LA Metro Updates Prequalification Rules

LACMTA

LOS ANGELES - Metro announced it will change its prequalification rules for certain contracts valued at $500,000 or less.

According to the release, firms bidding on these contracts will not need to go through the prequalification process. The exception is construction and public works contracts as these are still required to abide by existing rules. The update to the rules is part of its “commitment to fostering equity and inclusion in Metro’s procurement practices.” Professional services contracts are expected to benefit the most, according to Metro, as these “pose minimal risk to Metro while offering significant opportunities to local businesses.”

Previously, the prequalification threshold was $100,000, so any contractor on a contract above that threshold had to go through a prequalification review. This adds time to the procurement timeline and adds administrative work. Metro reports 35% of prequalification reviews have fallen into the $100,000-$499,999 range in the last two years. 15% of this number involves small businesses. With the raise in the threshold to $500,000 Metro allows smaller firms to bid on contracts without added time and paperwork.

Executive Officer over the Prequalification Program Dr. Irma L. Lice said, “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.”

Metro states its prequalification staff can focus on higher-risk procurements. These include rolling stock and time-sensitive projects.