(a) A Business Enterprise is eligible for certification as a Minority Business Enterprise if:
(1) The Business Enterprise is owned, operated and controlled by one (1) or more Minority Persons who have at least fifty-one percent (51%) ownership;
(2) The Minority Persons who own the Business Enterprise have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownership; and
(3) The Business Enterprise is located and doing business in the Cleveland Contracting Market.
(b) A Business Enterprise is eligible for certification as a Female Business Enterprise if:
(1) The Business Enterprise is owned, operated and controlled by one (1) or more Females who have at least fifty-one percent (51%) ownership;
(2) The Female owners have operational and managerial control, interest in capital, and earnings commensurate with the percentage of ownership; and
(3) The Business Enterprise is located and doing business in the Cleveland Contracting Market.
(c) Contracting Departments may apply a Bid Discount of five percent (5%) for bids received from certified MBE and FBE prime contractors, as the Regulations provide to remediate past or present discrimination as provided in Section 187.28.
(d) Contracting Departments may apply an Evaluation Credit of five percent (5%) of the total points awarded for proposals received from MBE and FBE prime contractors, as the Regulations provide to remediate past or present discrimination as provided in Section 187.28.
(e) Contracting Departments may apply a Bid Discount for 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 the goods, labor, and materials that the Bidder represents it will subcontract to one (1) or more MBEs and FBEs.
(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 MBE and FBE subcontractors in the performance of a 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 (e)(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 MBE and FBE 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 Additional Retainage equal to the amount of shortfall in its total MBE and FBE 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 (e) of this section to a bid 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 MBE and FBE subcontractors.
(f) The maximum cumulative dollar amount of all Bid Discounts to a Bidder for a bid under divisions (c) and (e) of this section shall not exceed fifty thousand dollars ($50,000.00).
(g) If a Contracting Department applies a Bid Discount under divisions (c) or (e) of this section to one (1) or more bids for the award of a Contract, no Bid Discounts may be applied under divisions (b) or (d) of Section 187.03 to any bid under review for the award of that Contract. If a Contracting Department applies an Evaluation Credit under division (d) of this section to one (1) or more proposals for the award of a Contract, no Evaluation Credits may be applied under division (c) of Section 187.03 to any proposal under review for the award of that Contract.
(h) Certificates issued under this section shall be valid for the period specified by the Director in the Regulations.
(i) By fifteen (15) days after the close of each calendar quarter, the Director shall publish a list of all MBEs and FBEs 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 an MBE or FBE 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 an MBE or FBE during the preceding quarter, including whether an appeal of the denial is pending. Publication of the MBE’s or FBE’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)