§ 2-1369.1. Requirements for joint ventures.

(a)

Based upon the scope of work and market availability, and on whether bonding requirements would make it unreasonably burdensome for an SBE to bid on given project, the office of contract compliance shall determine on a project-by-project basis, in consultation with the commissioner of the user agency or his or her designee, whether good faith efforts to enter into a joint venture with an SBE shall be required for a given project. Only projects valued over $5,000,000.00 are eligible for consideration under this section. On such projects in which good faith efforts to enter into a joint venture relationship with an SBE is required, no bid shall be accepted unless submitted by a joint venture, unless the office of contract compliance has determined that good faith efforts to enter into a joint venture have been demonstrated. The office of contract compliance shall determine whether good faith efforts to enter into a joint venture have been adequately demonstrated based on a review of relevant facts, documents and circumstances.

(b)

As to each joint venture under this section, a written joint venture agreement must be completed by all parties to the joint venture and executed before a notary public, which clearly delineates the rights and responsibilities of each member or partner, complies with any requirements of the office of contract compliance as set forth in bid documents or otherwise, and provides that the joint venture shall continue for, at a minimum, the duration of the project.

(c)

The office of contract compliance shall review and approve all contractual agreements regarding the terms and provisions of each joint venture relationship prior to the award of a contract, including agreements pertaining to:

(1)

The initial capital investment of each venture partner;

(2)

The proportional allocation of profits and losses to each venture partner; no SBE venture partner's liability should ever exceed said partners percentage of revenue earned while a participant in the joint venture.

(3)

The sharing of the right to control the ownership and management of the joint venture;

(4)

Actual participation of the venture partners on the project;

(5)

The method of and responsibility for accounting;

(6)

The method by which disputes are resolved; and

(7)

Any additional or further information required by the office of contract compliance as set forth in bid documents or otherwise.

Joint ventures may submit agreements for pre-approval no later than 14 calendar days prior to the date set for receipt of bids on a project. Otherwise, agreements must be submitted on or before the date set for receipt of bids on an eligible project. A bid submitted by a joint venture that does not include a satisfactory written joint venture agreement in accordance with the requirements of this section shall be deemed non-responsive and rejected.

(d)

The joint venture, and each member of the joint venture, shall provide the office of contract compliance access to review all records pertaining to joint venture agreements before and after the award of a contract in order to reasonably assess compliance with this subdivision.

(e)

For any project that also qualifies for implementation of the requirements set forth under section 2-1450, OCC is directed to utilize the requirements in section 2-1450 before utilizing the requirements in this section.

(f)

Penalties for noncompliance. Any responsible bidder who fails to comply with this section shall be subject to any or all of the penalties contained in section 2-1373.

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