Welcome to the City of Chicago. Department of Procurement Services. Rahm Emanuel, Mayor Jamie Rhee, Chief Procurement Officer

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1 Welcome to the Bid & Bond Room Rahm Emanuel, Mayor Jamie Rhee, Chief Procurement Officer

2

3 The remains committed to the growth and development of small, minority and women-owned business enterprises and has pursued every opportunity to ensure that the City s procurement process remains fair, inclusive, transparent, and efficient.

4 Introduction Compliance is a pivotal component at DPS. It includes a three-step process: 1. Contract Goal Setting - Compliance review of Bids/Proposals. 2. Monitoring of the Contract (M/WBE, DBE, EEO/CRO/Local Requirement). 3. Contract Closeout.

5 Step 1: Pre Award Requirements Contract Goals are set on a project by project bases. MBE/WBE or DBE Direct Opportunities Identified based on the scope of work/detailed specifications. Contract Goals inserted into each specification Percentages can range from zero (o) percent to 100% (which is considered a Target Market solicitation)

6 Step 1: Pre Award Requirements, con t Proper Compliance Plan Submittal; a bid or proposal may be rejected as non-responsive if the bidder fails to submit one or more of the following with its bid or proposal: 1. An MBE/WBE or DBE compliance plan demonstrating how the bidder/propose plans to meet the contract Specific Goals (Schedule D); and /or 2. Documentation of Good Faith Efforts; and/or 3. A request for reduction or waiver of the Contract Specific Goals.

7 Schedules/GFE/Waiver Schedule B: MBE/WBE or DBE Affidavit of Joint Venture Schedule C: MBE/WBE or DBE Letter of Intent to Perform as a Subcontractor, Supplier, or Second Tier Subcontractor (along with letters of Certification) (copy of agreed proposal). Schedule D: Compliance Plan Regarding MBE/WBE or DBE Participation. Schedule H: Documentation of Good Faith Efforts (construction projects). Request to or wavier of MBE/WBE goals

8 Step 2: Post Award Requirements/Contract Monitoring Contract Award/Contract Monitoring Begins Contract Compliance Unit has a shared responsibility with the City User departments for monitoring the participation of certified Minority, Women and Disadvantaged Business Enterprises. The Unit is also responsible for the monitoring of Equal Employment Opportunity (EEO), Chicago Residency (CRO), and Local Residency.

9 Counting Participation Only payments made to MBEs/WBEs and DBES firms that meet BOTH the Commercially Useful Function and Area of Specialty requirements will be counted toward the Contract Specific Goals. MBE/WBE/DBE self performs using its own workforce and equipment 100% of the value of the work is counted. MBE/WBE is a manufacturer, 100% of the expenditures is counted. MBE/WBE is a distributor or supplier, 60% of the expenditures is counted.

10 Subcontractor Agreements No later than three (3) business days after receipt of the executed contract, the contractor must execute a complete subcontract agreement or purchase order with each MBE/WBE or DBE listed on the contractor s Schedule D. No later than (8) business days after receipt of the executed contract, the contractor must provide copies of each signed subcontract,purchase order, or other agreement to DPS.

11 Changes to a Compliance Plan No changes to the Compliance Plan or contractual MBE/WBE or DBE commitments or substitution of MBE/WBE or DBE subcontracts may be made without the prior written approval from the Chief Procurement Officer. Unauthorized changes or substitutions, including performing the work designated for a subcontractor with the contractor s own forces, shall be a violation of the MBE/WBE or DBE Special Conditions and a breach of the contact with the City, and may cause termination of the executed Contract for breach, and/or subject the contractor to contract remedies or other sanctions. NO BID SHOPPING ALLOWED!!!

12 Reporting During the term of the contract, the contractor must submit partial and final waivers of lien from all of its subcontractors (construction projects). The prime and its subcontractors will be responsible for reporting payments into the City s Certification and Compliance System (C2). The prime and its subcontractors will be responsible for submitting certified payroll documentation into the City s Certified Payroll Processing System (CPPS).

13 C2 MBE/WBE/DBE Payment Reporting The Certification & Compliance (C2) Network System is a web-based tool that provides: Online tracking of payments made to Prime Contractors; Online tracking of payments made to MW/DBE firms; Online verification of MW/DBE payments

14 Site Visits Announced and unannounced site visits are performed by Field Analysts. While onsite at each construction location, they meet with the Resident Engineer or Project Manager and request to receive the daily work schedule and observe the duties being performed by the subcontractors and its workers. It is expected that both the contractor s employees and its subcontractors will cooperate fully in this monitoring process.

15 CPPS Certified Payroll Reporting A completely automated web based system specifically designed for Prime Contractors and their Subcontractors The CPPS system allows for the management of Labor Compliance, Davis Bacon, and Prevailing Wage processes. It also validates local, State, and Federal Davis-Bacon prevailing wage regulations. Payroll data may be entered directly into the system or uploaded from major construction accounting and payroll programs. This eliminates the need for paper documents to be submitted. All contract-specific wage rates and worker classifications are online within the system, and Contractors select classifications from a menu. Potential errors in wage rates or worker classification entries are flagged to Contractors preemptively, allowing Contractors to correct data prior to submittal.

16 Step 3: Contract Closeout In the event of Non-Compliance, and without limitation, the following shall constitute a material breach of the contract between the City and the contractor and entitle the City to declare a default, terminate the contract, and exercise those remedies provided for in the contract at law or in equity: (1) failure to demonstrate good faith efforts; and (2) disqualification as a MBE or WBE of the contractor or any joint venture partner, subcontractor or supplier if its status as an MBE or WBE was a factor in the award of the contract and such status was misrepresented by the contractor.

17 Step 3: Contract Closeout, cont d Payments due to the contractor may be withheld until corrective action is taken. If the City determines that the contractor has not made good faith efforts to fulfill its Compliance Plan, the affected MBE or WBE may recover damages from the contractor. Failure to meet the EEO commitments will result in liquidated damages. Failure to meet the CRO and Local residency requirements may result in liquidated damages.

18 / Will post bid advertisements and addenda, upcoming workshops and events, and new policies and procedures that affect vendor community

19 Questions????

20 THANK YOU!!

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