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Board approves first reading of 'best-value' contracting ordinance with exemption under $1.5 million

3006131 · April 16, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Supervisors passed an ordinance on first reading to permit departments to use "best value" procurement, considering price and contractor qualifications together, while exempting contracts under $1,500,000. Supporters said it will reduce change orders and poor performance; critics warned it could disadvantage small local businesses.

San Francisco supervisors on May 17 approved on first reading an ordinance allowing city departments to award certain public-works contracts using a "best value" procurement process that weighs price alongside contractor qualifications and past performance.

Why it matters: Supporters said the change will help the city avoid projects that are low-priced but later generate costly change orders, delays or poor workmanship. Opponents — chiefly Supervisor John Avalos — argued the approach could disadvantage small local businesses and local business enterprises (LBEs) that rely on a 10 percent LBE bid discount.

What the ordinance does

The legislation permits departments authorized to perform public works to use best-value procurement…

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