When the City of Lodi purchases supplies, services, equipment, or professional expertise, those taxpayer dollars can either leave the community or continue circulating within our local economy. A proposed update to the City's purchasing policy that will come before City Council on Wednesday creates a meaningful opportunity for more qualified Lodi businesses to compete for City contracts.

The policy introduces a local vendor preference for qualifying Lodi businesses. In simple terms, a local business may receive up to a 5% evaluation preference when competing against an otherwise comparable non-local bidder. The preference is used only during the evaluation process and it does not mean the City pays more than the awarded bid price. Businesses must still submit competitive bids and meet all City requirements.

To qualify, a business must maintain a physical location within the City of Lodi, hold a valid City business license, comply with applicable laws, and have continuously operated in the City for at least one year. The policy also recognizes that local preference cannot be applied in every situation, particularly when federal or state funding rules prohibit geographic preferences or when purchases are made through cooperative purchasing agreements.

For Chamber members, this new policy represents an opportunity worth paying attention to.

More Opportunities for Local Businesses
Cities purchase a surprisingly wide variety of products and services throughout the year. While many people think only of roads or major construction projects, municipalities regularly purchase everything needed to operate offices, maintain parks, repair buildings, support public safety, host community events, and deliver essential public services. The Lodi District Chamber of Commerce includes hundreds of businesses spanning construction, manufacturing, agriculture, professional services, healthcare, technology, financial services, hospitality, retail, transportation, and nonprofit organizations. Many already possess the qualifications, experience, and capacity to compete for public-sector work.

Why It Matters
Keeping public purchasing dollars within the community creates benefits that extend well beyond a single contract.

When local businesses earn City contracts, those dollars help support employee wages, local hiring, business expansion, supplier purchases, commercial occupancy, and additional local tax revenue. Local businesses are more likely to reinvest their earnings in the community through payroll, equipment purchases, charitable giving, sponsorships, and partnerships with other local companies.

Strong local procurement can also strengthen the City's business climate by helping businesses diversify their customer base, invest in new capabilities, and create additional employment opportunities.

While the proposed policy does not guarantee contracts simply because a company is local, it recognizes that established local businesses provide economic value that extends beyond the products or services they deliver.

How Businesses Can Prepare
If your business has never worked with the City before, now is an excellent time to prepare.

Consider taking these steps:

• Verify that your City business license, insurance, and certifications are current.
• Update your capabilities statement and marketing materials.
• Introduce your company and services to appropriate City departments before opportunities arise.
• Stay engaged with the Lodi District Chamber of Commerce to learn about procurement opportunities, networking events, and educational programs.
• Monitor City bid opportunities and Requests for Proposals (RFPs).

A Positive Step for Local Economic Development
The proposed Local Purchasing Policy is about creating additional opportunities for qualified local businesses to compete for public dollars while maintaining a fair and competitive procurement process.

Lodi is fortunate to have an exceptionally diverse business community with expertise spanning nearly every industry the City relies upon. By encouraging participation from local businesses whenever legally permissible, the City has an opportunity to strengthen its local economy while continuing to receive high-quality goods and services.

For Chamber members, the message is simple: if your business provides products or services that local government purchases, this policy is worth reviewing. Being prepared today could position your business to compete for tomorrow's opportunities, and help keep more public dollars working right here in Lodi.