Los Angeles County Metropolitan Transportation Authority (Metro) has made changes to the prequalification process for contracts valued at $500,000 or less.
Starting this year, firms bidding on these contracts will no longer need to go through the process. The exception is construction and public works contracts.
The prequalification process ensures vendors are responsible and financially sound, but it adds time to the procurement timeline. It also creates more administrative work for small businesses.
In the past there were no exceptions to the prequalification process for small-, minority-owned-, or disadvantaged businesses. The update is intended to address inequity and offer local businesses opportunities.
“This change is an important update to the program, not just because it opens more opportunities for smaller businesses, but because it also helps Metro increase its pool of firms,” Dr. Irma L. Licea, Metro executive officer over the prequalification program, said.
For two decade, the prequalification threshold was set at $100,000, meaning contractors working on a contract above that amount were required to go through a prequalification review.
For the past two years, 35 percent of prequalification reviews fell into the $100,000 to $499,999 range.
Professional services contracts pose minimal risk to Metro and are expected to benefit most from the change.