SMALL BUSINESS INITIATIVE (SBI)

BID INCENTIVES

WHAT IS IT? The SBI Program is designed to provide opportunities for small businesses to participate on City-funded construction projects under $3 million in total cost. Small local business enterprises are the exclusive bidders for Construction projects identified as SBI projects.


The SBI Program has two tiers:

  •  SBI I projects are limited to estimated project construction costs between $2,000,000 and $3,000,000 and are available to small local firms that do not exceed the SBA size standards set forth in 13 C.F.R. Part 121.
  • SBI II projects are limited to estimated project construction costs of $2,000,000 or less and are available to firms that do not exceed ½ the SBA size standards set forth in 13 C.F.R. Part 121.


WHO IS ELIGIBLE TO BID ON AN SBI PROJECT? A business must be a small local business enterprise (SBE) to participate. In determining whether a firm is eligible, the CPO will consider, among other factors, if the business: 

  • Has been in business for at least one (1) year;
  • Will perform the majority of the work on the construction project with its own forces and/or subcontractors who are also small local business enterprises; 
  • Is independent, and not an affiliate or subsidiary of any other business; 
  • Has its principal place of business and the majority of its full-time, regular work force located in the Six-County region identified in Section 2-92-670, as evidenced by location of their employment as reported to federal and state taxing authorities; 
  • For the SBI I program, has gross receipts, averaged over the firm’s previous five fiscal years, or number of employees, per pay period averaged over the past twelve months, that do not exceed the size standards set forth in 13 C.F.R. Part 121;
  • For the SBI II program, has gross receipts, averaged over the firm’s previous five fiscal years, or number of employees, per pay period averaged over the past twelve months, that do not exceed 50% the size standards set forth in 13 C.F.R. Part 121. 

MID-SIZED BUSINESS INITIATIVE (MBI)

For complete information regarding Small Business (SBI) and Medium Business (MBI) Bid Incentive Programs, Click here  to explore the City's Guide to Bid Incentives and Programs.

The Department of Procurement Services (DPS) has created numerous programs to increase the pool of bidders on City contracts and incentivize the use of small, local, minority and women-owned businesses. This includes the Small Business Initiative (SBI) and Mid-Sized Business Initiative (MBI) programs.

WHAT IS IT? The MBI Program is designed to provide opportunities for mid-sized businesses to exclusively participate on City-funded construction projects.


The MBI Program has two tiers:

  • MBI-1 projects are those with an estimated value of between $10 and $20 million. Bidding is limited to firms that are no greater than two times the SBA size standards.
  • MBI-2 projects are $3-10 million in size and bidding is limited to contractors that are no greater than one and a half times the SBA size standards.


WHO IS ELIGIBLE TO BID ON AN MBI PROJECT? A Bidder is eligible if it: 

  • Is a mid-sized local business (MSB); 
  • Has been in business for at least two (2) years; 
  • Will perform more than 50% of the work on the construction project with its own forces and/or subcontractors who are mid-sized local business enterprises; and 
  • Is independent, and not an affiliate or subsidiary of any other business
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