§ 807. PENALTY.

(a) Whenever any department of the City and County discovers, after an investigation by the contracting officer and the City Attorney, that a person or entity being considered for a contract or under contract with the City and County has, in connection with the bidding, execution or performance of any City contract

(1) falsely represented to the City and County the nature or character of the wood products offered, used or supplied under the contract, or

(2) provided the City with tropical hardwood, tropical hardwood wood products, virgin redwood or virgin redwood wood products in violation of this ordinance, the rules and regulations adopted pursuant to this ordinance, or contract provisions pertaining to the prohibition against the use or purchase of tropical hardwood, tropical hardwood wood products, virgin redwood or virgin redwood wood products, the contracting officer shall have the authority to impose such sanctions or take such other actions as are designed to ensure compliance with the provisions of this ordinance which shall include, but are not limited to:

(1) Refusal to certify the award of a contract;

(2) Suspension of a contract;

(3) Ordering the withholding of funds due the contractor under any contract with the City and County;

(4) Ordering the revision of a contract based upon a material breach of contract provisions or pertaining to representations made in bidding, execution or performance of the contract;

(5) Disqualification of a bidder or contractor from eligibility for providing commodities or services to the City and County for a period not to exceed five years, with a right to review and reconsideration by the contracting City office or department after two years upon a showing of corrective action indicating violations are not likely to reoccur.

(b) All contracts shall provide that in the event any bidder or contractor fails to comply in good faith with any of the provisions of this Article the bidder or contractor shall be liable for liquidated damages in an amount equal to the bidder's or contractor's net profit under the contract, or five percent of the total amount of the contract dollars whichever is greatest. All contracts shall also contain a provision whereby the bidder or contractor acknowledges and agrees that the liquidated damages assessed shall be payable to the City and County upon demand and may be set off against any monies due to the bidder or contractor from any contract with the City and County of San Francisco.

(Added by Ord. 171-03, File No. 030422, App. 7/3/2003)

(Derivation Former Administrative Code Section 12I.8; added by Ord. 391-90, App. 12/6/90; amended by Ord. 409-97, App. 10/31/97; Ord. 38-01, File No. 010010, App. 3/16/2001)