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(a-1) For purposes of this section,
"City residents" means persons domiciled within the city.
"Project area residents" means persons domiciled within that part of the city designated as the project area in the information for bidders issued by DPS.
"Domicile" means an individual's one and only true, fixed and permanent home and principal establishment.
"Eligible residents" means city residents and project area residents.
(a) For any construction project advertised, or if not advertised, awarded, by the city that has an estimated contract value of $100,000.00 or more, and where not otherwise prohibited by federal, state or local law, the total hours worked by persons on the site of the construction project by employees of the contractor and subcontractors shall be performed (i) at least 50 percent by city residents; and (ii) at least 7.5 percent by project area residents. Work hours performed by project area residents shall be considered to be work hours performed by city residents for purposes of calculating the minimum work hour percentage required to be performed by city residents.
These minimum percentages of work hours for eligible residents shall not be understood as limiting or deterring the fuller utilization of eligible residents beyond these levels, but are intended instead as minimum requirements. Contractors shall make good faith efforts to utilize qualified eligible residents in unskilled and skilled labor positions. The chief procurement officer shall separately monitor the utilization of eligible residents in skilled and unskilled positions, and shall report his findings to the city council committee on the budget and government operations when substantially all of the construction contracts for each construction season have been closed. The chief procurement officer shall also report whether he has determined that separate minimum percentages of eligible residents are warranted for skilled and unskilled labor positions.
The chief procurement officer shall develop standards and procedures for reducing or waiving these minimum percentages of work hours for eligible residents when a bidder or contractor can demonstrate the impracticality or excessive cost of complying with these percentage levels for particular contracts or classes of employees. Except as otherwise provided in the chief procurement officer's standards and procedures, a waiver or reduction shall be deemed appropriate if a contractor or subcontractor has unsuccessfully solicited a sufficient number of eligible residents to perform the work identified in the bid solicitation and has documented such effort to the satisfaction of the chief procurement officer. In addition, such standards and procedures shall require that a contractor seeking a waiver or reduction shall have provided timely notice of the need for qualified eligible residents to an appropriate source of referrals, which source shall be entitled to comment on any waiver or reduction application. If the chief procurement officer determines that lesser percentage standards are appropriate with respect to a particular contract subject to competitive bidding prior to the bid solicitations for such contract, such bid solicitations shall include a statement of such revised standards. The chief procurement officer shall file quarterly reports of his determinations on all reduction or waiver requests made pursuant to this paragraph with the city council committee on the budget and government operations.
(b) Implementation of the requirements established in subsection (a) of this section will be achieved by including in contracts and subcontracts described therein the following language:
The contractor and all subcontractors that perform work on the site on the construction project undertaken pursuant to this contract shall comply with the minimum percentages of total work hours performed by eligible residents as specified in Section 2-92-330 of the Municipal Code of Chicago.
The contractor shall provide for the maintenance of adequate employee residency records to ensure that eligible residents are employed on the project. The contractor and subcontractors shall maintain copies of personal documents supportive of every eligible resident employee's actual record of residence.
Weekly certified payroll reports (U.S. Department of Labor Form WH-347 or equivalent) submitted to the commissioner of the supervising department in triplicate, shall identify clearly the actual residence of every employee on each submitted certified payroll. The first time that an employee's name appears on a payroll, the date that the company hired the employee should be written in after the employee's name.
Full access to the contractor's and subcontractors' employment record shall be granted to the chief procurement officer, the commissioner of the supervising department, the Superintendent of the Chicago Police Department, the inspector general, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant personnel data in records for a period of at least three years after final acceptance of the work.
At the direction of the supervising department, affidavits and other supporting documentation will be required of the contractor to verify or clarify an employee's actual address when doubt or lack of clarity has arisen.
Good faith efforts on the part of the contractor to provide utilization of eligible residents shall not suffice to replace the actual, verified achievement of the requirements of this section concerning the work hours performed by eligible residents. Nothing provided in this paragraph shall be construed to prevent the chief procurement officer from considering such good faith efforts as appropriate for reducing or waiving the minimum percentages of work hours for eligible residents requirement, pursuant to Section 2-92-330(a) of the Municipal Code of Chicago.
When work is completed, in the event that the city has determined that the contractor failed to ensure the fulfillment of the requirements of this section concerning the work hours performed by eligible residents or has failed to report in the manner as indicated above, the city will thereby be damaged in the failure to provide the benefit of demonstrable employment to eligible residents to the degree stipulated in this section. Therefore, in such a case of non- compliance it is agreed that 1/20 of 1 percent (.05%), 0.0005, of the approved contract value for this contract shall be surrendered by the contractor to the city in payment for each percentage of shortfall toward the stipulated residency requirement. Failure to report the residency of employees entirely and correctly shall result in the surrender of the entire liquidated damages as if no eligible residents were employed in either of the categories. The willful falsification of statements and the certification of payroll date may subject the contractor or subcontractors or employee to prosecution. Any retainage to cover contract performance that may become due to the contractor pursuant to Section 2-92-250 of the municipal code of Chicago may be withheld by the city pending the chief procurement officer's determination whether the contractor must surrender damages as provided in this paragraph.
Nothing herein provided shall be construed to be a limitation upon the "Notice of Requirements for Affirmative Action to Ensure Equal Employment Opportunity, Executive Order 11246" and "Standard Federal Equal Employment Opportunity, Executive Order 11246", or other affirmative action required for equal opportunity under the provisions of this contract.
(c) The monetary damages stipulated in subsection (b) hereof may be adjusted by the chief procurement officer to represent a larger fraction of the approved contract value, if the chief procurement officer determines after a review of contractors' compliance with this section that said damages are insufficient to secure compliance herewith. In no event may the damages be adjusted to a lower fraction. Any such change must be made effective for all contracts advertised as of a specific date chosen by the chief procurement officer and must be made prior to said advertisement.
In addition to assessing the monetary damages stipulated in subsection (b) hereof, the chief procurement officer may, in lieu of declaring the contractor to be a non-responsible bidder, require the contractor to post a surety bond or other appropriate security in an amount representing ten percent of the approved contract value for subsequent contracts on which the contractor bids, which the contractor shall agree to forfeit in its entirety in the event that full compliance with the requirements of this section is not achieved during the performance of any future contract that the contractor enters with the City of Chicago.
(d) Any person who is employed in a construction project subject to the provisions of this section who knowingly supplies false information concerning his or her residence shall be subject to a fine of not more than $500.00 for each offense, and imprisonment for a period not to exceed 30 days. Any person found to have violated this section shall also be barred from employment on any construction project subject to this section for a period of five years.
(e) The monetary damages stipulated in subsection (b) hereof shall be used for establishing worker training programs.
(f) The chief procurement officer is authorized to adopt rules and regulations for the proper administration and enforcement of this section.
(Prior code § 26-27; Amend Coun. J. 5-18-94, p. 51426; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 4-10-13, p. 50868, § 1)
(a) For purposes of this section the following definitions apply:
"Apprentice" means any person who: (1) is sponsored into an apprenticeship training program by a contractor that is authorized by a union to sponsor apprentices; and (2) has graduated from a Chicago Public Schools high school or is enrolled in, or has graduated from, a construction technology training program administered by the City Colleges of Chicago. The union's apprenticeship training program must be registered with the United States Department of Labor, or approved or recognized by the State of Illinois.
"Bid incentive" means an amount deducted, for bid evaluation purposes only, from the contract base bid in order to calculate the bid price to be used to evaluate the bid on a competitively bid construction project.
"Construction project" means any project to be paid for by D.P.S., but which is not funded in whole or part by any federal funds, to construct, remodel or reconstruct any public works, public buildings, public structures, roadways, parkways, bridges, parking facilities or parks, or any portion of any of the same, belonging to the City within its geographical boundaries as they exist or shall exist in the future.
"Contract base bid" means the total dollar amount a contractor bids on a construction project without factoring any bid incentive or percentage reductions to the bid amount.
"Earned credit" means the amount of the bid incentive allocated to a contractor upon completion of a construction project in which the contractor met or exceeded his or her goals for the utilization of apprentices in performance of the total labor hours performed under the contract.
"Earned credit certificate" means a certificate issued by the chief procurement officer evidencing the amount of earned credit a contractor has been awarded.
"Labor hours" means the total hours of workers receiving an hourly wage who are directly employed at the work site. "Labor hours" shall include hours performed by workers employed by the contractor and all subcontractors working at the work site. "Labor hours" shall not include hours worked by non-working foremen, superintendents, owners and workers who are not subject to prevailing wage requirements.
(b) (1) For any construction project advertised after the effective date of this section having an estimated contract value of $100,000.00 or more, and where not otherwise prohibited by federal, state or local law, the chief procurement officer shall allocate to any qualified bidder the following bid incentive for utilization of apprentices in performance of the total labor hours performed under contract.
Total Labor Hours Performed By Apprentices | Bid Incentive |
5 to 10% | 1/2% of the contract base bid |
11 to 15% | 1% of the contract base bid |
The bid incentive shall be calculated and applied in accordance with subsection (b)(2). The bid incentive is used only to calculate an amount to be used in evaluating the bid. The bid incentive does not affect the contract price.
For all construction projects advertised after the effective date of this section, the chief procurement officer shall include the bid incentive provision in all such advertisements.
(2) As part of the contract close-out procedure, if the chief procurement officer determines that the contractor has successfully met its apprentice utilization goals, the chief procurement officer shall issue an earned credit certificate that evidences the amount of earned credits allocated to the contractor. The contractor may apply the earned credits as the bid incentive for any future construction project contract bid of equal or greater dollar value.
The earned credit certificate is valid for three years from the date of issuance and shall not be applied towards any future contract bid after the expiration of that period.
The contractor may apply the earned credit certificate on multiple future construction project contract bids during the three-year period in which the certificate is valid, but may only receive one bid incentive for bid evaluation purposes on one construction project contract award. If the contractor applies the earned credit certificate on multiple construction project bids and is the lowest responsive and responsible bidder on more than one construction project bid, the earned credit certificate shall be applied to the construction project first to be advertised by D.P.S., or if multiple construction project bids were advertised on the same date, the earned credit certificate shall be applied only to the construction project with the greatest dollar value.
(c) The contractor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the chief procurement officer, or the commissioner of the supervising department.
Full access to the contractor's and subcontractors' records shall be granted to the chief procurement officer, the commissioner of the supervising department, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for a period of at least three years after final acceptance of the work.
(d) The chief procurement officer is authorized to adopt, promulgate and enforce reasonable rules pertaining to the administration and enforcement of this section.
(Added Coun. J. 11-1-05, p. 59709, § 1; Amend Coun. J. 9-5-07, p. 6553, § 1; Amend Coun. J. 7-20-16, p. 28660, § 1)
(a) For purposes of this section the following definitions shall apply:
"Apprentice" means any person who is: (1) sponsored into an apprenticeship training program by a contractor that is authorized by a union to sponsor apprentices; (2) participating in a workforce development program of a delegate agency that receives funding from the Department of Family and Support Services; and (3) a returning resident. The union's apprenticeship training program must be registered with the United States Department of Labor, or approved or recognized by the State of Illinois. For purposes of this definition, "participating in" means the duration of the pertinent contract or one year, whichever is less.
"Bid incentive" means an amount deducted, for bid evaluation purposes only, from the contract base bid in order to calculate the bid price to be used to evaluate the bid on a competitively bid construction project.
"Construction project" means any project to be paid for by the City, but which is not funded in whole or part by any federal or state funds, to construct. remodel or reconstruct any public works, public buildings, public structures, roadways, parkways, bridges, parking facilities or parks, or any portion of any of the same, belonging to the City within its geographical boundaries as they exist or shall exist in the future.
"Contract base bid" means the total dollar amount a contractor bids on a construction project without factoring any bid incentive or percentage reductions to the bid amount.
"Earned credit" means the amount of the bid incentive allocated to a contractor upon completion of a construction project in which the contractor met or exceeded the goals for the utilization of apprentices in performance of the total labor hours performed under the contract.
"Earned credit certificate" means a certificate issued by the Chief Procurement Officer evidencing the amount of earned credit a contractor has been awarded.
"Labor hours" means the total hours of workers receiving an hourly wage who are directly employed at the work site. "Labor hours" shall include hours performed by workers employed by the contractor and all subcontractors working at the work site. "Labor hours" shall not include hours worked by non-working foremen, superintendents owners and workers who are not subject to prevailing wage requirements.
"Returning resident" means a resident of the City of Chicago who has been convicted of an imprisonable offense under a local, state, or federal law.
(b) (1) For any construction project advertised after the effective date of this section having an estimated contract value of $100,000.00 or more, and where not otherwise prohibited by federal, state or local law, the chief procurement officer shall allocate to any qualified bidder the following bid incentive for utilization of apprentices in performance of the total labor hours performed under the contract.
Total Labor Hours Performed By Apprentices | Bid Incentive |
5 to 10% | 1/2% of the contract base bid |
11 to 15% | 1% of the contract base bid |
The bid incentive shall be calculated and applied in accordance with subsection (b)(3). The bid incentive does not affect the contract price and is used only to calculate an amount to be used in evaluating the bid.
For all construction projects advertised after the effective date of this section, the chief procurement officer shall include the bid incentive provision in all such advertisements, unless the limitation or preclusion of subsection (b)(2) applies.
(2) The Chief Procurement Officer is authorized to limit or preclude the use of apprentices for a particular contract if she determines, following consultation with the Commissioner of Family and Support Services, that the nature of the underlying offense raises concerns of suitability for that contract.
(3) As part of the contract close-out procedure, if the chief procurement officer determines that the contractor has successfully met its apprentice utilization goals, the chief procurement officer shall issue an earned credit certificate that evidences the amount of earned credits allocated to the contractor. The contractor may apply the earned credits as the bid incentive for any future construction project contract bid of equal or greater dollar value.
The earned credit certificate is valid for three years from the date of issuance and shall not be applied towards any future contract bid after the expiration of that period.
The contractor may apply the earned credit certificate on multiple future construction project contract bids during the three-year period in which the certificate is valid, but may only receive one bid incentive for bid evaluation purposes on one construction project contract award. If the contractor applies the earned credit certificate on multiple construction project bids and is the lowest responsive and responsible bidder on more than one construction project bid, the earned credit certificate shall be applied to the construction project first to be advertised by DPS, or if multiple construction project bids were advertised on the same date, the earned credit certificate shall be applied only to the construction project with the greatest dollar value.
(c) The contractor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the chief procurement officer, or the commissioner of the supervising department.
Full access to the contractor's and subcontractors' records shall be granted to the chief procurement officer, the commissioner of the supervising department, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for at least three years after final acceptance of the work.
(d) The chief procurement officer is authorized to adopt, promulgate and enforce rules pertaining to the administration and enforcement of this section.
(Added Coun. J. 9-14-16, p. 31117, § 1; Amend Coun. J. 1-25-17, p. 41481, § 2; Amend Coun. J. 4-19-23, p. 62651, § 1)
(a) For purposes of this section only the following definitions apply:
"Business Enterprise owned or operated by People with Disabilities" or "B.E.P.D." has the same meaning ascribed to it in Section 2-92-586.
"Bid incentive" means an amount deducted, for bid evaluation purposes only, from the contract base bid in order to calculate the bid price to be used to evaluate the bid on a competitively bid contract.
"Construction project" has the same meaning ascribed to it in Section 2-92-335.
"Contract" means any contract, purchase order, construction project, or other agreement (other than a delegate agency contract or lease of real property or collective bargaining agreement) awarded by the city and whose cost is to be paid from funds belonging to or administered by the city.
"Contract base bid" means the total dollar amount a contractor bids on a contract without factoring any bid incentive or percentage reductions to the bid amount.
(b) (1) For any contract advertised for competitive bid awarded after the effective date of this section and where not otherwise prohibited by federal, state or local law, the chief procurement officer shall allocate to any qualified bidder the following bid incentive for utilization of a B.E.P.D. as a prime contractor or subcontractor in the performance of the contract.
Percentage of total dollar contract amount performed by B.E.P.D.
| Bid incentive |
2 to 5% | 1% of the contract base bid |
6 to 9% | 2% of the contract base bid |
10 to 13% | 3% of the contract base bid |
14% or more | 4% of the contract base bid |
The bid incentive is used only to calculate an amount to be used in evaluating the bid. The bid incentive does not affect the contract price.
For all contracts advertised after the effective date of this section, the chief procurement officer shall include the bid incentive provision in all such advertisements.
(2) The chief procurement officer may determine not to allocate a bid incentive under this section, under the following conditions:
(i) an emergency exists;
(ii) for cooperative purchasing or cooperative construction contracts; or
(iii) the chief procurement officer otherwise concludes that the allocation of a bid incentive is not in the city's best interest.
(c) The contractor shall maintain accurate and detailed books and records necessary to monitor compliance with this section and shall submit such reports as required by the chief procurement officer, or the commissioner of the supervising department.
Full access to the contractor's and subcontractors' records shall be granted to the chief procurement officer, the commissioner of the supervising department, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for a period of at least three years after final acceptance of the work.
(d) Upon completion of the work, any prime contractor that has failed to retain the percentage of B.E.P.D. subcontractors for which a bid incentive was taken into consideration in awarding of a contract shall be fined an amount equal to three times the amount of the bid incentive allocated, unless the prime contractor can demonstrate that due to circumstances beyond the prime contractor's control, the prime contractor for good cause was unable to retain the percentage of B.E.P.D. subcontractors throughout the duration of the contract period.
(e) The chief procurement officer is authorized to adopt, promulgate and enforce reasonable rules pertaining to the administration and enforcement of this section.
(Added Coun. J.1-13-09, p. 52632, § 1; Amend Coun. J. 6-28-17, p. 51152, § 1)
The chief procurement officer is hereby authorized to prequalify contractors as the exclusive responsible bidders for: i) roof repair, ii) building demolition, iii) board-up work, or (iv) emergency bridge or viaduct repair based on such contractors’ responses to a request for qualifications ("R.F.Q.") which has been publicly advertised and issued by the chief procurement officer for the respective type of work. Any such R.F.Q. shall specify those criteria that the chief procurement officer deems necessary to determine whether respondents are qualified to perform the type of work addressed by the R.F.Q. Such criteria may include the respondent’s financial capability, experience, past performance, adequacy of equipment, ability to perform the work on a timely basis, and other pertinent considerations. The R.F.Q. shall also set forth terms and conditions which will govern the performance of any work which may be awarded to a respondent who becomes prequalified as a responsible bidder.
Respondents shall have at least 20 calendar days from the date of issuance of the R.F.Q. to submit their responses to the chief procurement officer. The chief procurement officer shall publicly advertise any material addenda to the R.F.Q. and respondents shall have at least ten calendar days thereafter to submit their responses to the chief procurement officer.
(Added Coun. J. 5-19-93, p. 32270; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 4-18-18, p. 76017, § 1)
The chief procurement officer may require prospective contractors for contracts awarded pursuant to 65 ILCS 5/8-10-4 to execute a master agreement which shall apply to any services rendered under the master agreement. The master agreement shall contain the funding amount allocated to each master agreement and such terms and conditions appropriate for such a contract and any other terms and conditions as may be required by the chief procurement officer. Each master agreement shall be approved by the mayor, comptroller and chief procurement officer and include a task order procedure under which the chief procurement officer may negotiate and enter into an agreement with such contractor to perform a particular project subject to the terms of the master agreement.
(Added Coun. J. 12-8-04, p. 38063, § 1)
For each R.F.Q. issued, an evaluation committee shall be designated by the chief procurement officer and shall include members of those city departments likely to require the type of work addressed by the R.F.Q. Such evaluation committee shall evaluate responses to the R.F.Q. in accordance with the criteria set forth in the R.F.Q. and shall recommend that the chief procurement officer deem as responsible those respondents who meet those criteria. Based on the recommendation of the evaluation committee, the chief procurement officer shall develop a list of contractors who are prequalified as the exclusive responsible bidders on contracts for the type of work addressed in the R.F.Q.
The chief procurement officer may, at any time, delete from such responsible bidder list any contractor which the chief procurement officer determines to be nonresponsible. If the chief procurement officer subsequently determines such a deleted contractor to be responsible, the chief procurement officer may reinstate such contractor to the responsible bidder list from which it was deleted.
Each year that the chief procurement officer elects to continue the prequalification of contractors, the chief procurement officer shall, no later than 90 days after the anniversary date of the issuance of the original R.F.Q. for the particular type of work, readvertise and reissue such R.F.Q. in order to allow for renewal of the responsible bidder list.
(Added Coun. J. 5-19-93, p. 32270; Amend Coun. J. 7-19-00, p. 38206, § 1)
All contractors on a responsible bidder list shall be required to execute a master agreement which shall apply to any work which may be awarded and which contain, without exception, the terms and conditions set forth in the R.F.Q. and any other terms and conditions which may be required by the chief procurement officer. Failure of a contractor otherwise qualifiable as responsible to execute a master agreement shall result in such contractor's deletion from the responsible bidder list.
Prequalification of a contractor as a responsible bidder shall be effective for the term of a master agreement with that contractor, except to the extent that the chief procurement officer has deleted the contractor from the responsible bidder list pursuant to Section 2-92-350. The chief procurement officer may extend the term of a master agreement up to 90 days in order to provide continuity of services until the responsible bidder list can be renewed in accordance with Section 2-92-350.
(Added Coun. J. 5-19-93, p. 32270; Amend Coun. J. 7-19-00, p. 38206, § 1)
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