§ 28-62.5 — Contracts for construction, reconstruction and remodeling—Joint ventures and teaming agreements

Sec. 28-62.5. - Contracts for construction, reconstruction and remodeling—Joint ventures and teaming agreements.

(a) A proposer or bidder may opt to meet the participation goal through a joint venture or teaming agreement. Only the portion of the total dollar value of a joint venture contract equal to the distinct, clearly defined work that the MWBE performs with its own forces as a commercially useful function will count towards MWBE participation. As to each joint venture under this section, a written joint venture agreement must be completed by all parties to the joint venture and executed, which clearly delineates the rights and responsibilities of each member or partner, complies with any requirements of the division of small business opportunity as set forth in bid documents or otherwise, and provides that the joint venture shall continue for, at a minimum, the duration of the project. (b) The division of small business opportunity shall review and approve all contractual agreements regarding the terms and provisions of each joint venture relationship prior to the award of a contract, including agreements pertaining to: (1) The initial capital investment of each venture partner; (2) The proportional allocation of profits and losses to each venture partner; no MWBE venture partner's liability should ever exceed said partners percentage of revenue earned while a participant in the joint venture; (3) The sharing of the right to control the ownership and management of the joint venture; (4) Actual participation of the venture partners on the project; (5) The method of and responsibility for accounting; (6) The method by which disputes are resolved; and (7) Any additional or further information required by the division of small business opportunity as set forth in bid documents or otherwise. Nothing herein shall prevent the manager of the user agency from determining appropriate contract terms for a joint venture on behalf of the city when entering into the contract with the selected contractor. (c) As to each teaming agreement under this section, a written teaming agreement must be completed by all parties to the teaming agreement and executed, which clearly delineates the rights and responsibilities of each teaming party, complies with any requirements of the division of small business opportunity as set forth in the bid or proposal documents or otherwise, and provides that the teaming agreement shall continue for, at a minimum, the duration of the project. (d) The division of small business opportunity shall review and approve all contractual agreements regarding the terms and provisions of each teaming agreement prior to the award of a contact, including agreements pertaining to; (1) Actual participation of the teaming members on the project; (2) The high value work to be performed by the teaming members; (3) The method by which disputes are resolved; and (4) Any additional or further information required by the division of small business opportunity as set forth in the bid documents or otherwise. (e) Joint ventures and teaming parties shall submit agreements for pre-approval no later than ten (10) business days prior to the date set for receipt of bids or proposals on a project, but in no event later than designated in the bid documents or requests for proposals. A bid or proposal submitted by a joint venture or teaming relationship that does not meet the joint venture agreement or teaming agreement requirements as applicable, in accordance with the requirements of this section shall be deemed nonresponsive and rejected. (f) The joint venture, each member of the joint venture, or the teaming parties shall provide the division of small business opportunity access to review all records pertaining to joint venture agreements or teaming agreements before and after the award of a contract in order to reasonably assess compliance with this section. (g) If, after the award of a contract to a joint venture or team, any member of the joint venture or team believes that the terms and conditions of the agreement as approved by the division of small business opportunity have not been complied with, then such member may seek the DSBO's and the user department's assistance with review and resolution of the issue. The request for review must be made in writing. (h) [Reserved] (i) [Reserved] (j) If, after the award of a contract, a dispute arises between the prime contractor and a subcontractor regarding performance of work or provision of services or supplies on the eligible project, then such prime contractor or subcontractor may seek the DSBO's and the user department's assistance with review and resolution of the issue. The request for review must be made in writing. (k) Within twenty (20) calendar days of receipt of a request for review, if the dispute has not been resolved informally among the parties, the DSBO will recommend and schedule an informal meeting among the parties. (l) The director shall have authority to make recommendations in an attempt to resolve the dispute. (m) In the event that the DSBO's informal procedures do not resolve the disputes, the DSBO shall have the option of referring the dispute to a qualified outside mediator, contingent upon the consent of the interested parties, with the costs to be borne by the disputing parties.

(Ord. No. 286-20, § 2, 4-13-20)