16-LBE FAQs 10-20-2022.pdf
PDF 77 KB Posted
- Attached to
- Miscellaneous Construction Via Job Order Contracting for Los Angeles World Airports (Personal Services)
- Solicitation number
- 0051-2024-07-RFP-228194
- Issued by
- Los Angeles County, California
About this file
This is a Frequently Asked Questions (FAQ) document for the Local Business Enterprise (LBE) Program administered by Los Angeles World Airports (LAWA) and the City of Los Angeles. The document addresses the LBE certification process, eligibility requirements, and participation guidelines for firms seeking to work as prime contractors or subcontractors on LAWA projects. To qualify as an LBE, a firm must maintain a workspace within Los Angeles County, remain in compliance with applicable licensing laws and tax obligations, and meet one of three employment criteria: have at least 50 full-time employees performing work within the County for a minimum of 60 percent of their annual hours; have at least half of its full-time employees working within the County for a minimum of 60 percent of regular hours; or be headquartered and conduct all operations within Los Angeles County. Firms seeking LBE certification must register through the LARAMP portal and submit a completed Local Business Preference Program Application, followed by submission of required supporting documentation upon analyst request.
The LBE program functions as a mandatory subcontracting requirement, meaning that only subcontractor participation counts toward LBE goals unless the prime contractor holds both LBE and SBE certifications, in which case 100 percent of the prime's participation counts toward all applicable certifications. Prime contractors must submit monthly Subcontractor Utilization forms to LAWA's Procurement Services Division and a Final Subcontracting Report at contract completion, with LBE achievement calculated as the percentage of total dollars paid to LBE subcontractors versus total dollars paid to the prime. Failure to meet pledged LBE participation levels may result in penalties of up to 10 percent of the subcontract amount involved, though penalties do not apply to changes resulting from LAWA-issued Change Orders. The document clarifies that LBE certifications from other jurisdictions, such as the Los Angeles Harbor Department, are not accepted by LAWA due to differing geographic definitions of "local." Additional resources for finding certified LBEs are available through the LARAMP directory.
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LOCAL BUSINESS ENTERPRISE (LBE) PROGRAM
FREQUENTLY ASKED QUESTIONS
1. How can I get certified as an LBE?
In order to qualify as an LBE, a firm must demonstrate that it meets the following criteria:
• Must have a workspace within LA County
• Must be in compliance with all applicable laws relating to licensing and is not delinquent on any Los Angeles
City or Los Angeles County taxes
• Can demonstrate:
a. at least 50 of its full-time employees perform work within the boundaries of the County at least 60 percent of their total hours worked on annual basis; or
b. at least half of its full-time employees work within the boundaries of the County at a minimum of 60 percent of their total regular hours worked on annual basis; or
c. it is headquartered in the County of Los Angeles. Headquartered means that the business physically conducts and manages all of its operations from a location in the County
To start the certification process, register your firm at https://www.rampla.org/s/ and upload a completed Local Business Preference Program Application. After review, an analyst will contact you for submission of required supporting documentation.
2. What happens if I have LSBE certification from the County of Los Angeles?
• Your firm will be recognized as an SBE by LAWA.
• However, your firm must submit a Local Business Preference Program Application with the City of Los
Angeles.
• If your firm meets the City of Los Angeles’ LBE criteria and consequently obtains LBE certification, your firm will then be recognized as an LBE and LSBE by LAWA.
3. Will you accept my LBE certification from the Los Angeles Harbor Department?
No. The Harbor Department’s definition of “local” for their LBE program includes five Southern California counties. In contrast, LAWA’s and the City of Los Angeles’ definition of “local” for our LBE program requires that an applicant firm’s work space is located in and/or employees are working within Los Angeles County under certain conditions.
Please see the summary provided above.
4. If I am an LBE, how does my participation count?
If the prime contractor only has LBE certification, the prime’s participation in the contract does not count towards the LBE goal, because the LBE program is a subcontracting program. This means that the prime contractor must utilize LBE subcontractors in order to get LBE credit. LAWA will credit the prime contractor with the percentage of total dollars paid to the LBE subcontractors versus the total dollars paid to the prime contractor.
However, if the prime contractor has both LBE and SBE certifications, the prime’s participation in the contract will count as 100% LBE, 100% SBE, and 100% LSBE.
5. How does LAWA track my LBE participation level?
Prime contractors will be required to submit monthly Subcontractor Utilization forms to LAWA’s Procurement Services Division (PSD). At the end of the contract, the prime contractor will submit a Final Subcontracting Report to PSD indicating the dollar amounts paid to each subcontractor. PSD will verify with all subcontractors the amount of compensation paid to them. The LBE achievement level will be calculated as the percentage of the total dollars paid to LBE subcontractors versus the total dollars paid to the prime contractor.
6. If I am awarded a contract with an LBE participation level, can I be penalized for failing to meet my pledged LBE level?
Yes. LAWA’s LBE Program is a mandatory program; therefore, the LBE participation level pledged by the prime contractor will become part of the contract. The prime contractor may be assessed a penalty of up to 10% of the amount of the Subcontract(s) involved. Prime contractors must receive written approval from PSD for any reduction, increase, or other change to any LBE Subcontract amount. If an LBE subcontractor’s scope of work is reduced or eliminated as a result of a Change Order issued by LAWA, the resulting change in the LBE participation will not be subject to a penalty.
7. How can I find LBEs?
You can search for LBEs on LARAMP: https://www.rampla.org/s/ As a covered entity under Title II of the Americans with Disabilities Act, the City of Los Angeles does not discriminate on the basis of disability and, upon request, will provide reasonable accommodation to ensure equal access to its programs, services and activities.
Rev 10/20/2022 http://www.labavn.org/ https://www.labavn.org/
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