Defined procurement pool—Potential violations during contract performance.
Denver Revised Municipal Code § 28-148
in effectSec. 28-148. - Defined procurement pool—Potential violations during contract performance.
(a) An SBE that has been awarded a city contract or purchase order through the defined procurement pool shall not, at any time before or during the performance of such contract or purchase order:
(1) Fail to in fact self-perform, as a certified vendor, contractor, or consultant, no less than thirty (30) percent of the total amount of the contract or purchase order for goods or services with its own forces as originally listed at bid or proposal opening, as appropriate; or
(2) Modify or eliminate all or a portion of the goods or services to be provided and attributable to the certified vendor, contractor, or consultant, unless directed by the city in writing.
(b) Any action by an SBE in violation of subsections (a)(1) or (2) hereof, shall constitute a material breach of the contract or purchase order that shall entitle the city to exercise all of its rights at law or equity for such material breach, in addition to exercising any of the other sanctions set out in section 28-150 below. If, following award of a contract or purchase order, an SBE has its certification terminated for reasons other than expiration or graduation from certification, such termination of certification shall not be deemed to affect compliance with the contract or purchase order and shall not be deemed a breach of the contract or purchase order as long as the vendor, contractor or consultant can demonstrate that such termination or failure did not result from any action or inaction, whether direct or indirect, of or by the vendor, contractor or consultant.
(c) The following good faith requirements shall apply to sections 28-146 and 28-147. In the event that additional goods or services are added to an on-going contract or purchase order and the SBE in such event is in noncompliance with either the requirement to self-perform no less than thirty (30) percent of the total amount of the contract or purchase order with its own forces or to perform a commercially useful function for the provision of the additional goods or services, the following good faith efforts must be completed. Failure of a vendor, contractor or consultant to show good faith efforts as to any one (1) of the following categories shall render its overall good faith efforts showing insufficient; and its contract performance in noncompliance with this article V:
(1) Verification that the vendor, contractor or consultant used the most current SBE directory from the DSBO in order to contact SBEs that are certified in the identified goods at the time of the modified good faith effort.
(2) Verification of efforts to contact appropriate SBEs within the same identified goods must be documented. The DSBO director may verify such contacts as he or she deems appropriate.
(3) Documentation of the good faith efforts must be submitted to the DSBO prior to the payment to the vendor, contractor or consultant of the next progress or other partial payment or fund release under the contract or purchase order.
(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_S28-148DEPRPOOTVIDUCOPEFetched: 10/27/2026