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Procurement Code - Assistance to Small/Women/Minority Businesses

Definitions and Certification

Assistance to Small/Women/Minority Businesses

 

1. Statement of Policy and Implementation.
2. Duties of the Procurement Officer.
3. Regulations for Negotiation with District and State Small/Women/Minority Firms.
4. Small/Women/Minority Business Enterprise (MBE) Utilization Plan.
5. Progress Payments and Letter of Credit.
6. Report to the Board.


A. Definitions and Certification.

1. Definitions of Terms Used in this Article. The District may promulgate regulations establishing detailed definitions of the following terms using, in addition to the criteria set forth, such other criteria, as it may deem desirable.

 

a. "Minority person" means a United States citizen who is economically and socially disadvantaged.

 

(1) "Socially disadvantaged individuals" mean those individuals who have been subject to racial or ethnic prejudice or cultural bias because of their identification as members of a certain group, without regard to their individual qualities. Such groups include but are not limited to Black Americans, Hispanic Americans, Native Americans (including American Indians, Eskimos, Aleuts and Native Hawaiians), Asian Pacific Americans, Asians and women regardless of race or origin.

(2) "Economically disadvantaged individuals" means those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area that are not socially disadvantaged.

b. A "socially and economically disadvantaged small business" means any small business concern:

 

(1) is at least fifty-one percent owned by one or more citizens of the United States who are determined to be socially and economically disadvantaged.(2) In the case of a concern, which is a corporation, fifty-one percent of all classes of voting stock or such corporation must be owned by an individual determined to be socially and economically disadvantaged.

(3) In the case of a concern, which is a partnership, fifty-one percent of the partnership interest must be owned by an individual or individuals determined to be socially and economically disadvantaged and whose management and daily business operations are controlled by individuals determined to be socially and economically disadvantaged. Such individuals must be involved in the daily management and operations of the business concerned.

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B. Assistance to Small/Women/Minority Businesses

1. Statement of Policy and Implementation.

 

a. Statement of Policy. The Board believes it is in the District's best interest for small, women and minority businesses to have the opportunity to fully participate in the overall procurement process of the District. The Board, therefore, takes the leadership role that will result in awarding contracts and subcontracts to small/women/minority business firms in order to enhance small/women/minority capital ownership, overall District and State economic development and reduce dependency on the part of small businesses, women and minorities.

b. Implementation. The Procurement Officer and Buyers shall implement this Code in accordance with the provisions of Duties of the Procurement Officer.

Back To Top2. Duties of the Procurement Officer.

 

a. Assistance from the Procurement Officer. The Procurement Officer may provide appropriate staff to assist minority businesses in the interpretations of the regulations developed pursuant to this Code.b. Special Publications. The Procurement Officer and Buyers in cooperation with other appropriate private and state agencies may issue supplementary instructions designed to assist minority businesses with the District procurement procedures.c. Source Lists. Purchasing Services shall maintain special source lists of minority business firms detailing the products and services, which they provide. These lists shall be made available to Purchasing Services personnel.

d. Solicitation Mailing List. The Procurement Officer and Buyers shall include and identify certified, South Carolina-based minority businesses on the District's bidder's list and shall ensure that these firms are solicited on an equal basis.

Back To Top3. Regulations for Negotiation with District and State Small/Women/Minority Firms.

 

a. The District shall promulgate regulations that designate such procurement contracts, as it may deem appropriate for negotiation with certified, South Carolina-based small/women/minority firms. Among the criteria that shall be used to determine such designations are:

 

(1) The total dollar value of procurement in the District.(2) The availability of South Carolina-based minority firms.(3) The potential for breaking the contracts into smaller units, where necessary, to accommodate such firms.(4) Ensuring that the District shall not be required to sacrifice quality of goods or services.

(5) Ensuring that the price shall have been determined to be fair and reasonable, and competitive both to the District and to the contractor and results in no loss to the District.

b. Firms that subcontract with minority firms may under specified circumstances be eligible for a State income tax credit equal to four percent of the payments to minority subcontractors (not to exceed $25,000 annually for a maximum of five [six] consecutive years). See S.C.Code Ann. § 11-35-5230 (Supp. 2000) and § 12-6-3350 (2000). Although the District believes that contracts issued pursuant to this Code qualify as "state contracts" for the purposes of the aforementioned statutes and income tax credit, taxpayers seeking such credit are advised to seek competent tax advice from a professional. Pursuant to the statutes, subcontractors must be certified as to the criteria of a minority firm as defined in the South Carolina Code and any regulations, which may be promulgated there under.

Back To Top4. Small/Women/Minority Business Enterprise (MBE) Utilization Plan. In order to emphasize the use of small/women/minority businesses, the District shall develop a Small/Women/Business Minority Business Enterprise (MBE) Utilization Plan. The MBE Utilization Plan should include but not be limited to:

 

a. A policy statement expressing a commitment by the District to use MBE's in all aspects of procurement;b. The name of the coordinator responsible for monitoring the MBE Utilization Plan;c. Goals that include a reasonable percentage of the District's total procurements directed toward minority vendors;d. Solicitation of qualified minority vendors, a current list of which shall be supplied by the Small and Minority Business Assistance Office (SMBAO), in each commodity category for which such minority vendor is qualified;e. Procedures to be used when it is necessary to divide total project requirements into smaller tasks, which will permit, increased MBE participation;

f. Procedures to be used when the District subcontracts the scope of service to another governmental body. The responsible governmental body may set goals for the subcontractor in accordance with the MBE goal and the responsible governmental body may allow the subcontractor to present a MBE Utilization Plan detailing its procedure to obtain minority business enterprise participation.

Back To Top5. Progress Payments and Letter of Credit.

 

a. Progress Payments. The Executive Director of Financial Services may make special provisions for progress payments as deemed reasonable to assist minority businesses to carry out the terms of a contract pursuant to regulations which may be promulgated by the Board.

b. Letter of Contract Award. When a minority business firm certified by the Department of Revenue and/or Small and Minority Business Assistance Office (SMBAO) receives a contract with the District, the Procurement Officer shall furnish a letter, upon request, stating the dollar value and duration of, and other information about the contract, which may be used by the minority firm in negotiating lines of credit with lending institutions.

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6. Report to the Board. The Superintendent shall report annually in writing to the Board concerning the number and dollar value of contracts awarded to eligible certified, South Carolina-based minority businesses during the preceding fiscal year. These records shall be maintained to evaluate the progress of this program.

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