By Annise D. Parker, Mayor of the City of Houston
The City of Houston spends billions of dollars to maintain and improve the City’s infrastructure and also provide vital public services. Ensuring that local companies, the life blood of our economy, have the opportunity to compete for city contracts has been a priority of my administration.
In the fall of 2011, my administration implemented “Hire Houston First”, a local preference program that provides contracting opportunities for home-grown businesses. There is a domino impact on the local economy that far exceeds the direct benefits experienced by the companies that are winning city contracts. It keeps your tax dollars working locally to generate jobs and pay for the purchase of goods and services.
There are currently more than 1,300 Hire Houston First designated companies. This is your opportunity to get answers to some of your questions about the program.
What does “Hire Houston First” mean?
In order to qualify, companies must meet at least one of two requirements:
- The company must be headquartered within Houston’s corporate city limits or within the 10 local counties of Harris, Brazoria, Chambers, Fort Bend, Galveston, Liberty, Montgomery, Waller, Austin, and San Jacinto. OR
- The company must have 20 percent or more of its workforce and a substantial part of its operations within the city limits or the ten counties.
How is “Hire Houston First” implemented in the City of Houston’s procurement process?
Generally, “Hire Houston First” allows the award of a contract under $100,000 to a local firm if the local firm’s price is within five percent of the lowest bid from a company that is not designated as a “Hire Houston First” company. For contracts exceeding $100,000, there can be no more than a three percent difference between the non-designated “Hire Houston First” company’s bid and the next highest offer from a “Hire Houston First” vendor.
Has the Program Been Successful?
Last month, the City of Houston’s Office of Business Opportunity released the “Hire Houston First Progress Report” which details the program’s success during the reporting period of October 2011 through December 2013.
It was assumed that the designation would be necessary to give local companies a fair opportunity during the procurement process, but we have found that Houston companies are competitive without using their “Hire Houston First” designation.
Highlights from the report include:
- More than $1 billion dollars of City business has been awarded to “Hire Houston First” firms.
- More than 1,300 companies have been designated as “Hire Houston First”, of which 424 have won city contracts.
- “Hire Houston First” companies support approximately 20,000 jobs in the Houston
- More than 50 “Hire Houston First” firms had never before secured a contract before their “Hire Houston First” designation.
- These companies collectively employ nearly 20,000 employees right here in Houston.
To view the full report, visit www.houstontx.gov/obo and click on the “OBO Reports” tab.
Should I Apply?
Even if you are not currently doing business with the City or have no plans to do so, you can apply and become a “Hire Houston First” designated company. Visit www.houstontx.gov/obo and click on “Hire Houston First”. The application is free and can be completed online. If you have any questions, please contact the Office of Business Opportunity at 832-393-0600.
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Serving since January 2, 2010, Annise D. Parker has been elected as the Mayor of Houston three times. She is Houston’s 61st Mayor and one of only two women to hold the City’s highest elected office. In 2010, Time Magazine named Mayor Parker one the 100 most influential people in the world. Mayor Annise Parker is a Steering Committee Member of the C40 Cities Climate Leadership Group and serves on President Barack Obama’s State, Local, and Tribal Leaders Task Force on Climate Preparedness and Resilience. She is also on the advisory board of Small Business Today Magazine. For more information, go to www.houstontx.gov/mayor/.
