(1) The following goals for Disadvantaged Business Enterprise participation shall serve as initial goals for the City of Philadelphia to pursue during the first full Fiscal Year. Prior to the commencement of the first full Fiscal Year, to the extent the staffing and regulations pursuant to Section 17-504 are completed, best efforts shall be made to implement Disadvantaged Business Enterprise participation in City contracts. The goals shall not be construed as absolute upper limits on the amount of City contracts such entities are able to participate in. The goals shall be:

(a) Fifteen percent (15%) City contract participation for Minority Owned Businesses; and,

(b) Ten percent (10%) City contract participation for Female-Owned Business; and,

(c) Two percent (2%) City contract participation for Disabled owned Businesses.

The above stated percentages relate to the total dollar amount of City contracts during each of the City of Philadelphia's Fiscal Years, calculated by examining independently each type of City contract for each agency which lets such contracts. For purposes of calculating the goals for participation in City contracts, a Disadvantaged Business Enterprise shall be considered as either a Minority Owned, Female Owned or Disabled owned business, but not more than one. Subject to the provisions of subsections (2), (3), and (4) in calculating the above percentages only that percentage of contracts awarded under joint venture or subcontracting arrangements which represents the Disadvantaged Business Enterprise participation on such contracts shall be included. In no event shall the percentages be considered as having been met by participants in less than all types of City Contracts.

(2) For purposes of calculating the percentages in subsection (1), the total dollar amount of a contract shall be counted towards Disadvantaged Business Enterprise participation, when:

(a) In the case of a prime contract, the prime contractor is a Disadvantaged Business Enterprise so long as:

(i) For contracts up to one million dollars ($1,000,000) the Disadvantaged Business Enterprise prime contractor shall perform at least fifty percent (50%) of the on-site work with its own force, excluding the cost of materials, goods, supplies and equipment; and,

(ii) For contracts greater than one million dollars ($1,000,000) the Disadvantaged Business Enterprise prime contractor shall perform that portion of on-site work with its own work force which demonstrates that it is fiscally and managerially responsible as the prime contractor, and demonstrates at the time the contract is let that it derives substantial benefit from the contract.

(b) In the case of a subcontract, so long as the subcontractor is a Disadvantaged Business Enterprise and is substantially involved in all phases of the subcontract, including bidding, planning, staffing and daily management.

(3) For purposes of calculating the percentages in subsection (1), in the case of joint venture, venture partnership and any other joint or multiple firm arrangement:

(a) The total dollar amount of a contract shall be counted towards Disadvantaged Business Enterprise participation so long as fifty-one percent (51%) of the interests in the arrangement are beneficially owned by the Disadvantaged Business Enterprise(s); or,

(b) Where less than fifty-one percent (51%) of the interests in the arrangement are beneficially owned by Disadvantaged Business Enterprise(s) the total dollar amount of the interest of the Disadvantaged Business Enterprise participant in a contract shall be counted towards Disadvantaged Business Enterprise participation so long as:

(i) A Disadvantaged Business Enterprise can demonstrate at the time the contract is let that it derives substantial benefit from such arrangement;
(ii) The Disadvantaged Business Enterprise participant is substantially involved in all phases of the contract including bidding, planning, staffing and daily management;

(iii) Such an arrangement is customary; and,

(iv) Such an arrangement is approved by the Minority Business Enterprise Council.

(4) In all cases where subsections (2) and (3) do not apply, the calculation of such percentages shall be based on the dollar amount which represents the extent of participation by a Disadvantaged Business Enterprise in the contract.