The application of definitions specifically included herein is limited to contracts initiated under the Small Business Enterprise (SBE) program. The following terms shall have the following meanings for article XIII:
(1) Arizona Unified Certification Program (AZUCP) is a reciprocity DBE certification program and is comprised of the Arizona Department of Transportation, City of Phoenix, and the City of Tucson as the sole DBE certifying agencies within Arizona.
(2) Certified small business enterprise (SBE) shall mean a local small business that is an independent and continuing enterprise for profit performing a commercially useful function, that has completed the application process for certification, has met the requirements set forth in 49 CFR part 26, and holds a current City of Tucson business license.
(3) Commercially useful function shall mean the performance of real and actual services in the discharge of any contractual endeavor. An SBE contractor is performing a commercially useful function when it is responsible for execution of a distinct element of a contract and carries out its responsibilities by actually performing, managing, and supervising the work involved. In determining whether an SBE is performing a commercially useful function, factors including, but not limited to, the following will be considered:
(a) If a Certified SBE does not perform or exercise responsibility for at least thirty (30) percent of the total cost of its contract with its own work force.
(b) The type of prime contract;
(c) Whether the business has the skill and expertise to perform work for which it is being/has been certified;
(d) Whether the business actually performs, manages and supervises the work for which it is being or has been certified;
(e) Whether the business purchases goods and/or services from a non-SBE owned business enterprise and resells goods to the city, city contractor, or other person doing business with the city for the purpose of allowing these goods to be counted towards the fulfillment of SBE utilization goals; and
(f) Standard industry practices.
(4) Construction project shall mean a contract that has been awarded in accordance with A.R.S. title 34 and the Tucson Procurement Code.
(5) Construction services project shall mean a contract that has been awarded using one of the following alternative project delivery methods as prescribed in A.R.S. title 34:
(a) Construction-manager-at-risk;
(b) Design-build; or
(c) Job-order-contracting.
(6) Controlled shall mean the SBE owner(s) possess the legal authority to manage business assets, goodwill and daily operations of the business and actively and continuously exercise managerial authority in determining the policies and in directing the operations of the business.
(7) Disadvantaged business enterprise (DBE) shall mean a for-profit business concern that is at least fifty-one (51) percent owned by one or more individuals who are both socially and economically disadvantaged consistent with 49 CFR part 26.
(8) Eligible contract for general procurement shall mean any contract for goods, materials, or services that meets the city's needs for purchases in accordance with section 28-16(1) (small purchases) except as otherwise provided for in sections 28-21 (sole source procurements), 28-22 (emergency procurements) and 28-23 (special procurements) or contracts with nonprofit agencies..
(9) Eligible contract for professional design services shall mean any contract for professional design services, unless otherwise precluded by law, estimated above the amount specified in section 28-16(1), except as otherwise provided for in sections 28-21 (sole source procurements), 28-22 (emergency procurements) and 28-23 (special procurements).
(10) Eligible construction or construction services project shall mean any construction or construction services project, unless otherwise precluded by law, provided that the estimate for construction exceeds the amount specified in section 28-16(1) except as otherwise provided for in sections 28-21 (sole source procurements), 28-22 (emergency procurements) and 28-23 (special procurements). This term does not include any construction project in which the estimated value is below the formal solicitation threshold or projects which require a DBE goal pursuant to federal law.
(11) Joint venture shall mean an association of two (2) or more persons, partnerships, corporations, business enterprises, or any combination of these entities established to form a single business enterprise but limited in scope and duration for the purpose of carrying out a business activity. The agreement establishing the joint venture shall be in writing. The SBE partner(s) must be responsible for a clearly defined portion of the work performed which is set forth in detail and separately from the work to be performed by the non-SBE partner and is assigned a commercially reasonable dollar value. Furthermore, the SBE interest shall be based on sharing real economic interest in the venture, include proportionate control over management, and interest in capital acquired by the joint venture and interest in earnings. Only the portion of work, supplies, and/or services attributed to the SBE, as a member of the joint venture, may be counted towards relevant SBE participation goals.
(12) Local shall mean that the principal place of business of the enterprise is physically located within the Tucson/Pima County metropolitan area.
(13) Office shall mean a fixed established place where work of a clerical, administrative, professional or production nature is carried on and directly related to the business being certified. A temporary location, movable property, or location established to oversee a project does not qualify as an office.
(14) Owned, for purposes of determining whether an enterprise is owned by an SBE, shall mean that the small business owner(s) meet the ownership requirements in accordance with 49 CFR part 26:
(a) Possesses interest in the business, along with the incidents of ownership;
(b) Contributed capital, equipment, and expertise to the business;
(c) Acquired the interest with his or her own financial resources or has put his or her own financial resources at risk in the operation of the enterprise; and
(d) Enjoys the customary incidents of ownership and shall have a risk in profits commensurate with the ownership interest, as demonstrated by an examination of the substance, rather than the form, of ownership arrangements.
(15) Professional design services contract shall mean a contract that has been solicited and awarded for architect services, engineer services, landscape architect services, surveyor services, or assayer services in accordance with A.R.S. title 34.
(16) Small business enterprise (SBE) shall mean a business that meets the North American Industry Classification System (NAIC) size standard adopted by the city for purposes of qualifying for SBE certification.
(Ord. No. 10993, § 1, 6-12-12, eff. 7-1-12; Ord. No. 11296, § 1, 8-5-15)