File #: 2019-0880   
Type: Informational Report Status: Filed
File created: 12/5/2019 In control: Executive Management Committee
On agenda: 1/16/2020 Final action: 1/16/2020
Title: RECEIVE AND FILE report on streamlining audits for disadvantaged and small businesses (DBE/SBE).
Sponsors: Executive Management Committee
Indexes: Audit, Board approved a Motion, Contractors, Contracts, Databases, Disadvantaged business enterprises, Evaluation and assessment, Federal Transit Administration, Informational Report, Pilot studies, Procurement, Request For Proposal, Small Business Enterprise, Surveys, Training programs
Related files: 2018-0686, 2017-0730, 2017-0590
Meeting_Body

EXECUTIVE MANAGEMENT COMMITTEE
JANUARY 16, 2020

Subject
SUBJECT: STREAMLINING AUDITS FOR DISADVANTAGED AND SMALL BUSINESSES

Action
ACTION: RECEIVE AND FILE

Heading
RECOMMENDATION

Title
RECEIVE AND FILE report on streamlining audits for disadvantaged and small businesses (DBE/SBE).

Issue
ISSUE

Metro recognizes that DBE/SBE firms may have challenges including limited knowledge and resources to comply with the requirements of Federal Acquisition Regulations (FAR) Part 31, Contract Cost Principles and Procedures which are included in all Metro contracts. This report provides details on the ongoing streamlining efforts to assist the DBE/SBE firms.

Background
BACKGROUND

Metro Board of Directors approved a motion on September 28, 2017 which directed staff to report back with a recommendation on efforts for streamlining audits for small businesses. Specifically, staff was directed to report back on A) simplifying indirect cost rates; B) reducing the number of multiple audits annually; C) implementing a centralized database; D) metrics to measure improvements; and E) toolbox for DBE/SBE to provide feedback.

In May and November 2018, the Board received updates on Metro's efforts for streamlining the audit process for the DBE/SBE community. In addition, the Board approved Vendor / Contract Management's (VCM) establishment of an Indirect Cost Rate Pilot Program for DBE/SBEs on eligible contracts.




Discussion
DISCUSSION
Metro's objective is to provide a level playing field to all contractors. V/CM and Management Audit Services (MAS) have partnered to assist, educate and train the DBE/SBE community on Metro contract requirements including audit requirements.

A. Simplifying Indirect Cost Rates and Flow-Downs

V/CM Updates
As part of V/CM's procurement streamlining initiative, V/CM has improved its RFP contract templates and instructions in the following identified areas specific to audits:

1. Eliminated the use of Form 60 for non...

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