17-LSBE FAQs Rev 10-20-2022.pdf
PDF 157 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 document issued by Los Angeles World Airports (LAWA) regarding Local Small Business Enterprise (LSBE) certification recognition and participation requirements for state and local contracts. The document clarifies that LSBE certification requires dual certification as both a Small Business Enterprise (SBE) and Local Business Enterprise (LBE), with no separate LSBE certification process administered by the City of Los Angeles or LAWA. Firms holding County of Los Angeles LSBE certification must submit a Local Business Preference Program Application through the Regional Alliance Marketplace for Procurement (RAMP) to the City of Los Angeles to obtain LBE certification and achieve LSBE recognition by LAWA. LSBE participation is tracked through monthly Subcontractor Utilization forms and a final subcontracting report submitted to LAWA's Procurement Services Division, with credit calculated as the percentage of total contract dollars paid to LSBE subcontractors.
The LSBE program is mandatory, and prime contractors pledging LSBE participation levels become contractually bound to meet those commitments, with potential penalties up to 10 percent of subcontract amounts for failure to achieve pledged levels. Prime contractors must obtain written approval from the Procurement Services Division for any modifications to LSBE subcontract amounts. Changes to LSBE participation resulting from Change Orders issued by LAWA do not trigger penalties. Firms can locate qualified LSBEs through LARAMP at https://www.rampla.org/s/ by filtering for both SBE and LBE certification status. The City of Los Angeles complies with Title II of the Americans with Disabilities Act and provides reasonable accommodations upon request.
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Text version
LOCAL SMALL BUSINESS ENTERPRISE (LSBE)
CERTIFICATION RECOGNITION
FREQUENTLY ASKED QUESTIONS
1. How can I get recognized as an LSBE for LAWA contract credit?
There is no separate LSBE certification process with the City of Los Angeles or with LAWA. In order to qualify as an LSBE, a firm must be certified as an SBE and LBE. Please see the previous FAQ sheets for the SBE program and the LBE program for guidelines.
2. If I have City of Los Angeles LSB certification, is that the same thing as being an LSBE?No.
LSB certification demonstrates that the business meets the size standard to be a small business;
however, no validation process occurs to determine the locality of the business; therefore, the two are not equivalent.
3. What happens if I have LSBE certification from the County of Los Angeles?
• Your firm will be recognized as an SBE by LAWA.
• However, you must submit a Local Business Preference Program LBPP Application online in the Regional Alliance Marketplace for Procurement (RAMP) 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.
4. If I am an LSBE, how does my participation count?
If the prime contractor is an LSBE, the prime’s participation in the contract will count as 100% SBE, LBE, and 100% LSBE. If the LSBE prime contractor also utilizes LSBE subcontractors, the total LSBE participation will be counted as 100% LSBE. If the prime contractor is not an LSBE but uses LSBE subcontractors on the contract, LAWA will credit the prime contractor with the percentage of total dollars paid to the LSBE subcontractors versus the total dollars paid to the prime contractor.
5. How does LAWA track my LSBE 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 LSBE achievement level will be calculated as the percentage of the total dollars paid to LSBE subcontractors versus the total dollars paid to the prime contractor.
6. If I am awarded a contract with an LSBE participation level, can I be penalized for failing to meet my pledged LSBE level?
Yes. LAWA’s LSBE Program is a mandatory program; therefore, the LSBE 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 LSBE Subcontract amount. If an LSBE subcontractor’s scope of work is reduced or eliminated as a result of a Change Order issued by LAWA, the resulting change in the LSBE participation will not be subject to a penalty.
7. How can I find LSBEs?
You can search for LSBEs on LARAMP: https://www.rampla.org/s/ by selecting SBE and LBE as your search criteria.
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 10/20/22 https://www.labavn.org/
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