§ 323-1-C2. Commercially Useful Function.

(a)

"Commercially useful function" shall mean that the business is directly responsible for providing the supplies or services to the city as required by the solicitation or request for quotes, bids or proposals. An SBE, SLBE or ELBE is considered to perform a commercially useful function when it is responsible for the execution of a distinct element of the work of a contract and carries out its responsibilities by actually performing, managing and supervising the work involved, taking into consideration the amount of work subcontracted, industry practices, and other factors determined by the director to be relevant. A business which stocks sufficient quantities of supplies in direct inventory, held for sale or resale, to cover anticipated future demands for the supplies provides a "commercially useful function."

(b)

SBEs, SLBEs or ELBEs that engage in the business of providing brokerage shall not be deemed to perform a "commercially useful function" unless the brokerage services are those required and sought by the city. An SBE, SLBE or ELBE does not perform a "commercially useful function" if its role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of meaningful and useful SBE, SLBE or ELBE participation, when no such role is performed in similar transactions in which SBE, SLBE or ELBE firms do not participate.

(Ordained by Ord. No. 307-2015, § 4, eff. Jan. 1, 2016)