FILE:  DJEAA

Cf:  DJE

 

SMALL AND DISADVANTAGED BUSINESS PROCUREMENT

 

 

SET ASIDES FOR TOTAL PROCUREMENT ESTABLISHED

 

For the fiscal year commencing July 1, 2019 and for each fiscal year thereafter, the School Board shall designate and set aside for awarding to small businesses, minority-owned businesses, and women businesses enterprises an amount up to ten percent of the value of total procurement of goods and services by said entity.  The procurements so designated shall be divided into contract award units of economically feasible production runs in order to facilitate offers or bids from small businesses, minority-owned businesses, and women-owned businesses.  In making the annual designation of set-aside procurements, the School Board shall take affirmative and verifiable steps to vary the included procurements so that a variety of goods and services produced by different small businesses, minority-owned businesses, or women-owned businesses, may be set aside each year.  The failure to set aside particular procurements shall not be considered to prohibit or discourage smaller businesses, minority-owned businesses, or women-owned businesses from seeking the procurement award through the normal solicitation and bidding processes.

 

ELIGIBILITY

 

In order for a business to be eligible under the provisions of this policy, it shall be certified as an economically disadvantaged business by the Division of Small and Emerging Business Development in the Department of Economic Development under the provisions of La. Rev. Stat. Ann. §51:1755 or by the Monroe City School Board as an economically disadvantaged business as provided in herein.

 

CERTIFICATION FOR ELIGIBILITY

 

In order to be certified as an economically disadvantaged business by the School Board, an application promulgated by the School Board shall be completed and submitted to the School Board.  The application shall be supported by, but not limited to, the following documents:

 

  1. Resumes of owners and top managers.

  2. Copies of business licenses and permits.

  3. Other pertinent records, such as professional licenses and certificates of insurance.

 

The applicant shall have the burden of proving to the satisfaction of the School Board that he or she is eligible for certification.  The School Board or its authorized designee shall conduct an on-site investigation of the applicant's place of business {when pertinent} prior to certification.  By submitting the application, the applicant agrees that the School Board may conduct such investigations.

 

The School Board shall require that all applicants submit notarized statements of changes in information on ownership, control, or operations provided during the initial certification process.  Certification may be revoked at any time the governing authority determines that the economically disadvantaged business does not meet the current criteria for eligibility for certification.

 

The length of time for remaining certified and receiving assistance from this program shall be set by rule promulgated by the governing authority.

 

Other rules as may be necessary to carry out the duties of this Section may also be adopted.

 

Prime contractors shall award not less than ten percent (10%) of the total dollar bid to economically disadvantaged subcontractors.  Prime contractors shall identify in their bids who their economically disadvantaged business subcontractors are.  A prime contractor who fails to provide such information as evidence of its good faith to comply with this policy may be disqualified as a bidder.  This requirement may be waived if the prime contractor, after demonstrating a good faith effort in the manner not inconsistent with this policy, is unable to comply with the requirement.

 

WHEN NO ELIGIBLE CONTRACTORS ARE/REMAIN AVAILABLE

 

At least ten percent (10%) of the value of the procurements designated for set aside awards shall be awarded, if possible, to businesses owned and operated by socially or economically disadvantaged persons.  In the event small businesses owned and operated by socially or economically disadvantaged persons are unable to perform at least ten percent of the set aside awards, then the balance of the set aside contracts shall be awarded to other small businesses.

 

At least ten percent (10%) of the value of the procurement contracts designated for set aside awards shall be awarded, if possible, to businesses owned and operated by women.  In the event small businesses owned and operated by women are unable to perform at least ten percent (10%) of the set aside award contracts, then the balance of the set aside contracts shall be awarded to other small businesses.

 

SUBSTITUTION OF CONTRACT AWARDS

 

In the event that the provisions of state law La. Rev. Stat. Ann. §38:2233(B)(6) and other applicable laws do not operate to permit the extension a particular contract award to small business, the award shall be placed pursuant to the existing solicitation and award provisions established by law, whereupon additional procurements corresponding in approximate value to the contract unable to be awarded pursuant to the provisions of this policy and state law shall be designated and set aside for small businesses.

 

PREEMPTION OF INCONSISTENT LAW OR POLICY

 

All existing laws, policies and rules used by the School Board contract solicitations, bid evaluations, contract awards, and other procurement matters shall apply as consistent to procurements set aside for small businesses that are authorized by this policy.  In the event of conflict with other rules, the provisions of this policy shall govern.

 

DEFINITIONS

 

The following words and phrases shall have the meaning ascribed to them in this policy, except as otherwise may be provided or unless a different meaning is plainly required by the context:

 

  1. Economically disadvantaged business means a small business organized for profit and performing a commercially useful function, which is at least sixty percent owned and controlled by one or more economically disadvantaged persons and which has its principal place of business in Louisiana.  A nonprofit organization is not an economically disadvantaged business for purposes of this Section.

  2. Economically disadvantaged person means a citizen of the United States who has resided in Louisiana for at least one year, whose ability to compete in the free enterprise system has been impaired historically due to diminished capital and credit opportunities as compared to others in the same or similar line of business, and whose diminished opportunities have historically precluded, or are likely to preclude, such individual from successfully competing in the open market.

  3. Services means the furnishing of labor, time, or effort by a contractor, not involving the delivery of a specific end product other than reports which are merely incidental to the required performance.

  4. Small business means a small business as defined by the Small Business Administration of the United States Government which for purposes of size eligibility or other factors meets the applicable criteria set forth in Code of Federal Regulations, Section 13 Part 121, as amended, and which has its principal place of business in Louisiana.

  5. Socially or economically disadvantaged person means a person who has been deprived of the opportunity to develop and maintain a competitive position in the economy because of social or economic disadvantage.  This disadvantage may arise from cultural, social or economic circumstances or background or physical location.

  6. Women owned business means a business that is at least fifty-one percent (51%) owned by a woman or women who also control and operate it. Control in this context means exercising the power to make policy decisions.  Operate in this context means being actively involved in the day-to-day management.  In determining whether a business is fifty-one percent (51%) owned by a woman or women, the percent ownership of the woman or women shall not be diminished because she is part of a community property regime.

 

ADDITIONAL DEFINITIONS

 

Unless the context requires otherwise, the following words shall have the following meanings:

 

  1. Certification means verification that a business qualifies for designation as a minority business enterprise or a women's business enterprise.

  2. Contract means all types of state agreements, regardless of what they may be called, for the purchase of goods or services, for construction of major repairs, or for public works.  Contract includes the following:

 

  1. Awards and notices of award.

  2. Contracts of a fixed price, cost, or incentive types.

  3. Contracts providing for the issuance of job or task orders.

  4. Leases.

  5. Letter contracts.

  6. Purchase orders.

  7. Any supplemental agreements with respect to A through F of this Paragraph.

 

  1. Contractor means a party who enters into a contract with a state agency or educational institution or a subcontractor or sublessee of such a party.

  2. Enterprise means a minority business enterprise or a women's business enterprise.

  3. Goods or services means all purchases for supplies or services made under Chapters 16 and 17 of Title 39 of the Louisiana Revised Statutes of 1950, all purchases of materials and supplies made under Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, including the selection of professional services under Part VII of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950, and all purchases made for supplies, services, or materials, including selection of professional services, made under any other state law.

  4. Minority means a person who is a citizen or permanent resident of the United States residing in Louisiana and who is any of the following:

 

  1. Black: having origins in any of the black racial groups of Africa.

  2. American, or other Spanish or Portuguese culture or origin regardless of race.

  3. Asian American: having origins in any of the original peoples of the Far East, Southeast Asia, the Indian subcontinent, or the Pacific Islands.

  4. American Indian or Alaskan Native: having origins in any of the original peoples of North America.

  5. Person with a disability: a person who has a permanent physical impairment which includes any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological, musculoskeletal, speech organs, skin, and endocrine, which substantially limits at least one major life activity of an individual, as defined in La. Rev. Stat. Ann. §28:477(3)(a), as verified by two (2) physicians or as certified by the United States Department of Veterans Affairs as meeting the qualifications and approved by the division. The division may require an additional medical opinion regarding a medical examination by a physician chosen by the division, at the applicant's expense, prior to approval of an application.  For the purpose of this Subparagraph, disability shall not mean mental impairment, temporary impairment, alcohol or drug addiction, sexual or behavioral disorders, or substantially limiting illnesses including human immunodeficiency virus.

 

  1. Minority business enterprise or minority-owned business means a small business organized for profit performing a commercially useful function which is at least fifty-one percent (51%) owned by one or more minority individuals who also control and operate the business.  Control in this context means exercising the power to make policy decisions.  Operate in this context means being actively involved in the day-to-day management of the business.

  2. Procurement means the purchase, lease, or rental of any goods or services.

  3. Public works means all work including construction, highway and ferry construction, alteration, repair, or improvement other than ordinary maintenance as provided in Chapter 10 of Title 38 or Chapter 1 of Title 48 of the Louisiana Revised Statutes of 1950 or as provided in any other law.

  4. Women's business enterprise means a small business organized for profit performing a commercially useful function which is at least fifty-one percent (51%) owned by one or more women who are citizens of the United States residing in Louisiana and who also control and operate the business. Control in this context means exercising the power to make policy decisions.  Operate in this context means being actively involved in the day-to-day management of the business.  In determining whether a business is fifty-one percent (51%) owned by one or more women, the percent ownership by a woman shall not be diminished because she is part of a community property regime.

 

New policy:  April 21, 2020

 

 

Ref:    La. Rev. Stat. Ann. §38:2233

Board minutes, 4-21-20

 

Monroe City School Board