HIRE HOUSTON FIRST

Houston Code of Ordinances ch. 15, art. XI

in effect

Houston Code of Ordinances § 15-175 Declaration of policy.

Sec. 15-175. - Declaration of policy. (a) It is the policy of the city to use the city's spending powers in a manner that promotes fiscal responsibility and maximizes the effectiveness of local tax dollars by ensuring a portion of citizens' tax dollars remain in the local economy for economic benefit of the citizens by utilizing all available legal opportunities to contract with city and/or local businesses. (b) It is the policy of the city to place an affirmative duty on city departments to grant a preference to city and/or local businesses unless doing so would be clearly contrary to the best interests of the city. (c) It is the policy of the city to achieve the policy goal in subsection (a) above by utilizing all permissible tools. (d) Nothing in this article prohibits the city from rejecting all bids. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-176 Definitions.

Sec. 15-176. - Definitions. The following words and phrases, when used in this article, have the meanings provided in this section: Bid means any procurement method governed by the Texas Local Government Code, Title 8, Acquisition, Sale or Lease of Property, or as it may be amended. City business means a business with a principal place of business within the city limits. Local area means the Houston-Sugar Land-Baytown metropolitan statistical area, as defined by the Office of Management and Budget within the Executive Office of the President of the United States. Local business means a business with a principal place of business in the local area. Principal place of business means the business must be either: (1) headquartered in the incorporated limits of the city or the local area, as applicable; or (2) have an established place or places of business in the incorporated limits of the city or the local area from which 20% or more of the entity's workforce are regularly based, and from which a substantial role in the entity's performance of a commercially useful function or a substantial part of its operations is conducted. A location utilized solely as a post office box, mail drop or telephone message center or any combination thereof, with no other substantial work function, shall not be construed as a principal place of business. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-177 Hire Houston First Program—Purchases of personal property.

Sec. 15-177. - Hire Houston First Program—Purchases of personal property. (a) Contracts of $100,000.00 or more. In purchasing any personal property that is not affixed to real property, if the city receives one or more bids from a bidder that is a city business and whose bid is within three percent of the lowest bid price received by the city from a bidder who is not a city business, the city shall, subject to the provisions of section 15-181, enter into a contract with a value of $100,000.00 or more with: (1) The lowest bidder; or (2) The bidder that is a city business, as defined in this article. (b) Contracts under $100,000.00. In purchasing any personal property that is not affixed to real property, if the city receives one or more bids from a bidder that is a city business and whose bid is within five percent of the lowest bid price received by the city from a bidder that is not a city business, the city shall, subject to the provisions of section 15-181, enter into a contract for an expenditure of less than $100,000.00 with: (1) The lowest bidder; or (2) The bidder that is a city business, as defined in this article. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-178 Hire Houston First Program—Purchases of services.

Sec. 15-178. - Hire Houston First Program—Purchases of services. (a) In procuring services, including construction services, the contracting department shall, subject to the provisions of section 15-181, grant a preference to a local business. In no event shall a contract for services be granted to a local business that is not within: (1) Five percent of the lowest bidder for contracts under $100,000.00; or (2) Three percent of the lowest bidder for contracts of $100,000.00 or more. (b) In procuring architectural, engineering or land surveying services under the Professional Services Procurement Act, Tex. Gov't. Code, § 2254.004, the contracting department shall, when appropriate, consider knowledge of local conditions as part of the qualifications determination. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-179 Hire Houston First Program—Purchases under $50,000.00.

Sec. 15-179. - Hire Houston First Program—Purchases under $50,000.00. Subject to Texas Government Code § 2254.004, when procuring goods or services valued at less than $50,000.00 that are not the subject of a blanket purchase order or contract, the city shall, subject to the requirements of section 15-181, select vendors and services providers with a principal place of business in the local area, provided that any such vendor's bid is no more than five percent greater than the lowest bid, in the event the lowest bid is from one other than a city business or a local business. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-180 Hire Houston First Program—Responsibilities and enforcement.

Sec. 15-180. - Hire Houston First Program—Responsibilities and enforcement. (a) The Mayor's Office for Business Opportunities (MOBO) shall be responsible for establishing the documentation necessary to establish a principal place of business in the city or local area. Any entity claiming to be a local business shall submit to the city a form promulgated by the MOBO, attested to by a duly authorized representative of the business. The MOBO shall make the final determination as to whether a business is a local business. (b) Department directors shall maintain written records of all departmental actions under this program. Departments are charged with primary responsibility for monitoring their contracts for compliance with the program. (c) The contracting or evaluating department shall award additional points to a local business in any bid based on a "best value" evaluation. (d) The strategic purchasing division ("SPD") and MOBO, in consultation with the legal department, are directed to provide written guidance, including guidance on best value bids, to departments for implementing this article. Such guidance shall include a preference structure that grants the highest number of points to a city business, the next higher number of points to a local business, and no points to a business located outside of the city or local area. (e) The submission of a form pursuant to subsection (a) above found to contain false information is grounds for debarment per section 15-103(1)(c) of this Code. (f) The MOBO shall produce semi-annual reports, commencing July 1, 2012, summarizing the dollar amount of procurements awarded to city businesses and local businesses under this program. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Houston Code of Ordinances § 15-181 Hire Houston First Program—Exceptions.

Sec. 15-181. - Hire Houston First Program—Exceptions. (a) This program does not apply to any contract in which the federal government participates in the form of a grant or loan, or the city acts as a conduit for federal money. (b) This program does not apply to contracts in which the contracting department has determined that it would unduly interfere with contract needs. In cases of purchases over $100,000.00, such determination shall be made in writing, expressly approved by the department director, and furnished in advance to the MOBO. (c) In accordance with Local Government Code § 271.9051, this program does not apply to the purchase of telecommunications services or information services, as those terms are defined by 47 U.S.C. Section 153.

Houston Code of Ordinances § 15-182 Hire Houston First Program—Effective date.

Sec. 15-182. - Hire Houston First Program—Effective date. This article shall be effective as to solicitations for procurements published on or after September 1, 2011. (Ord. No. 2013-428, § 10(Exh. A), 5-8-2013, eff. 7-1-2013)

Source: City of Houston, Code of Ordinances and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/tx/houston/codes/code_of_ordinances?nodeId=COOR_CH15CO_ARTXIHIHOFIFetched: 10/26/2026