Every contract with the City on an eligible project shall include an SBE clause. The SBE clause shall read as follows:

The contractor agrees to meet the goals of this Agreement by making available opportunities for Small Business Enterprises (SBEs), as defined in Chapter 18, Article VI of the Phoenix City Code, for utilization in the work set forth within this Agreement. For this purpose, the prime contractor, at minimum, shall undertake the following:

A. Notify SBEs that the prime contractor has subcontracting opportunities available and maintain records of all SBE and all non-SBE subcontractor responses.

B. Maintain a file of names and addresses of each SBE and non-SBE subcontractor contacted and action taken with respect to each such contact.

C. Disseminate the prime contractor’s SBE participation policy within the contractor’s management and externally communicate this policy to all subcontractors and suppliers.

D. Undertake and continue specific and personal recruitment efforts (both written and oral) directed at SBEs as well as SBE contractor trade and assistance organizations.

E. Subdivide the contract into economically feasible segments to facilitate SBE participation.

F. Adopt and comply with the SBE participation plan submitted with its response to the Invitation for Bids, Request for Qualifications or Request for Proposals, as approved by the City Manager.

G. The prime contractor further agrees that any breach of the SBE provisions of this Agreement shall be material and shall entitle the City to any or all of the following remedies, in addition to all other remedies allowed by law:

1. In addition to the applicable retention or securities-in-lieu of retention authorized by statute, to withhold up to ten percent more of all future payments on the involved eligible project until it is determined that the prime contractor is in compliance;

2. To withhold all future payments on the project until it is determined that the prime contractor is in compliance;

3. To reject all future bids for all projects or other procurements with the City of Phoenix until such time that the prime contractor has cured its breaches and demonstrates that it has adopted and faithfully performed its approved SBE plan and all other provisions contained in the agreement;

4. If any breach of the SBE provisions is discovered or has not been cured by substantial completion of the project, to reject all of the prime contractor’s future bids, contracts awaiting issuance of a notice to proceed (NTP), or bid openings for all projects or other procurements with the City of Phoenix for a period not to exceed one year from the date of substantial completion of the project. This remedy would be at the discretion of the City Manager.