Local preferences in county and city procurements generally offer an advantage to businesses located within a specific geographic area, and the exact mechanism for how they work is defined by each local government's procurement rules.
These preferences often involve a percentage applied to bids from non-local businesses, making the local bid appear more competitive during evaluation, but the specific percentage and how it is calculated varies widely. Some jurisdictions might apply a factor to non-local bids, while others might reserve a portion of contracts for local firms. To qualify as a local business, you typically need to demonstrate a physical presence, such as an office or facility, within the county or city limits, and sometimes a certain number of employees residing in the area. Each county or city will outline its specific criteria in its procurement code, vendor guide, or individual solicitation documents.
Certification requirements also differ; some local governments require a formal application and approval process to be recognized as a local vendor, while others may rely on information provided in your bid. These local preferences are distinct from federal set-aside programs, which are governed by the Federal Acquisition Regulation (FAR).