(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)