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Committee notes Bureau of Contract Administration reports on local business preference program
Summary
The committee reviewed presentations on the Local Business Preference Program (LBPP), its history, certification process, and ten years of spending data; it noted and filed two BCA reports.
The Los Angeles City Economic Development and Jobs Committee reviewed two Bureau of Contract Administration reports on the Local Business Preference Program and voted to note and file the reports.
Bureau of Contract Administration staff outlined the LBPP's history and recent changes. Linda McGlinchey, contract program manager in the Office of Contract Compliance, said the local preference was established by ordinance in 2011 and that staffing and enforcement evolved after early problems with self‑certification. She described key ordinance changes in 2016, 2021 and 2023 and said Measure BB (2022) amended the city charter to permit a stronger city local preference.
McGlinchey described the preference structure included in current rules: a certified city business enterprise receives a base 10% preference and can earn an additional 2% for small local business or local transitional employer designations (maximum 12%). Non‑city local businesses receive a 6% base preference and may receive up to an additional 4% for a 10% maximum. Non‑LBE prime contractors can receive up to a 5% preference for using certified local subcontractors, she said.
John Reamer and Mark Gutierrez of BCA presented a 10‑year LBPP report. Gutierrez summarized the city's LBPP‑eligible annual spend as roughly $2.5 billion and said 11% to 35% of that spending went to certified local businesses in given years; he said LBPP itself was credited with 1% to 7% of those awards in the period covered.
Discussion focused on outreach to small and micro businesses, how the program could support local participation in major near‑term events (for example LA 28 venues, World Cup and Super Bowl activity) and steps to help small firms bid as primes, including unbundling large projects into smaller contracts. Staff described a certification coalition and plans for digital application work on the RAMP platform (work currently on hold), and said BCA has conducted outreach to thousands of businesses in advance of LA 28 opportunities.
The committee moved to note and file the BCA reports (dated Nov. 15, 2022 and Dec. 22, 2023). Roll call recorded five ayes: Councilman Curran Price, aye; Councilmember Hugo Soto‑Martinez, yes; Councilmember Nazarian, yes; Councilmember Hurtado, yes; Councilwoman Tracy Park, yes. The items were noted and filed.
