Defined procurement pool—Sanctions for failure to comply with requirements.

Denver Revised Municipal Code § 28-150

in effect

Sec. 28-150. - Defined procurement pool—Sanctions for failure to comply with requirements. (a) If a vendor, contractor, or consultant is found to be in violation of the provisions of article V, to otherwise be in breach of a contract or purchase order, to perform a non-commercially useful function or act as a conduit, to fail to submit information required under this article V, to submit false, misleading, or materially incomplete statements, documentation, or records, or to fail to cooperate in an investigation, it shall be subject to sanctions. The city may exercise any or all of its rights, including withholding funds, imposition of monetary penalty, suspension, or termination, contained in the contract or purchase order terms and conditions. If the contract or purchase order is suspended or terminated, the city reserves all its rights at law or equity. (b) If the DSBO director determines, in his or her sole discretion, that an SBE is in noncompliance with the defined procurement pool requirements contained in sections 28-140 through 28-150, the SBE may be assessed a civil, remedial penalty of not more than one hundred fifty (150) percent of the value of underutilization of the minimum participation required. In assessing such civil penalty: (1) The DSBO director shall calculate the applicable amount of civil penalty and may reduce or waive all or part of such penalty, in his or her sole discretion, in consideration of the following factors: a. The length of the period of noncompliance; b. The history of previous noncompliance with this article V; c. The monetary impact of the civil penalty on the SBE vendor, contractor, or consultant in correcting such noncompliance; or d. The other facts and circumstances relevant to the noncompliance of the SBE vendor, contractor, or consultant. (2) The DSBO director shall collect assessed and unpaid civil penalties under this subsection by action initiated in the state district court for collection of such penalty. A stay of any order of the DSBO director pending judicial review shall not relieve any SBE vendor, contractor, or consultant from any civil penalty obligation imposed under this subsection. (3) Any such assessed civil penalties may also be offset against any amount otherwise due and owing to the SBE vendor, contractor, or consultant on the contract or purchase order. (4) The contract or purchase order may be suspended or terminated with the city reserving all its rights at law or equity. (5) The debarment board established under section 20-77 of this Code, upon request of the DSBO director, may suspend or debar the vendor, contractor, or consultant from participation in city contracting covered hereunder for a period as may be determined by the debarment board, in its sole discretion, based upon the grounds of violating this article V, pursuant to such suspension and debarment procedures as may be established by the city, as set forth in section 20-77. The DSBO director, in that event, shall regard as nonresponsive any bid or proposal received during this time period that includes the vendor, contractor, or consultant as a vendor, contractor, consultant, subcontractor, subconsultant, supplier, manufacturer, or distributor. (6) If a vendor, contractor, consultant, or other business enterprise knowingly receives new or additional work as a result of actions set out in this section, then the penalties in this section may be applied to such business enterprise. (7) The DSBO may suspend or revoke an offending SBE's eligibility for certification, as an SBE, may suspend its participation in a city contract or purchase order from the calculation of annual goals, and, subject to other city law, may suspend or debar the SBE from participating in future city contract's, based upon the SBEs acting as a conduit, failing to comply with the provisions of article V, failing to perform a commercially useful function on a contract or purchase order, failing to submit information as required by section 28-147, or submitting false, misleading, or materially incomplete statements, documentation, or records, or failing to cooperate in investigations. (c) The DSBO director may, in his or her sole discretion, impose any one (1) or more of the sanctions set out in this section against any vendor, contractor, or consultant determined to be in violation of the section, provided that the director shall first advise the affected department head of the proposed sanction in writing. If the department head advises the DSBO director in writing that the department head believes that imposition of such sanction would not be in the best interests of the city, the DSBO director shall consult with the department head prior to making a final decision as to whether to impose such sanctions. (d) Consistent with article V and the rules and regulations, the DSBO is authorized to prescribe corrective actions in the case of potential violations or in lieu of potential enforcement. (e) Suspected criminal violations shall be referred to the proper authorities for prosecution. If a conviction or a guilty plea is obtained pursuant to such prosecution, the perpetrator may be barred from contracting with the city to the extent authorized by law. (Ord. No. 286-20, § 3, 4-13-20)

Source: City and County of Denver, Revised Municipal Code and Charter (Municode Library, library.municode.com)URL: https://library.municode.com/co/denver/codes/code_of_ordinances?nodeId=TITIIREMUCO_CH28HURI_ARTVNOCOPUORGOSEOPMIWONEBUSMBUENPRGOSE_S28-150DEPRPOANFACOREFetched: 10/27/2026