Outreach and assistance to subcontractors by the office of business diversity and compliance (OBDC).
Memphis Code of Ordinances § 6-92-7
in effectSec. 6-92-7. - Outreach and assistance to subcontractors by the office of business diversity and compliance (OBDC).
To ensure that opportunities to participate on city contracts are available to the widest feasible universe of interested, available and qualified businesses, the office of business diversity and compliance (OBDC) shall develop and implement a written comprehensive outreach program aimed at increasing business participation in the city's contracting and procurement process. This program may include, without limitation, any or all of the following:
A. The office of business diversity and compliance (OBDC) may disseminate at community events, trade shows, and other appropriate business functions, and publish at regular intervals, in print and in electronic media (including publications or electronic media targeted to MWBEs and small businesses) information describing the equal business opportunity program, the small business opportunity program, and the functions of the office of business diversity and compliance (OBDC). In addition, the office of business diversity and compliance (OBDC) may disseminate information in print and/or electronic form, may provide individualized counseling, and/or may conduct seminars regarding the certification process.
B. The office of business diversity and compliance (OBDC) may establish a procedure to engage in continuous recruitment and outreach efforts directed at business assistance organizations to increase the pool of businesses available to do business with the city. The office of business diversity and compliance (OBDC) may identify suppliers through business development organizations and participation at various trade shows, supplier diversity groups and work with various national and local supplier development counsels and organizations.
C. The office of business diversity and compliance (OBDC) may disseminate at community events, trade shows, and other appropriate business functions, and publish at regular intervals, in print and in electronic media information identifying ongoing contracting opportunities with the city, and providing contact information by which businesses may obtain additional information from the office of business diversity and compliance (OBDC). OBDC will provide this information in languages other than English, where appropriate. To the extent feasible, the office of business diversity and compliance (OBDC) may enter into arrangements to share data regarding upcoming city projects, and subcontracting opportunities on the projects, with other businesses and agencies or jurisdictions in the Memphis MSA.
D. The office of business diversity and compliance (OBDC) may assist businesses in submitting bids for eligible projects by disseminating information in print or electronic form, by providing individualized counseling, and/or by conducting seminars regarding the process for submitting a bid on a city project. The office of business diversity and compliance (OBDC) may sponsor "How to Do Business with the City" seminars and invite a wide array of businesses.
E. The office of business diversity and compliance (OBDC) may actively encourage businesses to attend the pre-bid conferences, providing face-to-face and one-on-one meeting opportunities with employees of the city within the divisions and departments that are involved with the contracting and procurement process. OBDC may establish and implement training and awareness programs with the employees of the city's user departments to educate them with regard to increasing utilization of a wide array of businesses.
F. The office of business diversity and compliance (OBDC) may provide information and advice to the purchasing department regarding the effectiveness of current bidding procedures in facilitating bidding on eligible projects by the widest feasible universe of interested businesses. This information may include suggestions regarding how to arrange solicitations, times for the presentation of bids, quantities, specifications, and delivery schedules in ways that facilitate the participation of all interested businesses. In this regard, the office of business diversity and compliance (OBDC) may provide and encourage feedback from contractors and subcontractors regarding every aspect of the city's procurement process and may establish a system to allow for anonymous comments to be sent through the mail.
G. The office of business diversity and compliance (OBDC) may create workshops for businesses located within the city on how to compete in the private sector, including advice on marketing, soliciting, and preparing a bid. OBDC may establish a program which will incorporate business and entrepreneurial training and assistance mentoring, matchmaking, individual consulting and regular training workshops and seminars. To accomplish the same, OBDC may reach out to and collaborate with MSA higher educational institutions.
H. The office of business diversity and compliance (OBDC) may develop communications and other written materials that are meant to encourage and provide information to contractors to increase their utilization of subcontractors. In addition, OBDC may sponsor networking events that allow businesses to meet each other and that create an opportunity for contractors to discuss with subcontractors upcoming needs.
I. The office of business diversity and compliance (OBDC) may develop a resource directory to be provided to interested businesses, with information regarding assistance in bonding and financing, financial management, accounting, construction management and technical assistance.
J. The office of business diversity and compliance (OBDC) may establish policies to prohibit discrimination in the provision of credit or bonding regarding city contracts.
K. The OBDC may:
1. Develop a technical assistance program to prepare small businesses to compete for specific contracts;
2. Implement and monitor a supportive services program to develop and improve immediate and long term business management, record keeping and financial and accounting capability for businesses;
3. Develop and provide services to help businesses improve their long term development, increase their opportunities to participate in a variety of kinds of work, handle increasingly significant projects, and achieve self-sufficiency;
4. Establish a program to assist new, start-up or emerging businesses; and
5. Assist businesses in developing their capability to utilize emerging technology and conduct business through electronic media.
L. The office of business diversity and compliance (OBDC) may create and maintain records on all subcontractor participation on city projects. The office may perform investigations regarding the actual utilization of subcontractors during the term of the contract as compared with the anticipated use of subcontractors at the time of bid submittal. Subcontractors shall report the amount of work they anticipate performing on the contract and will report the actual work performed and the amount billed. The office of business diversity and compliance (OBDC) will allow subcontractors to confirm the status of their subcontracts and the payments received thereunder.
M. The office of business diversity and compliance (OBDC) may continue to develop its website to provide general information on doing business with the city, on the bid process, on how to get certified, to provide a calendar of events, bid lists, bid status reports, to post solicitation notices, and to provide downloadable forms and other appropriate information. In addition, contractors that have been awarded city contracts may be posted on the website to allow businesses to target their marketing efforts to contractors that have worked or are working with the city.
N. The office of business diversity and compliance (OBDC) shall establish a mechanism by which a business can file an administrative complaint with the city if it believes a prime contractor or the city is discriminating in the award of contracts or subcontracts.
O. The office of business diversity and compliance (OBDC) is authorized to develop and implement such other and further outreach activities, and programs as the officer may from time to time recommend. From time to time an overall evaluation of the effectiveness of the program with regard to nondiscrimination in contracting shall be conducted. Appropriate changes to the measures and programs based on the results of the evaluations will be implemented.
P. Prompt payment of subcontractors. Contractors awarded city contracts shall ensure the prompt and full payment of any subcontractors working on the contract within five business days of the subcontractor's satisfactory completion of the work assigned to the subcontractor.
1. Contractors shall not withhold payment from subcontractors who have satisfactorily completed work until such time as the contractor receives payment from the city.
2. A contractor who fails to ensure the prompt and full payment of subcontractors shall be subject to the penalties set forth under section 6-92-6.
3. In the event of a good faith dispute regarding the amount of payment due to a subcontractor, contractor and subcontractor shall attend a binding arbitration within seven days of notice by the office of business diversity and compliance (OBDC) in order to resolve any payment disputes. If the arbitrator determines that the subcontractor is entitled to payment under the subcontract, contractor shall be required to pay the subcontractor within 48 hours of the arbitrator's decision. In the alternative, the contractor and subcontractor may utilize the mediation mechanism set forth in section 6-92-5, but only if such alternative is agreed to by the contractor, subcontractor, and the contract compliance officer.
4. The CCO is authorized to make a determination that the interests of the city are best served by issuing joint checks to resolve a dispute between vendors and suppliers, prime and subcontractors or sub consultants, or joint venture partners. In such circumstances, the CCO will issue a written request to the director of finance to issue two checks, in amounts deemed by the CCO to be equitable upon agreement by all parties involved. The division of finance will issue these checks exclusively to the CCO.
Q. Reporting by the office of business diversity and compliance (OBDC).
1. The CCO shall cause to be issued periodically, but no later than 30 months after the effective date of this chapter, reports on the operation of this chapter. The CCO shall be authorized to contract with or retain outside consultants or experts in connection with preparing a report and to assist in assembly, review and analysis of data necessary to prepare such report.
2. The office of business diversity and compliance (OBDC) shall provide to such consultants or experts such records in its custody as may be necessary to evaluate the operation of this chapter and the extent to which the purposes of this chapter are accomplished. A report shall include any findings or recommendations regarding the economic opportunities available to AABEs, HBEs, ABEs, NABEs and WBEs in the Memphis MSA and any recommendations regarding changes to this chapter or the enactment of any additional programs, procedures or strategies to better effectuate the purposes of this chapter.
3. Reports issued under this section shall be delivered to the mayor and to the city council, a copy of any report(s) shall be maintained at the OBDC for review, and copies shall be made available to the general public upon written request.
4. City's divisions, boards, commissions and quasi-governmental agencies as well as joint city/county agencies shall submit to the OBDC their respective diversity plans, reports, and accomplishments on a quarterly basis. Any agency or business concerns receiving any city or city/county PILOTs, TDZs, TIFFs, grants or benefits shall be required to submit to the OBDC through the relevant governing agency, board or commission their respective diversity plans, reports and accomplishments on a quarterly basis. Boards, commissions or quasi-governmental agencies in need of diversity plans will have the opportunity to work in conjunction with the OBDC to develop an appropriate and suitable diversity plan.
R. Miscellaneous.
1. City's role in dispute resolution. All actions taken by the office of business diversity and compliance (OBDC) to ensure the fair and equitable treatment of subcontractors or joint venture partners working on city projects or seeking work on city projects are done pursuant to the city's nondiscrimination policy and shall not be construed as the city taking a position as to the merits of the dispute nor creating any privity of contract between the city and any contractor or subcontractor. Further, no contractor working on a city project or seeking work from the city shall have any claim against the city for any actions taken to ensure the fair and equitable treatment of subcontractors working on city projects or seeking work on city projects.
2. Severability. If any provision of this chapter or any application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this chapter which can be given effect without the invalid provisions or applications, and are to this end declared to be severable.
3. Sunset clause. This chapter shall sunset on June 30, 2025, unless prior to such date the city council, after conducting public hearings, finds that the purposes of this chapter have not yet been achieved, in which case it may extend the effective period of this chapter for an additional five years.
4. Bid preferences. If upon review of the results of the annual program goals, the city determines that it has not achieved the individual MWBE program goals based on contracts let or awards made during the preceding fiscal year for women or minority business enterprises, then the city may consider amending said chapter to include bid preferences as may be permitted by law.
(Ord. No. 5662, § 1(2-331), 11-7-2017; Ord. No. 5866, 5-2-2023; Ord. No. 5905, 6-25-2024; Ord. No. 5916, 9-24-2024)
Source: City of Memphis, Code of Ordinances and Charter and Related Laws (Municode Library, library.municode.com)URL: https://library.municode.com/tn/memphis/codes/code_of_ordinances?nodeId=TIT6BULIRE_CH6-92EQBUOPPR_S6-92-7OUASSUOFBUDICOOBFetched: 10/28/2026