Meeting_Body
EXECUTIVE MANAGEMENT COMMITTEE
OCTOBER 16, 2025
Subject
SUBJECT: LOCAL SMALL BUSINESS ENTERPRISE (LSBE) PREFERENCE PILOT PROGRAM UPDATE
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. RECEIVING AND FILING the Local Small Business Enterprise (LSBE) Preference Program Pilot Final Report; and
B. APPROVING the Local Small Business Enterprise (LSBE) Preference Program.
Issue
ISSUE
On February 17, 2022, the Board approved a three-year pilot of the Local Small Business Enterprise (LSBE) Preference Program in response to Motion 31 (Directors Hahn, Dupont-Walker, Butts, Mitchell, Dutra, and Kuehl (Attachment A). This report provides final results and analysis, including procurement data from FY23-FY25, and a recommendation to make the LSBE Preference Program permanent based on its demonstrated success.
Background
BACKGROUND
To boost the local economy and expand access to Metro contracts for small and underutilized businesses, the Board approved the creation of the Local Small Business Enterprise (LSBE) Preference Program in response to Motion 31 (Directors Hahn, Dupont-Walker, Butts, Mitchell, Dutra, and Kuehl. The program offers a 5% preference credit (bonus points) on non-federal negotiated procurements and a 5% price reduction, for evaluation purposes only, on competitive low-bid procurements greater than $100K with Small Business Enterprise (SBE)/Disabled Veteran Business Enterprise (DVBE) goals.
LSBE Designation
To qualify, a firm must be Metro-certified as an SBE, headquartered in Los Angeles County, and have conducted and managed all of its operations from that location for at least six months prior to receiving LSBE designation. At the time of the program's rollout, firms originally certified as a Metro SBE that met the LSBE requirements were automatically granted the designation. The LSBE Preference Program applies to non-federally funded state and local solicitations.
Metro only gran...
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