§ 2-1365. Challenge to the status of a small business enterprise.

(a)

Any person, firm, or business can challenge the status of an SBE by filing a challenge on the prescribed form by the OCC with the OCC, subject to potential penalties set forth below.

(b)

Prior to taking formal action, the city staff shall provide the challenged SBE with written notice of the challenge. During the pendency of the proceeding, the SBE firm's certification shall remain valid. The office of contract compliance staff shall then investigate and prepare a recommendation regarding the challenged SBE status for review and approval by the director of the office of contract compliance. If approved by the director of the office of contract compliance, the office of contract compliance shall issue an initial notice of decertification to the SBE owner by certified mail. The SBE may appeal the initial notice of decertification within seven days of the receipt of the initial notice of decertification following the procedures set forth in section 2-1367. If the SBE owner fails to appeal the initial notice of decertification within the time period set forth in this section, or if the contract compliance hearing officer affirms the office of contract compliance's determination, the decertification shall be final and take effect immediately.

(c)

If the office of contract compliance decertifies an SBE proposed to work, or currently working on a contract, the decertified SBE's participation on the contract may no longer be counted toward fulfillment of the city's SBE goals. If the contractor no longer meets the city's SBE goals after the decertification of the former SBE, the contractor shall be required, within 30 days after notification by the office of contract compliance, to demonstrate good faith efforts to substitute the decertified SBE. Failure to demonstrate good faith efforts to substitute a decertified SBE will result in the bidder being declared non-responsive, if done prior to the award of the contract, or the contractor being held in default of the contact, if done after the award of the contract.

(d)

A protest to the status of an SBE will not cause any delays or otherwise affect any pending procurements or the ability of the city to award a particular contract.

(Ord. No. 2009-78(09-O-1876), § 9, 12-15-09)