1. Policy
Issued: May 20, 2026
Last Revised: New
Last Reviewed: New
Applies to: Faculty (including part-time and visiting faculty), postdoctoral scholars, staff and students (including graduate/undergraduate student workers and graduate assistants) employed by University of Southern California (“USC“ or the “University“) and including those working for the University’s health system (“USC Employees”). This policy continues to apply to individuals on sabbatical, other leaves or while visiting other institutions.
2. Policy Purpose
The University of Southern California (“USC”) is committed to strengthening excellence in the university’s business relationships and contracting. As a major economic driver in Los Angeles and across Southern California, USC recognizes the importance of extending business relationships and contracting opportunities to Local and regional businesses, including Small Businesses. By broadening Local Business access, USC strengthens its ability to acquire high-quality goods and services from a community base of suppliers while fostering growth, innovation, efficiency, and economic resilience in the Southern California region.
3. Scope
This policy guides USC’s approach to Local and Small Business outreach and engagement, contracting, and business sustainability. All USC academic and business units, including the staff and faculty within the units, and recognized student organizations who utilize university funds, are responsible for adhering to this policy as they engage suppliers.
This policy shall be administered in full compliance with all applicable local, state, and federal laws and USC’s Notice of Non-Discrimination. Suppliers will be chosen without regard to race, color, national origin, sex, sexual orientation, or any other prohibited characteristic.
4. Definitions
| Term | Definition |
| Local Business | Refers to a Small Business located within zip codes surrounding the University Park, University’s Health System, and Marina del Rey campuses. |
| Federal: Small Business* (U.S. SBA 13 CFR § 121.105 ) | The U.S. Small Business Administration (SBA) defines a small business based on industry-specific size standards, typically measured by either average annual receipts or average number of employees over a specified period. Under 13 CFR §121.105, a Small Business concern is a business that: • Is organized for profit • Has a place of business in the United States • Operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials, or labor • Is independently owned and operated • Is not dominant in its field on a national basis A Small Business may take the legal form of a sole proprietorship, partnership, corporation, limited liability company, or other legal entity. Determination of whether a business qualifies as “small” depends on SBA industry-specific size standards, which vary by sector. These size standards are tied to the North American Industry Classification System (NAICS). Federal agencies are required to use SBA size standards in determining eligibility for small business contracting and federal procurement programs. Businesses must select the NAICS code that best reflects their primary activities and confirm that they fall within the applicable SBA size standard for that industry. Source Reference: U.S. Small Business Administration (SBA). Code of Federal Regulations: 13 CFR §121.105 — What is a Small Business Concern? Official Source. SBA Size Standards Table (by NAICS) |
| Outreach and Engagement | Strategies to connect build relationships within the USC community, fostering trust, support, and potentially leading to increased business opportunities. |
| NAICS Code | The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. |
5. Policy Details
This policy applies to all business engagement considerations, and the selection and acquisition of goods and services made by USC, including but not limited to goods, professional services, and sponsorships, as well as purchasing decisions made through third-party procurement firms or other intermediaries. This policy also applies to Health System procurement including mandatory state reporting under AB 962 (2019), AB 1392 (2023) and other applicable laws.
The university cultivates relationships and opportunities across its supply chain that promote Local Business development, economic inclusion, environmental sustainability, and innovation. Through these efforts, the university aims to strengthen regional and local communities by focusing its economic impact on Southern California.
These principles guide our business access and opportunity processes:
- We seek out and engage Local Business suppliers.
- We strive to create access and opportunities for Local Businesses to compete for university business.
- We provide clear and comprehensive information about our procurement processes, requirements, and expectations.
- We host engagement forums to facilitate direct connections between Local Businesses and USC departments.
- We monitor and evaluate our contracting effectiveness to assess alignment with this policy.
The Office of Business Opportunity (“OBO”) will collaborate with Senior Business Officers to establish and maintain baseline and, going forward, annual data metrics on Local Business supplier engagement levels at USC (“Data Metrics”). Business units are responsible for documenting vendor classification, goods/services category, and spend in order to track progress in outreach, engagement, and supplier selection. To support this policy at the university, OBO, in partnership with USC departments, will provide the following:
- Necessary training and resources for faculty, staff, and business owners to implement this policy.
- Procedures and tools to support the implementation of this policy, such as business access programs, and procurement and engagement training to support enhanced engagement with Local Businesses.
- Regular optimization reviews to assess the effectiveness of this policy and identify any areas for improvement.
6. Procedures
Policy objectives are achieved through:
- Annual impact reporting by OBO, based on the Data Metrics described above, as well as contract volume awarded to Local Businesses, growth in supplier participation rates, and geographic distribution of spending across Southern California. Reporting will be developed in collaboration with schools, academic units, and business units.
- The implementation of consistent, campus-wide practices to enhance access for Local Businesses to the procurement process by standardizing and simplifying contracting procedures.
- Programs and initiatives to support Local Business engagement, increase market awareness, conduct outreach, identify and develop supplier pipelines, and build long-term capacity.
As data collection and supplier management systems evolve, institutional outcomes will be guided through unit-level goal setting and reflected in annual impact reports.
OBO will share submitted Local Business information with an internal review team. This team will assess the Local Business’ alignment with relevant procurement categories or service areas, validate basic business information, and provide guidance on the process for becoming an active supplier within the USC system.
7. Forms
Local Businesses interested in doing business with USC may fill out the Supplier Interest Form available on the OBO website. This document does not form a contract between the Local Business and USC, and it does not guarantee any commitment or engagement with the university.
8. Responsibilities
| POSITION or OFFICE | RESPONSIBILITIES |
| Office of Business Opportunity (OBO) | OBO is responsible for providing support and assistance to USC Business Units |
| USC Business Units | USC Business Units are responsible for understanding and complying to this policy in their engagement activities with USC Suppliers and Services. |
9. Related Information
Office of Sustainability Green Procurement
Integrity and Accountability Code
Third Party Integrity and Accountability Code
Office of Business Opportunity
Assembly Bill 962 (Burke, Chapter 815, Statutes of 2019)
10. Contacts
Please direct any questions regarding this policy to:
| OFFICE | PHONE | |
| Office of Business Opportunity | Obo@usc.edu |