Contracting Basics for Suppliers

A view looking up at the lit front facade of San Francisco City Hall at dusk, with a brilliant purple and pink sky in the background.

City contracting overview

Get a basic overview of how contracting works in the City, learn what types of contracts we award, and find resources for businesses and other helpful information.

Contracting basics

What is public procurement

In simple terms, public procurement is how governments select and buy services and products.

Why public procurement matters

Procurement is a critical part of government operations and supports the delivery of quality services to residents and visitors.

Contracting opportunities

What the City buys

You can think of the City's purchases in 4 main categories:

Commodities: products, including materials, equipment and supplies
- Example: fuel, office supplies
Construction and Construction-related services: improvement, renovation, repair, demolition work related to a public works project
- Examples: curb ramp construction, pavement renovation
General Services: standardized services that support core operations
- Example(s): janitorial services, pest control
Professional Services: a service that requires a high degree of professional discretion
- Example(s): executive coaching, engineering design

How the City buys goods and services

The City frequently procures goods and services through a competitive procurement or solicitation. Competitive solicitations can take a variety of forms. The most common forms include:

Low Bid/Invitation for Bids (IFB)

Low Bid/Invitation for Bids (IFB) are a type of solicitation that primarily looks at price and a supplier's minimum qualifications.

Request for Proposals (RFP)

Request for Proposals (RFP) are a type of competitive solicitation process that considers multiple evaluation factors.

Request for Qualifications (RFQ)

Request for Qualifications (RFQ) are a type of competitive solicitation process that typically leads to a “pool” of qualified candidates selected based on credentials, skills and/or experience.

Micro-LBE set-asides

Micro-LBE set-asides are a type of solicitation that dedicates opportunities to registered and eligible Local Business Enterprises (LBEs).

Request for Information (RFI)

RFIs are a research tool used to conduct market research or gather details about available products or services.

Types of contract awards and agreements

The most common awards and agreements include:

Purchase Orders are often used for one-time, nonrecurring purchases with an expected duration of less than one year.
Contracts are generally suitable for more complicated or recurring purchases.
Grants are a way of awarding funds to organizations serving a public purpose (e.g. afterschool programming for youth).

Contracting and Procurement 101

How to become a City contractor

To become a City contractor, you will need to:

Register as a bidder and a supplier
- Find detailed instructions on registering as a supplier and completing the City’s initial compliance requirements
Find opportunities that match your business
- The City’s contract opportunities range from community financial counseling services to chemical purchases for wastewater treatment.
- Tip: Many contracts also include subcontracting opportunities. Don’t forget to consider those as well.

How to submit bids and proposals

Submit bids and proposals
- Once you find an opportunity that matches your business, you can respond to the solicitation related to that opportunity.
- The contractor selection process typically involves an evaluation of your bid or proposal.
- There may also be interviews, products demonstrations, or other activities based on the specific opportunity’s selection criteria.
- Tip: Different solicitations have different requirements, so be sure you review and follow the guidance in the solicitation documents carefully!
If you’re awarded a contract, congratulations!
- The City department establishing a contract with your business will reach out to you with a notice of award to initiate any additional contract negotiations or compliance requirements needed.

Help with bidding and proposing

Public procurement laws prohibit the City from providing selective assistance to businesses competing on City contracts.
However, the City has resources and programs available to help business navigate the procurement process more generally.
Local businesses may want to take a look at the City’s 14B program in particular.