ladwp by kevin clark

LADWP Small Business Enterprise (SBE) /Disabled Veteran Business Enterprise (DVBE) Participation Program

POLICIES AND PROCEDURES MANUAL Rev. 2 August 2018

REVISION LOG REVISION NO.

ISSUE DATE

Original Issue

September 2014

November 2017

REQUESTOR

DESCRIPTION OF CHANGE Original Issue of SBE Participation Program Policies and Procedures Manual

Director of SCS

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Included DVBEs as part of the Participation Program (Pg. 15 and throughout)

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Included a definition for Lesbian, Gay, Bisexual, or Transgender Business Enterprise (LGBTBE) (Pg.5)

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Updated Acceptable SBE Certification Chart (Pgs. 13-14)and table of Resources for Finding Certified SBEs and DVBEs (Pgs. 16-17) to include additional acceptable SBE certifications per the new Proprietary SBE standard implemented by BCA Office of Contract Compliance

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Eliminated the term “goal” with the “requirement” in reference to the mandatory SBE/DVBE participation requirements (throughout)

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Changed name of “Supplier Relations Office” to “Office of Small Business and Supplier Relations” (throughout)

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Added procedures for Task Order Contracts (Pgs. 12, 15)

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Clarified the procedures for subcontractor additions, reductions, and substitutions (Pgs. 18-19)

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Added definition of “Broker” (Pg. 4) and how credit will be counted for subcontractors who are SBE/DVBE certified Brokers (Pg. 15) Added provision for service contracts and designbuild contracts over $10 million with mandatory SBE/DVBE participation requirements, where 5% of the RFP evaluation criteria may be used to evaluate the proposer’s SBE/DVBE subcontractor utilization plan.” (Pg. 3)

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Rev. 2 (8-27-18)

August 27, 2018

Public Works Bureau of Contract Administration Certification Section

Corrected name of WOSB certification agency from Womens Business Enterprise National Council (WBENC) to Womens Business Enterprise Council West (WBEC – West).

INTRODUCTION

The Los Angeles Department of Water and Power (LADWP) is committed to maintaining and advancing the economic viability of the region by assuring that its expenditures promote the financial growth and stability of small businesses. LADWP has developed this Small Business Enterprise (SBE)/Disabled Veteran Business Enterprise (DVBE) Participation Program in order to administer a race and gender-neutral program for the benefit of small and disabled veteran-owned businesses that meet the requirements under the program. LADWP will never 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 on the basis of race, color, sex or national origin. The Authority and references for the SBE/DVBE Participation Program include but are not limited to the following: • City of Los Angeles, Mayoral Executive Directive 14 (ED14) – Business Inclusion Program • The Los Angeles City Charter and Administrative Code • Proposition 209 which amended Article 1 of the California Constitution to prohibit “preferential treatment” on the basis of race, sex, color, ethnicity, and national origin in public employment, education and contracting. • Executive Order W-136-96 which requires every state, department, board or commission to develop programs which promote equal opportunity for all individuals without regards to race, sex, color, ethnicity, or national origin.

LADWP’S SBE/DVBE PARTICIPATION PROGRAM – ITEMS OF NOTE 1. All bidders/proposers shall meet or exceed the contract-specific mandatory SBE and/or DVBE participation requirement identified in the Invitation for Bid (IFB) or Request for Proposal (RFP) document or will be deemed non-responsive. 2. Bidders/proposers will be required to submit a signed affidavit (Letter of Intent) documenting the bidder’s commitment to utilize an SBE or DVBE subcontractor and confirmation from a sub-listed SBE or DVBE that it is willing to participate in the contract. The bidder/proposer shall submit a ”Letter of Intent” for each SBE or DVBE Subcontractor that is listed for the achievement of the contract-specific mandatory SBE and/or DVBE participation requirement (Refer to Exhibit A). 3. If a prime contractor is certified as an SBE or DVBE, evaluation credit will be limited to the portion of the contract that will be performed by the prime contractor’s own forces. On the other hand, full credit will be given to a subcontractor that is certified as an SBE orDVBE. 4. Disadvantaged Business Enterprises (DBEs) and US-SBA Designation 8a certified businesses will be accepted as SBEs. 5. For service contracts and design-build contracts over $10 million with mandatory SBE/DVBE participation requirements, 5% of the RFP evaluation criteria may be used to evaluate the proposer’s SBE/DVBE subcontractor utilization plan. Rev. 2 (8-27-18)

CHAPTER 1 – DEFINITIONS For the purpose of the SBE/DVBE Participation Program the following definitions are provided: Affiliate – A person or entity that directly or indirectly controls or is controlled by, or is under common control with, the person or entity, or an identity of interest between or among parties exists such that affiliation may be found. In determining Affiliation, the LADWP shall consider all appropriate factors, including common ownership, common management, and contractual relationships. Annual DVBE Goal: Targeted level established by the LADWP for participation of DVBEs in LADWP contracts. Annual SBE Goal – Targeted level established by the LADWP for participation of SBEs in LADWP contracts. Bidder – Any person or entity that submits a bid or proposal to LADWP or has expressed interest in submitting a bid or proposal in response to a solicitation issued by the LADWP. Broker – Any person or entity who serves as an agent or intermediary in commercial negotiations or transactions for the furnishing of labor, materials, or equipment for the work proposed under the contract and does not have title, possession, control, or risk of loss of the materials, supplies, services, or equipment to be furnished. Commercially Useful Function – Responsibility for the execution of a distinct element of work of the contract, which is carried out by actually performing, managing, and supervising the work involved, or fulfilling responsibilities as a Joint Venture partner, and has a necessary and useful role and the firm’s role is not superfluously added in an attempt to meet credit toward achievement of the contract-specific mandatory SBE and/or DVBE participation requirement. Compliance – The condition existing when LADWP has determined that a participant has met the requirements of this program. Contract – Any mutually binding legal obligation of LADWP created to acquire goods and/or services from one or more firms, which is paid or which is to be paid for, in whole or part, with funds from LADWP. In this context, the terms “contracting”, “purchasing”, and “procurement” are synonymous and refer to the process or processes under which the LADWP undertakes such acquisitions. Contract-Specific Mandatory SBE and/or DVBE Participation Requirement – The Requirement expressed as a percentage of the total amount of the contract required for SBE and/or DVBE participation on a particular bidding opportunity. Disabled Veteran Business Enterprise (DVBE) – A business enterprise in which a “Disabled Veteran” owns at least 51% of the business, and the daily business operations are managed and controlled by one or more disabled veterans. The term “Disabled Veteran” shall mean a veteran of the U.S. military, naval, or air service; the veteran must have a service connected disability of at least 10% or more; and the veteran must reside in California. Rev. 2 (8-27-18)

Disadvantaged Business Enterprises (DBE) – A small business concern where: •

•

At least 51 percent owned and controlled by one or more socially and economically disadvantaged individuals or in the case of any publicly-owned business, at least 51% of the stock of which is owned by one or more socially and economically disadvantaged individuals; and The management and daily business operations of which are controlled by one or more socially and economically disadvantaged individuals who own it as defined by the Code of Federal Regulation (CFR) 49 Part 26.

Emerging Business Enterprise (EBE) – A business enterprise whose three (3) year average annual gross revenue does not exceed $3.5 million and that is certified as EBE by the City of Los Angeles. The State of California’s Micro-business certification will be considered equivalent to the EBE certification. Joint Venture – A contractual arrangement between two businesses that is undertaken to complete a specific task. In a joint venture, a separate entity is formed that ceases to exist upon the completion of the tasks agreed. Lesbian, Gay, Bisexual, or Transgender Business Enterprise (LGBTBE): A business enterprise that meets both of the following criteria: •

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A business that is at least 51% owned by a lesbian, gay, bisexual, or transgender person or persons or, in the case of any business whose stock is publicly held, at least 51% of the stock is owned by one or more lesbian, gay, bisexual, or transgender persons; and A business whose management and daily business operations are controlled by one or more of those individuals.

Letter of Intent – A written documentation of the bidder’s commitment to utilize an SBE or DVBE subcontractor and confirmation from a sub-listed SBE or DVBE that it is willing to participate in the contract. A “Letter of Intent” is required from each SBE or DVBE subcontractor that is listed for meeting or exceeding the established contract-specific mandatory SBE and/or DVBE participation requirement. A “Letter of Intent” shall be submitted to the Department at the time of bid submittal. (See Exhibit A) Letter of Notification – A post-award letter sent by LADWP to the Prime Contractor and all listed Subcontractors specifying committed subcontracting amounts. Manufacturer – An individual or firm that owns, operates, or maintains a factory or establishment that produces on the premises the components, materials and/or equipment, or supplies equipment required under the contract. Minority Business Enterprise (MBE) – A business enterprise that meets both of the following criteria: •

A business that is at least 51 percent owned by one or more minority persons or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by

Rev. 2 (8-27-18)

one or more minority persons; and •

A business whose management and daily business operations are controlled by one or more minority persons.

Non-Compliance – The condition that exists when a Bidder or Contractor has failed to meet the requirements of the SBE/DVBE Participation Program. Other Business Enterprise (OBE) – An OBE is any business enterprise that is not certified as SBE, MBE, WBE, or DVBE. Prime Contractor – The Contractor who enters into contract with the LADWP and who is primarily responsible for performance under such contract. Small Business Enterprise (SBE) – An SBE shall mean a business enterprise that meets the certification requirements as set forth in Chapter 6 of this document. Subcontractor – An individual, firm or corporation having a direct contract with the Contractor for the performance of a part of work which is proposed to be constructed or performed under the contract or permit, including the furnishing of all labor, materials or equipment. A Subcontractor shall perform a commercially useful function. Subcontractor Utilization Plan – A document provided by the Contractor and approved by the LADWP identifying all SBEs, DVBEs, and other Subcontractors that the Contractor intends to use on a project, including corresponding scopes of work and dollar amounts. Vendor and/or Supplier – And individual or firm that owns, operates, or maintains, a store, warehouse, or other establishment in which the materials or supplies required for the performance of the contract are bought, kept in stock, and regularly sold to the public in the usual course of business. The firm must engage in, as its principal business, and in its own name, the purchase and sale of the products in question. A supplier of such bulk items as steel, cement, gravel, stone and petroleum products need not keep such products in stock, if it owns and operates distribution equipment. Women Business Enterprise (WBE) – A business enterprise that meets both of the following criteria: •

•

A business that is at least 51 percent owned by one or more women or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more women; and A business whose management and daily business operations are controlled by one or more women.

Rev. 2 (8-27-18)

CHAPTER 2 – SBE/DVBE PARTICIPATION PROGRAM ADMINISTRATION The Office of Small Business and Supplier Relations in Supply Chain Services is responsible for administering the SBE/DVBE Participation Program as established by this SBE/DVBE Participation Policy and Procedures Manual. Supply Chain Services shall provide semi-annual and periodic reports to the Board of Commissioners or the General Manager of LADWP on matters concerning the SBE/DVBE Participation Program.

FUNCTIONS OF THE OFFICE OF SMALL BUSINESS AND SUPPLIER RELATIONS

The Office of Small Business and Supplier Relations shall encourage contracting opportunities for SBEs and DVBEs and strive to achieve the objectives of the SBE/DVBE Participation Program by: • •

• •

• • • • • • • • • •

Recommending rules, regulations and procedures for adoption by the LADWP with respect to the fair and equitable administration of the SBE/DVBE Participation Program. Developing and facilitating outreach programs to promote contracting opportunities for SBEs and DVBEs including vendor fairs, “Meet the Primes”, and “Introducing Our Small Businesses” events. Facilitating the development of a LADWP SBE Advisory Council which includes representatives from small business advocacy groups and Contractors. Establishing and maintaining positive relationships with agencies and stakeholders who support the interests of the SBE/DVBE Participation Program and whenever possible coordinating the outreach efforts for the program with those agencies andstakeholders. Conducts introductory meetings for SBEs and DVBEs interested in doing business with LADWP. Establishing a contract-specific mandatory SBE and/or DVBE participation requirement with requestor departments on those contracts that have subcontracting possibilities. Responding to inquiries at pre-bid/proposal meetings regarding contract solicitations that include a contract-specific participation requirement. Evaluating bidder’s/proposer’s achievement of the contract-specific mandatory SBE and/or DVBE participation requirement after bids/proposals are submitted. Attending kick off meetings for major projects to explain the SBE/DVBE Participation Program policy. Working with requestor departments to ensure prompt payment to SBEs and DVBEs and compliance with the contract-specific participation requirement. Providing quarterly ED-14 Compliance Reports to the Mayor's Office of Economic and Business Policy. Monitoring LADWP’s progress toward meeting the annual goal. Monitoring utilization of SBE, DVBE, MBE, and WBE subcontractors. Investigating complaints regarding the administration of the SBE/DVBE Participation Program. Monitoring, reviewing, and approval of Subcontractor substitutions, additions, or reductions. Facilitating one-on-one business introductions and/or technical assistance to SBE and DVBE firms.

Rev. 2 (8-27-18)

•

Publishing a quarterly newsletter to outreach to available subcontractors (including SBEs and DVBEs) which includes an eighteen-month forecast of upcoming business opportunities and Supplier Diversity events. After award of contracts, issue a “Letter of Notification” to Prime Contractors and all listed Subcontractors (including SBEs and DVBEs) indicating committed subcontracting amounts.

FUNCTIONS OF PURCHASING STAFF Purchasing operations staff shall: • Notify the Office of Small Business and Supplier Relations of pre-bid and pre-proposal meetings. • Assist with the identification of SBE and DVBE firms. • Provide bid and proposal documents for evaluation of SBE/DVBE participation achievement to the Office of Small Business and Supplier Relations in a timely banner. (Example: Upon receipt of bids/transmittal of bids and development of competitive range for proposals). • Participate in vendor fairs and other outreach events sponsored by the LADWP and small business advocacy organizations.

FUNCTIONS OF THE REQUESTOR DEPARTMENTS The requestor department project management and/or contract administration staff share the responsibility for ensuring the effective implementation of the SBE/DVBE Participation Program through the following duties and responsibilities: •

Providing the Office of Small Business and Supplier Relations with preliminary scopes of work, specifications and draft solicitations documents early in the procurement developmentprocess. • Assisting the Office of Small Business and Supplier Relations with the development of a contract-specific mandatory SBE and/or DVBE participation requirement. • Incorporate a contract-specific mandatory SBE and/or DVBE participation requirement into the solicitation document. • Monitoring, gathering and maintaining prime contracting and subcontracting SBE, DVBE, MBE, and WBE data for the contracts they manage (CAWeb). • Submitting subcontracting data as required to the Office of Small Business and Supplier Relations. • Review and send all requests for Subcontractor substitution, addition, or reduction to the Office of Small Business and Supplier Relations for final approval. • Maintain a working knowledge of SBE programs, policies, practices, and procedures by reading the SBE/DVBE Participation Program Policies and Procedures manual, the contract solicitation documents and by attending orientation and outreach programs. • In collaboration with the risk management group, consider analyzing opportunities to waive or reduce contract bond requirements in accordance with established board resolutions or state law and explore opportunities for allowing incremental bonding. • Promptly identifying and reporting SBE and/or DVBE utilization problems to the Office of Small Business and Supplier Relations. Rev. 2 (8-27-18)

FUNCTIONS OF THE LADWP GENERAL MANAGER

The General Manager sets the tone for the significance of the SBE/DVBE Participation Program for the overall operations of LADWP through the following actions: • •

Provides for the Office of Small Business and Supplier Relations to have adequate resources to implement the SBE/DVBE Participation Program. Provides LADWP personnel with clear understanding of shared responsibilities for the effective implementation of the SBE/DVBE Participation Program.

F U N C T I O N S OF O FFIC E OF C I TY A T T O R NEY The City Attorney assists the Office of Small Business and Supplier Relations in addressing issues related to the administration and implementation of the overall SBE/DVBE Participation Program by: •

Rendering legal opinions regarding interpretation of SBE/DVBE issues related to the LADWP solicitations and contract provisions. • Representing the LADWP in the resolution of all protests, appeals and possible litigation involving SBE/DVBE issues. • Advises the LADWP on issues related to non-compliance with SBE/DVBErequirements.

Rev. 2 (8-27-18)

CHAPTER 3 – MEASURES TO PROVIDE EQUAL OPPORTUNITY FOR ALL CONTRACTORS AND SUBCONTRACTORS The LADWP shall develop and use measures, whenever economically feasible and authorized by law, to facilitate the participation of all firms in LADWP contracting activities. These measures shall include, but are not limited to: • • • • • • • • • •

Identification of contracting and subcontracting opportunities. Provision of timely information of specific LADWP contracting opportunities. Provision of supportive services, training and outreach to the vendorcommunity. Provision of assistance with electronic bidding and information on doing business with the LADWP. Hosting of partnership meetings/events which introduce the LADWP vendor community to the LADWP Prime Contractor community. Adoption of prompt payment procedures requiring Prime Contractors to pay Subcontractors promptly. Review of contract retention, bonding, and insurance requirements to remove unnecessary hurdles to contracting with LADWP. Monitor Prime Contractors’ utilization of SBE and DVBESubcontractors. Maintenance of information on utilization of SBE and DVBE businesses on LADWP contracts. Referring complaints of non-compliance or discrimination to the appropriate entities for investigation and recommended disposition.

Rev. 2. 8-27-18

CHAPTER 4 â&#x20AC;&#x201C; ESTABLISHMENT OF THE SBE/DVBE PARTICIPATION REQUIREMENT The annual overall Department goal for the utilization of SBEs and DVBEs on LADWP contracts shall be submitted to the General Manager for review and subsequent approval by the LADWP Board of Commissioners. The annual goal shall be established by a committee composed of representatives from the Water, Power, and Joint Divisions and the Office of Small Business and Supplier Relations. The committee shall review the proposed contracting activities for the upcoming year and utilization from previous years. As part of the SBE/DVBE Participation Program, LADWPâ&#x20AC;&#x2122;s annual SBE and DVBE goals are set to 25% and 3% respectively. A contract-specific mandatory participation requirement shall be established for LADWP contracts based upon subcontracting opportunity and the availability of SBEs and/or DVBEs. The SBE/DVBE participation requirement will be expressed as a percentage of the total amount of the specific contract. The size of the SBE/DVBE contract participation requirement shall be appropriate to the circumstance of each contract such as location of work, type of work and the availability of SBEs and/or DVBEs to perform the specific work or to provide materials. The requestor departments and the Office of Small Business and Supplier Relations shall work jointly to establish the participation percentage. A contract-specific mandatory participation requirement may only be established if there are at least a minimum of three (3) certified SBE and/or DVBE firms to perform the work. If the requestor department and the Office of Small Business and Supplier Relations determine that circumstances are not conducive for the establishment of a participation requirement, the requestor department shall provide a detailed and appropriate justification for why subcontracting opportunities are severely limited or non-existent. Such justification shall be closely examined, validated, and approved by the Senior Assistant General Manager or Assistant General Manager of the requesting organization and the Director of Supply Chain Services or his/her designee prior to the advertisement of each applicable solicitation. Special circumstances for the justification may include but are not limited to the following: a. If all work under the contract is required by LADWP to be performed by the Prime Contractor. b. Single or sole source contracts where the work to be performed is considered a trade secret or intellectual property. c. Work to be performed by the Prime Contractor is deemed confidential or is determined by the LADWP as security-sensitive. d. Procurement is for special service subscriptions with no direct labor or material purchases. e. If the project is federally-funded or funded by grants where funding regulations prohibit LADWP from implementing the program.

8Rev. 2. 8-27-18

CHAPTER 5 – REQUIRED SUBMITTALS FOR THE MANDATORY SBE/DVBE PARTICIPATION REQUIREMENT DOCUMENTS FOR SUBMITTAL For the purpose of the SBE/DVBE Participation Program, bidders shall complete, sign (if applicable), and submit the following required documents to demonstrate that the contractspecific mandatory SBE and/or DVBE participation requirement is met or exceeded. •

If the bidder is certified as an SBE or a DVBE, the bidder shall indicate its certification status as an SBE or DVBE to earn credit for the portion of the contract that will be performed by the bidder’s own forces.

•

The “List of Proposed Subcontractors” Form is used by the bidder to list all certified SBE and DVBE Subcontractors for the achievement of the contract-specific mandatory SBE and/or DVBE participation requirement. To receive credit under this provision, the bidder shall submit a “Letter of Intent” at the time of bid/proposal submittal from each SBE or DVBE Subcontractor that is listed for the achievement of the contract-specific mandatory SBE and/or DVBE participation requirement. SBE or DVBE certifications must be verified in order to count toward the fulfilment of the Mandatory SBE/DVBE Participation Requirement.

*SPECIAL INSTRUCTIONS APPLICABLE ONLY TO ‘TASK ORDER’ CONTRACTS

Bidders for ‘Task Order’ Contracts shall make a commitment to an overall SBE/DVBE participation percentage. This overall SBE/DVBE participation percentage shall to be applied to the aggregate value of all tasks orders awarded to the bidder over the term of the contract to determine achievement. Bidders for Task Order Contracts shall provide documentation in support of their stated overall SBE/DVBE participation commitment with the following:

•

If the bidder (prime contractor) is certified as an SBE or a DVBE, the bidder shall indicate its certification status as an SBE or DVBE to earn credit for the portion of the contract that will be performed by the bidder’s own forces and provide proof of certification.

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The “List of Proposed Subcontractors” form with a listing of all proposed subcontractors, including certified SBE and DVBE Subcontractors. Specific commitment percentages for each of the listed subcontractors are not required for Multiple Award ‘Task Order’ contracts and may be left blank.

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A “Letter of Intent” at the time of bid/proposal submittal from each SBE or DVBE Subcontractor that is listed.

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SBE or DVBE certifications must be verified in order to count toward the fulfilment of the Mandatory SBE/DVBE Participation Requirement.

8Rev. 2. 8-27-18

CHAPTER 6 – ACCEPTED SBE and DVBE CERTIFICATIONS ACCEPTED CERTIFICATIONS TO QUALIFY AS AN SBE For the purpose of the SBE/DVBE Participation Program, an SBE is defined as a business enterprise that meets the certification requirements set forth by LADWP. The following chart shows which agency certifications are accepted by LADWP as an SBE. ACCEPTED SBE CERTIFICATIONS Certifying Agency

City of Los Angeles (Bureau of Contract Administration)

Certification

Qualification

Small Local Business (SLB)

For All Contracts: Annual receipts of a business, including its affiliates if any, shall be less than $3 million, and its principal office located within the Los Angeles County.

Small Business Enterprise SBE (LA)

Certification through DGS And For Non-Construction Contracts: The average annual gross revenue of a business over the past 3 years shall not exceed $7 million. For Construction Contracts: The average annual gross revenue of a business over the past 3 years shall not exceed $14 million.

• Meets the State of California Department of General Small Business Enterprise SBE (Proprietary)

State of California Department of General Services (DGS) (Office of Small Business and Disabled Veterans Business Enterprise Services) L.A. County Metropolitan Transportation Authority (Metro) (Small Business Certification Unit – Diversity and Economic Opportunity Department)

Services (DGS) Small Business (SB) standard. or • Meets the Federal SBA Designation 8a standard.

Emerging Business Enterprise (EBE)

For All Contracts: The average annual gross revenue of a business over the past 3 years shall not exceed $3.5 million.

Small Business SB

For All Contracts: A business with 100 or fewer employees and average annual gross receipts of $14 million or less, over the last 3 tax years.

Micro-Business MB

For All Contracts: The average annual gross revenue of a business over the past 3 years shall not exceed $3.5 million or the small business is a manufacturer with 25 or fewer employees. For All Contracts:

• The SBE Program at Metro uses the Small Business SBE (Metro)

Administration (SBA) Guideline size standards 13 CFR Part 121. • A business that has average annual gross receipts of less than $23.98 million over the last 3 years. • An SBE firm shall be owned and controlled by one or more individuals whose Personal Net Worth (PNW) is less than $1.32 million. For All Contracts:

Federal SBA Designation 8a (Federal –Small Business Administration)

8Rev. 2. 8-27-18

SBA 8(a) Business Development Program

• Meets the Small Business Administration (SBA) Guideline size standards at 13 CFR Part 124.

• Owned and controlled by one or more socially and economically disadvantaged individuals demonstrates potential for success.

and

ACCEPTED SB E CERTIFICATIONS Certifying Agency

Certification

Qualification For All Contracts:

• Eligibility in accordance with 49 CFR Part 26. • At least 51% owned by one or more socially and California Unified Certification Program (CUCP)

economically disadvantaged individuals. Disadvantaged Business Enterprise (DBE)

• A business that has average annual gross receipts of less than $23.98 million over the last 3 years.

• A DBE firm shall be owned and controlled by one or more individuals whose Personal-Net-Worth (PNW) is less than $1.32 million.

• Meets the Small Business Administration Guideline standards for size for primary NAICS code and contract.

California Department of Transportation (CALTRANS)

Small Minority Business Enterprise

• Business must be at least 51% owned by one or more

(SMBE)

• Management and daily business operations are

minorities; and controlled by one or more such individuals.

• Meets the Small Business Administration Guideline standards for size for primary NAICS code and contract.

Small Women Business Enterprise

• Business must be at least 51% owned by one or more

(SWBE)

• Management and daily business operations are

women; and controlled by one or more women who own it.

• Meets the Small Business Administration Guideline U.S. Women’s Chamber of Commerce (USWCC)

Women-Owned Small Business (WOSB)

standards for size for primary NAICS code and contract.

• Business must be at least 51% owned by one or more women; and

• Management and daily business operations are controlled by one or more women who own it.

and National Women Business Owners Corporation (NWBOC)

Economically Disadvantaged Women-Owned Small Business (EDWOSB)

• All of the above requirements for WOSB ; and • Personal net worth of qualifying owner(s) is less than $750,000.

• Adjusted gross income average over three years is $350,000 or less.

• Fair market value of all assets is $6 million or less. • Meets the Small Business Administration Guideline

Women’s Business Enterprise Council West (WBEC - West)

standards for size for primary NAICS code and contract. Women-Owned Small Business (WOSB)

• Business must be at least 51% owned by one or more women; and

• Management and daily business operations are controlled by one or more women who own it.

8Rev. 2. 8-27-18

ACCEPTED CERTIFICATION TO QUALIFY AS A DVBE For the purpose of the SBE/DVBE Participation Program, a DVBE is defined as a business enterprise that meets the certification requirements set forth by LADWP. The following chart shows which agency certification is accepted by LADWP as a DVBE.

ACCEPTED DVBE CERTIFICATION Certifying Agency

Certification

Qualification For All Contracts:

• Business must be at least 51% owned by one or more

State of California Department of General Services (DGS) (Office of Small Business and Disabled Veterans Business Enterprise Services)

disabled veterans; Disabled Veteran Business Enterprise (DVBE)

• Business operations must be managed and controlled by one or more disabled veterans. Where a "disabled veteran" is defined as:

• A veteran of the U.S. military, naval, or air service; • Must have a service-connected disability of at least 10% or more; and • Must reside in California.

RULES FOR CALCULATING AND COUNTING SBE AND/OR DVBE PARTICIPATION SBEs and DVBEs shall perform a commercially useful function and shall be certified by the time of bid or proposal submission to be counted towards meeting the contract participation requirement. LADWP will not offer extra credit to a Subcontractor that is dually-certified as an SBE and DVBE and listed “only” in one work area. However, a subcontractor that is dually-certified as an SBE and DVBE can be listed as an SBE in one work area and as a DVBE in another work area to earn respective credits for SBE and DVBE participation. The LADWP will utilize the following criteria for calculating and counting SBE and/or DVBE participation: • •

For Bidders that are certified as SBEs or DVBEs: Credit will be limited to the portion of the contract that will be performed by bidder’s own forces. For Subcontractors that are certified as SBEs or DVBEs: Credit will be limited to the portion of the contract that will be performed by a Subcontractor. Credit for SBE or DVBE certified subcontractors who are Brokers will be limited to the fees or commission paid to the Broker.

CONTRACT ADMINISTRATION In determining achievement of the mandatory contract requirement, the participation of an SBE or DVBE shall not be counted until that amount has been paid to the SBE or DVBE. In determining achievement of the mandatory contract requirement for ‘Task Order’ Contracts, the participation of an SBE or DVBE will be tracked as an aggregate of all task orders awarded to each Prime Contractor. Bidders are expected to meet the overall commitment percentage once all task orders have been issued. 8Rev. 2. 8-27-18

CHAPTER 7 – RESOURCES FOR FINDING CERTIFIED SBEs and DVBEs For the purpose of the SBE/DVBE Participation Program, bidders can use the following resources to search for and identify available SBE and/or DVBE Subcontractors.

CERTIFICATION AGENCIES

CERTIFIED SBE OR DVBE SUBCONTRACTOR SEARCH DATABASE

City of Los Angeles Bureau of Contract Administration Small Local Business SLB

http://labavn.org/subs/

City of Los Angeles Bureau of Contract Administration Small Business Enterprise SBE(LA), SBE(Proprietary)

http://labavn.org/subs/

State of California Office of Small Business and Disabled Veterans Business Enterprise Services (OSDS) - Small Business (SB) Certification

https://caleprocure.ca.gov/pages/PublicSearch/su pplier-search.aspx

L.A. County Metropolitan Transportation Authority (Metro) - Small Business Certification Unit SBE (Metro)

http://smallbusinessquery.metro.net/pages/naics_ lookup.aspx

Emerging Business Enterprise (EBE)

City of Los Angeles, Bureau of Contract Administration, Emerging Business Enterprise (EBE)

http://labavn.org/subs/

Micro-Business

State of California Office of Small Business and Disabled Veterans Business Enterprise Services (OSDS) - MicroBusiness (MB) Certification

https://caleprocure.ca.gov/pages/PublicSearch/su pplier-search.aspx

Disadvantaged Business Enterprise (DBE)

State of California – California Unified Certification Program (CUCP) CalTrans

http://www.dot.ca.gov/hq/bep/find_certified.htm

CERTIFICATION

SMALL BUSINESS

8Rev. 2. 8-27-18

CERTIFICATION

CERTIFICATION AGENCIES

CERTIFIED SBE OR DVBE SUBCONTRACTOR SEARCH DATABASE

Federal SBA Designation 8a

Federal – Small Business Administration (US-SBA)

http://dsbs.sba.gov/dsbs/search/dsp_dsbs.cfm

Disabled Veteran Business Enterprise (DVBE)

State of California Office of Small Business and Disabled Veterans Business Enterprise Services (OSDS)

https://caleprocure.ca.gov/pages/PublicSearch/su pplier-search.aspx

Small Minority Business Enterprise (SMBE) and

State of California – CalTrans

http://www.dot.ca.gov/hq/bep/find_certified.htm (click access to SMBE/SWBE Query Form)

Small Women Business Enterprise (SWBE)

U.S. Women’s Chamber of Commerce (USWCC)

Women-Owned Small Business (WOSB)

National Women Business Owners Corporation (NWBOC)

Women’s Business Enterprise Council -West

http://womenowned.us

http://www.nwboc.org

https://wbec-west.com/

(WBEC - West)

Economically Disadvantaged Women-Owned Small Business (EDWOSB)

8Rev. 2. 8-27-18

U.S. Women’s Chamber of Commerce (USWCC)

National Women Business Owners Corporation (NWBOC)

http://womenowned.us

http://www.nwboc.org

CHAPTER 8 – REPORTING OF SBE and DVBE SUBCONTRACTOR PARTICIPATION POST-AWARD DOCUMENTATION The Contractor shall complete and submit to LADWP, on a monthly basis, together with its invoice the “Monthly Subcontractor Utilization Report” listing all Subcontractors (including SBEs and DVBEs) utilized during the reporting period. The Contractor shall cooperate with LADWP personnel in providing such information as requested by LADWP in order to ensure compliance. LADWP will not process or pay Contractor's subsequent invoices if Subcontractor Utilization Reports are not timely submitted or if the Contractor fails to cooperate with LADWP personnel by promptly providing any and all information related to Subcontractor participation as requested by LADWP. The contract award requires that the committed Subcontractor participation level is achieved at the end of the term of the contract. To this extent, any unapproved reduction, addition, or substitution in the listed subcontract amount will be considered as an unauthorized action by the contractor. As part of the “final invoice” the Contractor shall submit an overall project subcontractor utilization report indicating that committed subcontracting levels are achieved. Final payment will not be processed without the overall project Subcontractor Utilization Report.

SUBCONTRACTOR SUBSTITUTION, REDUCTION, OR ADDITION Subcontractor substitution, reduction, or addition for Construction Contracts shall be in accordance with Division 10, Chapter 1, Article 1, Subsection 10.14.3 of the Los Angeles Administrative Code. In addition, the contractor shall adhere to the following procedures for the purpose of this program. a. The Contractor shall request approval from LADWP for any addition, reduction, or substitution of bid-listed Subcontractors including any reduction in compensation or scope of work. b. The Contractor’s request shall be in writing and all documentation shall be submitted to the Contract Administrator. c. LADWP requires that whenever a contractor seeks to add a new subcontractor, the contractor shall request approval by submitting the following: i. ii. iii. iv. v.

Name of potential subcontractor Certifications status of subcontractor Reason for the addition Work type/portion of the contract services to be performed Dollar amount

d. LADWP requires that whenever a contractor seeks to reduce a bid-listed Subcontractor, the contractor shall request approval for reducing the subcontract by submitting the following documents: i. The name of the company for which the subcontract reduction is requested ii. The work type and dollar amount of the reduction. iii. The reason for the subcontract reduction and an explanation on who will 8Rev. 2. 8-27-18

perform the reduced work. e. LADWP requires that whenever a contractor seeks to substitute a Subcontractor, the contractor shall request approval by submitting the following: i. Name of the bid-listed subcontractor ii. Name of new proposed subcontractor iii. Certifications status of subcontractors iv. Reason for the substitutions v. The work type and dollar amount vi. Outreach documentation f.

LADWP requires that whenever a contractor seeks to substitute a Subcontractor, the contractor shall conduct an outreach to replace the Subcontractor with a new Subcontractor of the same certificationstatus. The outreach effort shall allow for a full and equitableparticipation of all available Subcontractors. Documentation is required to demonstrate that an outreach was conducted. At minimum, the outreach documentation shall include thefollowing: i. Names of potential Subcontractors contacted; contact person andtelephone number; and date and time of contact. ii. Response for each item of work which was solicited, including dollaramounts. iii. Reason for selection or rejection of sub-bid prospects.

g. All requests for substitution or changes shall be approved by the ContractAdministrator and Supply Chain Services. h. A Contractor shall not substitute a bid-listed SBE or DVBE Subcontractor or perform work with its own forces in lieu of an SBE or DVBE Subcontractor until an approval is made by the Contract Administrator and Supply Chain Services.

8Rev. 2. 8-27-18

CHAPTER 9 – REMEDIES, SANCTIONS, AND PENALTIES Before contract closeout, LADWP’s Contract Administrator shall evaluate the Contractor’s fulfillment of its SBE and/or DVBE commitment. If LADWP determines that the obligation to meet the SBE or DVBE contractual commitment was not adhered to, or that fraudulent misrepresentations have been made, or any other breach of contract or violation of the SBE/DVBE Participation Program has been made, a remedy or sanction may be imposed as provided herein.

PENALTIES A Contractor violating any provision(s) of this section shall, subject to prior notice of the alleged violation(s), and an opportunity to be heard and to present evidence in its own defense, be deemed in violation of the Contract, and LADWP may: a. Terminate the contract; or b. Assess the Contractor a penalty of not more than ten percent (10%) of the amount of the unpaid/underpaid amount of the Subcontract(s) involved.

FALSIFICATION OF SUBCONTRACTOR AGREEMENT Falsification or misrepresentation as to company name, contract amount, or actual work to be done by the Subcontractor will result in sanctions as set forth in applicable local, state, and federal laws.

Rev.1 Nov. 2017

EXHIBIT A

SCS LOI Form004

LETTER OF INTENT BETWEEN A BIDDER AND SBE/DVBE SUBCONTRACTOR The Bidder shall submit a completed and signed copy of this Letter of Intent for “each” SBE or DVBE Subcontractor that is listed for the achievement of the contract-specific mandatory SBE and/or DVBE participation requirement.

Invitation-for-Bid (IFB)/Request-for-Proposal (RFP) Number: Title of IFB/RFP: Name of Bidder: Name of Bidder’s Authorized Representative:

Name of SBE or DVBE Subcontractor: Name of Subcontractor’s Authorized Representative: Phone No. and E-mail Address of Subcontractor: TERMS: A. B. C.

This is a letter of intent between the Bidder and an SBE or DVBE Subcontractor that is listed for the achievement of the contract-specific mandatory SBE and/or DVBE participation requirement. By signing below, the Bidder is committing to utilize the above-named SBE or DVBE Subcontractor to perform the work shown below. By signing below, the above-named SBE or DVBE Subcontractor is confirming that it is willing to participate in the Contract for the work area shown below.

SUBCONTRACTING WORK AREA Description

NAICS* Code

Percentage of Contract Amount for Subcontracting (%)

AFFIRMATION: I hereby affirm that the information above is true and correct. Bidder’s Authorized Representative: (Signature)

(Title)

(Date)

SBE or DVBE Subcontractor’s Authorized Representative: (Signature)

(Title)

(Date)

*Visit http://www.census.gov/cgi-bin/sssd/naics/naicsrch to search. Match type of work with NAICS code as closely as possible. *To be provided only when the solicitation requires that bidder include a dollar amount in its bid-offer. In the event the bidder does not receive award of the prime contract, any and all representations in this Letter of Intent and Affirmation shall be null and void.