(a) Consistent with the City's goal of increasing the level of CSB participation in Contracts, each Contracting Department shall use its best efforts to utilize CSBs as Contractors and subcontractors for all contracts in excess of fifty thousand dollars ($50,000.00). The annual City-wide goal for CSB participation in Public Improvement Contracts shall be thirty percent (30%), in Professional Services Contracts shall be ten percent (10%), and in all other Contracts shall be twenty percent (20%) or such other goal fixed by the Director for a particular Contract.
(b) To meet the goals fixed under division (a) of this section, Contracting Departments, in consultation with the Director, shall consider use of Bid Discounts under division (b) and (d) of Section 187.03 when recommending a bid as lowest and best or lowest responsible or recommending a proposal as best. Each Contracting Department shall be responsible for ensuring that invitations to bid or requests for proposal issued by or for that department comply with all provisions and procedures set forth in this chapter.
(c) In determining the CSB participation that shall be applied toward meeting the goals fixed under division (a) of this section, the Director shall credit:
(1) Expenditures to CSBs that perform Commercially Useful Functions in implementation or performance of a Contract;
(2) Expenditures to CSB manufacturers (i.e. Suppliers that produce goods from raw materials or the product of raw materials and add value by substantially altering them before resale);
(3) Sixty percent (60%) of expenditures to CSB Suppliers that are not manufacturers, provided that the CSB Supplier performs a Commercially Useful Function in the supply process;
(4) Should a CSB subcontractor further subcontract its participation in a Contract to a non-CSB subcontractor, only the work or supplies actually performed or furnished by the CSB subcontractor shall be applied towards meeting the goals fixed under division (a) of this section;
(5) No credit shall apply for a Contractor's or a subcontractor's contract(s) for the purchase of materials, equipment, services, or supplies that are incident to the performance of services under the Contract or for the general operation of its business and not attributable exclusively to the particular subcontract; and
(6) A percentage of the total dollar value of the Contract with a CSB Joint Venture equal to the percentage of CSB participation in the Joint Venture shall be counted towards meeting the goals fixed under division (a) of this section. If the CSB is responsible for performance of a clearly defined portion of the work to be performed, equal in proportion to its share in the ownership, control, management, responsibility, risk, and profits of the Joint Venture.
(d) To fulfill the purposes of the goals fixed under division (a) of this section, Contractors shall use CSBs to perform a Commercially Useful Function during the implementation or performance of the Contract. Failure to do so will be a material breach of the Contract, and may subject the Contractor to criminal prosecution, decertification, and other sanctions.
(e) The Director shall not apply credit toward the CSB subcontractor participation goals fixed in division (a) of this section for participation under any Contract in a calendar year by any CSB subcontractor that has contracted under a City contract more than a maximum annual dollar amount per year fixed by the Director in the Regulations from time to time, except that the Director may apply credit toward the CSB subcontractor participation goals upon written request of a Bidder or Contractor attesting that no other certified CSBs are available to perform the work or supply the materials required for the Contract under which the CSB is a subcontractor, or in an emergency, or for such other reasons that the Director determines require use of that CSB. Nothing in the foregoing shall be deemed to prohibit a Contractor from subcontracting to that CSB, or that CSB from performing work or supplying materials under any Contract without participation credit.
(Ord. No. 532-13. Passed 5-13-13, eff. 5-16-13)