Purchasing Services

The decision to locate a business in any particular community is a choice to invest in the success of that community.  The Cedar Rapids City Council adopted the Local Preference Purchasing Policy in January 2010 to support local businesses through the flood recovery process.  The Local Preference Purchasing Policy is in place because the Cedar Rapids City Council understands that the success of our community is directly linked to the success of our local businesses. 

Buy Local Preference
The Cedar Rapids City Council adopted the Buy Local Purchasing Policy through City Council Resolution No. 1239-10-10.

1. Who is local?
a.  Businesses located within Linn County, Iowa who have paid Linn 
     County property taxes on a plant, office or store occupied by the business for 
     the past year; or

b.  Businesses located within Linn County, Iowa who have paid rent for the past 
      year to a landlord or owner who has paid Linn County property taxes for the 
      past year on the plant, office or store occupied by the business.

2. How do I apply for local preference status?
a.    Complete a “Local Business Certificate”.  (download packet here)
b.    Mail the notarized, completed certificate to:
       City of Cedar Rapids – Purchasing Division
       101 First Street SE
       Cedar Rapids, IA  52401

3. After I return the notarized certificate, how do I know if my business is on the list?
View the Certified Business List

Please allow up to 10 days for processing of the certificate before the business is listed.

4. Will the local preference policy be applied to all purchases for goods and services?
No, the following types of purchases are excluded:
a.   Purchases subject to the competitive laws of the State of Iowa
b.   Purchases subject to federal, state or county grant stipulations
c.   Purchases from the State of Iowa or other national contracts

d.   Sole source purchases

5. Do you have questions or feedback about the Buy Local Program?
Please send questions via email to buylocal@cedar-rapids.org 

6. If I work out of my home, and my home is in Linn County, am I eligible to become a certified local business?

In order to qualify as local business your business must pay commercial property taxses related to the business being certified as local business.  Residential property taxes paid for a home business do not qualify for the buy local certification.

7. How does the Buy Local Program work?
Preference shall be applied to acceptable quotes, bids and proposals greater than $1,000 from businesses within Linn County, Iowa who have submitted a notarized “Local Business Certificate”. 


Example A: 
 Preference shall be given in the procurement of goods and/or services by  bid or quote when a local vendor’s bid or quote exceeds the acceptable low bid by no more than:

10% for bids less than $25,000

5% for bids equal to or greater than $25,000 but less than $200,000

1% for bids equal to or greater than $200,000

Bid Tabulation for a 20’ Enclosed Trailer

 

Vendor A

Vendor B

Vendor C

 

Marion, IA

Des Moines, IA

Davenport, IA

BID PRICE

$ 15,147.99

$ 14,770.55

$ 18,250.00

 

  • This bid is less than $25,000 so the preference is 10%

  • Vendor B submitted the lowest bid of $14,770.55

  • Vendor B is not a local business

  • Vendor A submitted the next lowest bid of $15,147.99

  • Vendor A is a certified local business

  • $15,147.99 - $14,770.55 = $377.44 / 14,770.55 = 2.56%

  • The difference between the two bids is 2.56% which is within 10% so the local preference applies

  • The bid is awarded to the local vendor, Vendor A for $15,147.99


Example B: 
 Preference shall be given in the procurement of goods and/or services by Request for Proposal (RFP) by awarding additional points to the evaluation scores of proposals received from certified local businesses as follows:

10% of all available points for proposals less than $25,000

5% of all available points for proposals equal to or greater than $25,000 but less than $200,000

1% of all available points for proposals equal to or greater than $200,000

Proposal Summary

 

Vendor A

Vendor B

Vendor C

 

Iowa City, IA

Cedar Rapids, IA

Hiawatha, IA

Points

976.7

723

636.8

Points for Local Preference

0

50

50

TOTAL POINTS

976.7

773

686.8

 

  • This proposal is greater than $25,000 but less than $200,000 so the preference is 5%

  • The total available points are 1,000 (5% of 1,000 points = 50 points)

  • The proposal received from Vendor A was given 976.7 points by the evaluation team

  • Vendor B and Vendor C each received 50 additional points per the local preference policy

  • After the additional points were applied, Vendor A remained the highest ranked proposal

  • Local preference did not change the award in this case

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