- 10 Steps to Doing Business with Metro
Metro is committed to servicing its small business community through proactive and inclusive monitoring, workforce compliance, training, and outreach activity. The agency’s Diversity & Economic Opportunity Department (DEOD) is responsible for ensuring non-discrimination in Metro contracting and workforce employment. DEOD responsibilities include implementation and oversight over the following:
Small Business Programs
- Disabled Veteran’s Business Enterprise (DVBE) Program: This new program is designed to expand contracting opportunities for disabled veterans and support them in successfully bidding on projects. It establishes a 3% contracting goal for all non-federally funded, competitively negotiated contracts for construction, goods or services over $100,000. A five-point evaluation scoring preference is included for certified DVBE firms whose principal office is located in California.
- Small Business Set-Aside Program: Adopted by the Metro Board on January 13, 2014, this initiative reserves certain types of contracts for Small Business Enterprises qualified under the appropriate North American Industry Classification System codes. The program covers competitively negotiated contracts, sealed bids and public works that meet threshold criteria from $3,000 up to $5 million. Applicable procurements will be set aside for competition among SBEs when and if there is a competitive pool of three or more SBE firms available to perform the work. To learn more, visit the Set-Aside Program webpage. Metro’s SBE Directory is available here.
- Disadvantaged Business Enterprise (DBE): Metro’s policy is to ensure that DBE firms have an equal opportunity to receive and participate on transportation and highway contracts work funded in whole or in part with federal funds in accordance with the Department of Transportation DBE Program 49 CFR Part 26. The DBE program removes barriers to the participation of DBEs and provides a level playing field on which DBEs can compete fairly. DBE prime contractors and subcontractors are encouraged to participate in Metro contracting opportunities. Metro's Overall DBE goal for Federal Fiscal Year 2013-2015 is 27%. Metro will meet its overall goal by using race-conscious 20.89% and race-neutral 6.11% measures. See FAQ’s for additional information.
- Small Business Enterprise (SBE): Metro’s policy is to ensure that SBE firms have an equal opportunity to receive and participate on transportation and highway contract work funded in whole or in part with non-federal, state and/or local funds. The SBE Program removes barriers to the participation of SBEs and provides a level playing field on which SBEs can compete fairly. SBE prime contractors and subcontractors are encouraged to participate in Metro contracting opportunities. Metro's Overall SBE Goal is 30%.
- Contract Compliance Unit: Establishes DBE and SBE contract-specific goals on Metro contracts and monitors prime contractor compliance with DBE/SBE requirements to meet commitments. Monitors, assesses, and reports compliance with DBE/SBE program requirements and enforce prompt payment to DBE/SBE primes and all subcontractors.
- Certification: Ensures businesses are properly certified as DBE and/or SBE firms in accordance with DBE and SBE Program requirements to increase the pool of certified firms available to participate in Metro contracting. See FAQs for additional information.
Economic Development Initiatives
- Metro’s Project Labor Agreement (PLA) and Construction Careers Policy (CCP): The PLA/CCP was approved by Metro’s Board on January 26, 2012. The programs apply to local and certain federally funded Metro construction projects with a construction value greater than $2.5 million. The Metro PLA is unique in that Metro is the first transit agency in the nation to adopt a PLA with National Targeted Worker goals for federally funded projects. For more information, please visit metro.net/pla.
- Metro’s Small Business Outreach: Responsible for providing assistance and guidance to small businesses interested in pursuing contracting opportunities at Metro. The goal of the unit is to maximize small business participation on Metro contracts.
- Metro’s Labor Compliance: As a recipient of State and Federal funds, Metro is required to monitor and enforce contractor compliance with State and Federal prevailing wage requirements on Metro public works projects.
Projects with State funds are administered by the California Department of Industrial Relations (DIR) where compliance with the California Labor Code is enforced. When the source of funding is federal, the Davis-Bacon Act is applicable and is enforced by the U.S. Department of Labor.
All small businesses interested in doing business with Metro should be familiar with the following steps:
1. Attend the Metro How To Do Business with Metro Workshop
Metro hosts a two-hour orientation/workshop on the second Tuesday of each month to advise firms on how to do business with Metro and the different small business certification programs offered by the agency. Firms are provided a one-on-one interview with a Procurement Officer (when available).
For additional information and reservations, contact the DEOD Hotline at 213.922.2600 and press 4. To register for an upcoming workshop, please check the Meetings tab. And to receive news and updates on future events, join our mailing list by clicking the "Subscribe" button at the right of the page.
2. Register in the Metro Vendor Database
Small businesses interested in receiving upcoming contract notifications should register in Metro’s Vendor Database. Firms can complete a Vendor Information Profile online at metro.net/about/business.
3. Apply for Small Business Certification
DEOD seeks to provide small businesses with a level playing field in all aspects of the procurement and administration of Metro contracts. Metro actively supports and encourages the participation of eligible small businesses under the following small business certification programs:
4. Attend Metro Small Business Outreach Events
Metro hosts outreach events where business owners can have “face-time” with business personnel ranging from some of the region’s largest prime contractors to agency buyers and executive staff. These are excellent events to market your business and create teaming opportunities. Our Meet the Primes, and Meet the Buyers events are a must for every business owner. Please check the Meetings tab for the next scheduled event.
5. Contact Buyer or Contract Administrator
Metro’s Buyers and Contract Administrators are the best source of information for vendors interested in pursuing Metro contracts. Contact DEOD’s Small Business Outreach Unit for a current Procurement & Materials Management Directory at 213.922.2600 and press 4.
6. Monitor metro.net/deod, ebidboard.com, and transportmax.com
Visit these websites to learn more about Metro’s current and upcoming contracts.
7. Attend Pre-Bid Meetings for Projects of Interest
These meetings provide an opportunity to learn more about the contract specifications, meet the Buyer/Contract Administrator, and network with primes and sub contractors interested in the same contract.
8. Contact Potential Prime Contractors
Metro encourages prime contractors to team with certified small businesses. Prime contractors are listed on the project plan holder’s list and should be contacted for partnering or subcontracting opportunities.
9. Submit Competitive Bids and Quotes to Metro or Prime Contractors
Competitive bids and quotes are important to primes and ultimately Metro. Submit your best pricing for potential contracts.
10. Attend the Transportation Business Advisory Council (TBAC) Monthly Meeting
TBAC is Metro’s small business advocacy council. Current Metro information is disseminated at each TBAC meeting, informing small businesses about upcoming contracts, small business legislative updates and topics related to small business economic development.
TBAC monthly meetings are held the first Thursday of each month at Metro Headquarters, One Gateway Plaza, Board Room – Third Floor, 9:30 am – 11:30 am. For future meeting notifications, please contact the DEOD Hotline at 213.922.2600 and press 4.
Metro is committed to servicing the small business community. Those interested in working with Metro are encouraged to attend one of our Business Outreach events below.
For more information on Metro's Small Business Outreach Unit, click here.
How to Do Business with Metro
Attend one of our How to Do Business with Metro Workshops to learn about Metro's certification program, vendor registration, contract look-ahead schedules and other useful information:
On-site at Metro Headquarters on the second Tuesday of each month
Tuesday, April 14,2015
9 a.m. - 11 a.m.
Board Room, Third Floor
One Gateway Plaza
Los Angeles, 90012
May 12, 2015
June 9, 2015
- What is a Disparity Study?
- Why did Metro conduct the Disparity Study?
- What was the study period of Metro’s Disparity Study?
- Based on the results of the Study, will there be DBE subcontract participation goals?
- What is the DBE overall goal for 2013-2015?
- Does the entire 27 percent goal have to be race-conscious?
- How will the remaining 6.11 percent of be met?
- Does the entire 20.89 percent race-conscious goal have to be limited to minority groups?
- What minority groups will be eligible to meet the DBE overall goal?
- Is there any way to amend the DBE race-conscious goal to include WBEs?
- How frequently will Metro monitor DBE utilization?
- Where is information regarding Metro DBE policies and procedures published?
- Where is information on upcoming Metro contracts published?
- What will be done to ensure timely payments to subcontractors?
- How will Metro address discrepancies between what is owed subcontractors and what they are paid by the prime contractor?
- Is a prime contractor’s utilization of DBEs evaluated by whether the DBE goal is met or exceeded?
- Is the utilization of DBEs reported by the prime contractor?
- What will be done to prevent prime contractors from superficially using DBEs to win awards, but not fully engaging the DBE in the project?
The purpose of a Disparity Study is to evaluate the contracting practices of government agencies, particularly as they apply to the utilization of minority and women-owned business enterprises. The objective of a Disparity Study is to determine whether minority and women-owned business enterprises received contracts at the level the ethnic and gender groups are available in the market area. Under a fair and equitable system of awarding contracts, the proportion of contract dollars awarded to minority and women-owned business enterprises should be at parity with the proportion of available minority and women-owned business enterprises in the market area. Findings of statistically significant underutilization can be used to define the race and gender-conscious goals.
The Disparity Study was conducted to determine whether Metro has a compelling interest in reinstating the race-conscious portion of its DBE Program. Metro is in the Ninth Federal Circuit, where a disparity study must be completed in order to establish the legal basis for a race-conscious DBE Program. A DBE Program can only have a race-conscious goal if a statistically significant disparity is found for the ethnic and gender groups to be included in the Program.
The study period was January 1, 2008 to December 31, 2010.
The findings revealed statistically significant disparities for businesses owned by African Americans, Asian-Pacific Americans, Subcontinent Asian Americans, and Hispanic Americans and significant underutilization of Native Americans. Therefore, the race-conscious portion of the overall DBE Goal can be met by African Americans, Asian-Pacific Americans, Asian Americans, Subcontinent Asian Americans, Native Americans, and Hispanic Americans.
Metro’s overall DBE goal for Federal Fiscal Years 2013-2015 is 27 percent. Based on the disparity findings, 20.89 percent of the overall DBE goal will be met by race and gender-conscious measures, and the remaining 6.11 percent will be met through race and gender-neutral measures.
The race-conscious goal will be set on a contract-by-contract basis for prime contracts with subcontracting opportunities.
No, the portion of the goal to be met by race-conscious measure is 20.89%. The remainder of the overall DBE goal is 6.11%.
Race-neutral measures will be used to obtain 6.11 percent DBE participation. Non-minority women certified as DBEs can be used to meet the race-neutral portion of the Overall goal. The Study revealed no significant disparity for women-owned business enterprises.
The overall DBE Goal is 27 percent. The race-conscious portion of the goal is 20.89. The race-conscious goal can only be met by DBE certified African American, Asian-Pacific American, Asian American, Subcontinent Asian American, Native American, and Hispanic American businesses.
There must be a finding of statistically significant underutilization of Non-minority women to include WBEs in the race-conscious goals.
Metro will review DBE utilization on a contract-by-contract basis. The Uniform Report of DBE Awards/Commitments and Payments required by the DBE regulations will be used to monitor DBE utilization on a semi-annual basis.
Metro values transparency in all of its policies and practices. A complete description of Metro’s current DBE Program, certification procedures and certified businesses is published on its website. DBE Program material can be found at: http://www.metro.net/about/deod/
Information on Metro’s upcoming contracting opportunities can be found at:
Metro requires its prime contractors to pay their subcontractors for satisfactory performance of their contracts no later than 7 days from receipt of each payment Metro submits to the prime contractor as required by the DBE regulations. Additionally, prompt and full payment of retainage from prime contractors to the subcontractor is required within 7days after the subcontractor's work is satisfactorily completed.
15. How will Metro address discrepancies between what is owed subcontractors and what they are paid by the prime contractor?
Metro requires its prime contractors to complete a monthly expenditure plan for each approved DBE subcontractor. The plan must be submitted within 30 days of the Notice to Proceed. The planned expenditures must equal the dollars committed to each DBE and must be developed according to the approved project schedule. Any changes to the plan must be updated or an executed Change Notice and Work Authorization Change Notice that affects the DBEs’ subcontracted work must be submitted. The revised plan must be submitted 30 days prior to the requested change.
Metro also tracks the actual payments to DBEs for work committed at the time of contract award. This data is tracked utilizing Metro’s Summary of Subcontractors Paid Report Form.
16. Is a prime contractor’s utilization of DBEs evaluated by whether the DBE goal is met or exceeded?
Metro is committed to ensuring that its Overall DBE Goal is fulfilled. A race-conscious contract goal will be set on prime contracts that have DBE subcontracting possibilities. Prime contractors are expected to meet the contract DBE goal or to provide a good faith effort statement. All bidders will be required to submit the following documentations with their submittals:
- Names and addresses of all DBEs that will participate in the contracts
- Description of the work that each DBE will perform
- Award amount for each DBE subcontractor
- Written and signed documentation of commitment to use each DBE contractor(s) whose participation will be used to meet the contract goal
- Written and signed confirmation from the DBE that the firm will be participating as represented in the prime contractor’s commitment
- Documentation of the good faith efforts if the goal is not met
All bidders/proposers that fail to meet the DBE race-conscious subcontract goal will be required to provide documentation demonstrating their good faith efforts to meet the goal. Minimally, the documentation must include:
- Soliciting certified DBEs through all reasonable and available means that are capable of performing the contract work
- Allowing sufficient time for the DBEs to respond to the solicitation, and taking appropriate steps to follow-up with the initial solicitation to the DBEs
- Selecting portions of work to be performed by DBEs that will increase the likelihood that the DBE goal will be met
- Providing interested DBEs with information about the subcontract possibility in a timely manner and assisting the DBEs in responding to the solicitation
- Negotiating in good faith with all interested DBEs
- Not rejecting a DBE as unqualified without cause
- Assisting DBEs in obtaining bonding, credit, insurance, or obtaining equipment
- Utilizing the services of minority and women-owned business organizations
Yes. Metro requires its prime contractors to complete a monthly Summary of Subcontractors Paid Report (Form 103). The Form 103 tracks the actual payments to DBEs for work committed at the time of contract award. The Summary of Disadvantaged/Small Business Enterprise (DBE/SBE) Subcontractor Paid Report (Form 103) provides award, contract amendments, payments made, participation, and other contract information necessary to monitor the status of contracts. Information reported on Form 103 is compiled to fulfill federal reporting requirements. Prime contractors prepare and submit Form 103 via U.S. Mail, fax, or e-mail to the Contract Compliance Unit by the 15th of each month to report their progress on payments and DBE/SBE performance and commitments. Metro issues payment verification letters to DBE firms to verify payments reported by prime contractors. Click here for a sample of a standard Form 103 report.
18. What will be done to prevent prime contractors from superficially using DBEs to win awards, but not fully engaging the DBE in the project?
Metro requires that all DBE subcontractors perform a commercially useful function. The utilization of subcontractors and suppliers is verified at the time the contract is executed. The DBE must perform, manage, and supervise the work involved. If the DBE provides materials or supplies, the DBE must be responsible for negotiating price, determining quality and quantity, ordering the material, and installing and paying for the material.