2-92-630 Electronic signatures.

   Any proposal for contract, bid, affidavit, certification or form required by or submitted in connection with the conduct of any business, procurement, certification, investigation or other activity by the department of procurement services may be accepted by that department in electronic format subject to compliance with accepted means and methods of verification and authentication of electronic signatures. Nothing herein shall require a vendor to submit any materials electronically.

(Added Coun. J. 9-4-02, p. 92670, § 2)

2-92-640 Innovative procurement methods.

   (a)   The chief procurement officer may purchase or lease goods, equipment, work and services, or auction or otherwise dispose of city surplus goods and equipment, and salvage and scrap, using innovative methods of procurement, including but not limited to electronic procurement, reverse auctions, electronic bidding, electronic auctions, procurement cards, and pilot procurement programs that have no cost to the city. In order to implement innovative methods of procurement, either directly or through a service provider, the chief procurement officer must make a determination that such process is competitive and in the best interest of the city.

   (b)   As an alternative or in addition to directly conducting procurement using innovative methods, the chief procurement officer may enter into a service contract with a service provider in order for the service provider to conduct reverse auctions, electronic auctions, or provide an on-line or electronic forum for competitive bids, requests for qualifications and proposals and other types of innovative methods of procurement on the city's behalf. The service contract may contain such terms as the chief procurement officer deems necessary, including, but not limited to, terms that specify the source and amount of the service provider's compensation. The chief procurement officer, either directly or through a service provider, is authorized to charge the winning bidder a reasonable service fee in order to cover part or all of the city's costs associated with the service contract, including the costs of engaging a service provider.

   (c)   The chief procurement officer shall have power to adopt rules and regulations for the proper administration and enforcement of the provisions of this section.

   (d)   This section is enacted pursuant to the home rule powers of the city and, to the extent permitted under the home rule powers of the city, supersedes any inconsistent provision of any law or regulation of the State of Illinois.

(Added Coun. J. 9-4-02, p. 92670, § 2; Amend Coun. J. 12-8-04, p. 38063, § 1; Amend Coun. J. 6-30-10, p. 95066, § 1)

2-92-642 Small orders.

   The dollar limit provided for under 65 ILCS 5/8-10-3, which establishes the amount at which bids may be solicited by mail, telephone or other means, is increased to $250,000.00, and such other means may include, without limitation, solicitations through e-mail and facsimile. All purchase orders or contracts involving an amount equal to or less than $250,000.00 shall be executed by the Chief Procurement Officer and the Comptroller.

   A report of all purchase orders or contracts executed by the Chief Procurement Officer and the Comptroller pursuant to this section will be placed on file each quarter with the City Council Committee on the Budget and Government Operations.

(Added Coun. J. 12-8-04, p. 38063, § 1; Amend Coun. J. 12-15-04, p. 39933, § 1; Amend Coun. J. 10-27-21, p. 39543, Art. III, § 2)

2-92-644 Emergency procurement.

   When bona fide emergencies arise, or when the Chief Procurement Officer determines that expedited procurement is necessary to address a credible, identifiable, and imminent threat to public health, public safety, or City property or operations, the Chief Procurement Officer is authorized to enter into contracts with one or more vendors for the provision of any particular good, work, or service, and to make any modifications to existing contracts that in the Chief Procurement Officer's sole discretion are necessary, to address that emergency or threat. The purchasing authorizations conferred in 65 ILCS 5/8-10-5 shall apply, but the dollar limit provided for in that section is increased to $1,000,000.00 for each such contract or modification. A report of all contracts awarded and modifications made by the Chief Procurement Officer pursuant to this section will be placed on file each quarter with the City Council Committee on the Budget and Government Operations.

(Added Coun. J. 12-8-04, p. 38063, § 1; Amend Coun. J. 12-15-04, p. 39933, § 1; Amend Coun. J. 10-5-16, p. 33570, § 1; Amend Coun. J. 11-14-18, p. 90308, Art. V, § 3; Amend Coun. J. 1-26-22, p. 44191, § 1; Amend Coun. J. 11-7-22, p. 54948, Art. I, § 9)

2-92-646 Limitation on additional items.

   In contracts for the purchase of goods, work or services ("items") that are structured as "requirements" contracts, in which the quantities for the goods identified by line item in the contract are estimates only and the city will make purchases from the contract based upon its needs, the chief procurement officer may include, in the contract, items (and prices thereof) that were omitted from the original specification or request for proposals that had been publicly advertised, subject to the following limitations: (i) the items are of the same nature as those items in the contract, (ii) the aggregated value of the city's purchases for such additional items over the term of the contract does not exceed ten percent of the original value of the contract and (iii) the chief procurement officer conducted first a survey of the price in the market for such items.

(Added Coun. J. 12-8-04, p. 38063, § 1)

2-92-649 Contracts with vendors based on reference contracts.

   (a)   As used in this section, the following terms shall be defined as follows:

   "City Contract" shall mean a contract for goods or services entered into with a vendor selected by the Chief Procurement Officer, provided such vendor has entered into a Reference Contract for the provision of the same goods or services. The terms of the City Contract and the Reference Contract shall be the same except as provided in subsection (c) of this section. A City Contract may be based upon a Reference Contract either in existence or expired at the time the City Contract is negotiated and executed.

   "Reference Contract" shall mean a contract entered into by a vendor for goods or services with a federal, state or local entity other than the City, or a group or consortium of the same, as a result of a public procurement process followed by such governmental entity or entities.

   (b)   With respect to procurements of goods or services that otherwise would be subject to Sections 10-3 or 10-4 of the "Municipal Purchasing Act for Cities of 500,000 or More Population", codified at 65 lLCS 5/8-10-3 and 5/8-10-4, as amended, the Chief Procurement Officer is authorized to enter into one or more City Contracts.

   (c)   A City Contract may contain:

      (i)   pricing or compensation terms equivalent to, or more favorable to the City than, those contained in the Reference Contract. A City Contract shall not contain higher pricing than is contained in the Reference Contract;

      (ii)   a period of duration, i.e., a term, which varies from the term of the Reference Contract;

      (iii)   such additional provisions as the Chief Procurement Officer determines to be in the best interests of the City; or

      (iv)   such insertions to or deletions from the Reference Contract as are required by law or ordinance applicable to the City.

   (d)   As a condition of entering into a City Contract, every contractor shall make such disclosures to the City as are required by law or required from other City vendors and shall comply with those requirements of the Municipal Code providing for the "Minority- Owned and Women-Owned Business Enterprise Procurement Program" (Sections 2-92-420 through 2-92-570), and "Contracts – Firms owned and operated by individuals with disabilities" (Section 2-92-586).

(Added Coun. J. 5-24-06, p. 76917, § 2)

ARTICLE VI. M.B.E. / W.B.E. CONSTRUCTION PROGRAM (2-92-650 et seq.)

2-92-650 Application of article.

   The provisions of this article shall apply with regard to city construction contracts, to the extent not subject to or inconsistent with federal or State of Illinois requirements, and such contracts shall no longer be governed by Sections 2-92-420 through 2-92-570.

(Added Coun. J. 5-26-04, p. 24585, § 3)

2-92-660 Findings of discrimination.

   The City Council, after considering evidence presented to the Budget Committee, including evidence presented at trial in Builders Association of Greater Chicago v. City of Chicago, Number 96 C 1122 (N.D. Ill.), during May and June 2003 (the "B.A.G.C. Trial"); statistical evidence, not available during the B.A.G.C. Trial, of continuing discrimination against Blacks, Hispanics and women in the Chicago construction marketplace; the report of the Mayoral Task Force on M.B.E./W.B.E. as well as additional anecdotal evidence of discrimination against minorities and women in the Chicago construction marketplace; and the testimony of experts and anecdotal witnesses; and receiving and considering written reports and submissions, adopts the following findings as a strong basis in evidence supporting a narrowly tailored, remedial affirmative action program in the City's construction contracting:

   (a)   the City seeks to provide a level playing field and equal access for all contractors and subcontractors to participate in the City's contracting opportunities;

   (b)   the City has a significant impact upon the area economy through its contracting functions;

   (c)   prior to the adoption of Executive Order 85-2, the City's contracting often operated as a closed shop, such that minorities and women received fewer than the number of the City's contracts and subcontracts and contract and subcontract awards than would have been expected absent discrimination;

   (d)   City departments reduced the disparities between the availability of minority and women firms and their utilization by implementing Executive Order 85-2;

   (e)   the City engaged in a substantial good faith legislative effort in 1990, involving 18 days of hearings and debate, which identified strong historical, statistical, scholarly and anecdotal evidence of past and present discriminatory practices in the Chicago-area market, including but not limited to construction, which placed minorities and women in a position of social and economic disadvantage and imposed discriminatory barriers to the entry and continued viability of minorities and women in the Chicago market and to their participation on the City's contracts;

   (f)   based on the strong evidence presented during the hearings, the City Council on July 31, 1990, enacted an affirmative action ordinance designed to remedy discrimination in the City's contracting against minorities and women;

   (g)   the Builders Association of Greater Chicago challenged the constitutionality of Sections 2-92-420 through 2-92-570 in 1996, as applied to construction contracts;

   (h)   strong evidence was introduced at the B.A.G.C. Trial that past and current discriminatory practices continue to place racial and ethnic minorities and women in a position of social and economic disadvantage, limiting opportunities for them to form and control construction businesses, as well as reducing the level and availability of employment opportunities for minorities and women in the trade unions which serve the Chicago construction marketplace;

   (i)   strong evidence was introduced at the B.A.G.C. Trial that such current and past discriminatory practices, and the continuing effects of such discrimination, have impeded the growth and success of the businesses which minorities and women do form, as well as the level and availability of the employment opportunities in the construction trade unions;

   (j)   the evidence at the B.A.G.C. Trial demonstrated that these discriminatory practices include direct and indirect racial, ethnic and gender slurs and harassment; discrimination by lending institutions and other sources of capital; reduced opportunities for minority and women subcontractors to bid or quote to majority prime contractors; exclusion from and discriminatory treatment by the construction trade unions; exclusion from business and professional networks critical to entrepreneurial success; and discrimination by surety bonding companies, insurance companies and other entities integral to the contracting marketplace;

   (k)   following the B.A.G.C. Trial, Judge James B. Moran held that the City has a compelling interest in implementing a remedial race- and gender-conscious affirmative action program in the Chicago construction market, but that the City's 1990 ordinance is insufficiently narrowly tailored in 2003 as applied to construction contracts;

   (l)   there is ample availability of ready, willing and able minority- and women-owned firms to participate in City and private sector construction contracting and subcontracting opportunities;

   (m)   minority- and women-owned firms receive little or no work on private sector construction projects, despite their capacity, desire and efforts to participate on such projects;

   (n)   minority and women workers' participation in the relevant construction marketplace declined from 1980 to 1990;

   (o)   other jurisdictions, including Cook County, Illinois, have experienced drastic reductions in minority and women business participation, to less than their availability, after race- and gender-conscious remedial measures were terminated;

   (p)   while the City has made substantial progress in its efforts to ameliorate discrimination in its own construction contracting practices, private companies that contract on public projects continue to discriminate against minorities and women, and as a result of this discrimination, the City has been in the past a passive participant in a system of discrimination against minorities and women in the Chicago construction marketplace, and, in the absence of programs to eliminate such discrimination, would continue to be a passive participant in such a system;

   (q)   the City has a compelling interest in preventing its tax dollars from perpetuating a market so flawed by past discrimination that it restricts existing minority- and women-owned businesses from unfettered competition in the Chicago construction market;

   (r)   the City has a compelling interest in not having its construction projects return to near monopoly domination by white male firms, as was the case prior to Executive Order 85-2 and the City's current affirmative action program in procurement;

   (s)   although the City has undertaken since 1990 a variety of race- and gender-neutral measures such as technical assistance and small business loan programs, such programs have not been sufficient to ameliorate the effects of racial and gender discrimination in the construction marketplace;

   (t)   evidence at the B.A.G.C. Trial demonstrated that flexible race- and gender-conscious remedial measures do not overly burden construction firms owned by majority males;

   (u)   the remedies adopted herein will be periodically reviewed to ensure that the City continues to have a compelling interest in remedying discrimination in the Chicago construction market and that the measures remain narrowly tailored to accomplish that objective; and

   (v)   following a comprehensive review of the relevant data conducted in 2009, the City determined to extend this article to December of 2015 and make other changes to this article, and following a subsequent comprehensive review of the relevant data conducted in 2015, the City determined to further extend this article to December 31, 2020. Due to the coronavirus pandemic and to allow for completion of the comprehensive review of the relevant data, the City determined to temporarily extend this article to September 30, 2021, and in 2021, following a comprehensive review of the relevant data, the City determined to extend this article to December 31, 2027 and make other changes to this article.

(Added Coun. J. 5-26-04, p. 24585, § 3; Amend Coun. J. 7-29-09, p. 67484, § 1; Amend Coun. J. 12-9-15, p. 15382, § 1; Amend Coun. J. 2-10-16, p. 18343, § 1; Amend Coun. J. 9-14-21, p. 35424, § 1)