CA AB1205

Small business set-aside contracting authority for LACMTA becomes inoperative January 1, 2024, ending the ability to award contracts exclusively to certified small business enterprises for work between $5,000 and $3,000,000.

LACMTA authorized until January 1, 2024, to award up to 20 contracts exclusively to medium business enterprises (defined as companies with maximum 250 employees and $250,000,000 in gross annual receipts) for work between $3,000,000 and $30,000,000.

LACMTA must obtain price quotations from at least three certified small or medium business enterprises when using set-aside procedures for contracts.

LACMTA required to submit legislative reports by December 31, 2020, and December 31, 2023, detailing all contracts awarded to small and medium business enterprises under the set-aside provisions.

Small business enterprises receiving contracts must perform at least 30 percent of total contract work costs with their own workforce to be considered performing a commercially useful function.