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(a) Whenever used in this section, the following words and phrases shall have the following meanings:
"Contract" means any agreement or transaction pursuant to which the contracting party receives city funds in consideration for services, work or goods provided or rendered.
"Debt" means a specified sum of money owed to the city for which the period granted for payment has expired.
(b) Every city contract shall contain a provision that entitles the city to set off a portion of the contract price equal to the amount of any debt owed by the contracting party to the city.
(c) Notwithstanding the provisions of subsection (b) herein, no such debt shall be offset from the contract price if one or more of the following conditions are met:
(1) The contracting party has entered into an agreement with the department of finance, or other appropriate city department, for the payment of all debts owed to the city and the contracting party is in compliance with the agreement; or
(2) The contracting party is contesting liability for or the amount of the debt in a pending administrative or judicial proceeding; or
(3) The contracting party has filed a petition in bankruptcy and the debts owed the city are dischargeable in bankruptcy.
(Prior code § 26-27.2; Added Coun. J. 6-7-90, p. 17027; Amend Coun. J. 11-16-11, p. 13798, Art. I, § 2; Amend Coun. J. 10-28-15, p. 11951, Art. I, § 1)
(a) Definitions. For the purpose of this section, the following terms shall have the following meanings:
"Contract" means any agreement or transaction pursuant to which a contractor (i) receives city funds in consideration for services, work or goods provided or rendered, including contracts for legal or other professional services, or (ii) pays the city money in consideration for a license, grant or concession allowing it to conduct a business on city premises, and includes any contracts not awarded or processed by the Department of Procurement Services.
"Contractor" means the person to whom a contract is awarded.
(b) Requirements.
(1) No contractor, or entity awarded a contract with the City, or any renewal or extension thereof, shall screen job applicants based on their wage or salary history, including by requiring that an applicant’s prior wages, including benefits or other compensation, satisfy minimum or maximum criteria; or by requesting or requiring that an applicant disclose prior wages or salary:
(i) as a condition of being interviewed,
(ii) as a condition of continuing to be considered for an offer of employment,
(iii) as a condition of an offer of employment or an offer of compensation, or
(iv) as a condition of employment.
(2) No contractor shall seek the wage or salary history, including benefits or other compensation, of any job applicant from any current or former employer.
(3) Each contractor, or entity awarded a contract with the City, or any renewal or extension thereof, must adopt a policy that includes the same prohibitions set forth in subsections (1) and (2) of this subsection (b).
(c) Rules. The chief procurement officer is hereby authorized to do the following:
(1) The chief procurement officer shall require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or contractor submit an affidavit and any other supporting documents demonstrating that the bidder has a policy conforming to the requirement in subsection (3) paragraph (b), above;
(2) investigate all contractors’ compliance with this section;
(3) provide the names and business addresses of substantial owners and contractors to persons seeking to enforce this section, and their legal representatives, to the extent allowed by law, on the condition that such information be used solely for the purpose of assisting enforcement; provided that the names and identifying information of persons seeking to enforce this section shall be deemed confidential; and
(4) to promulgate regulations relating to the operation and enforcement of this section.
(d) Where a contract is entered into by an agent of the city other than the chief procurement officer, that agent is authorized to take and shall take the actions described above for the chief procurement officer in subsection (c) above.
(e) Noncompliance. If a contractor violates the provisions of this section, that contractor may be deemed ineligible to contract with the City; any contract, extension, or renewal thereof awarded in violation of this section may be voidable at the option of the City. Provided, however, that upon a finding of a violation by a prime contractor, no contract shall be voided, terminated, or revoked without consideration by the Chief Procurement Officer or other contracting agent of the City of such action’s impact on the prime contractor’s MBE or WBE subcontractors. For purposes of this section, "MBE" and "WBE" have the meanings ascribed to those terms in Sections 2-92-420 and 2-92-670, and "prime contractor" means a person who is the primary contractor on a contract and does not include any subcontractors.
(f) Fines. Any contractor who violates this subsection shall be subject to a fine not less than $500 and not more than $1,500 for each offense.
(g) Severability. If any provision, clause, sentence, paragraph, or part of this section or application thereof to any person or circumstance, shall for any reason be adjudged by a court of competent jurisdiction to be unconstitutional or invalid, said judgment shall not affect, impair or invalidate the remainder of this section and the application of such provision to other persons or circumstances, but shall be confined in its operation to the provision, clause, sentence, paragraph, section, or part thereof already involved in the controversy in which such judgment has been rendered and to the person and circumstances affected thereby.
(Added Coun. J. 5-23-18, p. 77282, § 3)
(a) If there exists evidence that minorities and/or women are under-represented in a contractor's work force, by comparison thereof to the labor force available within the population of the City of Chicago as established in the most recent federal census or in statistics compiled by the U.S. Department of Labor, if more recent, such contractor shall forthwith take appropriate remedial action to achieve compliance with applicable federal laws and regulations.
(b) (1) For any construction project having an estimated contract value of $100,000.00 or more, and which is directly supervised by the City of Chicago, beginning with the calendar year 1984, the city shall have as its yearly equal employment opportunity goals the following percentages of construction aggregated work hours in each of the categories of construction journeyworker and apprentice:
(A) At least 25 percent by minorities, as described in subsection (c) of this section;
(B) At least seven percent by women.
(2) For any construction project having an estimated contract value of $100,000.00 or more, which is directly supervised by the City of Chicago, beginning with the calendar year 1984, the city shall have as its yearly employment opportunity goals the following percentages of construction aggregated work hours in the category of construction laborer:
(A) At least 40 percent by minorities, as described in subsection (c) of this section;
(B) At least ten percent by women.
(3) In order to effectuate the achievement of these goals, the chief procurement officer shall employ the canvassing formula described in subsection (c) of this section in the bidding for and in the awarding of all contracts involving construction projects having an estimated contract value of $100,000.00 or more and which are directly supervised by the City of Chicago.
These goals shall also apply to construction projects subsidized in part with federal revenues pursuant to congressionally created grant programs which are intended to encourage economic revitalization including improved opportunities for the poor, minorities, and unemployed within the municipality to which the grant was given (including, without limitation, Community Development Block Grants, Urban Development Action Grants and Economic Development Administration Grants), and shall be monitored by the supervising department.
(c) Fulfillment of these equal employment opportunity goals for construction projects having an estimated contract value of $100,000.00 or more which are directly supervised by the City of Chicago will be achieved through contracts which shall include the following language:
In accordance with Chapter 2-92 of the Municipal Code of Chicago, and in order to promote equality of opportunity for minority and female personnel on this project, the City of Chicago has established the following canvassing formula for the purpose of evaluating proposals and awarding the contract.
Each bidder is invited to propose the minority and female employee utilization goals for the project, as percentages of the journeyworker and apprentice and laborer hours to be expended in the construction of the project. Lines 2, 4, and 6 in the formula shall not be greater than 70 percent in each category, for the purpose of canvassing only. The 70 percent limit shall not deter or restrict the fuller utilization of minority employees for the project, but shall only serve as a limiting figure for use in the formula. Similarly, lines 8, 10, and 12 shall not be greater than 15 percent in each category, for the purpose of canvassing only. Actual amounts of minority and female work will be measured for the total hours of construction workers employed on the projects within each of the categories of journeyworkers, apprentice, laborers by the contractor and all of the worksite subcontractors.
Canvassing Formula
Line 1. | Base bid, in figures | ____ |
Line 2. | Percentage of the total journeyworker hours that the contractor proposes to be worked by minority journeyworkers during construction of the project. Maximum figure .70. | ____ |
Line 3. | Multiply line 2 by line 1 by 0.04 | ____ |
Line 4. | Percentage of the total apprentice hours that the contractor proposes to be worked by minority apprentices during construction of the project. Maximum figure .70. | ____ |
Line 5. | Multiply line 4 by line 1 by 0.03 | ____ |
Line 6. | Percentage of the total laborer hours that the contractor proposes to be worked by minority laborers during construction of the project. Maximum figure .70. | ____ |
Line 7. | Multiply line 6 by line 1 by .01. | ____ |
Line 8. | Percentage of the total journeyworker hours that the contractor proposes to be worked by female journeyworkers during construction of the project. Maximum figure .15. | ____ |
Line 9. | Multiply line 8 by line 1 by 0.04. | ____ |
Line 10. | Percentage of the total apprentice hours that the contractor proposes to be worked by female apprentices during construction of the project. Maximum figure .15. | ____ |
Line 11. | Multiply line 10 by line 1 by 0.03. | ____ |
Line 12. | Percentage of the total laborer hours that the contractor proposes to be worked by female laborers during construction of the project. Maximum figure .15. | ____ |
Line 13. | Multiply line 12 by line 1 by 0.01 | ____ |
Line 14. | Summation of lines 3, 5, 7, 9, 11, and 13. | ____ |
Line 15. | Subtract line 14 from line 1 = award criteria figure. | ____
|
The bidder shall complete the canvassing formula and transfer the final award criteria figure, line 15, to the space provided on the itemized proposal sheet. A contract in the amount of the total base bid will be awarded to the responsible bidder with the lowest award criteria figure. The city reserves the right to revise all arithmetic calculations for correctness. The contractor is obliged during the construction of the project to fulfill every numerical commitment made under the canvassing formula categories. Therefore, every limiting condition or circumstance which may affect referral, hiring, or deployment of construction trades employees must be taken into account by the bidder before the commitment is proposed. Limits imposed by the policies or circumstances of labor organizations or other referral resources, for example, should be anticipated by the bidder, since relief from the contractor's obligations as established under the canvassing formula is not available due to such circumstances found to exist
during construction. Also, if journeyworkers will not be employed in the project, or apprentices, or laborers, then the proposal made in the appropriate lines, lines 2 and 8, or lines 4 and 10 or 6 and 12, should be entered as "0 percent", since no journeyworker or apprentice or laborer hours are reported after construction, this will be computed by the city as 0 percent minority/female hours achieved.
If commitments are made in the apprentice category, lines 4 and 10, the total apprentice hours to be employed on the project should be anticipated to be a substantial number of hours; since it is the intention of the city that where a commitment for a percentage of minority or female apprentices has been made, the percentage may be counted as fulfilled only as long as there were provided at least 40 actual hours of minority or female employment as apprentices. For this reason, where a minority or female percentage commitment has been made, if in the final audit of the performance of the contract there are less than 40 actual hours of minority or female apprentice work performed, then the number of minority or female apprentice hours will be counted by the City as "0" for the purpose of measuring the achievement towards the apprentice canvassing formula goal.
Therefore, notice that when the contractor is performing at a level under a minority or female apprentice goal, line 4 or line 10 above, the contractor will be subject to the full amount of liquidated damages, see lines 5 and 11, if at least 40 actual hours of minority or female apprenticeship work are not achieved. When the bidder foresees that this minimum amount of apprenticeship is not available to the project, then "0" should be put in lines 4 and 10 as the percentage commitment for apprentices.
The contractor is obligated to meet the total commitment made in each category, subject to liquidated damages as described below for noncompliance. The contractor hereby consents and agrees that, in the event of failure to comply with each of the minimum commitments submitted with the proposal on lines 2, 4, 6, 8, 10 and 12 of the canvassing formula, covering journeyworkers, apprentices, and laborers, respectively, the following shall apply to determine a monetary sum to be withheld from the final payment to the contractor.
In calculating the aggregated work hours toward the utilization goals for construction journeyworkers, apprentices, or laborers under this subsection, the contractor shall be given 150 percent credit for every work hour performed by a minority or woman worker residing within a socio-economically disadvantaged area. The criteria for designation of an area as socio-economically disadvantaged will be set forth in rules promulgated by the Commissioner of Planning and Development. Such criteria shall include, but not be limited to, the median family income of an area.
Liquidating Damages
For each one percent deficiency of minority journeyworkers not utilized toward the goal (line 2), four cents for each hundred dollars of the base bid, calculated as follows:
Line 1 X .04
100
100
Each one percent deficiency of shortfall toward the goal line (line 8) for female journeyworkers shall be computed in the same way.
For each one percent deficiency of minority apprentices not utilized toward the goal (line 4), three cents per each hundred dollars on the base bid, calculated as follows:
Line 1 X .03
100
100
Each one percent of shortfall toward the goal (line 10) for female apprentices shall be computed in the same way.
For each one percent deficiency of minority laborers not utilized toward the goal (line 6), one cent per each hundred dollars of the base bid, calculated as follows:
Line 1 X .01
100
100
Each one percent shortfall toward the goal (line 12) for female laborers shall be computed in the same way.
Reporting
The contractor shall submit to the City on a timely basis a completed weekly certified payroll, (U.S. Department of Labor Form WH-347, Illinois Department of Transportation Form RE-48, or equivalent) with race and gender of employees clearly named or coded each week. The contractor is responsible for forwarding every worksite subcontractor's weekly certified payroll. Supportive information regarding an employee's race, gender or work classification of such is required by the City. Failure to report fully all required workforce information will subject the contractor to liquidated damages in the total amount listed in line 14 above.
In the weekly payroll reports, the following ethnic categories should be used to indicate minority personnel for purposes of the canvassing formula:
Black = Persons having origins in any of the Black racial groups of Africa.
Hispanic = Persons of Mexican, Puerto Rican, Cuban, Central American, or other Spanish culture or origin, regardless of race.
Native American = Persons who are American Indians, Eskimos, Aleuts or Native Hawaiians.
Asian Pacific = Persons whose origins are from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, the Philippines, Samoa, Guam, the U.S. Trust Territories or the Northern Marianas.
Asian Indian = Persons whose origins are from India, Pakistan, or Bangladesh.
Included in the canvassing formula as "Journeyworkers" are the construction-site journeyworkers from the major trades including, without limitation, truck drivers, electrical groundsmen, and elevator construction helpers. Other "Helpers", watchmen, custodial workers, clerical workers, and salaried superintendents are not creditable in the formula. Hourly wage "Foremen" and "General Foremen" will be counted as journeyworkers for purposes of the canvassing formula.
Included in the canvassing formula as "Apprentices" are only bona fide apprentices currently in a training program certified by the U.S. Department of Labor – Bureau of Apprenticeship and Training, and for the hours employed at the construction-site. Other categories of trainees are not creditable in the formula. Individual workers who are both minority and female will have their hours counted toward both a minority goal and any female goal.
Other Regulations
The adherence to the canvassing formula does not abrogate other responsibilities of the contractor to comply with equal employment opportunity requirements under federal or state law, municipal ordinance, prevailing government regulations or terms contained elsewhere in this contract.
(d) The monetary damages stipulated in subsection (c) hereof may be adjusted by the chief procurement officer to represent a larger fraction of the base bid price, if the chief procurement officer after review of contractors' compliance with this section determines that said damages are insufficient to secure contractors' compliance herewith. In no event may said damages be adjusted to a lower fraction. The corporation counsel shall assist the chief procurement officer in the development of standards for the calculation of appropriate liquidated damages. Any such damage 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.
(e) The chief procurement officer is authorized to adopt rules for the proper administration of this section.
(Prior code § 26-28; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 3-16-16, p. 19974, § 1)
For construction contracts having an estimated contract value of $100,000.00 or more which are directly supervised by the City of Chicago, the Chief Procurement Officer shall report during the first quarter of each calendar year at a public hearing before the City Council Committee on Contracting Oversight and Equity, to detail compliance and the methods used to achieve compliance with the requirements of Sections 2-92-330 and 2-92-390 of this chapter for the prior calendar year. A written copy of this testimony shall be made available to the public by the Chief Procurement Officer.
For construction projects funded in part with federal revenues as described in Section 2-92-330(a) of this chapter, the head of each department which supervises such a project shall report during the first quarter of each calendar year at a public hearing before the City Council Committee on Contracting Oversight and Equity to detail compliance and the methods used to achieve compliance with the requirements of Sections 2-92-330 and 2-92-390 of this chapter for the prior calendar year. A written copy of this testimony shall be made available to the public by such department head.
(Prior code § 26-29; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 11-20-19, p. 9510, Art. II, § 7)
(a) For purposes of this section only, the following definitions shall apply:
"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.
"Department" means the department of procurement services.
"Project-area subcontractor" means a person who: (i) conducts meaningful day-to-day business operations at a facility located within that part of the city designated as the project area in the information for bidders issued by the department and that facility is the place of employment for the majority of that person's regular, full-time workforce; (ii) holds all appropriate city licenses; (iii) is a small business enterprise; and (iv) is subject to applicable city taxes; provided that a project-area subcontractor shall not include the prime contractor.
"Prime Contractor" means a person who is the primary contractor on a contract.
"Small business enterprise" means a business that has gross receipts, averaged over its previous seven fiscal years, that do not exceed one and a half times the size standards of the U.S. Small Business Administration set forth in 13 C.F.R. Part 121, relevant to the scope of work the business seeks to perform on the City's contracts.
(b) (1) For any construction project advertised 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 project-area subcontractors in the performance of the contract.
Total Dollar Value of Work Performed by Project-Area Subcontractors as a Percentage of the Total Contract Value | Bid Incentive |
1 to 16% | 0.5% of the contract base bid |
17 to 32% | 1% of the contract base bid |
33 to 49% | 1.5% of the contract base bid |
50% or greater | 2% of the contract base bid |
If a project-area subcontractor subcontracts part of the work to another contractor, only the value of work performed by the project-area subcontractor's employees shall count towards the bid incentive, unless the sub-subcontractor is a project-area subcontractor.
The bid incentive is used only to calculate an amount to be used in evaluating the bid to determine the low bidder, and it does not affect the contract price.
A contractor shall not be eligible to receive in one contract bid, the bid incentive allocated pursuant to this section and that allocated pursuant to Section 2-92-410.
(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.
(3) For all construction projects advertised after the effective date of this section, the chief procurement officer shall include the bid incentive provision consistent with this section in all such advertising.
(c) The prime contractor shall maintain records adequate to monitor compliance with this section and shall submit such reports as required by the chief procurement officer. Full access to the prime contractor's records shall be granted to the chief procurement officer, the commissioner of the supervising department, the inspector general, or any duly authorized representative thereof. The prime contractor and subcontractors shall maintain all relevant records for a period of at least three years after the expiration of the contract.
(d) The chief procurement officer may require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or project-area subcontractor submit an affidavit and other supporting documents demonstrating that a subcontractor is a project-area subcontractor.
(e) Upon completion of the work, any prime contractor that has failed to retain the percentage of project-area subcontracts 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 project-area subcontractors throughout the duration of the contract period.
(f) The chief procurement officer is authorized to adopt, promulgate and enforce reasonable rules and regulations pertaining to the administration and enforcement of this section.
(g) This section shall not apply to any construction project to the extent that the requirements imposed by this section are inconsistent with procedures or standards required by any law or regulation of the United States or the State of Illinois to the extent such inconsistency is not permitted under law or the home rule powers of the city.
(Added Coun. J. 4-15-15, p. 106126, § 1; Amend Coun. J. 10-27-21, p. 39543, Art. III, § 2)
(a) For purposes of this section only, the following definitions shall apply:
"Contract" means any contract, purchase order or agreement awarded by the city and whose cost is to be paid from funds belonging to or administered by the city; provided that the term "contract" does not include: (i) a delegate agency contract; (ii) a lease of real property; or (iii) a collective bargaining agreement.
"Diverse" means any of the following racial or ethnic groups:
African-Americans or Blacks (persons having origins in any of the Black Racial groups of Africa);
Hispanics (persons of Spanish culture with origins in Mexico, South or Central America or the Caribbean Islands, regardless of race);
Asian-Americans (persons having origins in any of the original peoples of East Asia, Southeast Asia, the Indian subcontinent, or the Pacific Islands);
American Indians, which includes persons having origins in any of the original peoples of North and South America (including Central America) and who maintain tribal affiliation or community attachment; and
Other groups, or other individuals, found by the board to be socially and economically disadvantaged and to have suffered actual racial, ethnic or gender discrimination and decreased opportunities to compete in Chicago area markets or to do business with the city.
"Management" means business owners, partners and any others who have a fiduciary duty to the business.
"Prime Contractor" means the primary contractor on a contract. A "prime contractor" does not include any subcontractors.
"Workforce" means all who are employed by a prime contractor in a permanent, full-time employment capacity.
(b) (1) Unless otherwise prohibited by any federal, state or local law, for any contract having an estimated contract value of $100,000 or more advertised, or if not advertised awarded by competitive bid, after the effective date of this ordinance, the Chief Procurement Officer shall allocate to any qualified bidder the following bid incentive for diverse management and diverse workforce:
Total Percent of Prime Contractor Management That Is Diverse | Bid Incentive |
10 percent to 20 percent | 0.5 percent of the contract base bid |
Greater than 20 percent up to 40 percent | 2 percent of the contract base bid |
Greater than 40 percent | 4 percent of the contract base bid |
Total Percent of Prime Contractor Workforce That Is Diverse | Bid Incentive |
10 percent to 20 percent | 2 percent of the contract base bid |
Greater than 20 percent up to 40 percent | 4 percent of the contract base bid |
Greater than 40 percent | 6 percent of the contract base bid |
A prime contractor may qualify for and apply both the diverse management and diverse workforce bid incentives.
The bid incentive is used only to calculate an amount to be used in evaluating the bid to determine the low bidder, and it does not affect the contract price.
(2) The Chief Procurement Officer may determine not to allocate a bid preference 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 preference is not in the City's best interest.
(c) For all contracts advertised for bid solicitation, the Chief Procurement Officer shall include a bid preference provision consistent with this section in all such advertising.
(d) The prime contractor shall maintain records adequate to monitor compliance with this section and shall submit such reports as required by the Chief Procurement Officer. Full access to the prime contractor's records shall be granted to the Chief Procurement Officer, the commissioner of the supervising department, the Inspector General, or any duly authorized representative thereof. The prime contractor shall maintain all relevant records for a period of no less than three years after the expiration of the contract.
(e) The Chief Procurement Officer may require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or prime contractor submit an affidavit and other supporting documents demonstrating that the bidder or prime contractor is eligible for the diverse management and/or diverse workforce bid incentives.
(f) Upon completion of the work, any prime contractor that has failed to retain the percentage of diverse management and/or diverse workforce for which a bid incentive was taken into consideration in awarding of a contract shall be fined in 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 diverse management and/or diverse workforce throughout the duration of the contract period.
(g) 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. 6-27-18, p. 79887, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. I, § 8)
Editor’s note – Coun. J. 6-28-17, p. 51157, § 2, repealed former § 2-92-407, which pertained to contracts and bid incentive for utilization of veteran-owned subcontractors.
(a) For purposes of this section only, the following definitions shall apply:
"City-based manufacturer" means a person who: (i) holds any appropriate city license; (ii) is subject to applicable city taxes; and (iii) owns, operates, or leases a manufacturing facility within the city.
"Contract for goods" means any contract, purchase order or agreement for the purchase of goods awarded by the city and whose cost is to be paid from funds belonging to or administered by the city; provided that a "contract" does not include: (i) a delegate agency contract; (ii) a lease of real property; (iii) a collective bargaining agreement; or (iv) a construction contract as defined in Section 2-92-670.
"Locally manufactured goods" means goods whose value, either in whole or in part, is derived from growing, producing, processing, assembling, or manufacturing activities that occur within a city-based manufacturer's facility located within the city.
"Manufacture" means to produce tangible goods for use from raw or prepared materials by giving the materials new forms, qualities, properties or combinations, whether by hand-labor or machines.
(b) (1) Unless otherwise prohibited by any federal, state or local law, for any contract for goods having an estimated contract value of $100,000 or more advertised, or if not advertised awarded, after the effective date of this section, the chief procurement officer shall allocate to any qualified bidder the following bid incentive:
Total Dollar Value of Locally Manufactured Goods Provided in the Contract | Bid Incentive |
25% to 49%
|
1% of the contract base bid
|
50% to 74%
|
1.5% of the contract base bid
|
75% or greater
|
2% of the contract base bid
|
The bid incentive is used only to calculate an amount to be used in evaluating the bid to determine the low bidder, and it does not affect the contract price.
(2) The chief procurement officer may determine not to allocate a bid incentive under this section, under the following conditions:
(i) the purchase of locally manufactured goods is not in the best interest of the city;
(ii) the locally manufactured goods are not likely to be available in sufficient supply and acceptable quality;
(iii) the purchase of locally manufactured goods conflicts with another city economic development program;
(iv) the purchase of locally manufactured goods will increase the cost of the goods by more than five percent over non-locally manufactured goods;
(v) for cooperative purchasing contracts; or
(vi) an emergency exists.
(3) For all contracts advertised after the effective date of this section, the chief procurement officer shall include the bid incentive provision consistent with this section in all such advertising.
(c) For a specific type of good, the chief procurement officer shall establish, in rules and regulations, the amount of value that must be derived from manufacturing activities located in the city in order for that good to qualify as a locally manufactured good.
(d) The contractor shall maintain records adequate to monitor compliance with this section and shall submit such reports as required by the chief procurement officer. Full access to the contractor's records shall be granted to the chief procurement officer, the commissioner of the supervising department, the inspector general, or any duly authorized representative thereof. The contractor and subcontractors shall maintain all relevant records for a period of no less than three years after the expiration of the contract.
(e) The chief procurement officer may require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or contractor submit an affidavit and other supporting documents demonstrating that the bid for which the bid incentive is being or was sought satisfies all pertinent requirements, including documentation that a specific good meets the criteria for a locally manufactured good. The documentation may include, but is not limited to, a manufacturer's certification that the good was manufactured at a facility located in the city and an opinion from a certified public accountant that evidences the amount of the value being added from the manufacturing activity located in the city.
(f) Upon completion of the work, any contractor that has failed to supply the required percentage of locally manufactured goods for which a bid incentive was allocated shall be fined in an amount equal to three times the amount of the difference between the bid incentive allocated and the bid incentive that would have been allocated to that contractor for the amount of locally manufactured goods actually supplied under the contract, unless the contractor can demonstrate that due to circumstances beyond the contractor's control, the contractor for good cause was unable to provide the required percentage of locally manufactured goods.
(g) The chief procurement officer is authorized to adopt, promulgate and enforce reasonable rules and regulations pertaining to the administration and enforcement of this section.
(Added Coun. J. 2-15-12, p. 20488, § 1; Amend Coun. J. 4-15-15, p. 106126, § 1)
Editor's note – Coun. J. 7-19-00, p. 38206, § 1, repealed former § 2-92-410, which pertained to political activity prohibited – exception.
(a) For purposes of this section only, the following definitions shall apply:
"City-based business" means a person who (i) conducts meaningful day-to-day business operations at a facility located within the city and that facility is the place of employment for the majority of its that person's regular, full-time workforce; (ii) holds all appropriate city licenses; and (iii) is subject to applicable city taxes.
"City resident employee" means an individual who resides in the City and who is employed by a prime contractor in a permanent, full-time employment and whose work is not counted towards the work hours required by Section 2-92-330.
"City residents" has the meaning ascribed to the term in Section 2-92-330.
"Contract" means any contract, purchase order or agreement awarded by the city and whose cost is to be paid from funds belonging to or administered by the city; provided that the term "contract" does not include: (i) a delegate agency contract; (ii) a lease of real property; or (iii) a collective bargaining agreement.
"Prime Contractor" means a person who is a city- based business and the primary contractor on a contract. A "Prime Contractor" does not include any subcontractors.
"Socio-economically disadvantaged area" means an area within the City that meets the criteria for designation as socio-economically disadvantaged area as set forth in rules promulgated by the City's Commissioner of Planning and Development pursuant to Section 2-92-390.
(b) (1) Unless otherwise prohibited by any federal, state or local law, for any contract having an estimated contract value of $100,000.00 or more, the chief procurement officer shall allocate to any qualified bidder that is a prime contractor a bid preference of: (i) 4 percent of the contract base bid; or (ii) 6 percent of the contract base bid, if the majority of such prime contractor’s employees are city resident employees; or (iii) 8 percent of the contract base bid, if such prime contractor is eligible for an incentive under subsection (b)(1)(ii) and the majority of such contractor’s city resident employees are residents of a socio-economically disadvantaged area.
If a prime contractor is allocated a bid preference pursuant to this section, the prime contractor shall not be eligible to receive a bid incentive pursuant to Section 2-92-410.
The bid preference is used only to calculate an amount to be used in evaluating the bid to determine the low bidder, and it does not affect the contract price.
(2) The chief procurement officer may determine not to allocate a bid preference 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 preference is not in the city's best interest.
(3) For all contracts advertised for bid solicitation, the chief procurement officer shall include a bid preference provision consistent with this section in all such advertising.
(c) The prime contractor shall maintain records adequate to monitor compliance with this section and shall submit such reports as required by the chief procurement officer. Full access to the prime contractor's records shall be granted to the chief procurement officer, the commissioner of the supervising department, the inspector general, or any duly authorized representative thereof. The prime contractor and subcontractors shall maintain all relevant records for a period of no less than three years after the expiration of the contract.
(d) The chief procurement officer may require, at the time of submission of a bid or at any time during the term of the contract, that the bidder or prime contractor submit an affidavit and other supporting documents demonstrating that the bidder or prime contractor is a city-based business and, if applicable, an affidavit and other supporting documents demonstrating that the bidder or prime contract is eligible for a four-percent or six-percent bid preference under this section.
(e) Upon completion of the work, any prime contractor that has failed to remain a city-based business, or, if applicable, a city-based business eligible for a four-percent or six-percent bid preference, for which a bid preference was taken into consideration in awarding of a contract shall be fined in an amount equal to three times the amount of the bid preference 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 remain a city-based business, or, if applicable, a city- based business eligible for a four-percent or six-percent bid preference, throughout the duration of the contract period.
(f) 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. 2-15-12, p. 20488, § 1; Amend Coun. J. 4-15-15, p. 106126, § 1; Amend Coun. J. 11-9-16, p. 36307, § 1; Amend Coun. J. 6-27-18, p. 79887, § 1)
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