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(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)
(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)
(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)
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