New Local Preference Program at Jacksonville Aviation Authority Results in Increased Direct Contracting with Local Businesses

In an effort to grow its estimated $2.9 billion annual impact on the local economy and to increase its estimated support for more than 30,000 local aviation-related jobs, the Jacksonville Aviation Authority (JAA) continues to place an importance on the local business community. On June 21, 2010, JAA demonstrated their support of local businesses by formally adopting its Local Preference Program to encourage local businesses to participate in JAA’s competitive contract awards process.

During the first full year of program implementation, the Jacksonville Aviation Authority poured $29.1 million into the local economy through direct contracting relationships with local businesses. That’s 75 percent of JAA’s $38.7 million in total direct contract awards, which is up from 60 percent in fiscal year 2009.

“These contracting dollars are spent locally and generate business opportunities beyond the value of JAA’s direct contracts,” said JAA’s Executive Director/CEO Steve Grossman. “Each additional dollar circulated locally results in increased economic activity, employment growth and retention and increased tax revenue.”

While only a few contracts have been determined by the program, it has encouraged more participation by local businesses and out of town businesses that sub-contract with local companies. JAA established the Local Preference Program for businesses that have:

1. Maintained a “permanent place of business” in Baker, Clay, Duval, Flagler, Nassau, Putnam, or St. Johns counties for at least one year prior to the solicitation for which preference is sought; and

2. At least three full-time employees who reside in the listed market area.

There are three types of preferences enjoyed by local businesses under the program, which include: (1) a five percent bid reduction preference on competitive bids; (2) a five point preference on evaluated bids or proposals; and (3) a tie-breaker preference.


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