Metro - File #: 2022-0025

• File #: 2022-0025
• Type: Motion / Motion Response
• Status: Passed
• File created: 1/18/2022
• In control: Board of Directors - Regular Board Meeting
• On agenda: 2/24/2022
• Final action: 2/24/2022
• Title: CONSIDER: A. RECEIVING AND FILING the report back to Motion 31 on a Local Small Business Enterprise (LSBE) Program; and B. AUTHORIZING the CEO to implement a three-year Pilot LSBE Preference Program inclusive of Five Point Preference Incentive for negotiated procurements. DUPONT-WALKER AMENDMENT: A. Report back in August 2022 on how Metro can encourage greater than 30% LBSE participation for proposers that do not meet the LSBE criteria as a prime but subcontract to LBSE eligible businesses, either through additional preference credits beyond the five points offered by the pilot or providing further incentives in the procurement process; and B. Request Metro to conduct an external audit no later than one year into the pilot to ensure eligible small businesses are meeting the stated eligibility requirement of being headquartered in LA County for at least 6 months.
• Sponsors: Construction Committee
• Indexes: Bids, Central Los Angeles subregion, Certification, City of Los Angeles, Community Transportation, Construction, Contracts, Eric Garcetti, Fernando Dutra, Holly J. Mitchell, Invitation For Bids, Jacquelyn Dupont-Walker, James Butts, Janice Hahn, Local transportation, Los Angeles Unified School District, Motion / Motion Response, Pilot studies, Procurement, Program, Race, Regional transportation, Request For Proposal, San Bernardino Transportation Authority, San Fernando Valley subregion, Shelia Kuehl, Small Business Act, Small Business Administration, Small Business Enterprise, Small Business Prime Program, South Bay Cities subregion, State laws, Surveys, Westside Cities subregion

Date	Action By	Action	Result
2/24/2022	Board of Directors - Regular Board Meeting
2/17/2022	Construction Committee

Meeting_Body
REVISED
CONSTRUCTION COMMITTEE
FEBRUARY 17, 2022

Subject
SUBJECT: LOCAL SMALL BUSINESS PREFERENCE

Action
ACTION: APPROVE RECOMMENDATION

Heading
RECOMMENDATION

Title
CONSIDER:

A. RECEIVING AND FILING the report back to Motion 31 on a Local Small Business Enterprise (LSBE) Program; and

B. AUTHORIZING the CEO to implement a three-year Pilot LSBE Preference Program inclusive of Five Point Preference Incentive for negotiated procurements.

DUPONT-WALKER AMENDMENT:

A. Report back in August 2022 on how Metro can encourage greater than 30% LBSE participation for proposers that do not meet the LSBE criteria as a prime but subcontract to LBSE eligible businesses, either through additional preference credits beyond the five points offered by the pilot or providing further incentives in the procurement process; and

B. Request Metro to conduct an external audit no later than one year into the pilot to ensure eligible small businesses are meeting the stated eligibility requirement of being headquartered in LA County for at least 6 months.

Issue
ISSUE

On October 21, 2021, the Board passed Motion 31 (Directors Hahn, Dupont-Walker, Butts, Mitchell, Dutra, and Kuehl) requesting a report back in February 2022 on a Local Small Business Enterprise Program.

Background
BACKGROUND

As LA County emerges from the COVID-19 pandemic, it is important to support local small businesses to ensure a clear path to economic recovery. Metro has a vested interest in leveraging, to the greatest extent possible, the millions of dollars we pay to contractors to build, operate, and plan transportation projects for the benefit of LA County small businesses and its residents.

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.

To support s...