Bend staff propose supplier‑diversity administrative policy and one‑year partnership with PBDG

City staff presented a draft supplier‑diversity administrative policy aimed at increasing opportunities for Oregon‑based firms, including those in Bend, to compete for municipal contracts. Justin Nafziger, a staff member leading the presentation, said the policy would pair outreach and education with incentives to create a clearer on‑ramp for local vendors to bid on city work.

The staff briefing used three years of procurement data (FY2023–25) to justify the focus: about 31% of contract dollars went to out‑of‑state vendors over that period, while a combined 69% was spent in Oregon, including roughly 18% with Bend vendors, staff said. Nafziger noted that more than 95% of procurement transactions occur at the direct‑award threshold (under $25,000), making that tier a priority for early policy interventions.

The staff proposal would test several measures across procurement thresholds: for direct awards, the city would focus outreach and preferences where it has the most discretionary leeway; for intermediate solicitations ($25,000–$250,000) staff proposed requiring two OSBE‑certified quotes among three invited vendors; and for formal procurements the city would not initially apply price preferences absent clearer legal authority.

"We're trying to structure this as an administrative policy to help facilitate the decisions that happen at a departmental level," Nafziger said, adding staff plan to pilot changes (for example, bonding or insurance adjustments) on selected procurements to measure impacts on competition and risk.

Staff proposed a one‑year contract with Professional Business Development Group (PBDG), described in the briefing as a locally active nonprofit that runs networking events, provides bid‑preparation help and delivers bilingual outreach. "They reach folks that don't typically engage with the city," a staff speaker said, and PBDG would also provide post‑award technical assistance to help smaller firms complete paperwork and receive timely payments.

Speakers acknowledged legal and operational caveats tied to a 2025 state law creating an Oregon Small Business Enterprise (OSBE) certification and proposed state rules. "The state has rolled out a proposed rule and there's a public comment period," Mike Riley said; staff emphasized the city would continue coordinating with the state before finalizing local preferences.

Staff provided an internal timeline: draft policy work over the summer with an intended initial effective date around Aug. 1 and a follow‑up review at six months or one year. No formal city council vote on the policy was recorded during the meeting; staff said they will return to the subcommittee later this summer with a refined proposal.

What’s next: staff will continue rule coordination with the state, finalize a draft administrative policy, pursue a one‑year PBDG contract for outreach and plan internal implementation and pilot procurements before making permanent adjustments.