§ 28-109. Graduation, suspension, or revocation.

(a) Permanent graduation from SLBE Program.

(1) 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.

(2) 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.

(b) Temporary suspension from SLBE Program.

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:

(1) fails to perform a commercially useful function under a contract; or

(2) 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.

(d) Permanent graduation from Emerging SLBE Program.

(1) 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.

(2) An Emerging SLBE firm must be permanently graduated from Emerging SLBE status once its 3 year average annual gross sales exceeds $2 million.

(e) Temporary suspension from Emerging SLBE Program.

(1) 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.

(2) 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.

(f) Effects of graduation or suspension.

(1) 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.

(2) 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.

(3) 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.

(4) 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.

(g) When effective.

Permanent graduation and temporary suspension is only effective upon receipt of written notice, as an adverse certification or eligibility determination.