This paper presents an innovative adjusted bid price mechanism that incorporates economic multiplier effects in public food procurement processes, using New York State (NYS) as a case study. Recognizing the role public procurement plays in fostering sustainable local food systems and economic development, our proposed mechanism adjusts bid prices for local vendors based on the local economic activity generated through direct, indirect, and induced effects. This approach provides a more comprehensive view of the true cost to the state, allowing agencies to make better-informed procurement decisions and contribute to the overall resilience of the regional economy. The transparent and easy-to-implement adjustment method offers significant implications for policy debates surrounding public food procurement, local competitiveness, and sustainable food systems. The paper derives an economic model for the adjusted bid prices, applies it to an empirical case using detailed food purchase data from NYS, and concludes with potential future research directions.