(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.