In this Article the following words have the meanings indicated. Director is the Director of Procurement. Direct purchase means an informal solicitation defined by regulation under Section 11B-13. Local Small Business means a for-profit business or non-profit entity, other than a broker, that: (1) has its principal place of business or non-profit operations in the County; (2) in the case of a for-profit business, is independently owned and operated; (3) is not a subsidiary of another business or entity; and (4) meets criteria, size limits, and gross sales amounts established by method 2 regulations. Local Small Business Reserve means any procurement that is limited to responses from local small businesses. Veteran-Owned Local Small Business means a Local Small Business that is at least 51 percent owned by one or more individuals who: (a) are verified as having served on active duty in the armed forces of the United States, other than for training and were discharged or released under conditions other than dishonorable; and (b) control the management and daily operations of the business.

(a) Except as provided in Subsection (c), this Article applies to all procurements by a using department. (b) Minimum Requirements. (1) Subject to Method 2 regulations, a using department’s procurement procedures must award a minimum of 25 percent of the using department’s combined dollar value of contracts issued for goods, services, or construction, including direct purchases, to local small businesses. (2) A using department must have a goal to award at least 50 percent of the combined dollar value of its direct purchases to local small businesses. (c) The total dollar value of procurements by a using department does not include: (1) the value of any contract to which this Article does not apply because of a conflict with state or federal law or a grant requirement; (2) a preexisting contract executed by the County; (3) a non-competitive contract award made under Section 11B-14; (4) a public entity procurement; (5) an emergency procurement; (6) a bridge contract; (7) a cooperative procurement; (8) any waiver made under Section 11B-67(f); (9) any procurement where no local small business is qualified or able to perform the contract; or (10) any single procurement that is estimated to exceed $10 million. (d) A using department’s decision to exclude a procurement under Subsection (c)(6) must be approved by the Director.

(a) Established. There is established a Veteran-Owned Local Small Business preference points program for County procurements. (b) Eligibility. To be eligible for Veteran-Owned Local Small Business preference points, a business must affirm and provide supporting documentation to the Director to show that it is a Veteran-Owned Local Small Business as defined in Section 11B-65. The Director may investigate and verify the information provided on the application, as necessary. (c) Certification. Veteran-Owned Local Small Business preference points must only be applied to a Local Small Business that has a valid Veteran-Owned Small Business (VOSB) or Service-Disabled Veteran-Owned Small Businesses (SDVOSB) certificate from the U.S. Small Business Administration or the U.S. Department of Veterans Affairs’ Center for Verification and Evaluation. (d) Application of Preference Points to competitive sealed proposals. For any request for proposals issued under Section 11B-10 that has been designated for a Local Small Business Reserve, the Director must include an evaluation factor awarding additional points for a proposal from a Veteran-Owned Local Small Business worth five percent of the total available points. (e) Waiver. The Director may waive a bid or proposal preference under this Section in a solicitation if the Director finds that a preference would result in the loss to the County of Federal or State funds.

(a) Any procurement by a using department of goods, services, or construction is eligible for designation for the local small business reserve by the using department director or a designee, except any procurement that would be excluded under Section 11B-66(c). (b) A solicitation for a procurement that has been designated for a local small business reserve must be published in the same manner as required for other solicitations under Article III. (c) The procurement officer of a designated procurement unit must award a procurement contract designated for a local small business reserve to the responsible local small business that submits an offer that: (1) is the lowest bid price; (2) if the invitation for bids so provides, is the lowest evaluated bid price; or (3) is the bid or proposal most favorable to the County within the local small business reserve. (d) A business must affirm and provide supporting documentation to the Director to show that it is a local small business as defined in Section 11B-65(a). The Director may investigate and verify the information provided on the application. (e) A local small business is no longer eligible for a procurement under this Article if the business has been awarded $10 million in the aggregate in County contracts and at least 10 separate contracts, as either a prime contractor or a subcontractor, beginning January 1, 2006. The Director must provide written notice to the business when it is no longer eligible. (f) The Chief Administrative Officer may waive the application of this Article to a specific contract if the Chief Administrative Officer finds that the application of this Article conflicts with the overall objectives and responsibilities of the Chapter. The Chief Administrative Officer must keep records on the number of waivers issued and the reason for each waiver. This information must be reported to the Council in the annual report on the Program under Section 11B-69(b). (g) This Article does not give any person, including a local small business, any right or status, including standing, to challenge the award of a contract or subcontract under the County procurement system. This Article is enforceable only through the oversight function of the Chief Administrative Officer and the Council.

(a) The County Executive must adopt method 2 regulations to implement this Article. The regulations must: (1) require the Director to compile and maintain a comprehensive bidder’s list of qualified local small businesses and post that list on the appropriate website; (2) specify the criteria, size requirements, and gross sales amounts for a local small business; (3) define what constitutes a significant amount of economic activity; and (4) identify outreach methods and marketing strategies to inform local small businesses of the program. (b) Each using department must comply with the regulations.

(a) By October 30 each year, each using department must submit to the Director a report on the number, type, and dollar amount of contracts, including direct purchases, issued under this Article. (b) By November 30 each year, the Director must report to the Council on the Local Small Business Reserve Program. This report must include the number, type, and dollar amount of contracts, including direct purchases, awarded under this Article during the preceding fiscal year, the number, type, and dollar amount of each waiver, information about how these numbers have changed from the preceding fiscal year, and the extent of outreach efforts.

(a) A person must not: (1) willfully make a false statement to a County official or employee for the purpose of influencing participation in the Program; or (2) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining or attempting to obtain funds to which the person is not entitled to under this article. (b) A violation of this Section: (1) is a class A violation; and (2) disqualifies the violator from doing business with the County for 2 years.