5-10 Exhibit 2 Business Enterprise (BE) Program Information.pdf

EXHIBIT 2

Business Enterprise (BE) Program Information

This Exhibit provides general information regarding the Business Enterprise Program. For additional information, please visit: http://bca.lacity.org. In addition, if the Proposer has any questions or needs assistance with these forms, please contact the Certification Helpline: (213) 847-2684 / bca.certifications@lacity.org

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.

Proposers who opt to exceed the mandatory minimum BE Program participation requirements, and/or who choose to Joint Venture (JV) with one or more Certified Firms, may be scored more favorably, subject to Proposer providing a credible Inclusivity Plan demonstrating the Proposer’s ability to achieve the enhanced Inclusivity Commitments. The Proposer’s enhanced Inclusivity Commitment should be supported by the Proposer’s Contractor utilization plan and/or JV structure, including Proposal-listed Subcontractors to be utilized at rates consistent with the pledged Inclusivity Commitment.

Successful Proposers who are certified SBEs (Proprietary), shall receive 100% SBE credit for the value of the awarded Contract. If the Successful Proposer is a Joint Venture, with a certified SBE Joint Venture partner, Successful Proposer will automatically receive SBE participation credit equal to the Joint Venture percentage participation or equity stake of the SBE-certified Joint Venture partner.

The Successful Proposer shall be responsible for determining the BE Program certification status of its Contractors at the time the Contractor utilization plan is submitted, and throughout the term of the Agreement.

The Successful Proposer will be required to achieve the mandatory minimum, and any committed excess Contractor participation percentages and levels contained in its Proposal throughout the term of the awarded Contract, subject to ongoing monitoring and reviews by LAWA to verify the Successful Proposer’s compliance with the approved Subcontractor utilization plan, and other Inclusivity Commitments. LAWA will conduct comprehensive monitoring for compliance with LAWA’s BE Program requirements and the Successful Proposer’s other Inclusivity Commitments.

Failure by the Successful Proposer to achieve the required Certified Firm participation level in any category, is subject to enforcement consistent with the rights and remedies retained by LAWA, in addition to any other requirements or remedies established by the City of Los Angeles, and in accordance with LAWA’s BE Programs and the specific terms of the Agreement.

Except as otherwise approved by LAWA, the Successful Proposer shall retain, employ, and utilize the firms and organizations, including all Certified Firms and entities, identified in the Proposal to fill the roles designated therein.

http://bca.lacity.org/ mailto:bca.certifications@lacity.org Darlene Gray Highlight

SMALL BUSINESS ENTERPRISE (SBE) PROGRAM

FREQUENTLY ASKED QUESTIONS

1. I want to be certified as an SBE so that I can work with LAWA. How do I get certified?

LAWA defines an SBE as an independently-owned and operated business that meets the criteria set forth by:

The Federal Small Business Administration (SBA) 8(a) Business Development Program1 or The State of California Small Business (SB) Program2, whichever is larger

Firms can become certified by the Bureau of Contract Administration (http://bca.lacity.org/) and receive the designation of SBE (Proprietary). The SBE (Proprietary) certification is used by the three Proprietary departments of the City of Los Angeles: LAWA, Harbor Department (Harbor), and the Department of Water and Power (DWP).

In addition to accepting the SBE (Proprietary) certification, LAWA also accepts many other certifications from various agencies.

If your firm is currently certified with one of the following agencies, it will be automatically considered an SBE by LAWA as long as it meets the City's SBE (Proprietary) certification criteria:

CERTIFYING AGENCY CERTIFICATION ACCEPTED BY

LAWA AS SBE?

Federal Small Business Administration (SBA) SBA 8(a) Business Devpt.

Program

Yes

State of California Department of General Services (DGS) SB, SB(PW), SB (micro) Yes California Department of Transportation (CALTRANS) SMBE, SWBE, DBE Yes

L.A. County Metropolitan Transportation Authority

(METRO)

SBE, DBE Yes

California Unified Certification Program (CUCP) Agencies:

• City of Fresno

• City of Los Angeles

• 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)

(also includes CALTRANS and METRO)

DBE Yes

US Women’s Chamber of Commerce (USWCC) WOSB, EDWOSB Yes

Women’s Business Enterprise Council West (WBEC-

WEST)

WOSB Yes

National Women Business Owners Corporation (NWBOC) WOSB, EDWOSB Yes City of Los Angeles SBE, SBE(Proprietary), SLB Yes County of Los Angeles LSBE Yes

1 For information regarding the size standards used by the Federal SBA 8(a) Business Development Program, see https://www.naics.com/wp-content/uploads/2017/10/SBA_Size_Standards_Table.pdf

2 The State of California defines an SB as a business with 100 or fewer employees with average annual gross receipts of $15 million or less over the last three years.3 DBE-certified companies for all of the bulleted agencies can be found in one central database:

http://www.dot.ca.gov/hq/bep/find_certified.htm4 The State of California defines an SB(PW) as a business with 200 or fewer employees with average annual gross receipts of $36 million or less over the last three years.

Rev 3/11/19 http://bca.lacity.org/) http://bca.lacity.org/) http://www.naics.com/wp-content/uploads/2017/10/SBA_Size_Standards_Table.pdf http://www.dot.ca.gov/hq/bep/find_certified.htm

2. If I am an SBE, how does my participation count?

If the prime contractor is an SBE per the chart above, the prime’s participation in the contract will count as 100% SBE. If the SBE prime contractor also utilizes SBE subcontractors, the total SBE participation will be counted as 100% SBE. If the prime contractor is not an SBE but uses SBE subcontractors on the contract, LAWA will credit the prime contractor with the percentage of total dollars paid to the SBE subcontractors versus the total dollars paid to the prime contractor.

3. How does LAWA track my SBE 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 SBE achievement level will be calculated as the percentage of the total dollars paid to SBE subcontractors versus the total dollars paid to the prime contractor.

4. If I am awarded a contract with an SBE participation level, can I be penalized for failing to meet my pledged SBE level?

Yes. LAWA’s SBE Program is a mandatory program; therefore, the SBE participation level pledged by the prime contractor will become part of the contract. The prime contractor may be assessed a penalty of not more than ten percent (10%) of the unpaid/underpaid amount of the Subcontract(s) involved. Prime contractors must receive written approval from PSD for any reduction, increase, or other change to any SBE Subcontract amount. If an SBE subcontractor’s scope of work is reduced or eliminated as a result of a Change Order issued by LAWA, the resulting change in the SBE participation will not be subject to a penalty.

5. If a prime contractor is assessed a 10% penalty, to whom is the penalty paid?

LAWA’s Board of Airport Commissioners has the authority to assess the penalty, and it will be paid to LAWA.

6. How can I find certified SBE’s?

LAWA uses the following databases for SBE certification verification:

State of California: https://caleprocure.ca.gov/pages/PublicSearch/supplier-search.aspx California Unified Certification Program: http://www.dot.ca.gov/hq/bep/find_certified.htm California Dept. of Transportation: http://www.dot.ca.gov/ucp/GetLicenseForm.do L.A. County Metropolitan Transportation Authority:

http://smallbusinessquery.metro.net/pages/naics_lookup.aspx City of Los Angeles (SLB): http://bca.lacity.org/index.cfm?nxt=slb&nxt_body=slbindex.cfm http://www.lawa.org/uploadedFiles/LAWA/Business/SBE_Directory.pdf

7. If SBE certification is good for two years and a contract is three years long, what happens?

If you are certified by one of the recognized agencies listed on page 1, LAWA will honor your certification for the duration of your certification with the issuing agency. A firm is responsible to follow the required guidelines of the certification agency to maintain its SBE status.

8 If I was previously certified as a LAWA SBE, do I have to re-apply for SBE (Proprietary) designation?

All firms certified as LAWA SBE prior to July 1, 2016 were automatically converted to SBE (Proprietary) and issued a revised certification letter. If you did not receive a revised certification letter or have questions regarding the status of an application issued under the LAWA SBE Certification, please contact LAWA’s Certification Manager at 213-847-2650.

IMPORTANT: If you and/or your subcontractors are SBE certified, please submit a copy of the certification with your bid/proposal. Further, you must ensure that the specific categories of work that you or the SBE subcontractors will perform on the project are relevant to the NAICS (North American Industry Classification System) codes for which you/they were certified in order for you to receive SBE participation credit from

LAWA.

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 3/11/19 http://www.dot.ca.gov/hq/bep/find_certified.htm http://www.dot.ca.gov/ucp/GetLicenseForm.do http://smallbusinessquery.metro.net/pages/naics_lookup.aspx http://bca.lacity.org/index.cfm?nxt=slb&nxt_body=slbindex.cfm http://www.lawa.org/uploadedFiles/LAWA/Business/SBE_Directory.pdf

LOCAL BUSINESS ENTERPRISE (LBE) PROGRAM

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 http://www.rampla.org and upload a completed Local Business Enterprise Affidavit of Eligibility. 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 Enterprise Affidavit of Eligibility 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 RAMPLA: https://www.rampla.org/

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 5/30/18 http://www.rampla.org/ https://www.rampla.org/

LOCAL SMALL BUSINESS ENTERPRISE (LSBE) PROGRAM

1. How can I get certified as an LSBE?

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 SLB certification, is that the same thing as being an LSBE?

No. SLB 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 Affidavit of Eligibility 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 RAMPLA: https://www.rampla.org/ 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 10/4/18 https://www.rampla.org/

ATTENTION PROPOSERS:

Your firm MUST fill out the Subcontractor Participation Plan completely, and provide accurate certification information, proposed dollar amounts, and proposed work percentages so that LAWA can properly credit your firm for the mandatory SBE and LBE/LSBE requirements.

The project you are bidding or proposing on has the following mandatory minimum participation levels: SBE: 15% LBE: 1% (with 2% LSBE as a subset)

Here are some examples of how a proposer can satisfy the SBE and LBE/LSBE requirements for this project:

Example 1:

Prime is OBE (non-certified) and proposes to use subcontractors as follows:

SBE: 15%

LBE: 1%

LSBE: 2%

Example 2:

Prime is a Joint Venture (80% OBE partner and 20% SBE partner) and proposes to use subcontractors as follows:

LBE: 1%

LSBE: 2%

Note: Since the JV has a 20% SBE partner, the 15% SBE requirement is satisfied.

Example 3:

Prime is SBE and proposes to use subcontractors as follows:

LSBE: 3%

Note: Since the Prime is an SBE, it will be given 100% SBE credit. The LSBE subcontractor(s) automatically satisfy the LBE requirement.

Example 4:

Prime is LBE and proposes to use subcontractors as follows:

SBE: 15%

LBE: 1%

LSBE: 2%

Note: Since the LBE program is a subcontracting program, the LBE Prime must still use LBE and LSBE subcontractor(s).

Example 5:

Prime is LSBE and proposes to use subcontractors as follows:

Note: The Prime’s LSBE status automatically satisfies the SBE, LBE and LSBE requirements.

The DBE and ACDBE mandatory goals will be achieved through race-conscious means or subcontracting participation.

These examples are provided for reference only and are not exhaustive. For program details, please review the specific documents via the links provided in the Administrative Requirements package.

If you have questions about your team composition to satisfy the mandatory SBE and LBE/LSBE requirements for this project, please call Procurement Services Division at (424) 646-5380.

File 10432

INSTRUCTIONS FOR SUBCONTRACTOR PARTICIPATION PLAN

ATTENTION: You MUST list ALL subcontractors/sub-concessionaires, including the dollar amount or percent pledged and regardless of whether they are certified or not. You MUST fill out ALL applicable fields completely for the Bidder/Proposer and all subcontractors, including NAICS code(s) of the work to be performed. Failure to provide complete and legible information on this form may result in your firm not receiving full certification credit. You may add pages as needed.

Project Title – The name of the project at the time of bid or proposal.

Bid/Proposal Amount – Total amount bidder/proposer proposed for the project.

Company Information – The complete name, address, phone number (including area code), Federal Tax Identification Number, email and contact person for the bidder/proposer and each subcontractor, vendor or supplier.

• Ethnicity – African American, Hispanic American, Native American, Asian-Pacific Islander, Subcontinent Asian Indian, Asian American, Aleut, Eskimo, Caucasian

• Gender – Male, Female

• Certification Type* –

ACDBE (Airport Concession Disadvantaged Business Enterprise) DBE (Disadvantaged Business Enterprise) DVBE (Disabled Veteran Business Enterprise) LBE (Local Business Enterprise) LSBE (Local Small Business Enterprise)** MBE (Minority Business Enterprise) SBE (Small Business Enterprise) WBE (Woman Business Enterprise) *Any firm that is not certified as an ACDBE, DBE, DVBE, LBE, LSBE, MBE, SBE or WBE is considered an OBE (Other Business Enterprise).

**LSBE designation is only for firms that are certified as both SBE and LBE.

• Certifying Agency – Agency that issued the certification City of Los Angeles (Department of Public Works) CALIF DGS (State of California Department of General Services) CALTRANS (California Department of Transportation) METRO (L.A. County Metropolitan Transportation Authority) SBA (Federal Small Business Administration) DVA (Department of Veterans Affairs) USWCC (US Women’s Chamber of Commerce) WBEC-WEST (Women’s Business Enterprise Council – WEST) NWBOC (National Women Business Owners Corporation

Description of Project Services – A brief description of the work the bidder/proposer or subcontractor will perform.

NAICS – North American Industry Classification System codes listed at http://www.census.gov/epcd/www/naics.html In order to receive credit for ACDBE/DBE/DVBE/LBE/LSBE/MBE/WBE/SBE participation, the companies must be certified in the NAICS code for the specific work they will perform on the contract.

Amount Proposed – Indicate the anticipated amount to be paid to the subcontractor over the term of the contract.

Pledged Percentage – Calculate the subcontractor’s share of the contract by dividing the Subcontractors Pledged Amount by the Bid/Proposal Amount. Please note: For projects with ACDBE or DBE goals, the Code of Federal Regulations, Title 49, Part 26.55(e) allows only 60% of the Amount Pledged to be used in the calculation for a subcontractor or supplier who is a regular dealer/distributor. A broker’s participation will be limited to the services performed.

Signature/Date – This form must be signed by a responsible person capable of committing the firm contractually.

Participation Level Pledged or Commitment by Bidder/Proposer – Indicate the level of ACDBE/DBE/DVBE/LBE/LSBE/MBE/WBE/SBE participation pledged by Bidder/Proposer.

Goal(s) Stated in the Request for Bid/Proposal – The ACDBE/DBE/DVBE/LBE/LSBE/MBE/WBE/SBE goal(s) established by Strategic Sourcing Division for the Request for Bid/Proposal.

For information regarding the certification process, please call the Department of Public Works, Centralized Certification Section at (213) 847-2684.

http://www.census.gov/epcd/www/naics.html