BILL ANALYSIS
SB 1341
Page 1
Date of Hearing: June 28, 2010
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 1341 (Price) - As Amended: June 15, 2010
SENATE VOTE : 28-0
SUBJECT : Los Angeles County Metropolitan Transportation
Commission: small business preferences
SUMMARY : Authorizes the Los Angeles County Metropolitan
Transportation Authority (METRO) to facilitate contract awards
to small businesses on contracts over $100,000. Specifically,
this bill :
1)Provides, notwithstanding any other provision of law, METRO
may, for contracts in excess of $100,000 and except for
private architectural and engineering contracts, facilitate
contract awards to small businesses by doing any of the
following:
a) Provide for a 5% small business preference in
construction, the construction component of a design-build
team, the purchase of goods, or the delivery of services
(excluding contracts for architectural and engineering
services).
b) Establish small business goals on non-federally funded
projects and grant 5% preference to the lowest bidders
meeting the goal.
c) Require bidders to make a good faith effort to comply
with small business goals prior to bid opening; for
purposes of evaluating a bidder's good faith efforts to
comply, the bill sets forth the following criteria:
i) The bidder attended pre-solicitation or pre-bid
meetings at which the small business enterprise program
requirements were discussed;
ii)The bidder selected specific items of the project for
which small businesses could participate;
iii)The bidder advertised for at least 10 days before bid
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opening to solicit small businesses to participate,
with some exceptions;
iv)The bidder notified small businesses of his or her
intent to bid the contract;
v) The bidder contacted small business that
indicated interest in bidding on the contract;
vi)The bidder provided interested small businesses with
information about project plans, specifications, and
requirements;
vii)The bidder requested assistance from the small
business community organizations, small business
contractor groups, and other small business-oriented
organizations;
viii)The bidder negotiated in good faith with small
businesses;
ix)The bidder, where applicable, helped small businesses
obtain bonds, lines of credit, or insurance; and,
x) The bidder's efforts to obtain small business
enterprise participation could reasonably be expected
by METRO to produce a level of participation to meet
the goals.
d) Defines "small business enterprise" to mean a business
enterprise that is classified as a small business under the
United States Small Business Administration rules and meets
the current small business enterprise size standards found
in state regulations.
EXISTING LAW:
1)As provided for in the State Constitution, prohibits public
institutions from considering race, sex, or ethnicity in the
operation of public employment, public education, or public
contracting.
2)Sets forth provisions governing contract and procurement
activities of county transportation commissions, including the
requirement that contracts over $25,000 for the purchase of
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supplies, equipment, and materials and for construction must
be awarded to the lowest responsible bidder.
3)Sets forth provisions unique to METRO's procurement
activities, including the allowance for awarding contracts
based on best value.
4)As set forth in federal regulations, requires transit agencies
(including METRO) to develop an annual disadvantaged business
enterprise participation goal on federally funded contracts
and report on the level of participation to the Federal
Transit Administration and the Federal Highway Administration.
FISCAL EFFECT : Unknown
COMMENTS : In 1996, California voters approved Proposition 209
that amended the California Constitution to preclude granting
preferences on the basis of race, sex, color, ethnicity, or
national origin in the operation of public employment, public
education, or public contracting. (The provision does not apply
to federal contracting requirements.) In response to
Proposition 209, METRO adopted a local ordinance that provides a
preference to small businesses and is not inconsistent with the
provisions of Proposition 209.
This bill endeavors to codify the small business preference
requirements and, thus, help small businesses become more
competitive in the bid process.
According to the author, METRO recently conducted an audit of
its minority and small business programs. Audit findings
suggest that METRO should increase its small business enterprise
participation on non-federally funded contracts, to be more
aligned with the area's business demographics.
This bill has been double-referred. It will be heard in
Assembly Local Government prior to being heard in the Assembly
Transportation Committee today.
REGISTERED SUPPORT / OPPOSITION :
Support
Los Angeles County Metropolitan Transportation Authority
SB 1341
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(sponsor)
Abratique & Associates
Absolute International Security
BASE Architecture
California Testing & Inspections, Incorporated
California Watershed Engineering
Choctaw Construction Company, Incorporated
Community Resources Group
CSE Technologies, Incorporated
DMS Engineering & Associates, Incorporated
Earl Security
Fleming Alliance Architecture
Integrated Engineering Management
JMDiaz, Incorporated
Katherine Padilla & Associates
Larry Brown Construction Company, Incorporated
Lenax Construction Services
Safeprobe, Incorporated
Opposition
None on file
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093