EXHIBIT A - SCOPE OF SERVICES.pdf

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EXHIBIT A

SCOPE OF SERVICES

(July 31, 2026)

INTRODUCTION

The Los Angeles County Metropolitan Transportation Authority (Metro) is seeking qualified firm(s) to provide Metro with professional and support services to assist in the processing of applications to determine an applicant’s eligibility for the Disadvantaged

Business Enterprise (DBE) program, Airport Concessionaire Disadvantaged Business

Enterprise (ACDBE), and Metro’s Small Business Enterprise (SBE) program.

BACKGROUND

Metro’s Diversity & Economic Opportunity Department (DEOD) promotes greater participation from small businesses by implementing programs that hold both staff and prime contractors accountable to specific engagement goals. Obtaining small business certification increases a firm’s visibility in a competitive marketplace, enhances its ability to compete in Metro’s procurement opportunities, and opens access to contracting opportunities with other local agencies that rely on Metro’s certification process. These efforts help foster broader inclusion and higher levels of small business participation across the region.

Metro’s Certification Unit processes applications based on Federal Regulation and procedures outlined in 49 CFR Part 26, as amended, for DBE, and 49 CFR Part 23, as amended, for ACDBE and in accordance with the Interim Final Rule Guidance issued on

October 3, 2025. Metro also makes determinations on whether applicants seeking SBE certification meet the eligibility guidelines of Metro’s Fully Vetted SBE Program. Metro’s

SBE program’s certification procedures and standards mirror the certification regulations of the DBE program (49 CFR Part 26), While the SBE program is race and gender neutral, the DBE program requires the applicant(s) to be socially and economically disadvantaged. Effective October 3, 2025, the U.S. Department of Transportation (DOT) issued an Interim Final Rule (IFR) removing race and sex-based presumptions from the definition of “socially and economically disadvantaged individual”. Under the revised rule, qualifying owners of DBE or ACDBE firms must now demonstrate, on a case-by-case basis, that they meet the criteria for social and economic disadvantage, as outlined in 49 CFR § 26.67, by submitting a personal narrative.

Some requirements for DBE and SBE certification are:

• The business must be independent and organized for profit.

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• Qualified owner(s) personal net worth must be less than $2.047 million.

• Qualified applicant(s) must own 51% of the business and possess authority to make decisions, have managerial oversight, revocable delegation of authority, and critical and independent decision-making.

• Annual gross receipts must be less than $31.84 million (three-year average).

• The applicant must be a U.S. Citizen or lawfully admitted permanent resident.

Period of Performance

The period of performance is five (5) years.

SCOPE OF SERVICES

I. Scope of Contractor’s Responsibilities, Contractor-Provided Services, and Contractor-Provided Deliverables:

Contractor shall, at a minimum, process and evaluate applications for

DBE/ACDBE certification in accordance with the standards and procedures set forth in the United States Department of Transportation (“DOT”) regulations, Title 49 CFR Part 26 and 23, as amended, along with the California Unified

Certification Program (“CUCP”) policies and procedures, and Small Business

Administration (“SBA”) business size standards. Additionally, the Contractor shall also process and evaluate applications for SBE certification in alignment with Metro’s SBE Program which includes full vetting. The Contractor shall:

1. Process, analyze, and evaluate new certification applications submitted by individual applicants or businesses seeking DBE/ACDBE and/or SBE certification through the online Small Business Certification Management

System. This will require the technical ability to review applications for completeness and accuracy, communicate with applicants and Metro staff to obtain necessary information and upload and organize supporting documents onto the online certification management system.

2. Review and evaluate newly submitted documentation regarding changes in status of existing DBE/ACDBE and/or SBE firms to determine their continued eligibility.

3. Perform virtual on-site interviews with DBE/ACDBE applicants, utilizing computer, tablet, and mobile device technologies such as FaceTime, Skype, Teams, GoToMeeting, Zoom, and other similar telecommunication

3 | P a g e applications. Virtual on-sites are conducted to interview firm owners and key personnel, take virtual tours of office space, view equipment, and job sites. The Contractor must maintain a complete audio recording of the interview.

4. Perform in-person on-site interviews, as needed or on a case-by-case basis, at the DBE/ACDBE applicant’s offices and/or job sites. This applies to DBE/ACDBE certifications covering the following counties: Los

Angeles, Orange, Ventura, San Bernardino, Riverside, Kern and San

Diego.

5. Support applicants by providing technical assistance to Certification

Applicants, including:

i. Clarifying certification application instructions.

ii. Provide timely, accurate, and complete answers to questions regarding the certification application or certification process.

iii. Identify the supporting documentation called for in the instructions.

6. Participate in quarterly meetings via conference call as designated by

Metro. These meetings are intended to discuss recent or forthcoming changes issued by the DOT as it pertains to DBE/ACDBE certification, Metro’s SBE program, or other relevant matters that may arise.

7. Responsible for staying current with certifications regulations. As directed by Metro, the Contractor shall obtain training related to DBE/ACDBE and

SBE certifications which will be conducted by Metro at the Quarterly

Meetings to ensure continuing compliance and expertise in certification practices.

8. Provide Technical Assistance for Metro’s Local Small Business Enterprise

(LSBE) applications and Local Micro Small Business Enterprise (LMSBE) and make eligibility recommendations on an as needed and case by case basis.

II. Schedule for Delivery of Contractor Provided Services and Deliverables:

After Metro has received and completed initial intake processing and vetting of

DBE/ACDBE and/or SBE applications, Metro shall assign the files to the

Contractor to conduct the appropriate interviews and perform a comprehensive evaluation of the file.

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Contractor’s responsibilities and scheduled timeline are set forth below. In the event Contractor becomes aware that compliance with the scheduled timeline may not be possible, Contractor shall immediately advise Metro of the delay and consult with Metro regarding a revised time schedule. Contractor shall:

1. Application Evaluation: Within ten (10) business days of receiving the application for DBE/ACDBE and/or SBE certification, Contractor shall review the application to determine if additional documentation is required, including invoices and/or contracts as support for North American Industry

Classification System (NAICS) codes requested. The Contractor shall also schedule a virtual onsite interview (DBE/ACDBE only). If additional information is required, Contractor is to send a written notice to the applicant on behalf of Metro, clearly listing any additional information, supporting documentation, and required forms necessary to establish DBE/ACDBE and/or SBE eligibility.

2. DBE Social and Economic Disadvantage Personal Narrative Analysis:

To be conducted when applicants apply for ACDBE, DBE, and SBE, both

DBE & SBE, or DBE only.

The Contractor shall conduct a thorough analysis of the Personal Narrative in accordance with 49 CFR 26.67 and Metro’s established guidelines to verify that the qualifying owner(s) meet the eligibility requirements for DBE certification. Upon completion, the Contractor shall submit to Metro a summary of findings related to the qualifying owners Social and Economic

Disadvantage.

3. DBE Virtual Onsite Review and Report:

To be conducted when applicants apply for ACDBE, DBE, and SBE, both

DBE & SBE, or DBE only.

i. The Contractor shall perform a virtual on-site visit review for each

DBE/ACDBE applicant using Metro’s approved on-site visit questionnaire, interviewing the owner(s) on which control is relied and the principal officer(s), to discuss their background, experience, function, and responsibilities in the business.

ii. The Contractor shall request that the applicant submit photos of the applicant’s office and job site office. If the applicant is a trucking firm, the contractor shall request photographs of the trucks owned and leased by the business. The Contractor shall confirm that the certification file contains a copy of the registration and insurance for each truck owned

5 | P a g e and leased and note whether each truck owned by the applicant is in running condition.

iii. The Contractor shall provide Metro with a Certification Summary Report.

The Certification Summary Report, formatted as approved by Metro, includes the following components:

(a) A comprehensive overview of the review of supporting documentation, personal narrative, and the on-site questionnaire, highlighting any concerns regarding the firm’s eligibility for certification. This includes identification of any discrepancies or inconsistencies, along with a summary explaining how or why the applicant was recommended for approval despite those issues.

(b) A high-level assessment of the applicant firm’s eligibility based on factual findings, ensuring alignment with applicable DBE/ACDBE regulations and Metro’s SBE program guidelines. The assessment should outline the rationale for recommending approval or denial of certification and include:

• The firm’s nature of business

• The qualifying owner(s) relevant experience under the requested NAICS codes

• Whether the firm provided evidence of contracts and/or invoices demonstrating the firm’s capability to perform in the requested line of work.

(c) A clearly stated recommendation of approval or denial.

Summary reports shall be submitted to Metro within five (5) business days following the completion of the onsite visit, unless additional documentation is requested from the applicant. In such cases, the report shall be submitted within five (5) business days from the date the applicant provides the complete additional documentation to the

Contractor.

4. SBE Questionnaire and Report:

To be conducted when applicants apply for SBE only.

i. The Contractor shall send the SBE questionnaire to the qualifying applicant(s) seeking SBE certification. This questionnaire must be completed by the business owner within five (5) business days and

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System. Upon receipt, the Contractor shall review the completed SBE questionnaire. If any questions or concerns arise, the Contractor shall schedule a telephone interview with the business owner who completed the questionnaire within three (3) business days.

ii. The Contractor shall provide Metro with an SBE Certification Summary

Report. The Certification Summary Report, formatted as approved by

Metro, includes the following components:

(a) A comprehensive overview of the review of supporting documentation and the on-site questionnaire, highlighting any concerns regarding the firm’s eligibility for certification. This includes identification of any discrepancies or inconsistencies, along with a summary explaining how or why the applicant was recommended for approval despite those issues.

(b) A high-level assessment of the applicant firm’s eligibility based on factual findings, ensuring alignment with Metro’s SBE program guidelines. The assessment should outline the rationale for recommending approval or denial of certification and include:

• The firm’s nature of business

• The qualifying owner(s) relevant experience under the requested NAICS codes

• Whether the firm provided evidence of contracts and/or invoices demonstrating the firm’s capability to perform in the requested line of work

(c) A clearly stated recommendation of approval or denial.

Summary reports shall be submitted to Metro within five (5) business days following the completion of the SBE questionnaire, unless additional documentation is requested from the applicant.

In such cases, the report shall be submitted within five (5) business days from the date the applicant provides the complete additional documentation to the Contractor.

Metro reserves the right to request an on-site interview in lieu of the SBE questionnaire if the circumstances of the review require an in-person interview. In

7 | P a g e in person onsite interview will be compensated at the proposed in person on-site interview rate.

5. Eligibility Determination:

Upon completion of Steps 1 through 4 outlined in Section II, Schedule for Delivery of Contractor Provided Services and Deliverables, the Contractor shall submit a recommendation to Metro for either approval or denial.

6. Withdrawn Certification Application:

Should a firm withdraw its certification application, the Contractor must notify Metro and submit the firm’s withdrawal notice.

7. Denials of Certification:

If the Contractor determines that the applicant seeking DBE/ACDBE certification is ineligible, the Contractor shall prepare a denial letter or partial denial letter identifying the specific NAICS industry or industries for which the firm does not meet eligibility criteria. The letter must include: (1) the specific grounds for ineligibility under DBE regulations (49 CFR Part 26) and (2) corresponding factual findings supporting each ground. The completed denial letter shall be submitted to

Metro’s DEOD within ten (10) business days following the completion of the onsite interview for final issuance to the applicant firm.

Similarly, if the Contractor determines that an applicant seeking SBE certification is ineligible, the Contractor shall prepare a denial letter or partial denial letter identifying the specific NAICS industry or industries for which the firm does not meet eligibility criteria. The letter must include: (1) the specific grounds for ineligibility under Metro’s SBE program guidelines and (2) corresponding factual findings supporting each ground. The completed denial letter shall be submitted to

Metro’s DEOD within ten (10) business days following the completion of the onsite interview for final issuance to the applicant firm.

All letters prepared by the Contractor and submitted to DEOD shall be submitted in the correct format, proofread, free of grammatical errors, factually correct, and must cite the correct and most current regulations or guidelines. Only letters that abide by all requirements will be approved to be billed to Metro. Letters that do not abide by all requirements will be returned to the Contractor. Letters shall be submitted to DEOD with no less than ten (10) business days remaining in the calendar month in order to allow DEOD sufficient time to ensure the Contractor has met all requirements before approving payment of the work completed.

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8. Monthly Certification Activity Report:

Contractor shall submit a written report on the last day of each month during the term of this Contract. The report, formatted as approved by Metro shall include at minimum the detailed status of all completed DBE, ACDBE, and SBE applications and onsite visit interviews received or processed along with a summary of

Contractor’s recommendations for approval or denial of DBE/ACDBE and/or SBE applications.

9. Onsite or Jobsite Visit:

Metro reserves the right to request an in-person on-site review or jobsite visit in lieu of the virtual interview if the circumstances of the review require an in-person interview. The Contractor shall perform an in-person onsite or job-site visit, as requested by Metro, using Metro’s approved on-site visit questionnaire, interviewing the owner(s) on which control is relied and the principal officer(s), to discuss their background, experience, function, and responsibilities in the business. In addition to the questions included in Metro’s approved on-site visit questionnaire, Contractor shall ask follow-up questions of the owner as needed to establish clarity.

10. Additional Services

Metro may request Contractor to provide services in addition to those specified above. If Metro directs Contractor to provide additional services, or the certification application is of a complicated nature and requires additional time to process, Contractor shall develop a work plan within ten (10) business days of the date of the written directive detailing the specific tasks to be completed and provide a detailed not-to-exceed budget for performing such tasks. Additional services will be billed at the “technical rate,” and the number of hours must be approved by

Metro in writing before work is performed. Contractor shall not perform any additional services until Metro has issued a written authorization with the execution of the work plan. Contractor will not be authorized to perform or invoice Metro for any work not specifically authorized in Metro’s written authorization.

11. Additional Requirements

(a) Records: Contractor shall transfer all files by the expiration date of this

Contract (electronic & hard copy) to Metro’s DEOD Certification Unit.

(b) Confidentiality: Contractor shall have secured (locking) office space and secured (locking) file cabinets for inventory of certification files in process, if applicable. Contractor shall keep the electronic data in a secured place.

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According to 49 CFR Part 26.109 (a), notwithstanding any provision of

Federal or state law, Contractor must not release information that may reasonably be constructed as confidential business information to any third party without the written consent of the firm that submitted the information.

This applies to DBE/ACDBE and SBE certification applications and supporting documents.

(c) IT Security Standards: Contractor is expected to uphold Metro’s standards for protecting its systems and resources as outlined in Metro’s Information

Security Policy (IT1). This includes maintaining the integrity, confidentiality, and availability of all information and technology assets, and ensuring that all work is performed securely and responsibly.

(d) Regulations: During the performance of the contract, Contractor shall, at minimum, remain abreast of DBE certifications regulations and any recent or new changes issued by the DOT and/or the Federal Transit

Administration as it pertains to DBE certification standards and procedures.

(e) Quality Control: Contractor must have adequate resources to submit work product in the correct format, proofread, free of grammatical errors, factually correct, and prepared for final issuance to appropriate parties. As representatives of Metro all communication (written and verbal) must be conducted in the utmost professional manner.

(f) Metro Responsibilities: Metro will provide oversight of certification activities consisting of periodic audits of assigned certification files, reports, and office space to ensure files are maintained in a secure location. Metro will review and approve all recommendations for certification and certification denials. Metro reserves the right of final decision of certification eligibility.