§ 66-260. Construction subcontractor goals.

(a)

Applicable procurements . This section shall apply to all procurements for construction services, except: prime construction contracts awarded to an eligible firm under the MWBE program where the MWBE contractor will perform at least 25 percent of the work, emergency procurements, or other procurements for which MWBE program requirements have been waived in accordance with this article.

(b)

MWBE subcontractor goals . The MWBE subcontractor goal for any construction services contract will not exceed 15 percent of the total contract value.

(c)

Eligible firms . The MWBE eligible to meet the MWBE subcontractor goal for construction contracts shall be owned by one or more of the following groups: African-Americans; Hispanic Americans; Caucasian Women.

(d)

Bids . Any bid for a construction contract failing to meet the established MWBE goal shall be deemed non-responsive and shall be disqualified, except where the procurement official determines that such disqualification would not be in the best interests of the city under the particular circumstances. All bidders must submit, as part of their bid documentation, a subcontractor utilization plan which includes the following:

(1)

Statement of MWBE participation which identifies all MWBEs which will be utilized as subcontractors by type of eligible firm; and

(2)

A letter of intent signed by each MWBE subcontractor(s).

The subcontractor utilization plan included in the bid shall reflect the intent of the bidder and MWBE subcontractor(s) to establish a business relationship as well of the type of work and percentage of work that the MWBE subcontractor will perform. Failure to submit a complete subcontractor utilization plan shall be grounds for disqualification from participation in that specific procurement.

(e)

Qualified subcontractors . Subcontractor utilization will count towards MWBE goals only for MWBE subcontractors who are certified in a specific line of work or business for which a defined scope of work is sought at the time of bid. MWBE goals may not be met by subcontractors that are conduits, pass-throughs or brokers, or do not perform a commercially useful function or that are not qualified or certified to provide the services as indicated in the bid and subcontractor utilization plan.

(f)

Self-performing . A prime contractor is not required to subcontract out work that it has historically and consistently performed with its own work force. If an MWBE prime contractor certifies that it will self-perform 25 percent or more of the project with its own forces, it will not be required to comply with the MWBE subcontracting goals. If the MWBE prime contractor does not certify that it will self-perform at least 25 percent of the project, then the MWBE prime contractor must comply with the MWBE subcontracting goal.

(g)

Post-award subcontractor changes . If after the contract award, the prime contractor chooses not to utilize the MWBE subcontractors identified in its bid or subcontractor utilization plan, or does not substitute the MWBE subcontractors with other MWBE subcontractors with the same overall MWBE participation rate originally proposed, the prime contractor may face penalties pursuant to section 66-269 of this Code, unless approved in writing by the procurement official.

(h)

Copies of subcontracts . Prime contractors shall submit a copy of their executed subcontract with each MWBE listed in their bid and subcontractor utilization report within 20 calendar days of execution of a contract with the city.

(Ord. No. 4679-18, § 3, 12-17-2018)