§ 28-117. Mandatory subcontracting.

(a) Contract-by-contract determination.

A GSC may, on a contract-by-contract basis, at its discretion, require that a predetermined percentage of a specific contract, up to 40%, be subcontracted to certified SLBEs or to certified Emerging SLBEs.

(b) Subcontracting by SLBEs.

(1) If the contractor is a certified SLBE or certified Emerging SLBE, then the contractor is entitled to count the dollar value of the work performed by its own forces towards satisfaction of the mandatory subcontracting goal for that contract.

(2) An SLBE or Emerging SLBE contractor may not subcontract more than 49% of the contract value.

(3) An SLBE or Emerging SLBE subcontractor may not further subcontract more than 10% of its portion of the contract value to a vendor who is not an SLBE or Emerging SLBE.

(1) For a contract bid out under this section, a prospective bidder must submit, at the time of bidding, a form providing the name of the SLBE or Emerging SLBE subcontractor or subcontractors and describing both the percentage of subcontracting by the SLBE or Emerging SLBE and the work to be performed by the SLBE or Emerging SLBE.

(2) At the time of bidding, a bidder may request a full or partial waiver of this mandatory subcontracting requirement from the Chief for good cause, by submitting an SLBE unavailability certification to the Chief along with adequate documentation of good faith efforts to obtain SLBE participation, in the form required by the Office.

(d) Review of waiver requests.

The Chief must base his or her determination on a waiver request on the following criteria:

(1) whether the requestor of the waiver has made good faith efforts to subcontract with qualified and available SLBEs or Emerging SLBEs;

(2) whether subcontracting would be inappropriate or not provide a commercially useful function under the circumstances of the contract; and

(3) whether there are no certified SLBE or certified Emerging SLBE firms that are qualified and available to provide the goods or services required.

(e) Failure to satisfy SLBE subcontracting goals.

(1) In the absence of a waiver, failure of a contractor's bid or proposal to satisfy the mandatory SLBE subcontracting goal renders its bid or proposal non-responsive.

(2) In the absence of a waiver, failure of a contractor, in the performance of the contract, to attain a mandatory subcontracting goal for SLBE participation is grounds for termination of existing contracts with the City, debarment from performing future City contracts, or any other remedies available under the terms of its contract with the City or under the law.

(3) A Contractor commits a material breach of contract if it fails to notify and obtain written approval from the Chief in advance of any negative change in usage of a designated SLBE or Emerging SLBE subcontractor, including any:

(i) reduction in subcontract scope;

(ii) termination of a subcontract; or

(iii) substitution of a new SLBE or Emerging SLBE subcontractor for a designated SLBE or Emerging SLBE.

(f) Sole source and emergency contracts exempt.

Sole source and emergency contracts are exempt from subcontracting goal requirements under this section.