Phoenix is an example of a city that opted to start small. Rather than adopting a change in procurement policy, in 2012, the City of Phoenix altered its process for informal procurements—smaller contracts—instead. The city rolled out its Local Small Business Enterprise Program, which created a database to register small and local businesses.
Further, the city said that LSBEs would get the first opportunity to submit quotes for all purchases of goods and services under $50,000. The program defines “local” as a firm with a principle place of business in the surrounding county. If fewer than three locally owned businesses submit a quote, the contract next goes to Arizona Small Business Enterprises, or those with a principle place of business within the state.
After just one year, the LSBE Program had achieved a measurable impact. In 2011, Phoenix spent just $50,000 with small, local businesses. By 2013, that figure had jumped to $2.3 million.
- “State of the City Address.” Mayor Greg Stanton, March 19, 2014.
- “Local Small Business Enterprise Program — Fact Sheet.” City of Phoenix.