For years, local entrepreneurs have viewed government contracting as a "big players only" game—a maze of red tape and massive compliance hurdles that favored national corporations over homegrown talent.
But the tide has officially turned. Following a landmark vote by the San Diego County Board of Supervisors on August 26, 2025, the rules of the game have shifted dramatically in favor of local firms.
The 15% Edge: A Massive Competitive Boost
Previously, the County offered a modest 5% price preference for small and local businesses.
As of September 25, 2025, that preference has officially tripled to 15%.
What this means for you: When you bid on a County contract, your proposal is evaluated as if your price were 15% lower than what you actually submitted (up to a $150,000 cap).
Cutting the Red Tape: Simplified RFQs up to $1 Million
The County has recognized that small businesses don't have entire "proposal departments." To solve this, they have overhauled the application process to reduce administrative "red tape."
Simplified Request for Quote (RFQ) Process: For contracts reserved for small local businesses, the County can now use a streamlined RFQ process for awards up to $1 million per year.
Faster Turnaround: This is a massive jump from the previous $100,000 limit. RFQs typically take about half the time to complete compared to formal Requests for Proposals (RFPs), drastically lowering your "cost to compete."
Subcontracting Opportunities: For larger contracts exceeding $1 million, there is now a requirement (or strong encouragement) to subcontract at least 3% of the work to small local businesses.
Why This Matters for San Diego's Economy
The County has set an ambitious goal to direct 25% of its $2.2 billion annual contract spending toward small businesses.
Is Your Business Eligible?
To qualify for these benefits, your business must meet two main criteria:
Local: Maintain a headquarters or a physical location in San Diego County where regular business is conducted.
Small/Certified: This includes California-certified Small Businesses, as well as Veteran-Owned Small Businesses (VOSB) and Disabled Veteran Business Enterprises (DVBE).
Note: Under the new policy, you no longer need to pre-qualify through a lengthy audit.
You can now self-certify as a small-local business directly within your bid response.
Secure Your Business’s Future
While these procurement shifts open new revenue streams, rapid growth requires a solid financial foundation. Whether you are scaling to meet a new $1 million contract or preparing your business for an eventual sale, having a clear valuation and exit strategy is essential.
Ready to see how your business stacks up?
Sources:
County of San Diego News Center: "County Creates New Small Business Opportunities" (Aug.
26, 2025). San Diego County Board of Supervisors: Board Policy B-53 and A-71 Updates (Approved Aug. 2025; Effective Sept. 25, 2025).
Engage San Diego County: "Small Business Contracting & Proposed Policy Changes" (2025).
San Diego Regional EDC: "Inclusive Growth & County Procurement Analysis" (2023-2025).
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This content is provided for informational purposes only. The San Diego County Board has not approved, endorsed, reviewed, or authorized this material. For complete and current information regarding eligibility, benefits, and program details, please contact the San Diego County Board directly.