(a) A Business Enterprise is eligible for certification as a Cleveland Area Small Business if:
(1) It is a Small Business Enterprise;
(2) It has its principal office located physically in the Cleveland Contracting Market; and
(3) Its chief executive officer and highest level managers maintain their offices and perform their managerial functions in the Cleveland Contracting Market.
(b) Subject to the limitation contained in division (g) of Section 187.05, Contracting Departments may apply a Bid Discount in the following amounts for bids received from CSB prime contractors:
(1) A Bid Discount of five percent (5%) for bids received from CCSBs.
(2) A Bid Discount of five percent (5%) for bids received from RCSBs, provided no bids are received from CCSB’s.
(c) Subject to the limitation contained in division (g) of Section 187.05, Contracting Departments may apply Evaluation Credits as follows for proposals received from CSB prime contractors:
(1) An Evaluation Credit of five percent (5%) of the total points awarded for proposals received from CCSBs;
(2) An Evaluation Credit of five percent (5%) of the total points awarded for proposals received from RCSBs, provided no proposals are received from CCSBs.
(d) Subject to the limitation contained in division (g) of Section 187.05, Contracting Departments may apply a Bid Discount to bids received for a Public Improvement Contract from a Business Enterprise in the amount of five percent (5%) of the portion of the total amount of labor and materials that the Bidder represents it will subcontract to one (1) or more CSBs.
(1) If a Contracting Department applies the Bid Discount under division (d) of this section to the bid of a Bidder that would not have otherwise been the lowest and the Bidder is awarded the Public Improvement Contract, the City shall retain as Additional Retainage an amount equal to the total dollar amount by which the bid was adjusted for bid comparison in addition to the retainage required under Section 185.41 of the Codified Ordinances.
(2) If a Contractor uses CSB subcontractors in the performance of the Public Improvement Contract in an amount equal to or greater than offered in the Contractor’s bid, the City shall pay the Contractor any Additional Retainage retained under division (d)(1) of this section upon the Contracting Department director’s acceptance of the contract work under division (d) of Section 185.41. If a Contractor uses CSB subcontractors in the performance of a Public Improvement Contract in an amount less than represented in its bid, the Contractor shall forfeit the amount of the Additional Retainage equal to the amount of shortfall in its CSB usage, in addition to any other sanctions or penalties applicable under this chapter or the Contract.
(3) If a Contracting Department applies the Bid Discount under division (d) of this section to the bid of a Bidder that would not have otherwise been the lowest and the Bidder is awarded the Public Improvement Contract, the Contract terms shall prohibit the Contractor from deducting the amount of the Additional Retainage from progress payments to the CSB subcontractors.
(e) The maximum cumulative dollar amount of all Bid Discounts to a Bidder for a bid under divisions (b) and (d) of this section shall not exceed fifty thousand dollars ($50,000.00).
(f) Certificates issued under this section shall be valid for the period specified by the Director in the Regulations. Certification as a CSB is independent from certification as a MBE or FBE.
(g) By fifteen (15) days after the close of each calendar quarter, the Director shall publish a list of all CSBs certified during the preceding quarter, including the type(s) of work that each is certified to perform, and a list of all Business Enterprises that have lost their certification as a CSB during the preceding quarter, including whether an appeal of the denial of certification is pending. Concurrently, the Director shall furnish to the Council the name of any Business Enterprise to which OEO has denied certification as a CSB during the preceding quarter, including whether an appeal of the denial is pending. Publication of the CSB’s name shall not be a prerequisite for eligibility for the award of a Contract.
(Ord. No. 77-08. Passed 2-4-08, eff. 3-15-08)