2-92-390 Equal employment opportunity regulations for contracts – Enforcement.

   (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

   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

   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

   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)

2-92-400 Compliance with Sections 2-92-330 and 2-92-390 – Reports.

   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)

2-92-405 Contracts – Bid incentive for utilization of project-area subcontractors.

   (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)

2-92-407 Contracts – Bid incentive to encourage diverse management and workforce.

   (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.

2-92-410 Contracts – Bid incentive for certain city- based manufacturers.

   (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

 

   Provided that for any contract subject to this section, if a contractor is allocated a bid preference pursuant to Section 2-92-412 or a bid incentive pursuant to Section 2-92-405, the contractor shall not be eligible to receive the bid incentive allocated pursuant to this section.

   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.

2-92-412 Contracts – Bid preference for city-based businesses.

   (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)

2-92-413 Contracts – Bid incentives for alternatively powered vehicles.

   (a)   For purposes of this section only, the following definitions apply:

   "Alternative   fuel" has the meaning ascribed to that term in the Energy Policy Act of 1992, and the rules promulgated by the United States Department of Energy pursuant to that Act. The term "alternative fuel" includes but is not limited to natural gas, liquefied petroleum gas, hydrogen, ethanol E85 or electricity;

   "Alternatively   powered vehicle" means a vehicle that:

      (1)   is fueled by alternative fuel; provided that if a vehicle is capable of being powered by alternative fuel and traditional petroleum-based gasoline or petroleum-based diesel fuel, the vehicle must be powered by the alternative fuel for no less than 80% BTUs consumed during the three months prior to the submission of the bid; or

      (2)   is commonly referred to as a hybrid vehicle that is capable of being powered by a combination of any fuel and an alternative power source and the alternative power source includes an energy storage system to store generated or accumulated energy which substantially reduces the fuel use and emissions when compared to a standard vehicle of the same age, type and size; or

      (3)   is fueled by a biodiesel blend; provided that the vehicle is powered by the biodiesel blend for no less than 80% of the gallons consumed during the three months prior to the submission of the bid; or

      (4)   is fueled by traditional petroleum-based gasoline or petroleum-based diesel fuel, but powered by an engine substantially more efficiently designed than a standard vehicle of the same age, type and size; provided that the vehicle is rated by the United States Environmental Protection Agency in the top 5% for fuel efficiency for similar vehicles.

   An "alternatively powered vehicle" does not include any vehicle which is: (i) primarily used in a warehouse or similar type of enclosed structure; (ii) required to use, or given credit for using, alternative fuel by any federal, state or local law; or (iii) subject to Section 2-92-595.

   "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.

   "Biodiesel blend" has the meaning ascribed to that term in Section 2-92-595.

   "Construction project" has the meaning ascribed to that term 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 in the bid amount.

   "Eligible business" means a business located within the counties of Cook, DuPage, Kane, Lake, McHenry or Will in the State of Illinois (the "Six County Region"), and as to which: (1) a majority of the business' fleet is located and used within the Six County Region; and (2) a majority of those vehicles located and used within the Six County Region are alternatively powered vehicles.

   "Fleet" means 10 or more vehicles that are owned, operated, leased or otherwise controlled by a business.

   "Vehicle" means every device powered by a motor or engine and by, upon, or in which any person or property is or may be transported or drawn upon a street or highway, except a "vehicle" shall not include motorized wheelchairs, golf carts, neighborhood electric vehicles, as that term is defined in Section 9-4-010, devices moved solely by human power, devices used exclusively upon stationary rails or tracks, or snowmobiles, as defined in the Snowmobile Registration and Safety Act of Illinois.

   (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, after the effective date of this ordinance, the chief procurement officer shall allocate a bid incentive of 1/2% of the contract base price to a qualified bidder when the qualified bidder is an eligible business.

   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.

   For purposes of this section the total dollar value of a construction project contract includes both materials and labor.

      (2)   The chief procurement officer may forego awarding the bid incentive under this section, under the following conditions:

         (i)   an emergency exists;

         (ii)   for cooperative purchasing or cooperative construction contracts;

         (iii)   where an eligible business is determined by the chief procurement officer to be unqualified, unable, or ineligible to perform the contract; or

         (iv)   for any other factor the chief procurement officer deems to be in the city's best interest.

      (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.

      (4)   As a condition of being awarded the bid incentive, the eligible business shall continue to meet the definition of an eligible business during the term of the contract for which the bid incentive was awarded.

   (c)   The contractor shall maintain adequate records necessary to monitor compliance with this section and shall submit such reports as required by the chief procurement officer. Full access to the contractor's and subcontractors' 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 seven years after final acceptance of the work.

   (d)   A bidder desiring to receive an incentive pursuant to this section shall include with its bid submission, an affidavit and other supporting documents demonstrating that the bidder satisfies all pertinent requirements as an eligible business.

   (e)   Upon completion of the work, any eligible business that receives a bid preference but that fails to meet the definition as an eligible business during the term of the contract for which the bid incentive was awarded shall be fined in an amount equal to three times the amount of the bid incentive awarded.

   (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 contract 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. 1-17-13, p. 45267, § 1)

2-92-415 Compliance with child support orders.

   (a)   For purposes of this section, the following words and phrases shall have the following meanings:

   "Bid contracts" means all city contracts let by a competitive bidding process as set forth in 65 Illinois Compiled Statutes 5/8-10-1.

   "Bidder" means any person who submits a bid for a bid contract.

   "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 D.P.S.

   "Contractor" means the person to whom a contract is awarded.

   "Court-ordered child support arrearage" means that the Circuit Court of Cook County has issued an order declaring the respondent in arrearage on his or her child support obligations in a specific amount as of the date of that order or, upon the discretion of the commissioner, may mean that another Illinois court of competent jurisdiction has issued such an order.

   "Potential contractor" means any person who is seeking to enter into a contract other than a bid contract.

   "Substantial owner" means any person who owns or holds a ten percent or more percentage of interest in any bidder, potential contractor or contractor, as revealed by the disclosures required by the provisions of Chapter 2-154, including those shareholders, partners, beneficiaries and principals more specifically described therein; except that where the bidder, potential contractor or contractor is an individual or sole proprietorship.

   "Child support withholding notice" means any income withholding notice which, pursuant to the applicable governing law, directs the payor (i) to withhold a dollar amount equal to the order of child support, and/or (ii) to withhold a dollar amount equal to or towards paying off any unpaid child support obligations, and/or (iii) to enroll a child as a beneficiary of a health insurance plan and withhold or cause to be withheld any required premiums, and also includes any order issued by the Circuit Court of Cook County (or, upon the discretion of the commissioner, another Illinois court of competent jurisdiction) which similarly directs the payor.

   (b)   Every bidder shall be required to submit an affidavit disclosing (1) any delinquencies by any of its substantial owners on a court-ordered child support arrearage and, (2) if any exist, whether the substantial owner has entered into a court-approved agreement for the payment of all child support owed and is in compliance with such agreement. In addition, every potential contractor shall submit such an affidavit prior to execution of any contract.

   (c)   With respect to bid contracts, where the affidavit shows that a substantial owner of a bidder is delinquent under (b)(1) and has not satisfied (b)(2), the chief procurement officer shall add eight percent to the bidder's bid price. This eight percent shall increase the bidder's bid price for the purpose of canvassing the bids in order to determine who is the lowest bidder. This eight percent penalty shall apply only for purposes of comparing bid amounts and shall not affect the amount of any contract payment. The provisions of this subsection shall only apply where not otherwise prohibited by federal, state or local law.

   (d)   In addition, where the chief procurement officer otherwise determines that a bidder, or a substantial owner thereof, is delinquent on a court- ordered child support arrearage, the foregoing eight percent penalty shall be applied; provided that such penalty shall not be applied if, where practicable, the chief procurement officer notifies the bidder of such determination and prior to the chief procurement officer's awarding of the contract, the bidder promptly provides the chief procurement officer with sufficient evidence of the following:

      (1)   as of the date the bid was submitted, the substantial owner had paid all child support then due under the court order, as evidenced by a certified court order or official clerk's records that no support was due and owing on that date; or

      (2)   as of the date the bid was submitted, the substantial owner has entered into a court-approved agreement for the payment of all child support owed and was in compliance with such agreement.

   (e)   Once a contract is awarded, every contractor must comply with all child support withholding notices that are served upon it. Failure to comply with such an order, after notice from the City of such noncompliance and a 30 day opportunity to cure, shall be an event of default. Compliance shall be evidenced by canceled checks paid to obligee or official clerk's records that payments were received on behalf of the obligee.

   (f)   The chief procurement officer is hereby authorized to do the following:

      (1)   investigate the child support payment records of any substantial owner to determine court- ordered child support arrearages;

      (2)   investigate all contractors' compliance with child support withholding notices;

      (3)   provide information on substantial owners and contractors to the appropriate Cook County and State of Illinois governmental entities, to the extent allowed by law; to assist those offices in enforcement of child support obligations;

      (4)   provide the names and business addresses of substantial owners and contractors to persons seeking to enforce court-ordered child support arrearages and child support withholding notices, and their legal representatives, to the extent allowed by law, on the condition that such information be used solely for the purpose of assisting in child support enforcement; provided that the names and identifying information of persons seeking to enforce child support orders shall be deemed confidential; and

      (5)   to promulgate regulations relating to the operation of this section.

   (g)   If the chief procurement officer determines that (i) a bidder, potential contractor or contractor, or a substantial owner thereof, has made a misrepresentation to D.P.S. regarding compliance with any child support order, or (ii) a contractor more than once has submitted affidavits showing a substantial owner's unpaid court- ordered child support arrearage, or (iii) a contractor on more than one occasion has failed to comply with child support withholding notices, after having received notice from the city of such noncompliance and a 30-day opportunity to cure, the chief procurement officer shall notify that bidder, potential contractor or contractor that it and the substantial owners thereof shall be barred from contracting on additional contracts for a period of three years. The bidder, potential contractor or contractor shall have the opportunity to seek reconsideration of such ineligibility by submitting to the chief procurement officer sufficient evidence that:

      (1)   the noncomplying substantial owner is no longer affiliated in any way with the contractor, bidder or potential contractor; or

      (2)   the formerly noncomplying substantial owner no longer has any outstanding child support arrearages, as evidenced by a certified court order or official clerk's records that no support is due and owing; provided that, where the ineligibility is based on a misrepresentation, such payment in full shall not be reason to suspend ineligibility unless the chief procurement officer also determines that such misrepresentation was inadvertent; or

      (3)   the substantial owner was not an obligor under a court-ordered child support arrearage at the time of the alleged misrepresentation.

   (h)   The chief procurement officer shall have the authority to suspend the ineligibility of a bidder, contractor or potential contractor for the reasons and using the procedures set forth in Section 2-92-320.

   (i)   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 subsections (e) – (i) above.

(Added Coun. J. 2-7-96, p. 15393; Amend Coun. J. 7-29-98, p. 75051, § 5; Amend Coun. J. 7-19-00, p. 38206, § 1; Amend Coun. J. 9-4-02, p. 92670, § 3; Amend Coun. J. 11-8-12, p. 38872, § 13)