Ethics Commission
City and County of San Francisco

Organizations Bidding on City Contracts

If an organization seeks to become a party to a City contract by submitting a bid in response to an RFP or RFQ, the organization must notify its affiliates of the political contribution restrictions established by Campaign and Governmental Conduct Code section 1.126.

Affiliates

Affiliates of an organization are the organization’s directors, principle officers (including its chairperson, chief executive officer, chief financial officer, chief operating officer, or any similar position), individuals or entities holding a share of the organization of ten percent or greater, and any subcontractor listed on the organization’s bid for a City contract.

When to Notify Affiliates

The organization must notify its affiliates of the restrictions established by section 1.126 before submitting a bid in response to an RFP or RFQ.

Example

The following notice is an example of how an organization can properly notify its affiliates of the restrictions contained in section 1.26:

Dear Affiliate,

Pursuant to San Francisco Campaign and Governmental Conduct Code section 1.126, you are an affiliate of [insert name of organization seeking to contract with the City] because you:

  • are a member of the organization’s board of directors,
  • are a principle officer of the organization,
  • have an ownership interest of ten percent or greater in the organization, or
  • are a subcontractor listed in a bid that the organization will submit to the City and County of San Francisco.

On [date], our organization will submit a bid to the City and County of San Francisco that will subject the organization and its affiliates to the political contribution restrictions contained in Campaign and Government Conduct Code section 1.126. This law prohibits City contractors, organizations bidding on City contracts, and affiliates of such organizations from making political contributions to certain City elective officers or candidates. Specifically, no such person may make a political contribution to a City elective officer whose approval is or was required for any contract to which the person (or an organization to which the person is an affiliate) is, or seeks to become, a party. This law also prohibits such persons from making contributions to a candidate that is running for the office held by the City elective officer.

Because you are an affiliate of our organization, you will be prohibited from making a political contribution to any City elective officer (or any candidate for such officer’s seat) whose approval is required in order for our organization to become a party to the contract for which we will soon submit a bid.

Please be advised that this restriction will apply from the time that we submit the bid until either (A) negotiations for the contract terminate and our organization is not awarded the contract, or (B) if our organization is awarded the contract, twelve months from the time the contract is approved by the City.

For more information about section 1.126, please contact the San Francisco Ethics Commission at (415) 252-3100 or visit sfethics.org.

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