New Requirements For Local Business City Contract Preferences
PHILADELPHIA (CBS) - A Philadelphia City Council committee has passed legislation that would tighten requirements for companies seeking preference, when bidding for city contracts as a "local business."
Companies currently can receive a preference on procurement contracts if, among other things, more than half their employees work in the city most of the time or their principal location is within the city limits.
The proposed changes would require a principal location in the city and that more than 60-percent of employees are city residents, or more than three-quarters of its sales take place in Philadelphia.
Deputy Commerce Director Iola Harper testified in support:
"Local businesses recirculate a greater share of every dollar back into our local economy, resulting in a more equitable distribution of opportunity and wealth. Without tightening the checks and balances we potentially lose the many associated benefits."
All the witnesses supported tightening the requirements for the preference but some warned the changes don't go far enough. They warned big companies would still find a way around them.
The bill now goes to the full council.
