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Councilman outlines owner-direct purchase policy to expand small contractors' buying power, cites $1.1 million in sales-tax savings
Summary
Councilman Mike Gay of District 2 described an owner-direct-purchase policy adopted in July 2024 that lets the City of Jacksonville buy construction materials tax-exempt on behalf of contractors to expand purchasing power for Jacksonville Small Emerging Businesses (JSEB) and to capture sales-tax savings of about $1.1 million to date.
Councilman Mike Gay, District 2, told the True Commission that Jacksonville implemented an owner-direct-purchase (ODP) process on certain construction projects to allow the city to buy materials tax-exempt and pass the purchasing benefit through to contractors, especially Jacksonville Small Emerging Businesses (JSEB).
Gay said the city’s ODP approach was adopted in July 2024 for some projects and that, to date, the city has captured about $1.1 million in sales-tax savings. He described the policy as a tool to boost the buying power and working capital of small contractors bidding on city work, and said the contractor remains responsible for approving, installing and warranting materials under contract terms.
The policy described by Gay sets purchase thresholds that differ by contract type: JSEB purchases qualify when single-purchase line items are $10,000 or greater, and on other municipal…
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