New program aims to help local companies compete in city contracts

Lago Vista's city council unanimously passed a new program that will give local companies preferential treatment when it comes to bidding on city contracts.

LAGO VISTA, Texas (KXAN) -- Lago Vista's city council unanimously passed a new program that will give local companies preferential treatment when it comes to bidding on city contracts.

According to the new rules, which were proposed by new city council member Shane Saum, Place 1, any local company that comes within 3-5% of the lowest bid on non-professional city contracts, depending on the size of the contract, will receive preference.

Here's how the rules work. For non-professional service contracts, excluding construction, that fall within the $50,000 and $500,000 range, a company must submit a bid within 5% of the lowest bid to receive preference. Companies will also receive favorable consideration if their bid falls within 5% of a non-professional construction services contract that is in the $50,000 to $100,000 range. As far as professional services, the managing department is granted discretionary points to award to local businesses, according to Saum.

"The idea is that you're going to keep your local tax dollars local. The more you invest in your local businesses it gives them an opportunity to grow," Saum, who served 10 years as a staffer in the Texas legislature, said.

Local business owner Jacob Lantz is a huge proponent of the new program. He owns a plumbing and AC businesses in Lago Vista and said it can be difficult to run a small company without a large labor pool market like Austin. He said he was pleasantly surprised to hear about the new program during the city council meeting.

"Actually a breath of fresh air to see a councilman looking out for small business in this town," Lantz said.

Other cities in Texas have a similar program, including Austin. It passed its preference program in 2011. A spokesperson for the city said it has recently enhanced and streamlined its existing program.

Saum is encouraging other municipalities to do the same in their procurement process.

"Telling our businesses that we are partners with you and that we're here to help you grow, and we want you to hire local and we want you to stay here," Saum explained.