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(1) Legislative findings.
(a) Local businesses that seek to enter into contracts with the City labor under a competitive disadvantage with businesses from other areas because of the higher administrative costs of doing business in the City (e.g., higher taxes, higher rents, higher wages and benefits for labor, higher insurance rates, etc.).
(b) The public interest would be served by encouraging businesses to locate and remain in Philadelphia through the provision of a preference to local businesses in the award of City contracts.
(c) The bid preference will serve the public interest because the growth and development of local businesses will have a significant positive impact on the economic health of the City by, among other things, the creation of local jobs and increased tax revenue.
(d) The bid preference will serve the goal of rewarding those businesses which contribute the most to the local economy.
(e) The bid preference, in affording local businesses a competitive advantage when bidding on City contracts, does not exclude any potential contractor.
(2) Definitions. For purposes of this Section, the following definitions apply:
(a) Business Entity shall mean any individual, domestic corporation, foreign corporation, association, syndicate, joint stock company, partnership, joint venture, or unincorporated association, including any parent company, subsidiary, exclusive distributor or company affiliated therewith, engaged in a business or commercial enterprise.
(b) Commissioner shall mean the Procurement Commissioner, and Department shall mean the Procurement Department.
(c) Local Business Entity shall mean any Business Entity certified pursuant to subsection (3).
(3) Certification.
(a) A Business Entity that seeks to be certified as a Local Business Entity shall make application to the Commissioner on a form provided by the Department. Such application shall not be considered by the Commissioner unless the Business Entity files with the Commissioner:
(.1) A written certificate that the Business Entity is not delinquent in the payment of any City or School District of Philadelphia taxes, charges, fees, rents or claims, or that the Business Entity has entered into an agreement to pay any such delinquency and is abiding by the terms of such agreement; and
(.2) A written waiver of the provisions of subsection 19-506(2) to expressly authorize the Revenue Department to share with the Department all information in its possession concerning the Business Entity, including any information that would otherwise be confidential.
(b) The Commissioner shall certify a Business Entity as a Local Business Entity if the Commissioner determines:
(.1) That the Business Entity, during the preceding 12 months, has filed a business income and receipts tax return with the City establishing that the contractor conducted business within the City within the calendar year preceding the filing of the return. 91
(.2) That during the preceding eighteen (18) months the Business Entity:
(.a) Has continuously maintained a valid commercial activity license and all other licenses and permits necessary to conduct business with the City; 92
(.b) Has continuously occupied, staffed and conducted business in an office within the City; and 93
(i) The Business Entity's principal place of business is located in the City; or
(ii) The Business Entity continuously during the preceding eighteen (18) months satisfies at least two of the three following requirements:
(A) More than sixty percent (60%) of the Business Entity's full-time employees are reported as Philadelphia Residents on the City of Philadelphia Annual Reconciliation of Employer Wage Tax;
(B) More than half of the Business Entity's full-time employees work in the City at least sixty percent (60%) of the time; or
(C) More than three quarters of the Business Entity's gross receipts are reported on the Entity's business and income receipts tax return as Philadelphia receipts.
(c) If a Business Entity's principal place of business is not located in the City, then the Commissioner, prior to certifying the Business Entity as a Local Business Entity, shall:
(.1) Require the Business Entity to provide employment and other data necessary to establish that the Business Entity has met the requirements for certification; and
(.2) In the absence of documentation demonstrating the existence of an office within the City of Philadelphia, conduct a site inspection of the Business Entity's offices within the City.
(4) Term of Certification. A certification by the Commissioner pursuant to subsection (3) shall be valid for a term of three years, or for such other period as the Commissioner shall prescribe by regulation. To maintain its certification during the three-year term, the Local Business Entity must:
(a) Provide to the Commissioner, every year by the anniversary of the certification, an updated certificate in the form required by subsection (3)(a)(.1) and a sworn affidavit affirming that the Local Business Entity continues to comply with subsection (3)(b); and
(b) Promptly notify the Commissioner if there is a material change to the ownership or control of the Local Business Entity, or if there is a change in address or phone number, or if there is any other change in the operations of the Local Business Entity that would cause the Local Business Entity no longer to comply with the provisions of subsection (3)(b).
(5) Award of City Contracts.
4 (.1) A current certification from the Commissioner as a Local Business Entity;
(.2) The Local Business Entity's most recent annual affidavit under subsection (4)(a);
(.3) A certification by the Local Business Entity that, throughout the entirety of the contract:
(.a) The Local Business Entity or a subcontractor will perform the majority of any work on the subject contract within the geographic limits of the City;
(.b) The Local Business Entity or a subcontractor will maintain within the City a majority of the inventory or equipment that will be used on the contract; and
(.c) The Local Business Entity will satisfy subsection (3)(a), subsection (3)(b), and at least one of the requirements identified in subsection (3)(c).
(.4) If the Local Business Entity relies upon a subcontractor to meet the requirements in subsection (a)(.3)(.a) or (a)(.3)(.b) of this subsection (5):
(.a) a current certification from the Commissioner that the subcontractor itself is a Local Business Entity; and
(.b) the subcontractor's most recent annual affidavit provided to the Commissioner pursuant to subsection (4)(a).
(b) In determining the lowest responsible bidder on any such contract, the Commissioner shall subtract the amount set forth in subsection (d) from the bid of any Local Business Entity awarded such a preference, or shall implement the bid preference otherwise pursuant to regulations promulgated by the Commissioner. 95
(c) The terms of the certification required under subsection (a)(.3) of this subsection (5) shall be deemed to be incorporated into any contract for which a bid preference is awarded. If the Commissioner determines that a Business Entity fails to comply with these terms at any time during the term of the contract, that Business Entity shall be deemed to be in breach of such contract, shall be required to pay liquidated damages of ten percent (10%) of the bid, and may be debarred by the Commissioner for up to three years. If the Commissioner determines to issue a debarment order, the Commissioner shall give the Business Entity written notice thereof and an opportunity to present evidence at a hearing in opposition to the intended debarment. After any such hearing, the Commissioner or such hearing panel as he or she may designate shall issue a written determination stating the grounds for its decision.
(d) The amount of the bid preference shall be as follows: 96
(.1) For contracts certified by the Director of Finance or his designee as funded in whole in part with moneys received pursuant to the American Recovery and Reinvestment Act, Pub. L. 111-5 (Feb. 17, 2009): ten percent (10%);
(.2) For all bids of one million dollars ($1,000,000) or less: ten percent (10%);
(.3) For all other contracts: five percent (5%).
(6) Waiver. The Commissioner may determine not to award a bid preference if the Commissioner certifies that such a preference would result in the loss of federal, state or similar funds or grants. The Commissioner shall transmit a copy of any such determination to the Mayor, the President of City Council, and the Chief Clerk of City Council no later than one (1) week following the contract award.
(7) Regulations. The Procurement Department shall promulgate such regulations as it may deem necessary to aid in the administration and enforcement of the provisions of this Section, and shall submit any such regulations to the Mayor, the President of City Council, and the Chief Clerk of City Council when it submits the regulations to the Department of Records under subsection 8-407(a) of the Home Rule Charter.
(8) Inspections. The Commissioner shall have the authority to inspect and monitor all premises, business practices, and operations of any Local Business Entity as may be necessary or appropriate to ensure compliance with this Section.
(9) Annual Report. Not later than February 1 of each year, the Commissioner shall issue a report in writing to the Mayor, the President of City Council, and the Chief Clerk of City Council identifying, with respect to the time period between January 1 and December 31 of the preceding year:
(a) the types of contracts in which a bid preference was awarded;
(b) the number of each type; and
(c) the name of all Local Business Entities in breach of contract pursuant to subsection (5)(c).
(d) Such report shall also establish a percentage goal of the total dollar value of contracts awarded to Local Business Entities, as established by the Procurement Department or such other agency determined by the Mayor. The report shall explain how the goal for the current year was set and what plans and actions will be taken in furtherance of that established goal, address whether the amount of contracts awarded fall short of the goal provided for that year in the previous report and, if so, outline the corrective actions to be undertaken to achieve the goal in the upcoming year. 97
(f) The information required in subsection (d) shall be updated in the annual report and on August 1 of each year. 99
(a) The Department, through regulations, shall provide for the ineligibility of a contractor for a local business preference for up to three years upon a finding of any intentional misstatements or noncompliance with any certification relating to LBE status.
Notes
| 90 | Added, Bill No. 030097 (approved May 15, 2003). Section 2 of Bill No. 030097 provides: "This Ordinance shall become effective ninety (90) days after adoption of an amendment to the Philadelphia Home Rule Charter permitting local bidding preferences." Editor's note: The Charter was so amended, effective December 1, 2003. Amended, Bill No. 050202-A (approved January 24, 2006). Section 2 of Bill No. 050202-A provides: "Transition provisions. A Local Business Entity certified as such on the date this Ordinance takes effect must reapply for certification under the provisions of Section 17-109 of The Philadelphia Code as amended by this Ordinance. Any Local Business Entity certifications in effect on the date this Ordinance becomes law shall expire three months after such date." |
| 91 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 92 | Amended, Bill No. 110758 (approved December 21, 2011), effective May 1, 2012. |
| 93 | Amended, Bill No. 160709-A (approved November 30, 2016), effective January 1, 2017. |
| 94 | Amended, Bill No. 090671 (approved December 23, 2009). |
| 95 | Amended, Bill No. 090671 (approved December 23, 2009). |
| 96 | |
| 97 | Added, Bill No. 200353 (approved December 1, 2020). |
| 98 | Added, Bill No. 200353 (approved December 1, 2020). |
| 99 | Added, Bill No. 200353 (approved December 1, 2020). |
| 100 | Added, Bill No. 160709-A (approved November 30, 2016), effective January 1, 2017. |
(1) Legislative Findings. The Council finds that:
(a) A September 10, 2003 report entitled, Underage Drinking: A Collective Responsibility, released by the National Academy of Sciences stated that more youth drink alcohol than smoke tobacco or use other illegal drugs;
(b) In the most recent national survey on drug use, the 2002 Monitoring the Future report, almost half or forty-eight and six-tenths percent (48.6%) of twelfth graders reported recent alcohol use;
(c) Underage drinking plays a substantial role in the three leading causes of death among youth-motor vehicle fatalities, suicide and homicide;
(d) According to the American Medical Association, underage drinking is a factor in nearly one-half of all teen automobile crashes, the leading cause of death among teenagers;
(e) Alcohol abuse among young people is also linked to two-thirds of all sexual assaults and date rape, and is a major factor in unprotected sex among youth, thereby increasing their risk of sexually transmitted diseases;
(f) The National Academy of Sciences estimates that the social cost of underage drinking is $53 billion;
(g) In the Philadelphia Safe and Sound Report Card 2003, substance abuse among high school youth was rated "challenging, with major obstacles";
(h) The most recent Youth Risk Behavior Survey compiled in 2001, which is based on self-reports by Philadelphia public high school students, found that thirty-one and six-tenths percent (31.6%) of high school youth report having had one drink in the most recent 30-day period;
(i) Research by the National Institute on Alcohol Abuse and Alcoholism, entitled Effects of the Mass Media on the Use and Abuse of Alcohol, has found that exposure to alcohol advertisements affects young people's beliefs about drinking, intentions to drink, and actual drinking behavior;
(j) A substantial proportion of alcohol advertising reaches an underage audience and is presented in a style that is attractive to youth;
(k) A 1996 study of children ages nine to eleven found that children were more familiar with Budweiser's television frogs than with Kellogg's Tony the Tiger or Smokey the Bear;
(l) In a survey conducted for the Center on Alcohol Marketing and Youth in June of 2003, two-thirds of parents say that seeing and hearing alcohol advertisements makes teens more likely to drink alcohol and eighty- two percent (82%) of the parents surveyed said that the risky behavior teens engage in while under the influence of alcohol is a problem in society today;
(m) Children and youth utilize city owned and controlled property on a daily basis, such as school buildings, recreation centers, libraries and bus shelters;
(n) To the extent that commercial advertising is allowed in these public facilities, the City of Philadelphia can play a positive role in reducing exposure of youth to alcohol advertisements by prohibiting the placement of such advertisements on publicly owned or controlled property.
(2) Every contract which permits any person to place advertising on City owned or controlled property shall include a provision prohibiting the placement on such property of advertisements for alcohol. For purposes of this Section, City owned or controlled property does not include property used to hold professional sporting events.
Notes
| 101 | Added, Bill No. 030713 (approved December 18, 2003). |
(1) Purpose. The purpose of this Section is to improve the City's capacity to design, construct and operate City buildings that meet high standards for environmental stewardship and demonstrate City leadership in the area by meeting those standards in connection with large City construction projects. The City is undertaking this initiative to underscore the importance of building high performance green buildings that are responsible and healthy places to live and work and to encourage similar development by private developers within the City.
(2) Definitions. The following definitions shall apply to this Section:
(a) Expenditure of Primarily City Capital Dollars. A circumstance in which more than fifty percent (50%) of the funding for design and construction of a project is based on authorization set forth in the City's annual capital budget appropriations ordinance for expenditure by any City department.
(b) U.S. Green Building Council. The organization that has developed and published the LEED Rating System to measure the energy and environmental performance of a building.
(c) Large City Public Works Project. New construction or major renovation of 10,000 or more gross square feet of enclosed and conditioned building space.
(d) LEED Rating System for New Construction and Major Renovation. The Leadership in Energy and Environmental Design Rating System developed by the U.S. Green Building Council that establishes performance standards for new construction and major renovation of commercial, institutional and high-rise residential buildings.
(e) Major Renovation. Major HVAC renovation, significant building envelope modification and major interior rehabilitation that in total directly affect more than fifty percent (50%) of the gross floor area of an enclosed and conditioned building space.
(f) New Construction. Design and construction of a new building or ground-up addition to an existing building.
(g) Gold-level LEED Rating. A Gold-level rating based on the LEED Rating System for New Construction and Major Renovation in effect on the date that a City project is registered with the Green Building Certification Institute, with at least 5 points earned in the category of Energy and Atmosphere.
(h) Green Building Certification Institute. The organization that administers project certification for commercial and institutional buildings under the LEED Green Building Rating System.
(3) Contract Requirements.
(a) Every City contract for the design or construction of a large City public works project that, based on the characteristics of the project, is capable of meeting the minimum program requirements for the LEED Rating System for New Construction and Major Renovation, and that involves the expenditure of primarily City capital dollars, shall include requirements that the developer will take all necessary and appropriate steps to obtain certification of the project as a gold-level LEED rating.
(4) Regulations. The Office of Sustainability, subject to the approval of the Director of Finance, is authorized to promulgate such regulations as are necessary and appropriate for the implementation of this Section, which may include but are not limited to: (i) regulations allowing contract requirements pursuant to subsection (3)(a) to be based on attainment of alternative standards for integrated design and high performance that are similar to LEED standards; and (ii) exceptions where strict compliance with the terms of this Ordinance would prohibit the use of federal or state funding in connection with a particular project.
(5) The Office of Sustainability shall prepare and provide to Council an annual summary of the status of City projects that are subject to the terms of this Ordinance.
Notes
| 102 | Added, Bill No. 080025 (approved December 16, 2009). Section 2 of Bill No. 080025 provides: "This Ordinance shall become effective for bids advertised on or after January 1, 2010." Amended, Bill No. 210862-A
(approved January 18, 2022). Section 2 of Bill No. 210862-A
provides: "This Ordinance shall take effect once the necessary implementing regulations are in place." The implementing regulation became law on October 7, 2022. |
(1) Definitions. For the purpose of this subsection, the following definitions shall apply:
(a) Demographic Data means statistical information on a group of individuals, aggregated by specific characteristics, including but not limited to race, ethnicity, gender identity, Philadelphia residence, and such other categories as may be established by regulation.
(b) Employee means any individual who performs work.
(c) Gender Identity means an individual's gender as reported to the employer.
(2) No services contract that is subject to the competitive bidding requirements of subsection 8-200(2) of the Home Rule Charter and valued above the formal bidding threshold shall be entered with a bidder who does not agree to disclose the following prior to execution of the contract and such other related disclosures as may be required by the Procurement Department by regulation, in addition to all other required disclosures:
(a) Demographic Data of all employees who perform work under such contract; and
(b) Prior years of experience performing on City contracts in any capacity during the five calendar years prior to the date of the opening of bids for such contract.
(3) Any disclosures required by this section shall be submitted to the Department of Labor, or such other office as designated by the Mayor, at such times as determined by regulation.
(4) Violation of any requirement of this section or of the provisions of a City contract required thereby shall be considered a substantial breach of the contractor's obligation under the contract.
(5) No later than October 1st of each year, the Director of Labor or such other officer as designated by the Mayor shall provide an annual report to the Mayor and the Clerk of Council summarizing the disclosures received pursuant to this section during the previous calendar year. A copy of the report shall be posted on the City's official website. Further, for purposes of improving the City's capacity in terms of businesses and workforce diversity, the Director of Labor shall also provide copies of the report to area organizations that specialize in business growth and workforce development, including but not limited to:
(a) Philadelphia Industrial Development Corporation;
(b) The Enterprise Center;
(c) Urban Affairs Coalition;
(d) The Chamber of Commerce for Greater Philadelphia;
(e) African American Chamber of Commerce for PA, NJ and DE;
(f) Greater Philadelphia Hispanic Chamber of Commerce;
(g) Asian American Chamber of Commerce for Greater Philadelphia;
(h) University City District;
(i) Delaware Valley Regional Planning Commission; and
(j) Urban League of Philadelphia.
Notes
| 103 |