Meeting_Body
CONSTRUCTION COMMITTEE MEETING
OCTOBER 21, 2021
Preamble
Motion by:
DIRECTORS HAHN, DUPONT-WALKER, BUTTS, MITCHELL, DUTRA, AND KUEHL
Local Preference
Every year, Metro pays hundreds of millions to contractors to build, operate, and plan transportation projects across Los Angeles County. Most of this comes from local sales taxes, which we all pay into to address our infrastructure needs.
In May 2021, the US Department of Transportation (DOT) authorized a four-year pilot program allowing agencies like Metro to use Federal dollars for local hire, to target these resources for workforce development in the communities where our transportation projects are being built.
As LA County emerges from the COVID-19 pandemic, it is more important than ever to support local economic opportunity, to ensure a path to economic recovery that especially targets communities where our transportation projects are being built and in economically and socially disadvantaged communities.
State law disallows the use of local preference in procurements awarded to the lowest bidder, and it is silent on giving local preference when procurements are awarded based on an array of criteria that are not limited to the lowest bidder.
So we can maximize our ability to support our region’s local economic opportunity with regional transportation dollars, Metro should give local preference on applicable procurements. Doing this involves possible changes to Metro policies and State and Federal laws and regulations.
Subject
SUBJECT: LOCAL PREFERENCE
Heading
RECOMMENDATION
Title
APPROVE Motion by Directors Hahn, Dupont-Walker, Butts, Mitchell, Dutra, and Kuehl that directs the CEO to:
A. Survey local preference best practices nationally and make recommendations for local preference criteria;
B. Evaluate and recommend changes to Metro policies regarding advancing local preference in small, medium, and disadvantaged business contracting;
C. Review State and Federal laws and regulations and make recommendations for inclusion in future Federal and State Legislative Priorities; and,
D. Report back on these requests in February 2022.