Los Angeles County Municipal Code Ch. 2.204 Local Business Enterprise Preference Program

The Board of Supervisors finds that it is of benefit to the County of Los Angeles to promote and facilitate the fullest possible participation by all citizens in the affairs of the County in every way possible. It is also essential that opportunities be provided for full participation in our free enterprise system by small business enterprises. Further, it is the policy of the Board that the County should aid and assist, to the maximum extent possible, the interests of local small business concerns in order to preserve free competitive enterprise and to ensure that a fair proportion of County concession contracts, and the total purchases and contracts or subcontracts for purchase of goods or services for the County be placed with such enterprises.

(Ord. 2018-0022 § 1, 2018: Ord. 2016-0037 § 1, 2016: Ord. 2002-0057 § 1 (part), 2002.)

The County of Los Angeles Local Small Business Enterprise Preference Program is a race and gender-neutral program designed to enhance purchasing and contracting opportunities for local small businesses within the County of Los Angeles. The program priorities were developed to promote and foster inclusiveness and economic development, as well as ongoing evaluation to assure all businesses, including local small businesses, are provided equal opportunities in County concession, purchasing, and contracting activities.

(Ord. 2018-0022 § 2, 2018: Ord. 2016-0037 § 2, 2016: Ord. 2002-0057 § 1 (part), 2002.)

For the purpose of this Chapter, the following words and phrases are defined and shall be construed as having the following meaning:

A.

"Concession contract" shall mean a contract wherein the County grants a special right or privilege to operate a business on County-owned or operated property.

B.

"County" shall mean the County of Los Angeles or any public entities for which the Board of Supervisors is the governing body.

C.

"Department" shall mean the County department, entity, or organization responsible for the solicitation.

D.

"Local Small Business Enterprise" or "LSBE" shall mean:

A business which is certified by the State of California as a small business and has had its principal place of business located in Los Angeles County for at least one (1) year;

In federally funded County solicitations subject to the federal restriction on geographical preferences, a business which is certified as small by the federal Small Business Administration or which is registered as small on the federal System for Award Management ("SAM") data base; or

A business certified as a small business enterprise with other certifying agencies pursuant to the Department of Consumer and Business Affair's ("DCBA") inclusion policy that (a) has its principal place of business located in Los Angeles County and (b) has revenues and employee sizes that meet the State's Department of General Services requirements.

In addition, every certified LSBE bidding on or participating in a County concession contract or contract for purchase of goods or services for the County, shall perform a commercially useful function, as defined below:

(a)

A LSBE is deemed to perform a commercially useful function if the business does all of the following:

(i)

Is responsible for the execution of a distinct element of the work of the contract;

(ii)

Carries out its obligation by actually performing, managing, or supervising the work involved;

(iii)

Performs work that is normal for its business services and functions;

(iv)

Is responsible with respect to products, inventories, materials, supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing if applicable, and making payment; and

(v)

Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

(b)

A contractor, subcontractor, or supplier will not be considered to perform a commercially useful function if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of a LSBE.

E.

"SBA" shall mean the federal Small Business Administration.

F.

"Solicitation" shall mean the County's process to obtain bids or proposals for concession contracts, and the purchase of goods and services.

(Ord. 2018-0022 § 3, 2018: Ord. 2016-0037 § 3, 2016: Ord. 2007-0090 § 1, 2007: Ord. 2002-0057 § 1 (part), 2002.)

DCBA, with the assistance of County Counsel and the Internal Services Department ("ISD"), is authorized and shall issue interpretations of the provisions of this Chapter, and shall issue written instructions on the implementation and ongoing administration of this Chapter. Such instructions may provide for the delegation of functions to other departments.

(Ord. 2016-0037 § 4, 2016: Ord. 2011-0055 § 1, 2011: Ord. 2002-0057 § 1 (part), 2002.)

DCBA shall be responsible for verifying that a local small business is already certified as a small business by the State of California that or other certifying entity pursuant to DCBA's inclusion policy (a) has its principal place of business located in Los Angeles County and (b) has revenues and employee sizes that meet the State's Department of General Services requirements. DCBA shall certify LSBEs and maintain records of the certified businesses and their participation in County purchasing and contracting.

(Ord. 2016-0037 § 5, 2016: Ord. 2015-0001 § 6, 2015: Ord. 2011-0055 § 2, 2011: Ord. 2002-0057 § 1 (part), 2002.)

Where geographic preferences are precluded by federal funding restrictions, DCBA shall be responsible for verifying that a LSBE meets the federal small business criteria for the number of employees and/or revenue and maintains an active registration as a small business in the SAM data base.

(Ord. 2016-0037 § 6, 2016: Ord. 2007-0090 § 2, 2007.)

A.

To facilitate the participation of LSBEs in County concession contracts and purchases of goods and services, County departments shall provide for LSBE preference in their concession contracts and purchase of goods and services where responsibility and quality are equal.

B.

In solicitations where an award is to be made to the lowest responsible bidder meeting specifications, subject to subsections E and G through I, the preference to the LSBE shall be fifteen percent (15%) of the lowest responsible bidder meeting specifications, determined according to the instructions issued by DCBA.

C.

In solicitations where an award is to be made to the highest scored proposer based on evaluation factors in addition to cost/price, subject to subsections E and G through I, the preference to the LSBE shall be fifteen percent (15%) of the cost/price component of the evaluation method, determined according to the instructions issued by DCBA.

D.

In solicitations where an award is to be made to the highest scored proposer, based on evaluation factors in addition to revenue, subject to subsections F through I, the preference to the LSBE shall be fifteen percent (15%) of the revenue component of the evaluation method, determined according to the instructions issued by DCBA.

E.

The LSBE preference under subsections B and C of this section shall not exceed one-hundred and fifty thousand dollars ($150,000.00) for any one (1) solicitation and award determination.

F.

The LSBE preference under subsection D of this section shall not exceed seven-hundred and fifty thousand dollars ($750,000.00) for any one (1) solicitation and award determination.

G.

In order for a LSBE to be eligible to claim the preference, the business must request the preference in the solicitation response.

H.

When an applicable statute limits the preference to the LSBE at an amount less than fifteen percent (15%), the applicable statute shall determine the preference amount.

I.

In no case shall the Local Small Business Enterprise Preference Program price, or scoring preference be combined with any other County preference program to exceed fifteen percent (15%) of the lowest responsible bid meeting specifications or highest responsible proposal.

(Ord. 2018-0022 § 4, 2018: Ord. 2016-0037 § 7, 2016: Ord. 2011-0055 § 3, 2011: Ord. 2002-0057 § 1 (part), 2002.)

The Local Small Business Enterprise Preference Program shall not be given for the following County purchases:

A.

National contracts established for the purchase of equipment and supplies for and by the National Association of Counties, U.S. Communities Government Purchasing Alliance, or any similar or related group purchasing organization.

B.

A revolving fund (petty cash) purchase pursuant to the Los Angeles County Fiscal Manual, Section 4.6.0 or a successor provision.

C.

A purchase card purchase pursuant to the Los Angeles County Purchasing Policy Manual, Section P-2810 or a successor provision.

D.

A non-agreement purchase with a value of less than five thousand dollars ($5,000) pursuant to the Los Angeles County Purchasing Policy Manual, Section A-0300 or a successor provision.

E.

Any contract, funded in whole or in part by the federal government, to the extent of any conflict between the requirements imposed by the federal government, including those relating to participation in a contract by a minority or women business enterprise, as a condition of the receipt of the federal funds.

F.

A contract for which federal, State, or local laws limit or prohibit application of Local Small Business Enterprise Preference Program.

(Ord. 2016-0037 § 8, 2016: Ord. 2011-0055 § 4, 2011: Ord. 2002-0057 § 1 (part), 2002.)

A.

The information furnished by each business requesting a Local Small Business Enterprise Preference Program shall be under penalty of perjury.

B.

No person or business shall knowingly and with intent to defraud, fraudulently obtain, retain, attempt to obtain or retain, or aid another in fraudulently obtaining or retaining or attempting to obtain or retain certification as a LSBE for the purpose of this Chapter.

C.

No person or business shall willfully and knowingly make a false statement with the intent to defraud, whether by affidavit, report, or other representation, to a County official or employee for the purpose of influencing the certification or denial of certification of any entity as a LSBE.

D.

A business which has obtained certification as a LSBE by reason of having furnished incorrect supporting information or by reason of having withheld information, and which knew, or should have known, the information furnished was incorrect or the information withheld was relevant to its request for certification, and which by reason of such certification has been awarded a contract to which it would not otherwise have been entitled, shall:

Pay to the County any difference between the contract amount and what the County's costs would have been if the contract had been properly awarded;

In addition to the amount described in subdivision 1 of subsection D of this Section, be assessed a penalty in an amount of not more than ten percent (10%) of the amount of the contract involved; and

Be subject to the provisions of Chapter 2.202 of the County Code (Determinations of Contractor Non-responsibility and Contractor Debarment).

E.

The above penalties shall also apply to any business that has previously obtained proper certification, however, as a result of a change in their status would no longer be eligible for certification, and fails to notify the State and DCBA of this information prior to responding to a solicitation or accepting a contract award.

(Ord. 2016-0037 § 9, 2016: Ord. 2015-0001 § 7, 2015; Ord. 2011-0055 § 5, 2011: Ord. 2007-0090 § 3, 2007: Ord. 2002-0057 § 1 (part), 2002.)

DCBA is authorized to investigate any valid complaint of eligibility received by the County concerning the Local Small Business Enterprise Preference Program.

(Ord. 2016-0037 § 10, 2016: Ord. 2015-0001 § 8, 2015: Ord. 2011-0055 § 6, 2011: Ord. 2002-0057 § 1 (part), 2002.)

This Chapter shall apply to all solicitations issued sixty (60) days after the effective date of the Ordinance codified in this Chapter.

(Ord. 2016-0037 § 11, 2016: Ord. 2002-0057 § 1 (part), 2002.)