June 2, 2010
New Orleans, LA - June 2, 2010 - The New Orleans City Council took a large step yesterday in promoting transparency and openness by having companies that do business with the City reveal all individuals that have an ownership stake in them - down to the subcontractor level. The 'Subcontractor' Ordinance requires the identification of all contractors and subcontractors that the City does business with through a sworn affidavit, which will become a standard component to all city contracts. Failure to comply with the new law will result in the City suspending payment to any company that does not provide this information.
These reporting requirements are already required for some parties with whom the City does business, including contracts issued to Disadvantaged Business Enterprises and the contracts awarded by the City Council. This measure will broaden the reporting standards to apply to all entities that receive city contracts.
Specifically, every contract in excess of $15,000 to which the City is a party shall have the following: a sworn affidavit listing all persons (natural or artificial) with ownership interest in contractor business; a sworn affidavit stating that no other person has ownership interest in contractor business; a list of all persons, natural or artificial, retained by the contractor as subcontractors at the time of the contract execution; a sworn affidavit stating no persons having an ownership interest in the contractor has or shall have any ownership interest in any subcontractors retained by the contractor for work performed in association with the contractor's work for the City; contractors must provide notice to the City within 30 days of obtaining a subcontractor to perform work under contract with the City.
"Long overdue, the Subcontractor Ordinance is designed to build confidence in the manner in which the City awards contracts. The City serves as a steward for taxpayer money, and this disclosure requirement will assure that the public knows which individuals and entities receive city contracts," said Council President Arnie Fielkow.
Contact:
Danielle Viguerie
Communications Director
Office of Councilmember Arnie Fielkow
Ph: (504) 658-1063
Cell: (504) 994-3008
daviguerie@cityofno.com
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