Port’s Small Business Spending Surpasses $55 Million

A commitment by the Port of Long Beach to include more small businesses among its vendors and contractors continues to be successful, broadening access to port-related construction and professional services contracts.

Last fiscal year, almost 42% of port funds spent on eligible contracts through the port’s small business enterprise program went to purchase needed services and materials from companies defined as “small business enterprises” and “very small business enterprises.”

The 41.8% participation by small and very small businesses in contracting in fiscal year 2023 is the second-highest since the program was started in 2004, behind only 48.9% in 2022. The amount of applicable spending on construction projects, consulting services, event planning, and other supplies and services, rose year-over-year from $54.2 million to $55.7 million. The goal set for small business enterprise participation at the port, which is the Harbor Department of the City of Long Beach, is 27%, higher than many peer agencies.

“The SBE program provides opportunities to a wider, more diverse range of local contractors, suppliers and other businesses, which strengthens the local economy,” said Port of Long Beach CEO Mario Cordero. “As an additional benefit, we believe this practice also increases competition for tens of millions of dollars in public contracts each year, resulting in better outcomes and even more value.”

“The Port of Long Beach is a job creator for our community and beyond, but we recognize it’s not enough to merely serve as an economic engine,” said Long Beach Harbor Commission President Bonnie Lowenthal. “This program was created to ensure there’s a place for smaller companies to benefit from the economic opportunities.”

The thresholds of annual receipts and number of employees for classification as a small business vary widely by industry, as determined by the U.S. Small Business Administration. The very small business eligibility is equivalent to the state of California’s microbusiness designation – businesses with $5 million or less in annual gross sales, averaged over the last three fiscal years, or manufacturers with 25 or fewer employees.

Aspiring contractors for the port apply for posted contracts on the port’s “Planet Bids” online system, where the business owners can pre-register their companies and check back for posted bids. Go to www.polb.com/businessopportunities and click on “Access the POLB Vendor Portal.” 

Details: For those interested in seeing the complete SBE utilization report for fiscal year 2023, go to www.polb.com/sbe.