Small Business Enterprise (SBE) Pilot Program
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1 Small Business Enterprise (SBE) Pilot Program 1
2 Small Business Enterprise (SBE) Effective October 1, 2012 Pilot Program Replaces Minority/Women/Other Business Enterprise (M/W/OBE) Program LAWA will require a specific, mandatory percentage of small business subcontracting on construction, professional and nonprofessional projects valued in excess of $150,000 SBE is defined as an independently-owned and operated business that meets criteria set forth by the Federal Small Business Administration (SBA), or State of California SBE Program, whichever is greater 2
3 Program Compliance for Prime Pre-award compliance Contractors The prime contractor is responsible for determining the SBE status of subcontractors Copy of certification documentation required with bid/proposal If the prime contractor is an SBE, small business participation is counted as 100% Failure to meet the mandatory participation level will be deemed nonresponsive No Good Faith Effort LAWA encourages the use of Emerging Business Enterprise (EBEs) and Disabled Veterans Business Enterprises (DVBEs) certified with the State of California 3
4 Compliance and Monitoring LAWA will monitor the SBE participation The prime contractor will be required to submit a monthly Subcontractor Utilization Report and a Final Subcontracting report at the end of the project Failure to meet the mandatory goal may result in a penalty* 10% of the unpaid/underpaid amount of subcontract *Does not apply in occurrences where lack of achievement is not contractor s fault, e.g. LAWA cancels portion or all of SBE subcontractor s scope of work 4
5 SBE Certification Should I Apply? If your firm is currently certified with one of the following agencies you do NOT need to go through the Certification process. Submit a copy of your certification with your bid/proposal. State of California Department of General Services (DGS) Small Business Enterprise (SBE) Federal Small Business Administration (SBA) - 8(a) Business Development Program California Unified Certification Program (CUCP) - Disadvantaged Business Enterprise (DBE) Los Angeles County Metropolitan Transportation Authority (Metro) Small Business Enterprise (SBE) Program
6 CUCP DBE Certifying Agencies Recognized for LAWA SBE Program California Department of Transportation (CALTRANS) City of Fresno Central Contra Costa Transit Authority (CCCTA) City of Los Angeles L.A. County Metropolitan Transportation Authority (METRO) San Diego County Regional Airport Authority (SAN) San Francisco Bay Area Rapid Transit District (BART) San Francisco International Airport (SFO) San Francisco Municipal Transportation Agency (SFMTA) San Mateo County Transit District (SAMTRANS) Santa Clara Valley Transportation Authority (VTA) Yolo County Transportation District (YOLOBUS)
7 SBE Certification Should I Apply? If your firm is not currently certified with one of the CUCP Agencies: Do you plan to participate on LAWA construction, non-professional, or personal services projects valued over $150,000? Is your firm an independently-owned and operated business? Is your firm a small business that meets the criteria set forth by the Small Business Administration 8(a) Business Development Program or State of CA SB Program? Is your firm organized as a for-profit business? If you answered Yes to all of the questions above, you may be eligible to participate in LAWA s SBE Program 7
8 Sample Size Standards Applied by LAWA INDUSTRY General Building and Heavy Construction Contractors Special Trade Constructions Contractors Most Manufacturing Industries Computer Programming, Data Processing & Sys. Design Engineering Services Environmental Consulting Services Architectural Services Financial Investment and Related Activities LAWA SIZE STANDARD $33.5 million 500 employees $25 million
9 SBE Certification Submit LAWA SBE Application and Support documentation for firm and all affiliates for review to: City of Los Angeles Department of Public Works Bureau of Contract Administration Office of Contract Compliance Centralized Certification Administration 1149 S. Broadway Street, Ste. 300 Los Angeles, CA Certification Helpline (213) or (213) Certification is valid for one year
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