(a) (1) For any construction project advertised after the effective date of this section, the Chief Procurement Officer shall allocate to any qualified bidder the following bid incentive for utilization of veteran-owned subcontractors in the performance of the contract.
Total Dollar Value of Work Performed by Veteran-Owned 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 veteran-owned subcontractor subcontracts part of the work to another contractor, only the value of work performed by the veteran-owned subcontractor's employees shall count towards the bid incentive, unless the sub-subcontractor is a veteran-owned 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.
(b) 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 at least three years after the expiration of the contract.
(c) 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 veteran-owned subcontractor submit an affidavit and other supporting documents demonstrating that a subcontractor is a veteran-owned subcontractor.
(d) Upon completion of the work, any prime contractor that has failed to retain the percentage of veteran-owned 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 veteran-owned subcontractors throughout the duration of the contract period.
(e) The bid incentive established in this section may not be combined with any other procurement set- aside benefit for a veteran-owned business enterprise under the Code.
(Added Coun. J. 6-28-17, p. 51157, § 1)