The ordinance updates the Local Business Enterprise (LBE) and Non-Discrimination in Contracting rules to increase certification thresholds, adjust penalty amounts, and improve payment processes for subcontractors. It also introduces new programs and reporting requirements to support local businesses and enhance participation in city contracts.
Ordinance amending the Administrative Code to revise the Local Business Enterprise (LBE) and Non-Discrimination in Contracting Ordinance (Chapter 14B) to: 1) increase the LBE certification size thresholds and authorize an automatic increase to the thresholds every five years based on the consumer price index; 2) change the LBE certification size threshold term of calculation from an average of gross annual receipts in the prior three to the prior five years; 3) increase penalties for violations of Chapter 14B from up to 10% to up to 25% of the contract or subcontract amount; 4) require prime contractors to include LBE subcontractors’ approved payment requests in payment applications within 30 days of receipt of an invoice; 5) authorize application of separate LBE subcontract participation requirements for micro, small, and SBA-LBEs; 6) extend the bonding assistance program to certain City-funded construction projects; 7) authorize a pilot Mentor-Protégé expansion program, a pilot micro-LBE set-aside program for certain design-build and construction manager/general contractor projects, and a pilot Neighborhood LBE program; 8) require additional data collection and reporting on the LBE status of all bidders, specifically LBEs certified as both MBE and WBE; and 9) increase the contracting Threshold Amount from $706,000 to $1,000,000 and the Minimum Competitive Amount from $129,000 to $200,000; and make various other changes and clarifications to Chapter 14B.
How it got here
The legislation to amend the Local Business Enterprise (LBE) and Non-Discrimination in Contracting Ordinance was prompted by the need to update outdated thresholds and improve support for small businesses in San Francisco.
The Board of Supervisors introduced an ordinance to amend the Administrative Code regarding the LBE program, aiming to increase certification thresholds and improve accountability.
The proposed legislation was referred to the Small Business Commission for review and recommendation, highlighting the need for updates to the LBE program.
The Small Business Commission reviewed the proposed changes and expressed support, emphasizing the importance of stakeholder engagement in the process.
The Mayor's office submitted amendments to the legislation, which included increasing the LBE certification size thresholds and other key changes.
The Rules Committee amended the legislation and continued it for further consideration, reflecting ongoing discussions about the LBE program.
The legislation was filed with the Clerk of the Board, indicating it is moving forward in the legislative process.
Reconstructed from attached documents & the official record