To be eligible for certification as an SLBE, the business enterprise must:be an independently owned and operated business enterprise that is not a broker, that is not a subsidiary of another business, and that is not dominant in its field of operation;
have owners who are actively involved in day-to-day management and control of the business;
perform a commercially useful function;
not have employed more than 50 full-time persons at any time during the last 3 years;
have annual gross revenues, as averaged over its most recent past 3 fiscal years or, if the business has not existed for 3 years, over the course of the existence of the business, of not more than:$5 million for construction firms, specialty trade contractors, and manufacturing firms;
$2.5 million for architectural firms;
$1.5 million for professional services firms;
$1.25 million for engineering firms; or
$1 million for firms providing other services, materials, or equipment, except for manufacturing firms; and
have a principal place of business in Baltimore City;
have:been established for at least 1 year; or
managing principals of the business who each have at least 3 years of relevant experience prior to forming or joining the business; and
in the year preceding the date of the initial certification application, not have received more than $1,000,000 in City contract payments as a result of contract awards from the City achieved through an open competitive bidding process.
A business firm is not eligible to become a certified SLBE if it is owned by:other businesses that cannot themselves qualify under the SLBE eligibility requirements in subsection (a) of this section; or
the principals or owners of other businesses that cannot themselves qualify under the SLBE eligibility requirements in subsection (a) of this section.
A business firm that has graduated from the SLBE Program under § 28-109 {“Graduation[, etc.]”} is no longer eligible to participate in the SLBE Program even if it otherwise meets all other eligibility criteria.
Ord. 16-595
In order to apply for certification or recertification as an SLBE, an enterprise must provide the Office with:a completed certification or recertification application in the form required by the Office;
all supporting documentation required by the Office; and
a signed affidavit stating that it meets all of the SLBE eligibility criteria set forth in § 28-105 {“Eligibility for SLBE Program”}.
Certified SLBEs must submit a completed recertification application to the Office every 2 years for review and continued certification.
After receiving an SLBE certification or recertification application, the Office must review all enclosed forms, affidavits, and documentation to make a prima facie determination as to whether the applicant satisfies the SLBE eligibility requirements as set forth in this chapter.
If, after the review required by this section, the Office finds that the applying firm satisfies the SLBE eligibility requirements as set forth in this chapter, the Office must grant the firm certified SLBE status.
If an applicant is determined to be ineligible for certification as an SLBE, the Chief must send a letter to the applicant stating the basis for the denial of eligibility.
Applicants determined to be ineligible are not eligible to submit a new application until at least 1 year after the date of the notice of denial of eligibility.
Joint ventures must be certified on a bid-by-bid basis.
A joint venture seeking certification is not itself subject to the size limitations imposed by § 28-105(a)(4) and (a)(5).
Each individual business participating in the joint venture must be a certified SLBE in order for the joint venture to receive the benefits of the SLBE Program.
In the course of considering the certification or recertification status of any SLBE firm or joint venture, the Office must periodically conduct audits and inspect the office, job site, records, and documents of the firm, and interview the firm’s employees, subcontractors, and vendors as reasonably necessary to ensure that all eligibility standards are satisfied and that the integrity of the SLBE Program is maintained.
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Ord. 17-068
A firm is eligible for certification as an Emerging SLBE if it meets the following eligibility criteria:the firm complies with all of the SLBE criteria set forth in § 28-105 {“Eligibility for SLBE Program”};
the firm has been in existence for less than 5 years;
the firm has no more than 5 full-time employees; and
the firm’s annual gross revenues, as averaged over the life of the firm, are less than $1 million.
In order to apply for certification or recertification as an Emerging SLBE, an enterprise must provide the Office with:a completed application for certification or recertification in the form reqauired by the Office;
all supporting documentation required by the Office; and
a signed affidavit stating that it meets all of the eligibility criteria set forth in subsection (a) of this section.
After receiving an Emerging SLBE certification or recertification application, the Office must review all enclosed forms, affidavits, and documentation to make a prima facie determination as to whether the applicant satisfies the Emerging SLBE eligibility requirements as set forth in this chapter.
If, after the review required by this section, the Office finds that the applying firm satisfies the Emerging SLBE eligibility requirements as set forth in this chapter, the Office must grant the firm certified Emerging SLBE status.
If an applicant is determined to be ineligible to participate as an Emerging SLBE, the Chief must send the applicant a letter stating the basis for the denial of eligibility.
Applicants determined to be ineligible are not eligible to submit a new application for Emerging SLBE certification for 1 year after the date of the notice of denial of eligibility.
Applicants determined to be ineligible for certification as an Emerging SLBE may still be eligible for certification as an SLBE.
Ord. 16-595
Ord. 17-068
An SLBE firm must be permanently graduated from the SLBE Program after it has received a cumulative total of $5 million of City-funded prime contract or subcontract payments in at least 5 separate contracts since its initial certification as an SLBE firm.
An SLBE firm must be permanently graduated from the SLBE Program after its 3 fiscal year average gross sales exceeds the size standard eligibility requirements.
An SLBE firm must be temporarily suspended by the Chief for the balance of any fiscal year after it has received, as contractor or subcontractor of City-funded contracts, a cumulative total of $1.5 million in payments for that fiscal year.
An SLBE or Emerging SLBE firm may have its certification and eligibility permanently revoked by the Chief if it:fails to perform a commercially useful function under a contract; or
allows its certified SLBE status to be fraudulently used for the benefit of a non-SLBE firm or the owners of a non-SLBE firm so as to provide the non-SLBE firm or firm owners benefits from affirmative procurement initiatives to which they would not otherwise be entitled.
An Emerging SLBE firm must be permanently graduated from Emerging SLBE status after it has received a cumulative total of $2.5 million of City-funded prime contracts or subcontract payments in at least 5 separate contracts since its initial certification as an Emerging SLBE firm.
An Emerging SLBE firm must be permanently graduated from Emerging SLBE status once its 3 year average annual gross sales exceeds $2 million.
An Emerging SLBE firm must be temporarily suspended from Emerging SLBE status by the Chief for the balance of any fiscal year after it has received, as a contractor or subcontractor on City-funded contracts, a cumulative total of $750,000 in payments for that fiscal year.
An Emerging SLBE firm suspended under this subsection may still be eligible to continue participating in affirmative procurement initiatives as an SLBE firm for the remainder of the fiscal year.
This section is not intended to require or allow the City to terminate a contract or fail to renew a contract solely due to the finding that a firm’s SLBE or Emerging SLBE status is permanently graduated or temporarily suspended during the contract term, including all renewal options originally available.
Bids or proposals submitted by an SLBE or Emerging SLBE prior to graduation or suspension may be awarded as if the firm retained its SLBE or Emerging SLBE status.
An SLBE or Emerging SLBE may not participate as an SLBE or Emerging SLBE on new bids during a period in which it has been permanently graduated or temporarily suspended, and will not receive any preference for which it may have previously been qualified.
If SLBE or Emerging SLBE status is revoked under subsection (c) of this section, the Board of Estimates may, upon recommendation by the contracting agency, terminate or fail to renew an impacted contract, if the Board of Estimates determines that termination or non-renewal is in the best interests of the City.
Permanent graduation and temporary suspension is only effective upon receipt of written notice, as an adverse certification or eligibility determination.
Ord. 16-595
All adverse certification or eligibility determinations by the Office or Chief must:be in writing;
include the reasons for the determination; and
be sent to the affected business enterprise.
An aggrieved party has a right to protest an adverse determination and seek administrative review.
To obtain administrative review, the aggrieved party must submit a written protest to the Chief within 7 days of receipt of the adverse determination.
The protest must specify the reasons and factual grounds of the protest and be accompanied by any supporting documents.
Within 25 days of receipt of the protest, the Chief must:review the protest and all relevant supporting documents; and
render a written decision that includes the reasons for the decision.
After all departmental remedies have been exhausted, the aggrieved applicant may request a hearing before a panel of independent hearing officers, with 1 member of the panel being appointed by the President of the City Council and the other members of the panel being appointed by the City Solicitor.
The hearing officer must be knowledgeable of Baltimore City procurement laws and procedures, including this subtitle.
Ord. 16-595