§ 66-223. Definitions.

The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

Adjusted gross margin means total revenue less cost of materials, products and subcontractors, excluding the cost of any leased employees.

Available dollars are those procurement dollars where small businesses may reasonably participate in the performance of the work required or the provision of goods and services. Those dollars spent of goods; services and construction where performance is limited to the contractor are not included in available dollars.

Certification means the process by which the city determines a business meets the definition of a small business.

Commercially useful function means a function which results in the provision of needed materials, supplies, equipment or services. Acting merely as a conduit to transfer funds to another business or acting as a broker of services does not constitute a commercially useful function. A small business is considered to perform a commercially useful function when it is responsible for execution of a distinct element of the work of a contract and carries out its responsibility by actually performing the work involved. If a small business subcontracts 50 percent or more of its responsibility under the contract, the small business shall be presumed not to be performing a commercially useful function.

Commodity means the services performed or goods provided by the small business, expressed using the commodity codes established by the National Institute of Governmental Purchasing (NIGP).

Contractor means a separate and distinguishable business entity participating or seeking to participate in the performance of a contract.

Controlled means whether a small business:

(1)

Possesses legal authority and power to manage business assets, goodwill and daily operations of the business: and

(2)

Actively and continuously exercises such authority and power in determining the policies and directing the operations of the business.

Domiciled in Palm Beach County means the business holds a valid and current Palm Beach County business tax receipt and has a permanent place of business in Palm Beach County. Virtual office arrangements will not be considered in meeting the domicile requirements. A post office box shall not be sufficient to establish domicile in the county.

Goal means the annual amount projected to be spent with small businesses expressed as a percentage of the total available dollars for procurement.

Joint venture and partnership mean an association of two or more persons or businesses to carry out a single business for profit for which purpose they combine their property, capital, efforts, skills and knowledge and includes limited or general partnerships.

Owned means a small business with an ownership interest of at least 51 percent. The term "owned," for the purposes of determining whether a business is a small business, shall mean that no large business shall possess an ownership interest in excess of 49 percent.

Practicable means reasonably capable of being accomplished.

Preferential programs means the special considerations extended for small business participation in city procurements.

Prime contractor means any person or business entity who has entered into a contract to provide goods, services or construction to the city.

Procurement code means the city's procurement code set forth in this chapter, as it may be amended from time to time.

Sheltered market means a contract or procurement that is reserved for small businesses eligible to respond to the specific procurement.

Small business (SB) means a small business person or firm that is:

(1)

Domiciled in Palm Beach County; and

(2)

Certified as a small business by Palm Beach County, the School Board of Palm Beach County or the city.

(3)

Whose adjusted gross margin, including all offices or locations, does not exceed the following:

(a)

For construction, the annual adjusted gross margin of $9,000,000.00 (averaged over the previous three years or, if in business less than three years, averaged during the duration of the business).

(b)

In commodities, the annual adjusted gross margin of $5,000,000.00 (averaged over the previous three years or, if in business less than three years, averaged during the duration of the business).

(c)

For professional services (CCNA), the annual adjusted gross margin of $5,000,000.00 (averaged over the previous three years or, if in business less than three years, averaged during the duration of the business).

(d)

For other industries, the annual adjusted gross margin of $5,000,000.00 (averaged over the previous three years or, if in business less than three years, averaged during the duration of the business); however, the procurement official may set specific criteria for a specific procurement, based on industry statistics or state statutes.

The dollar thresholds will be adjusted each October according to the consumer price index and shall be in conjunction with Palm Beach County's office of small business.

SB prime bidder means a small business submitting a bid for construction services as the prime contractor.

Small business listing means a list of certified small businesses by commodity codes established by the National Institute of Governmental Purchasing (NIGP) and made available to contractors or vendors for use in identifying subcontractors and material suppliers.

Subcontractor means any person providing goods, services and/or construction to a prime contractor for profit, if such goods, services and/or construction are procured or used in fulfillment of the prime contractor's obligations arising from a contract with the city.

(Ord. No. 4548-15, § 1, 2-2-2015)