The City Council recently approved a change to the Fremont Municipal Code to increase the local business preference for vendors located in Fremont from 1%to 2.5% on City purchases. The local preference is for purchases of personal property over $25,000, with a maximum local preference amount of $5,000.

How does it work? The local business preference applies only to personal property, which covers just about everything the City purchases except real property and services. When the City goes out to bid to purchase personal property, the vendor with the lowest bid is awarded the purchase. For vendors located in Fremont, the City will now deduct 2.5% (up to $5,000) from their bid amount when ranking the vendors from lowest to highest.

The amount of the contract is the vendor's actual bid, but local vendors get an advantage when ranking takes place. This local preference encourages and supports local vendors - something that is good for the community and the economy overall.