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(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)
(a) Definitions. As used in this section:
"Active enforcement proceedings" means court proceeding in which a subsequent court date has been established by the court and excludes court proceedings taken off call pursuant to a consent decree or similar agreement.
"Building code scofflaw" means a person subject to the prohibition in subsection (b).
"Building provisions of this Code" has the meaning ascribed to that term in Section 1-4-090.
"Commissioner" means the Commissioner of Buildings.
"Do business with the City" means: (i) being awarded a City contract, or (ii) receiving a grant, loan or other form of financial assistance from any City department, or (iii) having an application for any of the following accepted and processed by the relevant department: (A) an acquisition of City real property, (B) a lease, (C) a real property tax reclassification, (D) a zoning map amendment, or (E) a street or alley vacation.
"Owner" has the meaning ascribed to that term in Section 14A-2-202, provided however that such term shall not include: (i) a unit of government; (ii) a person acting on behalf of a unit of government; or (iii) a court-appointed receiver.
"Priority building with serious and chronic code violations" means a building that: (i) is occupied; (ii) is subject to proceedings initiated by the Corporation Counsel in the Circuit Court of Cook County to enforce the building provisions of this Code; (iii) remains subject to active enforcement proceedings more than eighteen months after the initial hearing date in such proceedings; and (iv) is a drug and gang house, house of prostitution, or other disorderly house pursuant to Section 8-4-090 or is being monitored pursuant to the Troubled Buildings Initiative Program established by an ordinance adopted by the City Council on July 9, 2003 (C.J. pp. 3547 - 3550), as amended. Provided, however, that this term shall not include residential buildings containing four or fewer dwelling units if the owner's primary residence is in the building or on the same premises.
"Substantial ownership interest" means greater than 7-1/2 percent ownership interest; provided, however, that if an entity is publicly traded on an exchange, the term "substantial ownership interest" means any officer or director of the entity.
(b) Prohibition. No person shall be eligible to do business with the City if the person is identified pursuant to subsection (e) as an owner of a priority building with serious and chronic violations; nor shall any entity in which such a person has a substantial ownership interest be eligible to do business with the City. Provided, however, that the prohibition in this subsection shall not apply for a specific contract if the head of the department administering the contract determines that (i) the City is unable to acquire the goods or services provided by the person at comparable price and quality, and in sufficient quantity, from other sources; or (ii) the public health, safety and welfare requires it.
(c) Applicability. A person identified as an owner of a priority building with serious and chronic code violations pursuant to subsection (e) shall remain subject to the prohibition in subsection (b) and the disclosure requirement in subsection (f) until the person is dismissed as a defendant from the enforcement proceeding or the entire enforcement proceeding is dismissed or settled as evidenced by a certified copy of an order to such effect issued by the Circuit Court of Cook County.
(d) Building list. On or before March 1 and September 1 of each year, the Commissioner, after consultation with the Corporation Counsel, shall create and publish a list of all priority buildings with serious and chronic code violations as of the date the list is created, provided, however, that the Commissioner and Corporation Counsel may omit from this list any building for which the owner has: (i) abated all immediate hazards, and (ii) entered into a binding agreement with the City to complete work necessary to remedy all other violations of the building provisions of this Code in accordance with a schedule acceptable to the City. In addition to any other penalties or remedies provided for in such an agreement, if the owner violates an agreement entered into pursuant to this subsection and fails to cure such violation, the Commissioner shall place the building on the next list issued pursuant to this subsection.
(e) Owner list. On or before April 1 and October 1 of each year, the Corporation Counsel shall, with respect to each building identified pursuant to subsection (d), create and provide to the Commissioner a list of the owners who are named as defendants in the applicable enforcement proceedings as of the date the list is created. The Commissioner shall publish such list.
(f) Disclosure required. The Corporation Counsel shall require each person included on the list created pursuant to subsection (e) to disclose in writing the address of each property in the City of Chicago in which such person has a substantial ownership interest. The Corporation Counsel may provide such information to the Commissioner, and the Commissioner may publish such information.
Failure to comply with this requirement within 14 days of the request shall be subject to a fine of not less than $500.00 nor more than $1,000.00 for each offense. Each day that a violation continues shall constitute a separate and distinct offense to which a separate fine shall apply.
(g) Rules. The Commissioner and Corporation Counsel are authorized to adopt rules to implement this section.
(Added Coun. J. 1-13-10, p. 83085, § 1; Amend Coun. J. 11-8-12, p. 38872, § 14; Amend Coun. J. 11-26-13, p. 67481, Art. I, § 4; Amend Coun. J. 1-21-15, p. 102428, § 3; Amend Coun. J. 4-21-21, p. 29948, § 2; Amend Coun. J. 1-26-22, p. 43756, Art. V, § 1)
Unless otherwise prohibited by any federal, state or local law, any contract awarded based upon an allocation of a bid incentive authorized pursuant to this Article III shall be subject to the MBE and WBE participation provisions set forth in Articles IV and VI of this chapter. For purposes of this section "MBE" and "WBE" have the meanings ascribed to those terms in Section 2-92-420.
(Added Coun. J. 6-25-14, p. 83495, § 1)
The Chief Procurement Officer, or his designee, is authorized to enter into contracts with vendors for a specific quantity of fuel to be delivered to the City on a specific date or dates at a "not-to-exceed" price. The fuel delivery date may not be more than three years after the date on which the contract is entered.
(Added Coun. J. 11-26-19, p. 11390, Art. VIII, § 2)
Editor’s note – Coun. J. 11-8-12, p. 38867, § 4, repealed a former § 2-92-418, which pertained to fees relating to the submission of bids and proposals. Coun. J. 6-28-17, p. 51157, § 2, repealed a subsequent § 2-92-418, which pertained to contracts and bid incentive for eligible joint ventures and veteran-owned small local businesses.
(a) Definitions. For purposes of this section only, the following definitions apply:
"Alternative Construction Delivery System" means a delivery system other than the traditional design-bid- build delivery system. An alternative construction delivery system may include, but not be limited to, a design-build delivery system and construction management.
"Alternative Construction Delivery System Contract" means a contract for the construction of a public project between the city and a person, which was awarded under an alternative construction delivery system.
"Construction management" means a delivery system that provides responsibility within a single contract for the administration, management and coordination of all aspects of a construction project from conception to completion to ensure the project is properly designed, engineered and constructed within a specific time period and budget.
"Delivery System" means the design and construction approach used to develop and construct a project.
"Design-bid-build" means the traditional delivery system used on public projects pursuant to the Municipal Purchasing Act.
"Design-build" means a delivery system that provides responsibility within a single contract for the furnishing of architecture, engineering, land surveying and related services as required, and the labor, material, equipment, and other construction services for the project.
"Municipal Purchasing Act" means the Municipal Purchasing Act for cities of five hundred thousand or more in population, 65 ILCS 5/8-10-1, et seq., as amended.
(b) In lieu of awarding a construction contract through the traditional design-bid-build process and without following the competitive bidding requirements pursuant to Illinois law, including, without limitation, section 8-10-3 of the Municipal Purchasing Act, the chief procurement officer is authorized to award contracts for construction projects utilizing an alternative construction delivery system, including, but not limited to, design-build and construction management. The chief procurement officer is further authorized to procure such alternative construction delivery systems through requests for qualifications, requests for proposals, competitive negotiations and similar competitive procurement processes as determined by the chief procurement officer to be consistent with the purposes of the projects and best interests of the city. The chief procurement officer is further authorized to include value engineering, and alterations in project scope consistent with value engineering, within such competitive procurement processes.
The alternative construction delivery system contract may be conditioned upon subsequent refinements in scope and price and may allow the chief procurement officer to make modifications in the project scope without invalidating the contract.
Except as otherwise authorized herein, such requests for proposals and contracts shall be executed and administered pursuant to the provisions of the Municipal Purchasing Act and relevant provisions of the Municipal Code.
In selecting an alternative construction delivery system and awarding a contract pursuant to this section, the chief procurement officer shall consider the following factors:
(1) the needs of the city;
(2) time requirements for the project and potential time savings strategies;
(3) the complexity of the project;
(4) estimated project costs;
(5) cost savings to the city; and
(6) any other factor the chief procurement officer deems to be in the city's best interest.
(c) An alternative construction delivery system contract will include such provisions as required by the chief procurement officer and such provisions as required by law, including, but not limited to, non- discrimination, payment of living wage, payment of prevailing wages, and M.B.E./W.B.E. participation.
(d) With respect to alternative construction delivery system contracts awarded pursuant to this section, the chief procurement officer is authorized to take any and all actions, including but not limited to the execution of the other documents, certifications and agreements, as may be necessary or desirable to implement the objectives of this section, all of which are consistent with the terms and provisions of the contracts, as executed.
(Added Coun. J. 4-9-08, p. 24621, § 2)
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