would be the original bid of $95,000. Example 2. Requests for proposals for professional services: In a Request for Proposal (RFP) for professional services price alone may not be criterion upon which a contract is awarded. In this example, the local preference will increase the total evaluation points a business receives. These evaluations are typically done on a 0 to 100 point scale. Santa Ana f Orange County Other Highest Rt1SpgG f in Ri minGec I G41n1i ln+iron Original evaluation points received 91 95 97 7% local preference 14% local preference I N/A I Total evaluation points after I g7 4 98-8 97 local preference added 75B -4