In this Section, the following words have the meanings indicated: Broker means a person that provides goods or services (other than real estate, investment, or insurance sales) on a pass-through basis as follows: (1) a supplier of goods who: (A) does not own, operate, or maintain a place of business in which goods of the general character required under the contract are kept in stock in the regular course of business; (B) does not regularly assume physical custody or possession of goods of comparable character to those offered to the County, or (C) exclusively acts as a middleman in the sale of goods to the County; or (2) a supplier of services who does not regularly maintain the capability, capacity, training, experience, and applicable regulatory licensing to directly perform the principal tasks of a contract with the County and must provide the principal tasks through a subcontract with a third party. Contract Award means the delivery by the County of a fully executed contract to an offeror. High Dollar Value Contract means an initial Contract Award that is estimated to exceed $10 million. Local Business means a for-profit business other than a broker that has its principal place of business in the County, as further defined by Executive Regulation, and that is certified by the Director as a Local Business under the provisions of this Article. Local Business Program Manager means a person designated by the Director to administer and monitor the Local Business Subcontracting Program. Local Business Subcontractor means a Local Business that enters into a contract with a Contractor to perform work related to a High Dollar Value Contract for that Contractor.

(a) Local Business Subcontracting Goals. This subsection establishes the following Local Small Business subcontracting goals: (1) at least 10% of the contract dollars awarded for each High Dollar Value Contract should be awarded to a Local Business; and (2) at least 10% of the total dollar value of all High Dollar Value Contracts in the aggregate should be awarded to Local Businesses. (b) Applicability. The Local Business Subcontracting Program goals apply to each High Dollar Value Contract except: (1) grants or appropriations under Section 11B-14 (a)(3) and (4); (2) cooperative procurements under Section 11B-40; (3) public entity contracts under Section 11B-41: (4) emergency procurements under Section 11B-16; or (5) bridge contracts, under Section 11B-42, if the Director determines in writing that compliance with this Article is impractical or is outweighed by the benefits to the County of entering into a bridge contract.

(a) The Director, at the time of a solicitation, must publish notification to businesses when the solicitation may result in a High Dollar Value Contract. (b) The Director must encourage Local Business participation in applicable High Dollar Value Contract opportunities by: (1) adding a provision in a solicitation for a High Dollar Value Contract that requires a Contractor to exercise good faith in its effort to subcontract 10% of the dollar value of the contract to one or more Local Businesses; (2) requiring a Contractor on a High Dollar Value Contract to: (A) submit a Local Business subcontracting plan describing how the Contractor proposes to meet the 10% Local Business Subcontracting Program goal; (B) identify, before initial Contract Award, each Local Business with which the Contractor intends to subcontract and the projected dollar amount of each subcontract or percentage of the contract dollar amount allocated to each subcontract; and (C) promptly notify the Using Department of any change in the information required under (A) and (B) of this subsection during the contract term. (3) requiring the Contractor to comply with Local Business Subcontracting Program goals throughout the contract term. (c) A Contractor’s failure to satisfy the requirements of the Local Business Subcontracting Program, including a failure to submit documentation required by the Director to show compliance, may constitute a breach of the contract for which the County may withhold payment or impose liquidated damages, in addition to any other remedies available to the County. (d) The Director may waive all or part of the Local Business subcontracting requirements for a specific contract under appropriate circumstances as established by Executive Regulation. (e) The Director may require each Contractor and Local Business that participates in the Local Business Subcontracting Program to provide information concerning utilization by the Contractor of Local Businesses in a High Dollar Value Contract.

The County Executive must adopt a regulation, by Method 2, to implement this Article. The regulation must include: (a) monitoring procedures to assist a contract administrator and the Local Business Program Manager to determine compliance by a Contractor with the Local Business Subcontracting Program; (b) certification requirements for a business to qualify as a Local Business under this Article; and (c) procedures to certify or decertify a Local Business.

This Article does not give any person, including a Local Business, any right or status, including standing, to challenge the award of a contract or subcontract arising from the County procurement system. The provisions of this Article are enforceable only through the oversight function of the Chief Administrative Officer or his designee.

(a) A person must not: (1) fraudulently obtain or retain, attempt to obtain or retain, or aid another person in fraudulently obtaining or retaining, or attempting to obtain or retain, certification as a Local Business for the purpose of this Article; (2) willfully make a false statement to a County official or employee for the purpose of influencing the certification of an entity as a Local Business; or (3) fraudulently obtain, attempt to obtain, or aid another person in fraudulently obtaining, or attempting to obtain, public monies to which the person is not entitled under this Article. (b) A violation of this Article: (1) is a class A violation; and (2) may disqualify the violator from doing business with the County for up to 2 years.