Bid: a quotation, bid, statement of qualifications or proposal by a bidder or contractor to perform or provide labor or materials to the City.

Bidder: any person, partnership, corporation or other business entity that submits a bid for an eligible project. The bidder can be an individual firm or a joint venture.

Certified SBE: an SBE that meets the requirements of and has been granted status as a certified small business enterprise by the City Manager.

City: City of Phoenix.

City Council: City Council of the City of Phoenix.

City Manager: City Manager of the City of Phoenix, or a person designated by the City Manager to implement any or all portions of this article delegated to the City Manager.

Commercially useful function: the performance of real and actual services in the discharge of any contractual endeavor, as stated in Code of Federal Regulations, Title 49, Part 26. An SBE subcontractor is considered to perform a commercially useful function when the subcontractor is responsible for execution of a distinct element of the work of a contract and carries out its responsibilities by actually performing, managing and supervising the work involved with its own resources. In determining whether an SBE subcontractor is performing a commercially useful function, factors including, but not limited to, the following will be considered:

Controlled, for purposes of determining whether a business is an SBE: the small business owner(s) shall possess and exercise the legal authority and power to manage business assets, good will and daily operations in the primary trade area for which certification is sought and apart from administrative functions and they shall actively and continuously exercise this managerial authority and power in determining the policies of and directing the day-to-day operations of the business.

Eligible contract: any contract for goods, supplies or general services for use in City operations unless otherwise precluded by law. Eligible contract does not include sole source contracts, petty cash purchases, emergency purchases as defined by the City Manager in the City’s administrative regulations, contracts for professional services, contracts for architectural and engineering services or contracts for the following items: City utility payments, phone payments, rent, professional association fees, magazine subscriptions, payments to other governmental entities, and bank transfers. Professional services, which are not affected by this article, refer to infrequent technical or unique services or functions performed by independent contractors whose profession or occupation is the rendering of these services.

General service: the furnishing of labor, time or effort by a vendor which does not involve the delivery of a specific end product other than any requested report or documentation as required by the service agreement. General service also includes the installation of personal property only; and to maintenance and repair functions for all City facilities, equipment, property and improvements, including the replacement of parts and the providing of materials incorporated into City property as a function of the maintenance or repair service.

Good faith efforts or good faith participation: the bidder must show that the bidder took all necessary and reasonable steps to achieve an SBE goal or other requirement of this article which steps, by their scope, intensity, and appropriateness to the objective, could reasonably be expected to obtain sufficient SBE participation, even if such steps were not fully successful. A list of the types of steps that the City may consider as part of the bidder’s good faith efforts to obtain SBE participation may be found in the administrative rules published by the City Manager and the instructions to bidders for the respective project.

Goods or supplies: equipment, products, commodities, or operating supplies purchased by the City for its operations in the ordinary course of business.

Joint venture: an association of two or more persons, or business organization or any combination of these entities, established to carry on a single business activity limited in scope and duration to a specific contract with the City.

Local SBE: an SBE whose principal place of business is located in Maricopa County, Arizona.

Owned, for purposes of determining whether a business is an SBE:

Personal net worth: the net value of the assets of an individual remaining after total liabilities are deducted. An individual’s personal net worth does not include: the individual’s ownership interest in an applicant or participating SBE firm; or the individual’s equity in his or her primary place of residence. An individual’s personal net worth includes only his or her own share of assets held jointly or as community property with the individual’s spouse.

Procurement: buying, purchasing, renting, leasing or otherwise acquiring goods, supplies or general services. It also includes all functions that pertain to the obtaining of any good, supply or general service, including description of requirements, selection and solicitation of sources, preparation and award of contract, and all phases of contract administration.

Request for proposals (RFP): all documents, whether attached or incorporated by reference, utilized for soliciting proposals for goods, supplies and general services.

Small business enterprise (SBE): a small business that is an independent and continuing enterprise for profit; that performs a commercially useful function; is owned and controlled by one or more persons each of whose personal net worth does not exceed $1.32 million; and meets the current small business size standard in its primary industry or trade area.

Small business size: the size standard as defined in the Small Business Administration Size Regulations, 13 CFR, Part 121.

Sole source: a procurement for which clear and convincing evidence exists that there is only one source from which the City may obtain goods, supplies or general services suitable for the City’s intended purpose.

Vendors: suppliers, firms, entities, or individuals furnishing goods, supplies or general services directly to the City. (Ord. No. G-5518, § 2, 2010; Ord. No. G-6742, § 2, 2020)