310-17. Ethical Procurement.
1. PURPOSE. The common council finds that: a. It is in the city’s best interest to procure items and services from responsible vendors and manufacturers who provide a safe, non-discriminatory work environment, and who compensate their employees with non-poverty wages.
b. Many manufacturers, both domestic and international, are engaged in practices that result in poverty wages, violations of workers’ rights and unsafe and unhealthy working conditions.
c.
Minimum standards for workers’ and human rights should be extended to all workers, and it is the responsibility of the city of Milwaukee to ensure that it is not expending funds in ways that contribute to violation of workers’ rights and the perpetuation of poverty.
d. As a participant in the marketplace, the city chooses to expend its purchasing dollars to enhance the economic and social well-being of people, while acquiring the best possible quality goods and services at the lowest cost.
2. DEFINITIONS. In this section:
a.
“Apparel” means all items of clothing and cloth produced by weaving, knitting and felting, and shall include uniforms, coveralls, footwear, linens and entrance mats.
b.
“Contractor” means the business entity with which a contracting agency enters into a contract.
c.
“Manufacture” means to process, fabricate, assemble, treat or package.
d. “Non-poverty wage” means the following for:
d-1. Domestic manufacturers. A base hourly wage of the amount required to produce, for 2,080 hours worked, an annual income equal to the U.S. department of health and human services’ most recent poverty guideline for a family of 3 in the 48 contiguous states plus either health benefits or an additional 20% in hourly wages to be adjusted by the city clerk on March 1 of each year.
d-2. Outside the United States. A nationwide wage, to be adjusted annually, that shall be comparable to the wage for domestic manufacturers in subdiv. 1, adjusted to reflect the country’s level of economic development using the central intelligence agency’s most recent world factbook purchasing power parity-adjusted gross domestic product per capita index.
e. “Responsible contractor” means an entity, other than a contractor or subcontractor operating as a small business enterprise as defined in s. 370-17, engaged in custodial, janitorial, security or food services that can demonstrate that neither the entity nor any parent company or subsidiary has violated any federal, state or local wage and hour or employment discrimination laws within the past 5 years, including any violation of the following:
e-1. Any federal occupational safety and health administration law or regulation.
e-2. The Equal Employment Opportunity Act of 1972.
e-3. The McNamara Service Contract Act.
f. "Responsible manufacturer" means an establishment engaged in manufacturing, distributing, laundering or dry cleaning that can demonstrate all of the following:
f-1. Compliance with all applicable local, state and national laws of the jurisdiction in which the labor is performed concerning wages and benefits and workplace health and safety. In addition, for manufacturers located outside the United States, compliance with the principles of the fundamental conventions of the International Labor Organization regarding forced labor, child labor and freedom of association.
f-2. Payment of non-poverty wages as defined in par. d-1 for domestic manufacturers and par. d-2 for manufacturers located outside of the United States to laborers in any work done as part of fulfillment of a contract with the city.
f-3. Termination of its employees only with just cause.
f-4. Establishment of a mechanism for the resolution of workplace disputes that are not regulated by the National Labor Relations Act.
g.
“Service contract” means a contract subject to formal competitive bidding that directly engages the time and effort of a contractor whose primary purpose is to perform tasks related to security, janitorial, or food services, rather than to furnish an end item of supply.
h.
“Violation” means findings of fault by a court or other regulatory agency.
3. REQUIREMENTS FOR APPAREL PURCHASES. a. Application. Unless contrary to federal, state or local law, contracting agencies shall award contracts to responsible manufacturers for all apparel contracts subject to formal competitive bidding. These contracts may include any or all of the following activities relating to apparel: purchase, rental, laundering and dry cleaning.
b. Affidavits. b-1. No contracts for items referenced in par. a shall be entered into by contracting agencies unless the lowest responsible bidders first submit to the purchasing director sworn reports or affidavits which include the following information for the specified time periods of the contracts:
b-1-a. The names and addresses of the companies and facilities in which the items have been or will be manufactured, distributed, laundered or dry cleaned.
b-1-b. The names and addresses of all owners of the facilities in which the items have been or will be manufactured, distributed, laundered or dry cleaned.
b-1-c. The base hourly wage and the percent of wage level paid as health benefits for persons working at the facilities in which the items have been or will be manufactured or distributed, laundered or dry cleaned.
b-1-d. Sworn statements by the contractors that facilities identified pursuant to this paragraph are responsible manufacturers as defined in sub. 2-e.
b-1-e. Any other information deemed necessary by the purchasing director for the enforcement of this section.
b-2. Contractors shall procure and submit sworn reports or affidavits from every subcontractor employed by the contractor during the specified time period of the contract for the fulfillment of contracts covered under this section.
b-3. In the event that any information provided by the contractor or subcontractor pursuant to this paragraph changes during the specified time period of the contract, the contractor shall submit or cause to be submitted to the purchasing director sworn reports or affidavits relating to the updated information.
b-4. The purchasing director shall maintain and make available for public inspection any sworn report or affidavit submitted pursuant to this paragraph.
c. Bid specifications. Contracting agencies shall add a digest of the provisions of this section to all specifications for apparel purchasing, renting, laundering and dry cleaning upon which they solicit by formal competitive bid.
d. Specifications for apparel contracts. No contract for the purchasing, renting, laundering and dry cleaning of items of apparel covered under this section shall be entered into by a contracting agency unless the contract contains a stipulation stating that the contractor agrees to provide items from responsible manufacturers in fulfillment of the contract, and that the contractor agrees to include an equivalent stipulation in all subcontracts.
e. Monitoring and enforcement.
e-1. Responsibility. The purchasing director shall be responsible for monitoring contracts for compliance with this paragraph. The contracting agency shall review and monitor the sworn reports or affidavits submitted by contractors, receive and investigate complaints relating to compliance with this section, and impose appropriate sanctions upon any contractor who provides false information to the contracting agency or fails to comply with the provisions of this section.
e-2. Notice. The department shall provide in a timely manner on the city’s website notice and related documentation regarding the following:
e-2-a. The issuance of invitations to bid and the awarding of contracts relating to items covered by this section.
e-2-b. The receipt of sworn reports or affidavits submitted pursuant to sub. 3-b.
f. Sanctions. Any contractor or subcontractor engaged in a contract who has been found by the purchasing director to have submitted any false, misleading or fraudulent information shall be referred to the district attorney for investigation. In addition, any such contractor or subcontractor who has otherwise failed to comply with the provisions of this section, may be subject to any of the following sanctions:
f-1. Withholding of payments.
f-2. Termination, suspension or cancellation of the contract in whole or in part.
f-3. After a due process hearing, denial of the right of the contractor or subcontractor to participate in future city contracts, by himself or herself, partner or agent, or by any corporation of which he or she is a member, for a period of one year after the first violation is found and for a period of 3 years after a second violation is found.
4. REQUIREMENTS FOR NON-APPAREL PROCUREMENT. a. Application. Unless contrary to federal, state or local law, contracting agencies shall award contracts to responsible manufacturers for all non-apparel items, materials, supplies and equipment that are subject to formal competitive bidding, and shall award service contracts to responsible contractors. The requirements of this paragraph shall not apply to items, materials, supplies and equipment to be furnished as part of a public works contract subject to s. 66.0903, Wis. Stats
b. Bid specifications. No contracts for the procurement of non-apparel items or services referenced in this subsection shall be entered into by a contracting agency unless the bidder affirms on the bid that he or she is familiar with the requirements of this subsection and affirms that he or she will comply with the requirements contained in this subsection. The request for bid shall state that failure to comply shall result in bid rejection.
c. Specifications for Service Contracts. Bids for service contracts shall include each of the following:
c-1. A certificate of insurance indicating the following coverage necessary for the contract and in amounts specified in the bid specifications: general liability, automobile liability, workers’ compensation, and product liability.
c-2. Proof of any industry licenses or permits required by law for any trade or specialty area in which the bidder is seeking a contract award, including disclosure of any suspension or revocation of a license held by the company or of any director, officer or manager employed by the bidder.
c-3. A federal employer tax identification number or, for a sole proprietor, a social security number.
d. Affidavits. d-1. No contracts for non-apparel items, materials, supplies or equipment shall be entered into by contracting agencies unless the lowest responsible bidders first submit sworn reports or affidavits which identify any manufacturers to be used in fulfillment of the contract and include a statement by the bidders that the manufacturer’s facilities identified pursuant to this subsection are responsible manufacturers of non-apparel items, materials, supplies and equipment that demonstrate all of the requirements contained in sub. 2-f-1 to 4.
d-2. No service contract shall be entered into by a contracting agency unless the lowest responsible bidder first submits a sworn report or affidavit which identifies any contractor to be used in the fulfillment of the contract and includes a statement by the bidder that the contractor is a responsible contractor.
e. Monitoring and enforcement. The purchasing director and any other contracting agency that executes a contract to which this subsection applies shall be responsible for monitoring contracts for compliance with this paragraph. If any information provided by the contractor or subcontractor changes during the specified period of the contract, the contractor shall submit or cause to be submitted to the purchasing director or the director’s designee a sworn report or affidavit relating to the updated information.
f. Availability of Records for Inspection. The purchasing director or the director’s designee shall maintain and make available for public inspection all items submitted by the contractor or subcontractor pursuant to this section, including affidavits, insurance certification, and industry licenses or permits.
g. Sanctions. Any contractor engaged in a contract who has been found by the purchasing director and any other contracting agency that executes a contract to which this subsection applies to have submitted any false, misleading or fraudulent information or has otherwise failed to comply with the provisions of this subsection may be subject to the sanctions provided in sub. 3-f, according to the following schedule:
g-1. Contractors shall be subject to withholding of payment after 30 days of non-compliance.
g-2. Contractors shall be subject to termination, suspension or cancellation of the contract in whole or in part after 60 days of non-compliance.
5. WAIVER. The requirements of this section may be waived in writing by the purchasing director if all bidders to a contract are deemed ineligible under this section.
6. APPEALS. Any contractor who objects to any decision or action of the contracting agency relative to this section may appeal the decision to the purchasing appeals board pursuant to s. 310-19.
7. PENALTIES. Any person, firm or corporation knowingly engaging in fraud, misrepresentation or in any attempt, direct or indirect, to evade the provisions of this section by providing false, misleading or fraudulent information shall, upon conviction, forfeit not less than $2,000 nor more than $5,000 together with the costs of prosecution, or upon default of payment, shall be imprisoned in the house of correction or county jail not to exceed 90 days.