Metro - File #: 2020-0930

• File #: 2020-0930
• Type: Motion / Motion Response
• Status: Passed
• File created: 1/22/2021
• In control: Board of Directors - Regular Board Meeting
• On agenda: 1/28/2021
• Final action: 1/28/2021
• Title: APPROVE Motion by Directors Dupont-Walker, Hahn, Mitchell, Butts, Najarian, and Solis that the Board direct the Chief Executive Officer to study and recommend MSZ and SBE solutions that embrace Equity considerations, including but not limited to the Disparity Study, impact on historically underutilized businesses, and consistency with industry best practices. These studies should focus on the following: A. Review requirements for contracting opportunities with SBEs, including but not limited to: 1. Determining feasibility of achieving certification reciprocity with agencies at the state, county, and local levels that have similar baseline standards as Metro 2. Exploring strategies to ensure that only legitimate SBEs and MSZs may compete for Metro contracts 3. Reviewing certification standards, ownership, owner credentials, and other costs associated with competing for contracts, and recommending steps to streamline the process, ensuring integrity while making it more user-friendly ...
• Sponsors: Board of Directors - Regular Board Meeting
• Indexes: Ara Najarian, Assembly Bill 1205, Bids, Bus rapid transit, Certification, Contract administration, Contracts, Disparity Study, Hilda Solis, Holly J. Mitchell, Jacquelyn Dupont-Walker, James Butts, Janice Hahn, Metro Busway G Line, Motion / Motion Response, Orange Line Bus Rapid Transit Improvements, Procurement, Program, Request For Proposal, Small Business Enterprise
• Related files: 2021-0355, 2021-0022

Date	Action By	Action	Result
1/28/2021	Board of Directors - Regular Board Meeting

Meeting_Body
REVISED
REGULAR BOARD MEETING
JANUARY 28, 2021

Preamble


Motion by:

DIRECTORS DUPONT-WALKER, HAHN, MITCHELL, BUTTS, NAJARIAN, AND SOLIS

Enhancements to Metro's Medium-Size Business Enterprise Program and Small Business Enterprise Program

In the time of current economic distress, Metro should review its Small Business Enterprise (SBE) program and Medium-Size Business Enterprise (MSZ) program to create new pathways for a continuum of contracting opportunities for SBEs and MSZs.

Metro's SBE Program was intended to create opportunities for small businesses to obtain contracting agreements with Metro. With Metro's size and presence in Los Angeles County, an SBE's trajectory can dramatically change with one contract, however small it may seem compared to Metro's overall contracting portfolio.

Most importantly, the SBE program has served as a tool for equity and can be made even more impactful with carefully administered adjustments. Metro, through its unique position in the county, has a responsibility and opportunity to lift up local small businesses, especially those in historically overlooked neighborhoods. The chance to compete for Metro contracts should be more accessible to, and protective of, these underserved communities. This creates more possibilities for L.A. County's remaining SBEs and addresses the needs of an emerging group of MSZs.

Metro currently has many working relationships with such businesses. Still, there is always room for improvement-especially at this moment of ongoing economic distress. One potential is to strengthen its MSZ program to set-aside contracting opportunities for medium-size businesses to compete with similar-size firms.

In January 2019, Metro established the MSZ program. This program addresses the gap between small businesses and large businesses by creating opportunities where only MSZs can compete on non-federally funded procurements. Pursuant to AB-1205 (Jones-Sawyer), the MSZ program applies to both nego...