Los Angeles County Municipal Code Ch. 2.205 Social Enterprise Preference Program

The Board of Supervisors finds that it is of benefit to the County of Los Angeles to promote and facilitate businesses that distinguish themselves by accounting for their measurable social, public health, and environmental impact. Social Enterprises, which include nonprofit and for-profit businesses, often incur higher operating costs providing supportive services. Therefore, Social Enterprises are at a competitive disadvantage in obtaining County concession contracts and other County contracts, in which estimated revenue or cost is a significant factor.

(Ord. 2018-0022 § 6, 2018: Ord. 2016-0036 § 1, 2016: Ord. 2007-0013 § 1 (part), 2007.)

The County of Los Angeles Social Enterprise Preference Program is a race and gender-neutral program designed to establish a purchasing and contracting preference for certified Social Enterprises that provide transitional and permanent employment, to a Transitional Workforce or provide social, environmental and/or human justice services. The Social Enterprise Preference Program is designed to promote and foster inclusiveness and economic development, as well as ongoing evaluation to assure that all businesses, including Social Enterprises are provided equal opportunities in County concession, purchasing, and contracting activities.

(Ord. 2018-0022 § 7, 2018: Ord. 2016-0036 § 2, 2016: Ord. 2007-0013 § 1 (part), 2007.)

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.

"Contractor" shall mean any person, firm, corporation, partnership, or any combination thereof, which submits a bid or proposal or enters into a contract with the County of Los Angeles.

E.

"Homeless" shall mean a person sleeping in a place not meant for human habitation, or "residing" in an emergency shelter, transitional housing, or other supportive housing program or those who are homeless under the individual County department's definition.

F.

"Social Enterprise(s)" shall include nonprofit and for-profit businesses whose primary purpose is the "common good" and which "use the methods and disciplines of business and the power of the marketplace to advance their social, environmental, and human justice agendas, wherein the organization that applies commercial strategies to maximize improvements in human and environmental well-being," that may "include maximizing social impact rather than profits for external shareholders," and has been certified as a social enterprise as provided for in this Chapter.

G.

"Social Enterprise Preference Program" shall include:

A business that qualifies as a Social Enterprise and has been in operation for at least one (1) year providing transitional or permanent employment to a Transitional Workforce or providing social, environmental and/or human justice services; and

A business that is certified by the Department of Consumer and Business Affairs ("DCBA") as a Social Enterprise.

H.

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

I.

"Supportive services" shall mean services including, but not limited to, counseling services, individual case management, pre-employment job readiness training, daily on-the-job monitoring of participants, provision of unsubsidized competitive employment opportunities, and assistance in applying for, obtaining, and maintaining unsubsidized competitive employment.

J.

"Transitional workforce employer" shall mean a Social Enterprise that provides transitional jobs.

K.

"Transitional job" shall mean short-term or long-term, wage-paying, subsidized or non-subsidized employment that combines real work, skill development, and supportive services to help a Transitional Workforce overcome barriers to employment and transition to unsubsidized competitive employment.

L.

"Transitional Workforce" shall mean those under-employed or hard-to-employ persons that may be homeless, formerly incarcerated, or those who either have not worked for an extended period of time or face significant barriers to employment.

(Ord. 2018-0022 § 8, 2018: Ord. 2016-0036 § 3, 2016: Ord. 2007-0013 § 1 (part), 2007.)

DCBA with the assistance of County Counsel, and the Internal Services Department ("ISD"), 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. 2016-0036 § 4, 2016: Ord. 2012-0025 § 1, 2012: Ord. 2011-0066 § 4, 2011: Ord. 2007-0013 § 1 (part), 2007.)

A.

DCBA shall certify Social Enterprises and maintain records for the certified businesses and their participation in County purchasing and contracting.

B.

Qualifying Social Enterprises must be in operation for at least one (1) year providing transitional or permanent employment to a Transitional Workforce or providing social, environmental and/or human justice services to program participants.

C.

The business must also supply the following information as part of the certification process:

A description of the business' program and service components designed to help a Transitional Workforce or that otherwise qualify it under the definition of a Social Enterprise, including a description of the support services where applicable.

Any other information requested by DCBA.

(Ord. 2016-0036 § 5, 2016: Ord. 2007-0013 § 1 (part), 2007.)

A.

To facilitate the participation of Social Enterprises in County concession contracts and purchases of goods and services, County departments shall provide for Social Enterprise 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 Social Enterprise 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 Social Enterprise 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 Social Enterprise shall be fifteen percent (15%) of the revenue component of the evaluation method, determined according to the instructions issued by DCBA.

E.

The Social Enterprise preference under subsections B and C of this section shall not exceed one-hundred and fifty thousand dollars ($150,000) for any one (1) solicitation and award determination.

F.

The Social Enterprise 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 Social Enterprise to be eligible to claim the preference, the entity must request the preference in the solicitation response.

H.

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

I.

In no case shall the Social 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 § 9, 2018: Ord. 2016-0036 § 6, 2016: Ord. 2012-0025 § 2, 2012: Ord. 2007-0013 § 1 (part), 2007.)

The Social Enterprise Preference shall not be given for the following County contracts and purchases:

A.

National contracts established for the purchase of services, 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 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 may limit or prohibit application of a Social Enterprise preference.

(Ord. 2016-0036 § 7, 2016: Ord. 2007-0013 § 1 (part), 2007.)

A.

The information furnished by each solicitation respondent requesting a Social Enterprise preference shall be under penalty of perjury.

B.

No person or entity 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 Social Enterprise for the purpose of this Chapter.

C.

No person or entity 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 Social Enterprise.

D.

A business which has obtained County certification as a Social Enterprise 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 Social Enterprise that has previously obtained proper certification, however, as a result of a change in its status would no longer be eligible for certification, and fails to notify DCBA of this information prior to responding to a solicitation or accepting a contract award.

(Ord. 2016-0036 § 8, 2016: Ord. 2007-0013 § 1 (part), 2007.)

DCBA will investigate any valid complaint of eligibility received by the County concerning the Social Enterprise Preference Program.

(Ord. 2016-0036 § 9, 2016: Ord. 2007-0013 § 1 (part), 2007.)

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

(Ord. 2016-0036 § 10, 2016: Ord. 2007-0013 § 1 (part), 2007.)