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Local and Small Business
Eligibility Requirements
In order to receive the Local and Small business preference, suppliers must meet the eligibility requirements and complete the “Qualifications for this Agency” as may be applicable for on-line registration and electronic submission. For hard copy submission, a completed and signed Local and Small Business Preference form must be included in the bid package. If these forms are not properly completed and submitted with bid, the preference will not be granted, even if your business qualifies. Details of eligibility and preference are described below:

Local Business Enterprise (LBE)
Suppliers must have a current San José Business Tax Certificate Number and have an office in Santa Clara County with at least one employee.
  • If the basis of award is price determinative (awarded to the low bidder) then the amount of the preference shall be 2.5% of cost.
  • If the basis of ward is points determinative (“best value”) then the amount of the preference shall be 5% of total points.

Small Business Enterprise (SBE)
In order to claim the additional SBE Preference Suppliers must first qualify as an LBE and have a total number of employees of 35 or less (regardless of where they are located). Note: The SBE preference may not be claimed if the supplier does not meet the LBE requirements.

  • If the basis of award is price determinative (awarded to the low bidder) then the amount of the preference shall be an additional 2.5% of cost. 
  • If the basis of award is points determinative (“best value”) then the amount of the preference shall be an additional 5% of total points.