Chapter 14B of the San Francisco Administrative Code provides various programs that promote economic opportunities for Local Business Enterprises (LBEs) certified by the Contract Monitoring Division (CMD). The two primary programs are described below.
LBE “Rating Bonuses” and “Bid Discounts”. This LBE program applies to contracts for commodities, general services, and professional services unless exempt or waived. LBE Rating Bonuses (RFPs) and Bid Discounts (Low Bid Solicitations) provide certified LBEs a “preference” when their bids or proposals are evaluated against non LBEs. Generally, bids submitted by LBEs in response to a low bid solicitation are evaluated as 10% lower than they actually are and proposals submitted by LBEs in response to an RFP are scored 10% higher than they actually are.
LBE “Subcontracting Participation” Requirements. This LBE program applies to contracts for general services and professional services unless exempt or waived. Chapter 14B requires that under certain circumstances, a certain portion of a service contract be subcontracted to LBEs. This is known as “LBE subcontracting participation”. LBE subcontracting participation is required for all contracts above a specific dollar threshold. LBE subcontracting participation applies solely to services (or the services portion of a contract with both services and commodities).
For additional information on each program, see below.
- Where do I learn more about each program? The Chapter 14B Requirements and Applicability guidance document provides additional details for each LBE program, explains when they apply, when they don't apply, and when they can be waived.
- (New!) How do I ask CMD to assign an LBE subcontracting participation goal to my contract? Effective December 13, 2024, you must request LBE subcontracting participation goals through the CMD's 14B Intake Application in ServiceNow. Click here to go directly to the form.
- My solicitation cannot comply with the LBE Rating Bonuses or Bid Discounts program. What should I do? If after reading the Chapter 14B Requirements and Applicability guidance document you have determined that this program is applicable to your solicitation but that you cannot comply with it, you can Create a New 14B Waiver Request.
- My solicitation or contract cannot comply with the LBE subcontracting participation program. What should I do? If after reading the Chapter 14B Requirements and Applicability guidance document you have determined that this program is applicable to your solicitation but that you cannot comply with it, you can Create a New 14B Waiver Request.
Need more information? Visit https://www.sf.gov/departments/contract-monitoring-division