C.8_HSR_Business_Program_Plan.pdf

IFB No.: HSR25-12 Fresno Station Early Works

C.8 HSR Business Program Plan

Revision(s) Date Description 0 12/10/2025 Initial Release

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California High-Speed Rail Authority

HSR Business Program - Revised

HSR Business Program Plan – 2023 Revision

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TABLE OF CONTENTS

I. INTRODUCTION

A. Authority Board of Directors Resolution #HSRA-23-07 B. Equity Commitment C. HSR Business Program SB Reporting Policy D. HSR Business Program DBE Policy E. HSR Business Program Plan Updates and Amendments

II. CALIFORNIA HIGH-SPEED RAIL PROJECT & SYSTEM

A. State Funding Sources B. Federal Funding Sources

III. OVERVIEW OF THE HSR BUSINESS PROGRAM

A. Program Summary B. Accepted Business Certifications C. Program Goals Summary

IV. HSR BUSINESS PROGRAM TEAM

A. SB Advocate B. Outreach Team C. Outreach & Equity Plan D. Business Outreach Activities

V. PROGRAM SUPPORTIVE SERVICES & RESOURCE PARTNERS

A. Business Advisory Council (BAC) B. Supportive Services C. Resource Partners

VI. HSR BUSINESS PROGRAM NONDISCRIMINATION REQUIREMENTS

A. Federal Nondiscrimination Requirements B. Nondiscrimination Requirements for Federal Cooperative or Joint Development Agreements

C. 100% State Funded Contracts Nondiscrimination Requirements

VII. HSR BUSINESS ACCEPTED CERTIFICATIONS & PROGRAM GOALS

A. Accepted Business Certifications B. Other Business Certifications Tracked & Reported C. HSR Business Program Participation Goals

VIII. STATE & FEDERAL DATA COLLECTION & REPORTING REQUIREMENTS

A. Authority SB/DVBE/DBE Reporting Requirements B. Consultant/Contractor Data Collection & Reporting Requirements C. Fraudulent Certification and/or Reporting

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D. Consultant/Contractor Prompt Payment Requirements E. Contract Close-Out Reporting Requirements F. Record Maintenance and Confidentiality

IX. CONSULTANT/CONTRACTOR COMPLIANCE

A. Certified SB/DVBE/DBE Directories & Certification Agencies B. Continuous Certification C. SB/DVBE/DBE Merger or Assignment D. Subconsultant/Subcontractor Onboarding Meeting Requirements E. Executing Subconsultant/Subcontractor Agreements F. Addition of a New Subconsultant/Subcontractor Agreement G. Amendment of A Pre-Existing Subconsultant/Subcontract Agreement H. Substitution or Termination of a Subcontractor I. Commercially Useful Function (CUF)

X. APPLYING & CALCULATING COMMITMENT GOAL PERCENTAGES

A. Total Contract Value B. MB/SB/SB-PW Goal Applied to State Dollars Only C. DVBE Goal Applied to All Contract Dollars D. Federal DBE Goal Applied to Total Contract Dollars E. 100% State Funded Contracts & Agreements F. Blended State & Federal Contracts & Agreements G. 100% Federal Funding Contracts & Agreements

XI. CONSULTANT/CONTRACTOR REQUIREMENTS

A. Consultant/Contractor Outreach Efforts B. DBE Good Faith Efforts Commitment C. SB/DVBE/DBE Performance Plan D. Construction Contractor Communication Plan E. Key Personnel

XII. APPENDIX

A. Definitions B. Required Contract Clauses for All USDOT-Assisted Authority Agreements C. State and Federal Regulations D. Regulation Index

XIII. ATTACHMENTS

A. Sample Reporting Forms

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I. INTRODUCTION

A. Authority Board of Directors Resolution #HSRA-23-07

On November 2, 2023, the Board of Directors of the California High-Speed Rail Authority (Authority), by unanimous vote, resolved to adopt Resolution #HSRA 23-07, which approved updating the Authority’s small business program goals. This approval authorized changes to the Authority’s “Revised Small and Disadvantaged Business Enterprise Program for Design Build Contracts” and the Authority’s “Revised Small and Disadvantaged Business Enterprise Program for Professional Services Contracts” established in August 2012. The Authority’s updated small business program plan, the “High-Speed Rail Business Program Plan” (HSR Business Program Plan), supersedes the above-referenced documents for new contracts.

All contracts and/or agreements executed prior to November 2, 2023, remain subject to the prior program plans listed below, as applicable:

• Revised Small & Disadvantaged Business Enterprise Program Plan for Professional Services Contracts (2012),

• Revised Small & Disadvantaged Business Enterprise Program Plan for Design Build Contracts (2012), and

• POLI-SB-01-15-01 - Management Memo (2015) – Revisions to Small & Disadvantaged Business Enterprise Program Plan (2012).

Additionally, procurements released prior to November 2, 2023, also remain subject to the program plans identified above.

For questions, concerns or clarifications as to which procurements, solicitations, contracts, and/or agreements are subject to this HSR Business Program Plan, please visit the HSR Business Compliance webpage or contact the HSR Business Compliance Manager at the HSR Business Program Inbox

B. Equity Commitment

As a public transportation agency, the Authority seeks to connect all of California through high-speed rail travel. At its core, high-speed rail has the potential to connect communities in California in a way unlike any other transportation mode currently available in the state. The High-Speed Rail (HSR) System will connect communities not only geographically, but also by advancing equity in state contracting to help all businesses and communities economically benefit from the building of the HSR.

The HSR Business Program is just one way the Authority is ensuring economic equity and inclusion in the construction of this project. The Authority’s Community Benefits Agreement (CBA), National Targeted Hiring Initiative (NTHI), Environmental Justice (EJ) and Limited English Proficiency (LEP) policies all work together to ensure that disadvantaged workers, https://hsr.ca.gov/wp-content/uploads/2023/10/Board-Resolution-A11Y.pdf https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ mailto:sbprogram@hsr.ca.gov mailto:sbprogram@hsr.ca.gov https://hsr.ca.gov/business-opportunities/general-info/community-benefits-agreement/ https://hsr.ca.gov/wp-content/uploads/docs/programs/construction/National_Targeted_Hiring_Initiative_Plan.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1089-A11Y.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1088-A11Y.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1088-A11Y.pdf

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At the individual level, the Authority’s CBA and national targeted hiring policy provide direct economic benefits to disadvantaged communities through the employment of socially and economically disadvantaged workers. In further alignment with the nondiscrimination requirements of Title 49 Code of Federal Regulations (CFR), Part 26, and California Assembly Bill (AB) 2019, all HSR Business Program activities and opportunities are shared broadly to the public and incorporated into the Outreach & Equity Plan. The Authority’s Outreach & Equity Plan implements innovative public engagement strategies that specifically target businesses new to state contracting, as well as under-utilized businesses. As directed by AB 2019, the Authority’s outreach initiatives include distribution of tailored messages to individuals belonging to:

• Historically disadvantaged racial groups,

• LGBTQ groups,

• Women, and

• Veterans.

The Authority’s EJ Policy considers environmental, social, and financial impacts of the HSR system for both current and future generations and is in compliance with the reporting requirements of the California Air Resources Board Greenhouse Gas Fund. The Authority’s EJ Policy ensures that local communities surrounding the high-speed rail alignment benefit from the construction of the HSR System by identifying and addressing, as appropriate and when practicable, disproportionately high human health and environmental effects to under-represented, under-resourced, and low-income populations. In addition, the Authority provides free language assistance and translation services to individuals in alignment with its LEP Policy.

The Authority’s LEP Policy ensures meaningful engagement, increases public access to HSR project information, and reduces language barriers for individuals with limited English proficiency.

C. HSR Business Program SB Reporting Policy

The Authority recognizes the joint responsibilities of all Authority units in successfully implementing the Authority’s HSR Business Program. With few exceptions, the Authority’s HSR Business Program goals are incorporated into all contracts involving work to be performed on the HSR Project. The HSR Business Program Reporting Policy assists Authority units in advancing and enforcing program objectives, including meeting and exceeding the established HSR Business Program goals. The most current publication of program goals and accepted business certifications for the HSR Business Program may be found on the HSR Business Compliance Webpage.

https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1089-A11Y.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1089-A11Y.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1089-A11Y.pdf https://hsr.ca.gov/wp-content/uploads/2023/11/POLI-1088-A11Y.pdf%22HYPERLINK%20%22https:/hsr.ca.gov/wp-content/uploads/2023/11/POLI-1088-A11Y.pdf https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/

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The HSR Business Program Reporting Policy provides clarity, guidance and direction to Authority units to ensure compliance with all regulations involving or impacting the inclusion and participation of Small Businesses (including Microbusiness, Small Business, and Small Business for the Purpose of Public Works), Disabled Veteran Business Enterprises, and Disadvantaged Business Enterprises in state contracting. The business certifications accepted by the HSR Business Program are collectively referred to as SB/DVBE/DBE. As a state and federal assisted infrastructure project, the Authority is subject to the regulations and reporting requirements of multiple entities. The full copy of the HSR Business Program Reporting Policy may be accessed by clicking on the policy title.

D. HSR Business Program DBE Policy

The Authority is committed to creating a level playing field on which DBEs may fairly compete for Authority contracts. As a condition of federal financial assistance from the Federal Railroad Administration (FRA), the Authority signed an assurance to implement the best practices of 49 CFR 26, which pertains to the implementation of the U.S. Department of Transportation’s (USDOT) Disadvantaged Business Enterprise Program.

The Authority also provides assurance that all Authority activities are administered in good faith and without discrimination on the basis of race, color, sex or national origin, in alignment with Title VI and related statutes. Under the authority of AB 2019, the Authority implements outreach strategies that specifically target and engage under-utilized businesses owned by individuals belonging to historically disadvantaged racial groups, individuals with disabilities, LGBTQ members, veterans, and women. The Authority’s race-neutral DBE Policy in combination with state and federal regulations provide an equal opportunity for DBEs to compete for and participate on federally assisted contracts and subcontracts.

E. HSR Business Program Plan Updates and Amendments

The HSR Business Program Plan is periodically updated to stay in compliance with amended, new or pending State and Federal regulations that affect implementation of the program. All updates to the HSR Business Program Plan will be posted on the Authority’s webpage where relevant sections are identified as “updated.”

If it is determined that the HSR Business Program Plan requires an amendment, such changes are proposed before the Authority Board of Directors (Board) for approval through a Board resolution. Once approved, amendments will be incorporated into the HSR Business Program Plan, published on the Authority’s website, and disseminated to relevant parties and entities for incorporation into solicitations and existing contracts.

https://www.justice.gov/crt/fcs/TitleVI#:%7E:text=Title%20VI%2C%2042%20U.S.C.,activities%20receiving%20federal%20financial%20assistance.&text=Title%20VI%20itself%20prohibits%20intentional%20discrimination.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2019

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1. Process for Proposed Changes to the Race-Neutral DBE Goal

The HSR Business Program team provides recommended changes to the DBE goal to the Authority Executive team, Board of Directors, SB/DVBE/DBE associations and to the small and disadvantaged business community for review, comment, and consultation. Following this consultation, the Authority posts a notice of the proposed DBE goal on the Authority’s website, informing the public that the proposed goal and its rationale are available for inspection over a 30-day comment period. The notice includes the HSR SB/DVBE/DBE Business Advocate (SB Advocate) and HSR Business Program Inbox, where comments may be sent for consideration and discussion.

At the expiration of the public comment period, the HSR Business Program team makes a recommendation to the Board to render a decision to approve the recommended DBE goal. If approval is not granted, then resubmission of the recommendation is required. Resubmission of the recommendation is requested if the Board determines that specific elements of the proposed DBE goal require additional information, discussion and/or research. The proposed goal recommendation process will repeat as described above until the proposed goal is approved through a formal resolution by the Authority’s Board. The Authority will disseminate the resolution to federal agencies providing funding to the HSR Project.

mailto:SBProgram@hsr.ca.gov?subject=HSRA%20Web%20Inquiry%3A%20Let%E2%80%99s%20Get%20your%20Business%20on%20Board?subject=HSRA%20Web%20Inquiry%3A%20Let%E2%80%99s%20Get%20Your%20Business%20on%20Board?subject=HSRA%20Web%20Inquiry%3A%20Get%20Connected?subject=HSRA%20Web%20Inquiry%3A%20Get%20Connected?subject=HSRA%20Web%20Inquiry%3A%20Small%20Business%20Program

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II. CALIFORNIA HIGH-SPEED RAIL PROJECT & SYSTEM

The Authority is responsible for the planning, design, construction, and operation of the first HSR system in California. The system will run from San Francisco to the Los Angeles basin in less than three hours at speeds of over 200 miles per hour. The system will eventually extend to Sacramento and San Diego, totaling 800 miles with up to 24 stations. In addition, the Authority is working with regional partners to implement a statewide rail modernization plan that will invest billions in local and regional rail lines to meet the State’s 21st century transportation needs.

A. State Funding Sources

Sources of state funding include proceeds from California’s Greenhouse Gas Reduction Fund (Cap-and-Trade) and the Safe, Reliable High-Speed Passenger Train Bond Act for the 21st Century (2008 California Proposition 1A).

B. Federal Funding Sources

Federal funding for the planning, design, construction, and program implementation is provided with the U.S. Congress-approved American Recovery and Reinvestment Act of 2009 (ARRA).

This funding is made available to the Authority through a grant agreement with the FRA. The FRA is one of the Operating Administrations of the USDOT.

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III. OVERVIEW OF THE HSR BUSINESS PROGRAM

A. Program Summary

The Authority remains committed to ensuring that all California businesses have a fair opportunity to compete and participate on all Authority contracts. Therefore, in alignment with AB 2019, the HSR Business Team implemented the Outreach & Equity Plan to ensure that all businesses, including SB/DVBE/DBEs earn an equitable share of California’s robust economy.

The purpose of the HSR Business Program Plan is to provide direction and guidance to all Authority Units, Consultants/Contractors, Subconsultants/Subcontractors, and any other interested parties performing work on the HSR System. The HSR Business Program Plan outlines the State and Federal regulations that require and/or impact the participation of SB/DVBE/DBEs on state and federal contracts.

This HSR Business Program Plan is accessible on the Authority’s HSR Business Program Webpage, and is made available as an attachment and/or link in Authority solicitations and Consultant/Contractor Agreements. In collaboration with community partners, stakeholders, and advisory councils, the Authority developed the HSR Business Program Plan as a companion to the Authority’s POLI-1129 – DBE Policy and the Authority’s POLI-1003 - HSR Business Program Reporting Policy. Together the two policies replace the former Small and Disadvantaged Business Policy that was last updated in 2019.

B. Accepted Business Certifications

This HSR Business Program Plan uses the term “SB/DVBE/DBE” when referencing the collective of the State and Federal business certifications accepted for equity crediting in the HSR Business Program. In addition, the term “SBs” is used to reference the collective of small business certifications (MB, SB, and SB-PW) solely administered by the state of California.

The most current publication of accepted business certifications for the HSR Business Program may be found at the HSR Business Compliance Webpages.

C. Program Goals Summary

Under the HSR Business Program Plan business participation goals are established for State certified SBs and DVBEs, and Federal certified DBEs. The Authority implements multiple goals intentionally to provide maximum practicable opportunities for small, disadvantaged, and disabled veteran business participation in state contracting. In addition, to maintain compliance with State and Federal regulations, the achievement of each HSR Business Program goal is measured independently of the other.

https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB2019 https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/

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IV. HSR BUSINESS PROGRAM TEAM

Together, the SB Advocate with the support of the HSR Business Outreach (Business Outreach) and HSR Business Compliance (Business Compliance) teams identify and implement innovative strategies with the intent of increasing utilization of new businesses and under-utilized businesses. Such businesses include business owners who belong to historically disadvantaged groups, LGBTQ members, individuals with disabilities, Tribal groups, and women.

In addition, Authority personnel, and divisions, work together to support the implementation of the HSR Business Program. This collaborative approach ensures the effective administration and success of the HSR Business Program. The program support divisions and the HSR Business Program team are expected to give their full cooperation and active support to the SB Advocate in this effort.

A. SB Advocate

Designated by the Authority's Chief Executive Officer (CEO), the SB Advocate has direct, and independent access to the CEO concerning HSR Business Program matters. The SB Advocate administers the day-to-day operations, oversees outreach, and enforces compliance with the HSR Business Program. The SB Advocate is responsible for implementing all aspects of the HSR Business Program and ensuring that the Authority effectuates policies, procedures, and practices to achieve all program goals. The roles and responsibilities of the SB Advocate are in compliance with State and Federal laws and regulations, inclusive of the Executive Order S-02- 06, AB 2019, and 49 CFR Part 26.25.

The Authority personnel, divisions, and all members of the HSR Business Program team share in the responsibility of ensuring the effective implementation and success of the HSR Business Program.

The SB Advocate contact and department information is:

HSR SB Advocate California High-Speed Rail Authority 770 L Street, Suite 620 Sacramento, CA 95814

(916) 431-2930 HSR Business Program Inbox

B. Outreach Team

The Business Outreach team strives to ensure that all California businesses, especially under-utilized businesses, are aware of Authority procurement and contract opportunities. In addition, the Business Outreach team conducts and/or promotes business training, education, resources, https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2019 mailto:SBProgram@hsr.ca.gov

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The HSR Business Program outreach focus is to meet Subconsultants/Subcontractors, including SB/DVBE/DBEs, where they are and tailor outreach efforts to meet the needs of each Subconsultant/Subcontractor. Realizing there is no “one size fits all” in providing support services to the Subconsultant/Subcontractor community, the Business Outreach team employs a variety of strategies to increase meaningful engagement, contract readiness, and Subconsultant/Subcontractor competitiveness.

C. Outreach & Equity Plan

The Authority reduces barriers for new businesses, and SB/DVBE/DBEs by implementing multi-layered communication and engagement platforms to make the HSR Business Program information and resources more accessible to California businesses. With the help of the Authority Strategic Communications & Media teams, the Business Outreach team uses social media platforms, newspapers, publications, webpages, radio outlets, and toll-free numbers to share and disseminate information, activities, trainings, and events that help to support and grow businesses. The HSR Business Outreach & Equity Plan may be found on the HSR Business Program Webpages.

D. Business Outreach Activities

In broadening the reach of the HSR Business Program, the Business Outreach team necessarily rely on collaborations with stakeholders, and partners, such as the Business Advisory Council (BAC), the Department of General Services (DGS), Caltrans, SB/DVBE/DBE technical support resource partners, and more. The Authority also implemented and maintains a free online vendor registry, called ConnectHSR, where businesses, large and small, may sign up to receive HSR business opportunities and have them delivered directly to their business or personal email inboxes. The Business Outreach strategies are flexible and are designed to adapt to the current needs of the SB/DVBE/DBE community. Current outreach tools include in the following:

1. Annual Diversity & Resources Fair

The annual Diversity and Resources Fair is a free networking event for individuals interested in starting a business, growing a business, or finding business opportunities for small, disadvantaged, and veteran-owned businesses. The Diversity and Resources Fair is a free event and is open to all businesses and individuals. This event provides attendees with the opportunity to:

• Attend panels on overcoming small business barriers and accessing capital and finance

• Network with business owners https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/business-opportunities/small-business-program/hsr-small-business-compliance-b2g-now/ https://hsr.ca.gov/wp-content/uploads/docs/communication/info_center/factsheets/ConnectHSR_Factsheet.pdf

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• Meet one-on-one with Prime subcontractors that have current HSR contracts

• Learn about contract compliance, labor compliance, state contract audit, getting certified, getting paid timely, bid document review, and more.

2. HSR Business Program Webpages

The HSR Business Program webpages provide a wealth of information, resources, and support services for SB/DVBE/DBEs seeking to contract with the Authority or Authority Consultant/Contractors. Contracting opportunities, publications, upcoming events, and links to HSR Business Program partners and resources are found on the HSR Business Program Webpage.

3. HSR Business Program Newsletter

The Authority’s Strategic Communications & Media teams publishes a quarterly Small Business Newsletter that covers important issues impacting the SB/DVBE/DBE community, promotes outreach events, and includes a column dedicated to the SB Advocate. The newsletter also provides a space for Subconsultants/Subcontractors, including SB/DVBE/DBEs, to share their success stories to inspire other businesses.

4. Connect HSR Vendor Registry

The Connect HSR Vendor Registry (Vendor Registry), is a database comprised of businesses that intend to contract with the Authority and/or its prime Consultants/Contractors. The purpose of the Vendor Registry is to help Consultants/Contractors determine the availability of the businesses interested in providing services to the HSR project and provide potential and selected Consultants/Contractors with information on firms available for subcontracting opportunities.

Businesses can access the Vendor Registry on the HSR website and at outreach events throughout California.

The Vendor Registry is available to the public, and includes the following information:

• Business name

• Contact information – address and phone numbers

• SB/DVBE/DBE certification type and status

• If the firm is not a SB/DVBE/DBE, their non-SB/DVBE/DBE status

• Type of business

• General or average annual gross receipts

• General business services

• Business’s North American Industry Classification System (NAICS) Codes.

https://hsr.ca.gov/business-opportunities/small-business-program/ https://hsr.ca.gov/business-opportunities/small-business-program/ https://hsr.ca.gov/business-opportunities/small-business-program/small-business-newsletter/ https://hsr.ca.gov/business-opportunities/small-business-program/small-business-newsletter/ https://hsr.ca.gov/business-opportunities/small-business-program/get-connected/

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The Vendor Registry is available to prospective bidders and offerors to facilitate meeting the HSR Business Program goals. It is not a certification directory. SB/DVBE/DBE certification is validated through a recognized certifying agency. See HSR Business Accepted Certifications & Program Goals Section for more information about business certifications.

5. HSR Business Assistance Requests

The HSR Business Program provides multiple ways for Subconsultants/Subcontractors, including SB/DVBE/DBEs, to get assistance. Communication platforms include direct phone calls, email, video/audio conferencing or by USPS mail. Responding to the need for increased direct supportive services, the HSR Business Assistance Form was implemented and made available on the HSR Business Program webpage for businesses seeking tailored information and/or support.

Assistance requests are sent directly to the SB Advocate for review and assignment to the appropriate Authority staff. The HSR Business Assistance Form provides a direct line to the HSR Business Program team where Subconsultants/Subcontractors may:

• Request general information about the HSR Business Program;

• Submit disputes involving Authority Consultants/Contractors;

• Submit concerns involving payments;

• Escalate concerns regarding SB/DVBE/DBE utilization, and more.

https://hsr.ca.gov/business-opportunities/small-business-program/small-business-assistance-form/

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V. PROGRAM SUPPORTIVE SERVICES & RESOURCE PARTNERS

A. Business Advisory Council (BAC)

On April 19, 2012 the Authority Board of Directors established and authorized the Business Advisory Council (BAC) to work in collaboration with the HSR Business Program team. This partnership is intended to ensure that the perspectives of the SB/DVBE/DBE community are given serious consideration in the planning, design and building of the HSR System. The BAC meets regularly and provides a forum for meaningful engagement with SB/DVBE/DBEs and ensure their equitable inclusion on the HSR project. The BAC also serves as a vehicle to disseminate Authority approved communications specific to HSR projects and programs.

The BAC is comprised of statewide construction and professional service business trade associations and SB/DVBE/DBE firms. Although it is not a decision-making body, in its advisory capacity, it provides the Authority with important input, feedback, and perspectives of California’s diverse SB/DVBE/DBE community that inform and impact the decisions made by the Authority Board. The collaboration and insight provided by the BAC serves to advance economic equity for Subconsultants/Subcontractors and assist the Authority in meeting the HSR Business Program goals.

B. Supportive Services

In effort to eliminate barriers that many Subconsultants/Subcontractors encounter, the HSR Business Program provides a variety of support services. These services include webinars, diversity and resource fairs, match-making activities with Consultants/Contractors, mentoring and partnering with government and nonprofit organizations. To leverage existing resources, the Authority works closely with the Small Business Development Centers and the USDOT Office of Small Disadvantaged Business Utilization. These partner agencies provide critical services in expanding the business capacity of new businesses and SB/DVBE/DBEs. The HSR Business Program partnerships bring a variety or resource support including help with accessing and securing business capital, insurance, and bonding.

The Authority implements strong outreach efforts to encourage businesses to get certified. The Business Compliance and Outreach teams also strongly urges businesses to pursue all certifications that are accepted by the HSR Business Program to which they are eligible.

Please visit the Authority’s calendar of events webpages to learn more about the latest HSR Business Program events.

C. Resource Partners

The State of California provides numerous resources available to assist SB/DVBE/DBEs at no cost. To leverage resources available to the HSR Business Program, the Authority executed https://hsr.ca.gov/business-opportunities/small-business-program/business-advisory-council/ https://hsr.ca.gov/business-opportunities/small-business-program/business-advisory-council/ https://hsr.ca.gov/communications-outreach/info-center/events/

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Memorandums of Understandings (MOUs) with such state entities and resource groups at the inception of the HSR project. The Authority executed the MOUs with the intention to provide comprehensive, wrap-around support services to Authority SB/DVBE/DBEs.

The Authority continues to work closely with small business development and technical assistance resource centers. The desired outcome of the Authority MOU partnerships is to increase SB/DVBE/DBEs access and utilization of these resources. When SB/DVBE/DBEs expand their capacity to bid the pool of eligible SB/DVBE/DBEs deepens and the Authority is better positioned to meet SB/DVBE/DBEs commitment and utilization goals.

The Authority’s MOUs with industry, governments, and community partners are intended to provide supportive services in the following areas:

• Certification

• Capacity Building

• Communications

• Partnering

• Keys to Marketing and Negotiations

• Bonding and Insurance

• Contract Administration (including preparing schedules of values)

• Access to Capital

• Business Counseling and Training

• How to do Business with the Authority

• Networking

• Teaming and Joint Venturing

Please visit the Authority’s Resource Partners webpage for a list of Authority resource partners.

https://hsr.ca.gov/business-opportunities/small-business-program/info-center/

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VI. HSR BUSINESS PROGRAM NONDISCRIMINATION REQUIREMENTS

A. Federal Nondiscrimination Requirements

The Authority does not exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract. In administering the HSR Business Program, and in compliance with applicable State and Federal law, the Authority does not directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing the accomplishment of the objectives of the HSR Business Program with respect to individuals of a particular race, color, sex, disability, or national origin.

In accordance with Title VI and related statutes, the Consultant/Contractor, regardless of tier, shall comply with the following nondiscrimination requirements:

1. Compliance with Regulations: The Consultant/Contractor shall comply with regulations relative to Title VI of the Civil Rights Act of 1964 (nondiscrimination in federally funded programs of the USDOT - Title 49 CFR Part 21 and Part 26.7.

provides that the recipients of federal assistance will implement and maintain a policy of nondiscrimination in which no person shall, on the basis of race, color, sex or national origin, be excluded from participation in, denied the benefits of, or subject to discrimination under any program or activity by the recipients of federal assistance or their assignees and successors in interest.

2. Nondiscrimination: The Contractor, with regard to the work performed during the Agreement shall act in accordance with Title VI. Specifically, the Consultant/Contractor shall not discriminate on the basis of race, color, sex or national origin in the selection and retention of subcontractors, including procurement of materials and leases of equipment. The Consultant/Contractor shall not participate either directly or indirectly in the discrimination prohibited by 49 CFR Part 21.5 et. seq. of the USDOT’s regulations, including employment practices.

3. Solicitations for subcontracts, including procurements of services, materials and equipment: In all solicitations, either by competitive bidding or negotiation made by the Consultant/Contractor for work to be performed under a subcontract, including procurements of materials or leases of equipment, each potential subcontractor or supplier shall be notified by the Consultant/Contractor of the Consultant/Contractor’s obligations under this Agreement and the regulations relative to nondiscrimination on the grounds of race, color, sex or national origin.

4. Information and reports: The Consultant/Contractor shall provide all information and reports required by the regulations, or directives issued pursuant thereto, and shall permit access to its books, records, accounts, other sources of information, https://www.justice.gov/crt/fcs/TitleVI#:%7E:text=Title%20VI%2C%2042%20U.S.C.,activities%20receiving%20federal%20financial%20assistance.&text=Title%20VI%20itself%20prohibits%20intentional%20discrimination.

https://www.justice.gov/crt/fcs/TitleVI#:%7E:text=Title%20VI%2C%2042%20U.S.C.,activities%20receiving%20federal%20financial%20assistance.&text=Title%20VI%20itself%20prohibits%20intentional%20discrimination.

https://www.ecfr.gov/current/title-49/subtitle-A/part-21#21.5

16 | P a g e and facilities as may be determined by the Authority or any duly authorized representative of the federal government to be pertinent to ascertain compliance with such regulations or directives. Where any information required of a Consultant/Contractor is in the exclusive possession of another who fails or refuses to furnish this information, the Consultant/Contractor shall so certify to the Authority, or any duly authorized federal agency as appropriate, and shall set forth what efforts it has made to obtain the information. As required in 49 CFR Part 26 .

5. Sanctions for non-compliance: In the event of the Contractor's non-compliance with the nondiscrimination provisions of this Agreement, the Authority may impose such sanctions as it or any federal funding agency may determine to be appropriate, including, but not limited to:

i. Withholding of payments to the Consultant/Contractor under the Agreement until the Consultant/Contractor complies, including the suspension or termination of Federal funds, or refusal to approve projects, grants or contracts until deficiencies are remedied under 49 CFR 26.101(a) and/or

ii. Cancellation, termination, or suspension of the Agreement, in whole or in part and/or

iii. Suspension or debarment under 49 CFR 26.107 and or civil penalties under 49 CFR 31.

6. Incorporation of provisions: The Consultant/Contractor shall include the provisions of paragraphs (1) through (6) in every subcontract, including procurements of materials and leases of equipment. The Consultant/Contractor will take such action with respect to any subcontractor or procurement as the Authority or any federal funding agency may direct as a means of enforcing such provisions including sanctions for non-compliance.

Please refer to the appendix for the USDOT-assisted contracts clause that must be included in subcontract terms of all contracts funded with federally assisted dollars, regardless of tier.

B. Nondiscrimination Requirements for Federal Cooperative or Joint Development Agreements

In the case of cooperative or joint development agreements, including federal grant agreements, entered into with local governments or private entities, please defer to the requirements of the California Public Utilities Code Section 185036, subsection (d) and 2 CFR 200.331 that regulate such agreements, including the imposition of a DBE utilization goal.

https://www.ecfr.gov/current/title-2/subtitle-A/chapter-II/part-200/subpart-D/subject-group-ECFR031321e29ac5bbd/section-200.331

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C. 100% State Funded Contracts Nondiscrimination Requirements

In accordance with State nondiscrimination requirements for any employer who is a Consultant/Contractor set forth in Government Code Section 12990 et seq. and Title 2, California Code of Regulations, Division 4, Chapter 5, Sections 8103, 8104, 8108 and 8113 (unless exempted pursuant to Section 8115), Consultants/Contractors or Subconsultants/Subcontractors with 50 or more employees shall provide a description of their firm's nondiscrimination plan designed to eliminate discrimination based on race, color, religion, age, sex, sexual orientation, disability or national origin.

Each Consultant/Contractor or Subconsultant/Subcontractor with fewer than 50 employees must provide a statement indicating that the firm has fewer than 50 employees and is therefore exempt from the requirement to provide a nondiscrimination plan.

1. On-Site Performance Monitoring

During the course of the contract, the Authority will perform periodic on-site monitoring to ensure that work committed to SB/DVBE/DBE firms is actually being performed by said firms.

The Authority may also utilize the labor compliance field interview process as a secondary mechanism to verify that work awarded to SB/DVBE/DBE firms are actually being performed by each firms own workforce. The interview results will be reconciled against the SB/DVBE/DBE Agreements submitted by the Consultant/Contractor and represented on the Form 103 reports.

2. Written Certification

As a part of the project/contract close-out process, the Authority will include a written certification that it has fully monitored the contract in accordance with the HSR Business Program policies and programs. The written certification will be maintained in the Authority's contract file and available upon request to the funding partner.

3. General Administrative Remedies for Non-Compliance

Areas of identified non-compliance will be subject to administrative or financial sanctions and may include termination of the contract. The Authority will consider all State and Federal regulatory options to impose administrative or financial sanctions.

All Consultants/Contractors deemed to be in non-compliance shall be informed in writing that administrative sanctions may be imposed for failure to comply with the HSR Business Program requirements. The Consultant/Contractor shall be given five (5) business-days from the date the notice was received to file a written appeal to the Authority. Failure to respond within the five (5) business-day period shall constitute a waiver of appeal. The notice shall state the specific administrative remedy to be imposed.

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The Authority CEO or his/her designee, at his/her sole discretion, may schedule a hearing to gather additional facts and evidence and shall issue a final determination on the matter within five (5) business-days of receipt of the written appeal. The written decision of the CEO or designee is final and there is no further administrative appeal process.

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VII. HSR BUSINESS ACCEPTED CERTIFICATIONS & PROGRAM GOALS

A. Accepted Business Certifications

The Authority accepts the business certifications listed in the table below for crediting in the HSR Business Program:

Table 1: Terms Used for Accepted Business Certification Types

Certification Name Term Jurisdiction Certifying Agency

Microbusiness MB CA State CA Department of General Services (DGS)

Small Business SB CA State CA Department of General Services (DGS)

Small Business for Public Works SBPW CA State CA Department of General Services (DGS)

Disadvantaged Business Enterprise DBE Federal California Unified Certification Program (CUCP)

Disabled Veteran Business Enterprise DVBE CA State CA Department of General Services (DGS)

Table 2: Terms Used for the Collective Business Certifications

Certification Types Collective Term

• MB,

• SB, and

• SBPW

SBs

• MB, SB, SBPW

• DVBE, and

• DBE

SB/DVBE/DBE

B. Other Business Certifications Tracked & Reported

The Authority tracks and reports the commitment and utilization of other business certifications held by SB/DVBE/DBE Subconsultants/Subcontractors performing work on the project. All Subconsultants/Subcontractors are requested and encouraged to self-report all active certifications that they hold for federal and/or local business utilization programs, including:

• LGBTQ+ Business Enterprise

• Minority Business Enterprise (MBE)

• Service-Disabled Veteran Owned Small Business (SDVOSB)

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• Veteran Owned Small Business (VOSB), and

• Woman Business Enterprise (WBE).

Authority Consultants/Contractors receive SB/DVBE/DBE commitment and utilization crediting only for accepted business certifications of the HSR Business Program. However, the HSR Business Team uses the certification data self-reported by Subconsultants/Subcontractors to identify opportunities to expand the program and further develop outreach strategies.

C. HSR Business Program Participation Goals

The Authority has established a comprehensive HSR Business Program to provide maximum practicable opportunities to certified SB/DVBE/DBE to fairly compete for state contracts. The Authority measures the progress of each program goal separately, as each goal is subject to the laws regulating each certification. Hence, the HSR Business Program is comprised of three goals with each goal expressed as an independent, and stand-alone goal. The three goals are tracked and monitored by the HSR Business Program team and include a state SB goal, a state DVBE goal, and a federal DBE goal. In addition, the state SB goal includes a MB carve-out goal which is included within and not in addition to the SB goal percentage. The most current publication of HSR Business Program Goals may be found on the Authority’s Business Compliance Webpage.

HSR BUSINESS PROGRAM GOALS

State Goal SB (MB carve-out – 3%) 25%

State Goal DVBE 03%

Federal Goal DBE 10%

State Small Business Goal 25%

With the passage of AB 2019 and incompliance with Executive Orders D-37-01 (Davis) and S- 02-06 (Schwarzenegger), state agencies are directed to implement a 25 percent SB participation goal in state procurements and contracts that includes combined commitments to MB, SB, and SB-PW firms. The Authority is committed to achieve and even exceed the state SB participation goal.

The DGS, a California State agency, monitors the progress of the Authority and all other state agencies, departments, boards, and commissions in meeting the statewide SB participation goal. The SB goal is state specific, and the SB participation percentage is only applied toward total State dollars received by the Authority from the State. Therefore, the Authority does not apply the 25 percent state participation goal to the portion of Consultant/Contractor contract dollars that are funded with non-state dollars, including federally assisted dollars. The most current publication https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/ https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/ https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202120220AB2019

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State Disabled Veteran Business Enterprise Goal 03%

The HSR Business Program’s DVBE goal is in compliance with the requirements of Executive Order D-43-01 and Military & Veterans Code 999, which require State agencies to take all practical actions necessary to meet or exceed the minimum three (3) percent DVBE participation goal. The DVBE goal is applied to all dollars that fund a contract. Therefore, the Authority applies the program’s DVBE goal toward the total contract value of each Consultant/Contractor HSR agreement, which may include a combination of state and federally assisted dollars.

The DGS is the State agency responsible for monitoring the progress of all agencies, departments, boards, and commissions towards meeting the three (3) percent DVBE participation goal. To maximize opportunities for veteran owned small businesses, the Authority tracks and reports utilization of VOSBs and SDVOSBs. The most current publication of HSR Business Program Goals may be found on the Authority’s Business Compliance Webpage.

Federal Disadvantaged Business Enterprise Goal 10%

Through 49 CFR Part 26.41(a) , the USDOT establishes a participation goal of not less than 10 percent for DBEs on projects receiving federal funding from a USDOT Administration.

Therefore, as a recipient of FRA funding, the Authority implemented a wholly race-neutral DBE goal as a separate goal within its HSR Business Program, to which the Authority, and Authority Consultants/Contractors must demonstrate good faith efforts to achieve.

The FRA accepted the Authority’s HSR Business Program (formerly named the Small and Disadvantaged Business Enterprise Program) that was adopted by the Authority Board in the approval of Resolution #HSRA 12-21, including a race-neutral goal established for DBEs.

The HSR Business Program applies the race-neutral DBE goal toward the total contract value of each Consultant/Contractor HSR agreement, which may include a combination of state and federally assisted dollars. Federally assisted dollars may include FRA grants that require matching State funds, or other USDOT department funding. The most current publication of HSR Business Program goals may be found on the Authority’s Business Compliance Webpage.

https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/ https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/ https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/ https://hsr.ca.gov/wp-content/uploads/docs/brdmeetings/2012/August/brdmtg0812_approve3_122112.pdf https://hsr.ca.gov/business-opportunities/small-business-program/small-business-program-contract-compliance/

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VIII. STATE & FEDERAL DATA COLLECTION & REPORTING REQUIREMENTS

A. Authority SB/DVBE/DBE Reporting Requirements

1. Authority SBs and DVBE Reporting Requirements

• Monthly Reports In accordance with the Public Contract Code 10111 and in accordance with the reporting requirements of the Privacy Act of 1974, 5 U.S.C. Section 552(a), the Business Compliance team reports SBs and DVBE commitments to the Authority's Board and designated Authority units. Business utilization data collected and compiled by the Authority Business Compliance team includes data reported by the Consultant/Contractors in their monthly SB/DVBE/DBE report (Form 103).

• Annual Reports The Authority must also submit the Consolidated Annual Report (DGS PD 810) to DGS by October 1st of each year listing SBs, and DVBE contract and subcontract awards for the previous fiscal year on solely State funded contracts.

2. Authority Federal DBE Reporting Requirements

• Bi-Annual Reports (Twice Per Year) The Authority reports DBE utilization on the USDOT Uniform Report of DBE Awards or Commitments and Payments Form (USDOT DBE Form) based on federal dollars received by the FRA. The Authority’s DBE Report is submitted to the FRA on a semi-annual basis on June 1 and December 1 of each year. The June 1 report contains information for the period from October 1 through March 31. The December 1 report contains information for the period from April 1 through September 30.

The USDOT DBE Form captures DBE utilization on Authority USDOT-assisted contracts where all reported dollar amounts paid to the Authority Consultants/Contractors and Subconsultants/Subcontractors reflect only the federal share of such contracts.

The Authority, on an annual basis, reviews its DBE attainments in contrast to its DBE goal to determine if any measures, including Race-Conscious Measures would need to be instituted to effectively meet its established DBE goal. In the event the Authority does not meet its DBE goal at the end of the fiscal year, in conformance with USDOT guidance, the Authority will analyze the reasons for the shortfall and establish specific steps and milestones to correct problems identified.