Metro - File #: 2023-0462

• File #: 2023-0462
• Type: Motion / Motion Response
• Status: Passed
• File created: 7/14/2023
• In control: Executive Management Committee
• On agenda: 7/20/2023
• Final action: 7/27/2023
• Title: APPROVE Motion by Directors Hahn, Dupont-Walker, Solis, Butts, and Sandoval that the Board direct the Chief Executive Officer to provide progress updates on the following: A. Implementing the initiatives laid out in the May 2022 "48 by '28 Plan" to increase small and disadvantaged business participation in Metro contracts; B. The recommendations included in the September 2022 Office of the Inspector General survey of small business enterprise certification programs; and C. Developing an annual, fiscal year-end report on the agency's progress toward reaching the 48% target by 2028. WE FURTHER MOVE that the Board direct the Chief Executive Officer to report back on the above directives in October 2023.
• Sponsors: Executive Management Committee, Operations, Safety, and Customer Experience Commit
• Indexes: Central Los Angeles subregion, Certification, City of Los Angeles, Commerce, Contracts, Gateway Cities (Southeast LA County) Service Sector, Gateway Cities subregion, Hilda Solis, Jacquelyn Dupont-Walker, James Butts, Janice Hahn, Karen Bass, Motion / Motion Response, Plan, Procurement, Program, San Fernando Valley subregion, Small Business Enterprise, South Bay Cities subregion, Tim Sandoval, Westside Cities subregion
• Related files: 2023-0589, 2023-0608, 2024-0055

Date	Action By	Action	Result
7/27/2023	Board of Directors - Regular Board Meeting

Meeting_Body
REVISED
EXECUTIVE MANAGEMENT COMMITTEE
JULY 20, 2023

Preamble
Motion by:

DIRECTORS HAHN, DUPONT-WALKER, SOLIS, BUTTS, AND SANDOVAL

48 by '28 and Reciprocity Motion

More than 90% of businesses in Los Angeles County are small businesses, with fewer than 20 employees. In fact, LA County has approximately 250,000 small businesses that account for 43% of the local workforce.

With the passages of Measure R and Measure M, Metro is now undertaking a historic infrastructure capital program that provides numerous opportunities for businesses across the region to compete for projects that create thousands of jobs. Increasing the percentage of transportation dollars that remain in the region and within economically and socially disadvantaged communities is vital to LA County's economic recovery and aligned with the Board-approved Equity Platform.

In December 2021, the Board adopted "48 by '28: Increasing Small and Disadvantaged Business Participation" (2021-0766) by then-Board Chair Solis, Directors Hahn, Dupont-Walker, Sandoval, and Butts, to create Metro's aspirational target to reach 48% participation by small and disadvantaged businesses on agency-wide contracts and procurements by 2028. That motion led to Metro's "48 by '28 Plan" (2022-0101), presented to and approved by the Board in May 2022. This plan laid out eight new initiatives that the agency intended to significantly increase the level of participation by small and disadvantaged businesses in Metro's contracts.

Further, in September 2022, the Office of the Inspector General (OIG) provided a report (2022-0525) that offered findings regarding reciprocity for small business certifications across 10 California Unified Certification Program member agencies. That report raised concerns about the State Department of General Services (DGS) small business self-certification program, stating it "does not currently meet or exceed Metro's SBE certification requirements or verification standards." The re...