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(a) Award goal – Established. The Chief Procurement Officer is authorized to establish a contract-specific participation goal to veteran-owned small local businesses if all of the following conditions are met:
(1) the contract has an estimated value in excess of $10,000.00; and
(2) there are at least three veteran-owned small local businesses certified by the City in each of one or more areas of specialty (as defined by the North American Industry Classification System) germane to the contract; and
(3) the contract-specific participation goal is not more than one percent of the contract’s value.
(b) Award goal – Implementation. In order to achieve the goal stated in subsection (a), the Chief Procurement Officer is authorized to undertake the following measures:
(1) Insert within specifications for each contract described in subsection (a) of this section let through competitive bidding with an estimated value in excess of $10,000.00 a requirement that the contractor commit to the expenditure of at least the veteran-owned small local businesses percentage of the dollar value of the contract with one or more veteran-owned small local businesses. This commitment may be met by the contractor’s status as a veteran-owned small local business, or by joint venture with one or more veteran- owned small local businesses as prime contractor (to the extent of the veteran-owned small local business’s participation in such joint venture), or by subcontracting a portion of the work to one or more veteran-owned small local businesses, or by purchase of materials or services for the work from one or more veteran-owned small local businesses, or by the indirect participation of veteran-owned small local businesses in other aspects of the contractor’s business (but no indirect veteran-owned small local business participation shall be credited more than once against a contractor’s veteran-owned small local business commitment with respect to all contracts of such contractor), or by any combination of the foregoing;
(2) Review each proposed contract modification request that, by itself or aggregated with previous modification requests, increases the contract value by 10 percent of the initial contract value or $50,000.00, whichever is greater, for opportunities to increase participation of veteran-owned small local businesses already involved in the contract;
(3) Negotiate with any contractor whose contract is in excess of $10,000.00 in value and is not awarded by competitive bidding a commitment, where practicable, to veteran-owned small local business participation of at least the veteran-owned small local business percentage of the dollar value of the contract;
(4) Insert, in addition to other terms that the Chief Procurement Officer deems necessary for the implementation of this section, in each contract containing a commitment to veteran-owned small local business participation:
(i) A requirement of periodic reporting by the contractor to the Chief Procurement Officer on all expenditures made to achieve compliance with the foregoing provisions. Such reports shall include the name and business address of each veteran-owned small local business solicited by the contractor to work as a subcontractor on the contract and the responses received by the contractor to such solicitation, the name and business address of each veteran-owned small local business actually involved in the contract, a description of the work performed, or product or service supplied by each such veteran-owned small local business, the date and amount of each expenditure, and such other information as may assist the Chief Procurement Officer in determining the contractor’s compliance with the foregoing provisions, and the status of any veteran-owned small local business performing any portion of the contract; and
(ii) Remedies for a contractor’s noncompliance with the commitment to veteran-owned small local business participation.
(c) Reduction or waiver of commitment. If, in connection with a particular contract, either before the contract is let for bid, during the bid or award process, before or during negotiation of the contract, or during the performance of the contract, the Chief Procurement Officer determines that it is impracticable or excessively costly to obtain qualified veteran-owned small local business to perform sufficient work to fulfill the goal stated in subsection (a), the Chief Procurement Officer shall reduce or waive the commitment to veteran-owned small local business participation in the contract, as may be appropriate. The Chief Procurement Officer shall issue rules setting forth the standards to be used in determining whether or not such a reduction or waiver is appropriate.
(d) Rules. The Chief Procurement Officer is authorized to adopt rules for the proper administration and enforcement of this section.
(e) Report. Before the expiration of this section, the Chief Procurement Officer shall submit a report and recommendations to the Mayor and to the City Council regarding the veteran-owned small local businesses participation goal pilot program authorized to be established pursuant to this section.
(f) Expiration. This section shall expire on July 31, 2026.
(Added Coun. J. 9-14-21, p. 35421, § 1; Amend Coun. J. 7-19-23, p. 1790, § 1)
ARTICLE IX. NON-CONSTRUCTION MID-SIZED BUSINESS INITIATIVE PROCUREMENT PROGRAM (2-92-1000 et seq.)
This Article shall apply to non-construction procurement contracts. This Article is enacted pursuant to the home rule powers of the city and supersedes any inconsistent provision of any law or regulation of the State of Illinois to the extent such inconsistency is permitted under the home rule powers of the city. This Article shall not apply to any procurement contract to the extent that it is 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 the home rule powers of the city. In connection with any procurement contract funded in whole or in part from state or federal sources, state or federal standards and regulations shall control to the extent this Article is inconsistent with such federal or state standards.
(Added Coun. J. 3-28-18, p. 72115, § 1)
For purposes of this Article IX, the following definitions shall apply:
"Chief Procurement Officer" means the City's Chief Procurement Officer.
"Contract" means any contract, purchase order or agreement (other than a delegate agency contract or lease of real property or collective bargaining agreement or a construction contract as defined in Section 2-92-670) awarded by any officer or agency of the city other than the City Council, and whose cost is to be paid from funds belonging to or administered by the City of Chicago, regardless of source.
"Department of Procurement Services" or "DPS" means the City's Department of Procurement Services.
"Local business enterprise" means a business entity located within the counties of Cook, DuPage, Kane, Lake, McHenry or Will in the State of Illinois (the "Six County Region").
"Non-construction mid-sized business initiative procurement program" or "NMBI procurement program" means the program established pursuant to this Article IX.
"Mid-sized local business enterprise" or "MSB" means a local business enterprise that has gross receipts, averaged over its previous five fiscal years, that do not exceed one and a half times the size standards of minority-owned or women-owned business as set forth pursuant to Section 2-92-420(o) of this Code.
(Added Coun. J. 3-28-18, p. 72115, § 1; Amend Coun. J. 10-27-21, p. 39543, Art. III, § 2)
Unless otherwise prohibited by any federal, state or local law, the Chief Procurement Officer shall establish a race- and gender-neutral program to increase MSBs' participation in non-construction procurement contracts. The Chief Procurement Officer is authorized to identify and offer non-construction procurement contracts for exclusive participation of MSBs. The estimated costs of such contracts shall not be less than $3,000,000 nor more than $10,000,000.
(Added Coun. J. 3-28-18, p. 72115, § 1)
To be eligible for the NMBI procurement program, a business enterprise must:
(1) be a mid-sized local business enterprise;
(2) perform more than fifty percent of the non- construction procurement contract with its own work force or subcontractors that are mid-sized local business enterprises; and
(3) be independent, and must not be an affiliate or subsidiary of any other business enterprise. For purposes of this subsection, the Chief Procurement Officer shall have the sole authority to determine the independence of a business enterprise.
(Added Coun. J. 3-28-18, p. 72115, § 1)
(b) Except as otherwise provided in subsection (a), any business enterprise that claims to be an MSB shall at the time of such claim, and annually thereafter, submit an affidavit, in a form prescribed by the Chief Procurement Officer, attesting that it meets the MSB eligibility requirements provided in Section 2-92-1030. The Chief Procurement Officer is authorized to investigate the accuracy of the information provided in, and require documents and information in support of, such affidavits.
(c) MSBs and business enterprises presumed to be MSBs shall notify the Department of Procurement Services of any change that affects such enterprises' MSB status within five business days of the occurrence of such change.
(Added Coun. J. 3-28-18, p. 72115, § 1)
The Chief Procurement Officer is authorized to impose reasonable reporting requirements on participants in the NMBI procurement program. Such reporting requirements shall be designed and used to evaluate the effectiveness of the program. Any NMBI procurement program participant shall comply with the reporting requirements as required by the Chief Procurement Officer.
(Added Coun. J. 3-28-18, p. 72115, § 1)
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