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File #: 15-20317    Version: 1 Name:
Type: Reference Status: Filed
File created: 5/2/2023 In control: City Council Business Meeting
On agenda: 5/22/2023 Final action: 5/22/2023
Title: Reference - Charlotte Business INClusion Policy


Reference - Charlotte Business INClusion Policy



The following excerpts from the City of Charlotte’s Charlotte Business INClusion Policy are intended to provide further explanation for those agenda items that reference the Charlotte Business INClusion Policy in the business meeting agenda.


Part A:  Administration and Enforcement


Part A: Section 2.3Targeted Outreach and Designated Contracts for Small Business Enterprises (SBEs). When feasible, the Charlotte Business INClusion (CBI) Office may designate certain Contracts or categories of Contracts in which solicitation efforts will be directed only to SBEs. In designating Contracts for targeted outreach or SBE participation, the CBI Office takes into account the size and scope of the Contract and the availability of SBEs to provide the applicable services or products.


Part A: Section 3.1:  Subcontracting Goals. The city shall establish one or more Subcontracting Goals for all Construction Contracts of 200,000 or more and for all Architecture, Engineering, and Surveying Contracts of $100,000 or more. Contracts estimated to be less than these thresholds are exempt from the goal setting process.


Appendix Section 20:  Contract:  For the purposes of establishing a (Minority, Women, and Small Business Enterprise (MWSBE) subcontracting goal on a Contract, the following are examples of contract types:

§                     Any agreement through which the city procures services from a Business Enterprise, other than Exempt Contracts.

§                     Contracts include agreements and purchase orders for (a) construction, re-construction, alteration, and remodeling; (b) architectural work, engineering, surveying, testing, construction management, and other professional services related to construction; and (c) services of any nature (including but not limited to general consulting and technology-related services), and (d) apparatus, supplies, goods, or equipment.

§                     The term “Contract” shall also include Exempt Contracts for which an SBE, Minority Business Enterprise (MBE), or Women Business Enterprise (WBE) Goal has been set.

§                     Financial Partner Agreements, Development Agreements, Infrastructure Improvement Agreements, Design-Build, and Construction Manager-at-Risk Agreements shall also be deemed “Contracts,” but shall be subject to the provisions referenced in the respective Parts of the Charlotte Business INClusion Program Policy.


Appendix Section 27:  Exempt Contracts:  Contracts that fall within one or more of the following categories are “Exempt Contracts” and shall be exempt from all aspects of the Charlotte Business INClusion Policy:


No Competitive Process Contracts:  Contracts or purchase orders that are entered into without a competitive process, or entered into based on a competitive process administered by an entity other than the city, including but not limited to contracts that are entered into by sole sourcing, piggybacking, buying off the North Carolina State contract, buying from a competitive bidding group purchasing program as allowed under G.S. 143-129(e)(3), or using the emergency procurement procedures established by the North Carolina General Statutes.


Managed Competition Contracts:  Managed competition contracts pursuant to which a city department or division competes with Business Enterprises to perform a city function.


Real Estate Leasing and Acquisition Contracts:  Contracts for the acquisition or lease of real estate.


Federal Contracts Subject to Disadvantaged Business Enterprise (DBE) Requirements:  Contracts that are subject to the U.S. Department of Transportation Disadvantaged Business Enterprise Program as set forth in 49 CFR Part 26 or any successor legislation.

State Funded Contracts Subject to the State’s MWBE Requirements: 
Contracts that are subject to an MWBE Goal set by the State of North Carolina pursuant to N.C. Gen. Stat. 143-128.2.


Financial Partner Agreements with DBE or MWBE Requirements:  Contracts that are subject to a DBE program or minority and women business development program maintained by a Financial Partner.


Interlocal Agreements:  Contracts with other units of federal, state, or local government.


Contracts for Legal Services:  Contracts for legal services, unless otherwise indicated by the City Attorney.


Contracts with Waivers:  Contracts for which the City Manager or CBI Program Manager waives the CBI Program requirements (such as when there are no MWSBE subcontracting opportunities on a Contract).


Special Exemptions:  Contracts where the department and the CBI Program Manager agree that the department had no discretion to hire an MWSBE (e.g., emergency contracts or contracts for banking or insurance services) shall be Exempt Contracts.


Appendix Section 35: Informal Contracts:  Contracts that are estimated to be less than the following dollar thresholds prior to issuance of the City Solicitation Documents:

§                     Construction Contracts: $500,000, and

§                     Service Contracts and Commodities Contracts: $100,000.


Part B:  Construction and Commodities Contracts


Part B: Section 2.1:  When the city sets a Subcontracting Goal, each Bidder must either: (a) meet each Subcontracting Goal; or (b) comply with the Good Faith Negotiation and Good Faith Efforts requirements for each unmet Subcontracting Goal. Failure to comply constitutes grounds for rejection of the Bid. The City Solicitation Documents will contain certain forms that Bidders must complete to document having met these requirements.


Part B: Section 2.3:  No Goals When There Are No Subcontracting Opportunities. The city shall not establish Subcontracting Goals for Contracts where: a) there are no subcontracting opportunities identified for the Contract; or b) there are no MBEs, WBEs, or SBEs (as applicable) to perform scopes of work or provide products or services that the city regards as realistic opportunities for subcontracting.


Part C:  Service Contracts


Part C: Section 2.1(a) Subcontracting Goals:  No Goal When There Are No MWSBE Subcontracting Opportunities. The city shall not establish Subcontracting Goals for Service Contracts where (a) there are no subcontracting opportunities identified for the Contract; or (b) there are no MWBEs or SBEs certified to perform the scopes of work that the city regards as realistic opportunities for subcontracting.


Part C: Section 2.1(b) and 2.1(c):  The city may require each Proposer to submit with its Proposal one or more of the following: (a) a Participation Plan describing how Proposer intends to solicit MWSBE participation; (b) the Proposer’s Committed Subcontracting Goals; and (c) an affidavit listing the MWBEs or SBEs it intends to use on the Contract.


Part C: Section 2.1(h) Negotiated Goals:  The city may seek to negotiate Subcontracting Goals after Proposals have been submitted.


Part D:  Post Contract Award Requirements


Part D: Section 6:  New Subcontractor Opportunities/Additions to Scope/Contract Amendments

If a Contractor elects to subcontract any portion of a Contract that the Contractor did not previously identify to the city as a subcontracting opportunity, or if the scope of work on a Contract increases for any reason in a manner that creates a new MWSBE subcontracting opportunity, the city shall either (a) notify the Contractor that there will be no Supplemental MWSBE Goal for the new work; or (b) establish and notify the Contractor of a Supplemental MWSBE Goal for the new work.


Part F:  Financial Partners


Part F: Section 4:  Financial Partners shall undertake the following outreach efforts with respect to MWBEs and SBEs:

4.1 Notify MWBEs and SBEs of any contracting or procurement opportunities that may exist in the Financial Partner’s business for which there are MWBEs and SBEs listed in the city’s database; and

4.2 Request advice and assistance from the CBI Office as to what additional SBE measures might be helpful if and when it becomes apparent that outreach alone will be insufficient to meet the Financial Partner’s MWBE and SBE Goal; and

4.3 Follow such additional measures as the CBI Office reasonably recommends.


Part G:  Alternative Construction Agreements


Part G: Section 2.7:  Prior to City Council’s vote to award the Alternative Construction Agreement, the Program Manager and the Company shall negotiate and agree on proposed MWSBE Goals for the Project and on a Participation Plan that describes the outreach and efforts the Company will be required to undertake to meet the MWSBE subcontracting goals.