The Human Rights Commission and the Minority Business Ordinance:

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The Human Rights Commission should comply with the Minority Business Ordinance by recording instances of discriminatory conduct by the City. If it cannot demonstrate instances of discrimination by the City, the Board of Supervisors should consider alternatives to renewing the MBE/WBE ordinance, such as instituting a local economically disadvantaged business enterprise program.

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may be stored and retrieved for statistical and reporting purposes.

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All HRC functions related to post-award contract compliance should be transferred to the Office of Contract Administration.

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Price quotes given by available MBE/WBEs exceed competitive levels beyond amounts attributable to costs inflated by the present effects of discrimination. (Sec. 12.D.A.(17)E-G.) Enforcement Provisions • If the Director has reason to believe that a contractor, acting in good faith, has failed to comply with “the race and/or gender-conscious requirements” of the Ordinance, she notifies the department that awarded the contract, and attempts to resolve non-compliance issues through conciliation. If the conciliation process fails, the department may impose sanctions against the contractor, which might include: 9 a) refusal to grant the award of contract; b) an order suspending the contract; c) an order withholding funds; d) an order revising the contract due to material breach, or e) disqualification from eligibility from City contracts for a period not to exceed five years. (Secs. 12D.A.9(A)(7), 12D.A.16(B).) • In cases in which the Director believes that the contractor has acted willfully and in bad faith in failing to comply with the Ordinance, she may, after an investigation and hearing, impose sanctions for violations that may include: a) declaring the contractor non-responsive and ineligible to receive the award; b) declaring the contractor ineligible to bid on City contracts for a five-year period; c) revoking the certification of the business if it is an MBE/WEB, or d) assessing liquidated damages, pursuant to a liquidated damages clause that is present in each contract awarded under the ordinance. (Secs. 12D.A.16(C), 12D.A.9(D)(3).) D. The City Works Actively To Combat Discrimination and Remedy the Past Effects of Discrimination. • In addition to the creation of the HRC itself, the City has established other programs to foster the participation of minorities and women in City contracting. Among these steps are: o A financial assistance program to enable small firms to obtain bonding o Community outreach on an ongoing basis o Pre-bid conferences at which MBEs/WBEs can meet prime contractors and learn about City procedures o Administrative proceedings when bad faith or non-compliance is suspected o Audits by the Controller to identify any contractor’s failure to comply with the Ordinance o Adjusting bid bonding and insurance requirements where appropriate o Providing technical assistance to MBEs/WBEs to increase their ability to compete effectively for City contracts o HRC and Controller cooperation to create a system for prompt payment to MBEs/WBEs o Inviting joint ventures to promote MBE/WBE participation.

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if the failure to achieve the goals was at all due to the conduct of the department head, project manager, or any other City employee, or any contractor employed by the City, an identification of the person involved, a description of the conduct at issue, the remedial steps taken, and the impact of such conduct upon MBE/WBE participation, or the goals set for such participation. 1d. The City should establish a software program in which the data recorded under Recommendation 1c may be stored and retrieved for statistical and reporting purposes.