1. City of Chicago Department of Procurement Services Welcome to the City of Chicago Department of Procurement Services Bid & Bond Room Rahm Emanuel, Mayor Jamie Rhee, Chief Procurement Officer

2. City of Chicago Department of Procurement Services Welcome to the Department of Procurement Services Procurement Fundamentals City of Chicago Department of Procurement Services Rahm EmanuelJamie L. Rhee Mayor, City of ChicagoChief Procurement Officer

3. City of Chicago Department of Procurement Services MISSION STATEMENT We are the contracting authority for the procurement of goods and services for the City of Chicago. We pledge to work together as a team and with our customers to guarantee an open, fair and timely process by establishing, communicating and enforcing superior business practices. Integrity, Public Trust and the Law are our guiding principles.

4. City of Chicago Department of Procurement Services Laws Governing the Procurement Process  State Purchasing Act 65 ILCS 5/8-10  Municipal Code of Chicago Chapter 2-92

5. City of Chicago Department of Procurement Services Procurement Terms Contract – The written agreement between the City and a vendor for the provision of goods and/or services to the City by that vendor. There are a number of different forms of contracts. Bid Package – A set of documents issued by the City to solicit bids for goods and services. Addendum - A change to the City’s requirements in an invitation to bid, request for qualifications, or request for proposals. Addendum is issued by DPS to everyone who has picked up a bid package. Amendment - or modification – A document which formally changes the terms and conditions of a contract. There are several forms of amendments to contracts. The form that is most commonly known is a change order to a construction contract.

6. City of Chicago Department of Procurement Services Procurement Terms DPS provides a checklist for bidders in every bid package. Bidders should review its bid documents and the checklist before submitting a bid. A bidder should be sure to provide all of the information requested, so that its bid is complete.

7. City of Chicago Department of Procurement Services Procurement Terms Bids – The majority of the City’s contracts are awarded through competitive bidding. Request for Proposal (RFP) – A form of competitive procurement that is typically used to solicit proposals to implement a new project requiring professional services. Request for Qualifications (RFQ) – A form of competitive procurement that is used to solicit qualifications for vendors who possess a high degree of technical expertise and knowledge in specific disciplines. An RFQ leads to a Master Consulting Agreement (MCA).

8. City of Chicago Department of Procurement Services MBE/WBE/DBE Participation Section 2-92-420 sets forth the City’s Minority-Owned and Women-Owned Business Enterprise Procurement Program for all contracts other than construction. Section 2-92-430 established the participation goals of 25% for MBEs and 5% for WBEs. MBE/WBE goals may be met through direct participation, such as forming a joint venture with a certified MBE/WBE, and the use of MBE/WBE subcontractors in the performance of the contract.

9. City of Chicago Department of Procurement Services MBE/WBE/DBE Participation Indirect Participation - Goals may also be met through indirect participation in other aspects of the contractor’s business, i.e., the purchase of supplies or materials from an MBE/WBE in the contractor’s ordinary course of business, not exclusively for the performance of the City contract in question. In order to receive credit for participation, an MBE/WBE firm must perform a commercially useful function.

10. City of Chicago Department of Procurement Services Reduction, Waiver and Good Faith Efforts A Contractor shall not be entitled to a reduction or waiver of MBE or WBE goals during the performance of the contract, after substantial completion of the contract, or at the time of contract close out, unless the contractor, in writing, makes a request to the CPO for reduction or waiver. A contractor seeking a waiver or reduction of MBE and/or WBE goals must demonstrate to the satisfaction of the CPO that it has made good faith efforts to meet its MBE and WBE utilization goals.

11. City of Chicago Department of Procurement Services Commercially Useful Function The City of Chicago Department of Procurement Services counts MBE/WBE/DBE expenditures toward MBE/WBE/DBE goals only if the MBE/WBE/DBE is performing a “commercially useful function (“CUF”).” What constitutes a “commercially useful function?” Generally, the City follows the requirements set forth in the federal regulations at 49 CFR § 26.55. A certified firm must carry out its contract responsibilities by actually performing, managing, and supervising the work involved.

12. City of Chicago Department of Procurement Services Procurement Terms Target Market – Section 2-92-460 of the Chicago Municipal Code provides for procurements that Minority Business Enterprises (MBE) and Women Business Enterprises (WBE) or Joint Ventures of MBEs and WBEs, have the exclusive right to bid upon. NOTE: Construction Projects may not be bid as Target Market procurements.

13. City of Chicago Department of Procurement Services CERTIFICATION FIVE (5) TYPES OF CERTIFICATION 1. MBE: Minority-Owned Business Enterprise 2. WBE: Women-Owned Business Enterprise 3. BEPD: Business Enterprise owned by People with Disabilities 4. DBE: Disadvantaged Business Enterprise 5. ACDBE: Airport Concession Disadvantaged Business Enterprise BASIC ELIGIBILITY REQUIREMENTS Businesses must be at least 51% owned and controlled by a minority, women or other disadvantaged individual. Under the BEPD program, businesses must be at least 51% owned and controlled by a an individual with a disability. The City of Chicago accepts Cook County certification.

14. City of Chicago Department of Procurement Services Economic Disclosure Statements The EDS addresses the disclosure of ownership. Online completion of the EDS is mandatory for most solicitations. In addition to the Applicant, any Legal Entity which owns more than 7.5% interest, direct or indirectly, in the applicant firm, must also file an EDS.

15. City of Chicago Department of Procurement Services DPS Website The DPS Website Awarded Contracts and Modifications Awarded Contracts and Modifications Payments Payments Bid Tabulations Bid Tabulations Weekly Bid Opportunities Weekly Bid Opportunities New Certification Initiative Information New Certification Initiative Information Searchable M/WBE Directory Searchable M/WBE Directory www.cityofchicago.org/Procurement www.cityofchicago.org/Procurement

16. City of Chicago Department of Procurement Services www.facebook.com/ChicagoDPSwww.facebook.com/ChicagoDPS / www.twitter.com/ChicagoDP Will post bid advertisements and addenda, upcoming workshops and events, and new policies and procedures that affect vendor community

17. City of Chicago Department of Procurement Services Thank you for visiting the Department of Procurement Services Bid and Bond Room

18. City of Chicago Department of Procurement Services For more information visit: www.cityofchicago.org/procurement City of Chicago Department of Procurement Services 121 North LaSalle Room 806 312-744-4900 Jamie Rhee Chief Procurement Officer