HomeMy WebLinkAboutIR 9686 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9686
To the Mayor and Members of the City Council December 2, 2014
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•a SUBJECT: PROPOSED AMENDMENT OF THE BUSINESS DIVERSITY
rrn ENTERPRISE ORDINANCE
The current Business Diversity Enterprise Ordinance requires that persons or businesses wishing to bid on
certain City contracts must submit Minority Business Enterprise ("MBE") and Small Business Enterprise
("SBE") documentation within 5 City business days after bid opening date. In order to reduce the amount of
time it takes to complete the award process, staff recommends reducing the current five City business day
requirement to two City business days. The proposed reduction was reached after evaluating input from the
Minority/Women Business Enterprise Advisory Committee (the M/WBE Committee) and the contracting
community.
If the lowest bidder does not timely submit the required MBE and SBE documentation, that bidder will be
deemed non-responsive and the second lowest bidder will be given two City business days to submit the
required documents. This process will be followed until the lowest bidder submitting the required MBE
and SBE documentation is selected.
In order to discourage contractors from not submitting the required documentation, various penalties were
discussed. A progressive penalty schedule for failure to submit required documentation within required
timelines is proposed by City staff and is supported by both the Minority/Women Business Enterprise
Advisory Committee ("the M/WBE Committee") and acceptable to the contracting community. The
proposed progressive penalty schedule is:
First failure to submit arning
Second failure to submit required documentation isqualification from bidding for a period of one
ithin a 5 year period ear
Third failure to submit required documentation isqualification from bidding for a period of three
ithin a 5 year period rears
A contractor who is removed from the pre-qualification lists must apply for reinstatement after the
expiration of the penalty period in order to be eligible to bid.
The M/WBE Committee also supports efforts to increase opportunities for regional firms that wish to have
a business presence in the region. Therefore, for purposes of the Business Diversity Enterprise Ordinance,
the M/WBE Committee recommends that the City count not only MBEs and SBEs whose principal places
of business are located in the 6-county area comprising the Fort Worth marketplace, but also those who
have a significant business presence in the marketplace, even if their principal places of business are
located elsewhere.
The proposed ordinance defines a business with a"Significant Business Presence" in the Fort Worth
marketplace as one whose principal place of business is outside the marketplace,but that has conducted
business operations from a location within the marketplace for at least 24 months and from which (1) at
least 40% of the business's full-time and part-time employees are based and (2) a commercially useful
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 9686
To the Mayor and Members of the City Council December 2, 2014
PAT # 0 Page 2 of 2
SUBJECT: PROPOSED AMENDMENT OF THE BUSINESS DIVERSITY
ENTERPRISE ORDINANCE
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function is conducted that is significant to the specific project. A business whose only location in the
marketplace is utilized solely as a post office box, mail drop, or telephone message center or any
combination thereof, with no other substantial work function, would not be considered to have a significant
business presence in the marketplace.
All MBEs and SBEs must be certified as such by the North Central Texas Regional Certification Agency
(NCTRCA) or other certification agencies that subsequently may be acceptable to the City. A company's
principal place of business will be established by the certification agency.
Staff will present an M&C for City Council consideration on December 9, 2014 in order to amend the BDE
ordinance as described above.
If you have any questions concerning this information, please contact Jay Chapa, Housing & Economic
Development Director at 817-392-5804 orjesus.chapa@fortworthtexas.gov.
David Cooke
City Manager
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS