Bid Discounts for Contracts for Goods and Contracts for Services
San Diego Municipal Code § 22.3620
in effect§22.3620 Bid Discounts for Contracts for Goods and Contracts for Services
For bids valued at greater than $500,000, the City Manager shall:
(a) Permit a bid discount of:
(1) Five (5) percent for SLBE or ELBE prime contractors; or
(2) Up to a maximum of (five) 5 percent of the amount of SLBE and/or ELBE subcontractor participation, or the amount of SLBE and/or ELBE participation in a City-approved joint venture. The discount will not apply if an award to the discounted bidder would result in a total contract cost of $50,000 in excess of the lowest, non-discounted bid. In the event of a tie bid between a discounted bidder and non-discounted bidder, the discounted bidder will be awarded the contract for goods or contract for services.
(b) Include a mandatory subcontractor participation requirement for SLBEs and/or ELBEs. Bids that do not reach the mandatory subcontractor participation requirement, or demonstrate good faith efforts to do so, will be deemed nonresponsive and ineligible for award.
(c) Incorporate a voluntary subcontracting participating requirement if mandatory SLBE or ELBE participation cannot be applied.
1. The City will apply a bid discount of 5 percent off the bid price for prime contractors achieving the voluntary goal of 20 percent for SLBE or ELBE subcontractor participation.
2. The discount will not apply if an award to the discounted bidder would result in a total contract cost of $50,000 in excess of the low, non-discounted bid. In the event of a tie bid between a discounted bidder and non-discounted bidder, the discounted bidder will be awarded the goods or services contract. The discount shall be taken off the total contract value, including contract option years.
(“Bid Discounts for Contracts for Goods and Contracts for Services” added 8-10-2022 by O-21516 N.S.; effective 9-9-2022. Former Section 22.3620 “Packaging of Public Works Contracts” renumbered to Section 22.3625.)
Source: City of San Diego Office of the City Clerk, San Diego Municipal Code and City Charter (docs.sandiego.gov PDFs)URL: https://docs.sandiego.gov/municode/MuniCodeChapter02/Ch02Art02Division36.pdf#page=14Fetched: 10/28/2026