For the purposes of this title and policies related to the SBE program, the following terms shall have the following meanings:
A. "Affiliate" shall mean any business enterprise which is affiliated with the SBE or with the individual(s) upon which certification is based. Business enterprises are affiliates of each other when:
1. One either directly or indirectly controls or has the power to control the other;
2. A third business enterprise controls or has the power to control both; or
3. An "identity of interest" between or among business enterprises exists (including family relationships) such that affiliation may be found. In determining whether affiliation exists, consideration shall be given to all appropriate factors, including but not limited to common ownership, common management, contractual relationships, and shared facilities.
B. "Bid" shall mean and include a quotation, proposal, solicitation or offer by a bidder or contractor to perform or provide labor, materials, supplies, or services to Pima County government for a price.
C. "Bidder" shall mean any business that submits a quotation, bid, or proposal to provide labor, materials, supplies or services to Pima County government.
D. "Business enterprise" shall mean a corporation, partnership, individual, sole proprietorship, joint stock company, joint venture, professional association, or any other legal entity, operated for profit that is properly licensed and/or otherwise authorized to do business.
E. "Certification" shall mean completion by a business enterprise of an application procedure to be developed and maintained by the procurement director, and formal authorization by the procurement director to participate as an SBE.
F. "Certified SBE" shall mean: an SBE which meets the requirements of this title, and has been granted status as a certified small business enterprise by the procurement director.
G. "Commercially useful function" shall mean: the performance of real and actual services in the discharge of any contractual endeavor. An SBE subcontractor is considered to perform a commercially useful function when it is responsible for the execution of a distinct element of work under a contract and carries out its responsibilities by actually performing, managing and supervising the work involved with its own resources. In determining whether an SBE subcontractor is performing a commercially useful function, factors including but not limited to the following will be considered:
1. The amount of work subcontracted;
2. Whether the amount the SBE is to be paid is commensurate with the work it will actually perform;
3. Whether the business will perform work in the trade area where experience and expertise has been demonstrated and for which it is seeking to be or has been certified;
4. Whether the business actually performs, manages and supervises the work for which it has been contracted to perform;
5. Whether the business purchases goods and/or services from a non-SBE and simply resells goods to the county, county contractor, or other person doing business with the county for the purpose of allowing those goods to be counted towards fulfillment of SBE utilization goals; and
6. Standard industry practices.
H. "Controlled" for purposes of determining whether a business is a an SBE shall mean: the small business owner(s) shall possess and exercise the legal authority and power to manage business assets, good will and daily operations in the primary trade area for which certification is sought apart from administrative functions and they shall actively and continuously exercise this managerial authority and power in determining the policies of and directing the day-to-day operations of, the business. If the owners who are not a small business owner are disproportionately responsible for the operation of the business, then the business is not controlled by a small business owner.
I. "County" shall mean Pima County government.
J. "Eligible contract" shall mean any contract for goods and services unless otherwise precluded by law; except that eligible contract does not mean sole source contracts, petty cash purchases, emergency purchases, contracts for professional services, contracts for architectural and engineering services, construction projects, or contracts for noncompetitive purchases, including business with hospitals, insurance companies, churches, governments, professional associations, publishing companies, and utilities.
K. "Eligible project" means any construction contract undertaken by the county unless otherwise precluded by law. Eligible project does not include any construction project in which the estimated contract value is below the bid threshold determined by A.R.S. § 41- 2535 or any construction project that requires a disadvantaged business enterprise or other goal pursuant to federal law.
L. "Fixed office" shall mean a fixed and established place where work is carried on of a clerical, administrative, professional or production nature directly pertaining to the business being certified. A temporary location, or movable property, or one that is established to oversee a county project does not qualify as an office.
M. "Joint venture" shall mean: an association of two or more persons, partnerships, corporations or any combination of these entities, established to carry on a single business activity limited in scope and duration to a specific contract with the county. The degree to which a joint venture may satisfy relevant SBE participation goals cannot exceed the proportionate interest held by the SBE as a member of the joint venture as demonstrated in the written agreement establishing the joint venture. Further, SBE economic interest in the joint venture shall be based on sharing of real economic interest in the joint venture and shall include proportionate control over management, interest in capital acquired by the joint venture, and participation in the joint venture's profit or loss.
N. "Local" shall mean that the principal place of business of the enterprise is physically located within the Tucson Metropolitan Statistical Area (MSA) (corresponding with the geographic boundaries of Pima County), with a fixed office, as defined by this title, located within the Tucson MSA. Post office box numbers shall not suffice to establish an enterprise as a local business. Residential addresses are rebuttably presumed not to establish the requirements of this provision.
O. "Owned" for purposes of determining whether a business is an SBE shall mean that: (1) the small business owner(s) as the context requires, shall possess an ownership interest of at least fifty-one percent of the business; (2) this ownership shall be real and continuing, and shall go beyond mere indicia of ownership of the business reflected in ownership documents; and (3) the small business owner(s) shall enjoy the customary incidents of ownership and shall share in the risks and profits commensurate with their ownership interests, as demonstrated by an examination of the substance, rather than the form, of ownership arrangements.
P. "Race/gender neutral measure or activity or program" is one that is, or can be, used to assist all small businesses.
Q. "Small business" shall mean a business whose annual gross receipts are less than or equal to the gross receipts size standard adopted by the county for purposes of qualifying for SBE certification.
R. "Small business enterprise (SBE)" means a small business that is eligible for certification, is certified by the county or a qualifying certification entity, is an independent and continuing business for profit, performs a commercially useful function, meets the Small Business Administration (SBA) size and gross income limit standard and is owned and controlled by one or more persons each of whose personal net worth does not exceed the limits established by the SBA.
(Ord. 2017-28 § 1, 2017; Ord. 2011-15 § 1 (part), 2011: Ord. 2009-47 § 1 (part), 2009: Ord. 1997-44, 1997)