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<baltimore-city-law heading="Part V – Utilization Requirements">
  <section prefix="§" num="28-46" heading="Contracts between $1,000 - $4,999.">
    <para num="(a)" heading="In general.">The following standards and procedures apply to every contract for which the estimated cost is $1,000 or more and less than $5,000.</para>
    <para num="(b)" heading="Office to provide list of certified enterprises.">The Office must provide the contracting agency with a list of certified business enterprises qualified to provide each of the materials, equipment, supplies, or services that the contracting agency indicates are required by the City.</para>
    <para num="(c)" heading="Agencies to solicit certified enterprises.">The contracting agency must solicit bids from certified business enterprises that are certified to supply the required materials, equipment, supplies, or services.</para>
    <para num="(d)" heading="When certified enterprises unavailable.">If no qualified certified business enterprise is available:<para num="(1)">the contracting agency must so notify the Office before the solicitation of bids; and</para>
      <para num="(2)">the Office must attempt to identify qualified businesses and, if successful, notify the contracting agency of their availability.</para>
    </para>
    <para num="(e)" heading="Opportunity to bid.">The contracting agency must provide certified business enterprises every practical opportunity to submit bids.</para>
    <annotation type="History">Ord. 00-098</annotation>
  </section>
  <section prefix="§" num="28-47" heading="Contracts between $5,000 - $49,999.">
    <para num="(a)" heading="In general.">The following standards and procedures apply to every contract for which the estimated cost is $5,000 or more and less than $50,000.</para>
    <para num="(b)" heading="Agency to provide Office with bid documents.">Before the solicitation of bids, the contracting agency must furnish the Office with an informational copy of all bid conditions and requests for proposals.</para>
    <para num="(c)" heading="Office may recommend certified enterprises.">The Office may recommend to the contracting agency certified business enterprises that can be solicited directly to submit bids.</para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 11-557</annotation>
  </section>
  <section prefix="§" num="28-48" heading="Contracts of $50,000 or more.">
    <para num="(a)" heading="In general.">The following standards and procedures apply to every contract for which the estimated cost is $50,000 or more.</para>
    <para num="(b)" heading="Participation affidavit required.">
      <para num="(1)">In addition to any other applicable requirements, the bid conditions and requests for proposals must require each bidder to include in its bid a certified business enterprise participation affidavit in which the bidder commits to utilize certified business enterprises in a percentage that equals or exceeds the applicable contract goals.</para>
      <para num="(2)">Any bid that does not include the certified business participation affidavit is non-responsive.</para>
    </para>
    <para num="(c)" heading="Participation affidavit requirements.">
      <para num="(1)">Prior to bid opening, bidders must submit to the City the certified business enterprise participation statement, including executed statements of intent, that specify:<para num="(i)">the name of each certified business enterprise to whom the bidder intends to award a subcontract;</para>
        <para num="(ii)">whether that subcontractor is:<para num="(A)">a minority business enterprise; or</para>
          <para num="(B)">a women’s business enterprise.</para>
        </para>
        <para num="(iii)">the dollar value of each subcontract;</para>
        <para num="(iv)">the scope of the work to be performed under that subcontract; and</para>
        <para num="(v)">any other information the Office requires to determine whether the contract goals have been satisfied.</para>
      </para>
    </para>
    <para num="(d)" heading="Verifying certification.">Each bidder is responsible for verifying that all MBEs and WBEs to be used have been certified by the Office before bid opening.</para>
    <para num="(e)" heading="Maintaining levels during contract term.">During the term of the contract, any unjustified failure to comply with the levels of certified business enterprise participation identified in the bid is a material breach of contract.</para>
    <para num="(f)" heading="Report for final payment.">
      <para num="(1)">Before final payment may be made under the contract, the contractor must submit a list of all subcontractors utilized on the contract, both MBE/WBE and non-MBE/WBE.</para>
      <para num="(2)">The list must include, as to each subcontractor:<para num="(i)">its name;</para>
        <para num="(ii)">the service or goods provided;</para>
        <para num="(iii)">the total amount paid to it; and</para>
        <para num="(iv)">its owner’s race/ethnicity and sex.</para>
      </para>
    </para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 07-606</annotation>
    <annotation type="History">Ord. 11-557</annotation>
  </section>
  <section prefix="§" num="28-49" heading="Leases and concessions.">
    <para num="(a)" heading="In general.">The following standards and procedures apply to:<para num="(1)">every lease in which the City is the lessee; and</para>
      <para num="(2)">every contract for a concession.</para>
    </para>
    <para num="(b)" heading="Agency to solicit certified enterprises.">City agencies must solicit bids from certified business enterprises that are certified to enter into leases or concession contracts.</para>
    <para num="(c)" heading="When qualified enterprises unavailable.">If, after investigation, a contracting agency determines that no qualified certified business enterprise is available:<para num="(1)">the contracting agency must so notify the Office before signing a lease or awarding a concession contract, unless the Office has waived notification based on the known unavailability of qualified certified businesses to perform a particular contract; and</para>
      <para num="(2)">the Office may attempt to identify qualified certified business enterprises and, if successful, must notify the contracting agency of their availability.</para>
    </para>
    <para num="(d)" heading="Opportunity to bid.">The contracting agency must provide the minority and women’s business enterprises every practical opportunity to submit bids.</para>
    <para num="(e)" heading="Concession subcontractors and suppliers.">
      <para num="(1)">All requests for concession bids must require concessionaires to make every good faith effort to utilize minority and women’s business enterprises as subcontractors and suppliers, whenever possible, if subcontractors are used.</para>
      <para num="(2)">Concession bidders must be required to submit their projected utilization of minority and women’s business enterprises along with a description of the efforts made to utilize those businesses.</para>
    </para>
    <annotation type="History">Ord. 00-098</annotation>
  </section>
  <section prefix="§" num="28-50" heading="Other services.">
    <para num="(a)" heading="Efforts required.">All City agencies, commissions, and boards, in the deposit of funds and performance of their other official duties, must make every good faith effort to equitably utilize the services of minority and women’s business enterprises.</para>
    <para num="(b)" heading="Scope.">The services to which this section applies include, but are not limited to:<para num="(1)">the financial services of banks, savings and loan companies, insurance companies, and other commercial financial institutions;</para>
      <para num="(2)">arrangements for travel and accommodations when traveling on official City business; and</para>
      <para num="(3)">legal services.</para>
    </para>
    <para num="(c)" heading="Annual reports.">
      <para num="(1)">All City agencies must submit to the Office, on an annual basis, a written report on the efforts made under this subsection.</para>
      <para num="(2)">The City Finance Department, City Comptroller, and Retirement Boards must report annually to the Mayor and City Council on their utilization of financial institutions that are minority or women’s business enterprises.</para>
    </para>
    <annotation type="History">Ord. 00-098</annotation>
  </section>
  <section prefix="§" num="28-51" heading="Emergencies.">
    <para num="(a)" heading="In general.">In the event that competitive bids are not obtained due to an emergency in accordance with &lt;cite data-doc="City of Baltimore, Md., Charter" data-path="VI|§11|(e)"&gt;Article VI, § 11(e) of the Baltimore City Charter&lt;/cite&gt;, the contracting agency must meet the requirements set forth in subsection (b) of this section that will serve as its utilization requirements.</para>
    <para num="(b)" heading="Emergency utilization requirements.">If an emergency procurement under &lt;cite data-doc="City of Baltimore, Md., Charter" data-path="VI|§11|(e)"&gt;Article VI, § 11(e) of the Baltimore City Charter&lt;/cite&gt; is necessary, a contracting agency shall:<para num="(1)">contact the Office for assistance in finding MBE and WBE contractors or subcontractors that can provide the goods or services needed;</para>
      <para num="(2)">provide contractors with a list of possible subcontractors that contains at least 2 MBE or WBEs, if applicable; and</para>
      <para num="(3)">to the extent possible, receive at least 1 quote from an MBE and 1 quote from a WBE that can provide the goods or services needed.</para>
    </para>
    <para num="(c)" heading="Office cooperation.">The Office shall provide all necessary assistance to an agency in making good faith efforts to comply with this chapter for the emergency procurement.</para>
    <para num="(d)" heading="Post-execution report.">
      <para num="(1)" heading="In general.">As soon as possible after the execution of any emergency procurement under &lt;cite data-doc="City of Baltimore, Md., Charter" data-path="VI|§11|(e)"&gt;Article VI, § 11(e) of the Baltimore City Charter&lt;/cite&gt; was necessary, but no later than 45 days after the contract execution, the agency shall submit a report to the Board of Estimates and the Office stating:<para num="(i)">the name and address of the selected contractor;</para>
        <para num="(ii)">whether the contractor is a City-certified MBE or WBE;</para>
        <para num="(iii)">an overview of the nature of the emergency and why an emergency procurement was necessary;</para>
        <para num="(iv)">a reasonable estimation of the threat or loss that may have occurred had an emergency procurement not been taken;</para>
        <para num="(v)">a summary of the contractor’s qualifications, experience, and background to provide the emergency goods or services and the basis on how the contractor was selected over other qualified and responsive potential contractors;</para>
        <para num="(vi)">if applicable, a description of the scope of work, including the costs, fees, or rates for the purchase;</para>
        <para num="(vii)">if applicable, a description of the work performed by the contractor to mitigate or eliminate the emergency;</para>
        <para num="(viii)">if applicable, a justification regarding why an additional procurement was necessary when an existing City contract might have provided the goods or services necessary; and</para>
        <para num="(ix)">a list of all potential vendors contacted, including the MBE and WBE contacted under subsection (b)(2) of this section.</para>
      </para>
      <para num="(2)" heading="Posting.">The report required by this subsection shall be posted to the Office’s website on its receipt.</para>
    </para>
    <annotation type="History">Ord. 21-015</annotation>
    <annotation type="Editor's Notes">This section was enacted on March 31, 2021 by Ordinance 21-015, with an effective date of June 29, 2021.</annotation>
  </section>
  <section prefix="§" num="28-52" heading="All contracts – In general.">
    <text>In addition to any other applicable requirements, the following requirements apply to all contracts awarded by the City.</text>
    <annotation type="History">Ord. 00-098</annotation>
  </section>
  <section prefix="§" num="28-53" heading="All contracts – Bid specifications.">
    <text>Bid conditions, requests for proposals, and all other specifications for contracts awarded by the City must require that, where a contract goal is applicable, the bidder must:</text>
    <para num="(1)">make good faith efforts before the opening of bids or submission of proposals to meet the contract goal; and</para>
    <para num="(2)">keep records of its good faith efforts, adequate to permit a determination of compliance with this chapter.</para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 07-606</annotation>
    <annotation type="History">Ord. 16-595</annotation>
  </section>
  <section prefix="§" num="28-54" heading="All contracts – Contract specifications.">
    <text>Each contract must:</text>
    <para num="(1)">incorporate this chapter by reference;</para>
    <para num="(2)">provide that the failure of any bidder, contractor, or subcontractor to comply with this chapter is a material breach of contract; and</para>
    <para num="(3)">require that, during its term, the contractor will:<para num="(i)">fulfill Program commitments submitted with the bids;</para>
      <para num="(ii)">continue to make good faith efforts to utilize minority and women’s business enterprises; and</para>
      <para num="(iii)">maintain records reasonably necessary for monitoring compliance with this chapter.</para>
    </para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 07-606</annotation>
    <annotation type="History">Ord. 16-595</annotation>
  </section>
  <section prefix="§" num="28-55" heading="All contracts – Payments to subcontractors.">
    <para num="(a)" heading="In general.">A contractor must pay its subcontractors in a timely fashion for satisfactory work.</para>
    <para num="(b)" heading="When payment considered timely.">A payment is timely if it is mailed, delivered, or transferred to a subcontractor no later than 7 calendar days after the contractor receives payment from the City.</para>
    <para num="(c)" heading="Evidence of compliance.">Beginning with the second pay request from a contractor to the City, the contractor must provide the City with evidence that all subcontractors have been paid out of the proceeds of the prior payment, unless a bona fide dispute, documented in writing, exists between the contractor and the unpaid subcontractor.</para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 07-606</annotation>
  </section>
  <section prefix="§" num="28-56" heading="All contracts – Reports and documentation.">
    <text>As a condition of each contract, the awardee of the contract must submit the following when requested by the Office:</text>
    <para num="(1)">copies of signed agreements with the business enterprises being utilized to achieve the contract goals;</para>
    <para num="(2)">reports and documentation verifying payments to the business enterprises being used to achieve the contract goals; and</para>
    <para num="(3)">reports and documentation on the extent to which the contractor has awarded subcontracts to minority and women’s business enterprises under contracts not affected by this chapter.</para>
    <annotation type="History">Ord. 00-098</annotation>
    <annotation type="History">Ord. 16-595</annotation>
  </section>
  <section prefix="§§" num="28-57 to 28-60" reserved="true" />
</baltimore-city-law>
