Blog #2 - Interview with LA Metro DEOD's Mark Penn
In this Blog we discuss in an interview with Mark Penn the SBE/DVBE requirements and necessary certifications
Host: Melissa Boyles
Melissa
Thank you for joining us for G Line 2.0, the podcast for Small and disabled Veteran businesses seeking opportunities on the LA Metro G Line bus rapid transit improvements project. We are Valley Transit Partners, a joint venture of spacing and Witbeck, Flatiron West and Modern Railway Systems. The G Line is an existing bus route within a dedicated corridor running through the San Fernando Valley. It extends from the North Hollywood B Line station to the Chatsworth Metrolink station in the Northwest of The Valley. The G line BRT improvements project will improve the existing bus rapid transit system by reducing travel times and improving safety. The project is being delivered via progressive design build and is currently in a first phase, which is great news because the most significant subcontracting opportunities are still to come. Today we welcome special guest Mark Penn with DEOD at LA Metro. Mark shares with us his role resources available to the small business community and goals for the project. Welcome Mark, it's such a pleasure to have you on our brand new podcast G Line. 2.0. You are our very first official guest. We just had the pilot announcement that we sent out but it's really terrific that you made the time to join me so that we can kick off our podcast.
Mark
The pleasure is all mine and I thank you for having me and look forward to many more sessions than I like. This is a great experience and I'm looking forward to many more meetings in the future.
Melissa
Wonderful. So let's get started by sharing with everyone a little bit about who you are and what you do as well as your role as it pertains to the dealing project.
Mark
Sounds good. My name, of course, is Mark Penn, and I am one of the directors in DEOD, which stands for Diversity and Economic Opportunity Department and specifically I am within the contract compliance group and essentially, I am the point person on those assigned projects to myself where we want to make sure that our small business programs are processed in accordance with our policies and procedures and we also monitor that process throughout the life of these contracts and the like. In terms of the role, as I said, I was a point person with DEOD in itself essentially, the bottom line is we're your friends on the inside, so to speak, but we try and do everything we can or open up all possibilities, small businesses and their participation. We open up the doors. We're advocates for small businesses. We serve as a system navigators. In the case, of course, that you get lost and essentially bottom line where the checks and balance between Metro as an agency, prime contractors and also the subcontractor community whether or not it's first, second, third, fourth level tier. That's essentially what we do, and me, I facilitate that process.
Melissa
You've got a very important leadership role in that checks and balances, but ultimately you kind of serve as a resource both for our small and disadvantaged business community as well as the prime contractors who are trying to make sure that we're following all the rules and also providing as many opportunities as possible while we're delivering this work. Is that accurate?
Mark
Absolutely and when you look at our responsibility and our roles, what we do, we administer, we oversee the small business program initiatives. We publicize contract opportunities, we provide training resources. We set, SBE/DVBE contract goals and we monitor the compliance and the like. VTP has been very good and that we've had, so far, a successful business relationship and we look forward to continuing that.
Melissa
That VTP is Valley Transit Partners, so we were the very fortunate and worked really hard for it, but we were the very fortunate team that were selected to help LA Metro deliver the G Line BRT bus rapid transit improvements project. So, super important bus rapid transit corridor for the area, but something that LA Metro is making some significant improvements in, to better serve the community, to make the actual delivery of service faster, to make it safer, and also to set the stage for at some point down the line, possibly converting from BRT to LRT, which is light rail transit, right?
Mark
That's correct. You never know what's in the plans, but absolutely. The sky is the limit in terms of what we might be able to do and what we have in the works, but yes, that is correct.
Melissa
And you have a fast growing, very diverse community that public transportation is going to help connect those communities with where people want to live, work and play. And we're super excited to be. A part. Of that.
Mark
Well, that's one thing we'd love to hear. And just to touch on that, LA County itself is a melting pot for diverse cultures and genders. And the fact of the matter is that we do everything that we can in order to. And look for individuals, organizations, companies that are well qualified to support us and their requirements that we have to enhance and maintain the transit infrastructure within the greater county of LA. And we think that we're in a great place. We think that we have definitely the businesses and firms that can help us small businesses and large companies alike. So we look forward to the opportunities that we put out there for individuals to propose on.
Melissa
I think one of the things that we recognize and value is that every organization that's participating on a project has an important role to play. So while we might be a big general contractor, we're no more important than the smaller firms that help us in these specialty areas really make the quality of the project the best that it can be and also enable us to work with people that actually live and work in those communities. So that we're giving back as we're building infrastructure.
Mark
Excellent. Absolutely couldn't have said it better myself, no question about that. And we look forward to the business community being part of the, what we call the collaboration. You look at it from the standpoint we're an agency, but again it is a collaboration between the agency, the Community, the community, the agency, different firms, large firms, small business enterprises. And so forth it's collectively collaboration on a part of everyone who is involved in order to make our transit operations of a better system than we currently have.
Melissa
We're certainly excited about that. Just to pivot a little bit, you mentioned a few different types of programs that are available for small businesses, the DBE, SBE and SDVBE. Can you talk a little bit about what each one of those programs is and kind of how they're different.
Mark
Sure. We actually have two types of certifications in itself, disadvantaged business enterprises, AKA DBE, and that program requires that applicants be socially economically disadvantaged as outlined in code of Federal Regulations, 49, part 26. And we're also a member of the California Unified Certification Program also known as CUCP, and we accept DBE certified by other member agencies as well. And we also have the small business enterprise AKA SBE, and a small business enterprise program is unique to Metro and mirrors the DBE program for his race and gender neutral. Our disabled veteran business enterprise program DVBE. This is where we accept DVBE certifications as provided by the Department of General Services, DGS. Now the requirements for a DBE and SBE are they have to be an independent business organization or organized for profit, personal net worth is less than $1.32 million annual gross receipts on a three-year average must be less than $28.48 million, and the qualifying individual is in control of the management and the daily business operation and 51% ownership. Is by one or more economically disadvantaged individual. Now additional requirements for DBEs must also be socially disadvantaged. Socially and economically disadvantaged individuals means any individual who is a citizen of the United States or lawfully admitted permanent resident who is a member of the following groups, either African American, Hispanic, Native American, Asian Pacific, American subcontinent, Asian Americans, and, Women and that's essentially our classifications SBE, DVBE, and DBE.
Melissa
What are you doing to help the small businesses build capacity and maybe take advantage of bonding or insurance opportunities? I know you have some pretty innovative programs.
Mark
Well, you know, I'm glad you mentioned that because we have even the portal and it's www.metro.net/connect. And if one logs into that, you will find a slew of information worthwhile to the business community also to the individual transit community that talks about the various programs, the events 12 month look aheads on the programs that we actually have and activities, forums, things of that nature. It talks about a variety of the different programs that Metro has. It’s very informative and that particular website is something that we actually suggest to anyone who's interested in doing business with Metro and also for those that just have a need or have a curiosity in terms of what Metro does. And along those lines, when you look at it, we want to make sure that businesses who would like to do business with plants or actually get certified. Now small business certifications which are similar to professional certifications, documents, special capability or status that will actually help those small businesses looking to compete in the marketplace. What it does is it increases their visibility to prime contractors, Prime contractors are required to meet SBE or DBE, utilization goals as a certified firm you are critical to the prime contractor towards successfully meeting these goals. Now also being certified, it levels the playing field by providing small businesses owned and controlled by socially and economically disadvantaged individuals a fair opportunity to compete for federally or non federally funded transportation type contracts. So it's our programs we try and make this accessible in terms of going through our website and providing the necessary information which will keep not only the business community informed, but also the public informed in terms of what nature is doing. I hope that answered the question.
Melissa
Absolutely, and I think that that it's really important to emphasize like you were saying, there's this, fantastic resource that you have invested in to make sure that if you're pursuing opportunities at LA Metro that as a prime contractor, you understand. What the different certifications are, what the different requirements are for certification, and how to identify potential subcontractors for your project. But I would say equally if not more, here's this tremendous resource for the small business community, for those that may be looking to get certified for the first time or expand their certifications if it meet the qualifications to do so.
Mark
That is correct.
Melissa
So let's talk about G line a little bit. Our understanding is an overall magnitude of the project is around $240 million. We obviously have to finish going through design and we have to go through all of the necessary steps in this first phase to refine the cost estimate but just for rough order of magnitude, $240 million. We have a fairly robust SBE and DBE goal on the project. Do you want to talk about that? Because that represents a ton of opportunity here coming up very soon.
Mark
Yes, it does. And our expectation of course is that VTP meet the goals that we've established, and we are looking definitely forward to the active participation and continue to comply, especially with our requirements in the like. So, you bring up a very good point about the fact that our expectations are extremely high, but we would not have it any other way. And I'm sure that VTP also feels the same way too.
Melissa
Absolutely. And I've mentioned expectation home referring more to the magnitude of opportunity. You know we're a team that is well known for how we approach our subcontracting and being great partners to the local area, small and disadvantaged businesses. And in this case, the small and disabled veteran businesses as well. So, we're actually looking forward to doing some pretty innovative things with regard to workshops, to introduce people to the details of the project, putting together this podcast so people know about the resources available to them. But it's exciting when you think about the significance from a dollar perspective of the G Line BRT project. And when you look at the goals that have been set, what that dollar value opportunity represents?
Mark
So true and VTP had committed the 18.35% goal for the SBE and the 3.73% goal for the DVBE. And again, that's well representative and definitely a solid commitment in terms of what we originally had proposed as a goal that we had set for the pre-construction services with 17% for the SBE and 3% for the DVBE. So, what we're seeing is a commitment on the part of VTP to do everything they can in order to exceed those goals that we did establish and we commend definitely be VTP for doing that and of course the initiatives and the programs that you have set up right now in order to bring the business community together as we have seen has been very successful today and through our correspondence and through our monthly meetings that we are on track in order to make sure that those numbers are actually realized. So again, we have to commend VTP for the commitment. We also have to commend you for the programs that you have set in place in order to make sure that the subcontractor community is well represented and is able to provide that helping hand in order for the joint venture to be successful.
Melissa
And we are firmly committed to meeting, like you said, if not exceeding that goal and are confident that we're going to be able to do so. But you know, it's not just about the success of VTP, it's about the success of our small business partners as well. Bringing people onto a project like this, there are a lot of requirements. There are a lot of complexities with regard to how sophisticated some of the work is, and I know our team is busy working on the construction packages. The different the bid packages that we're going to be presenting out to the community. Each one of those bid packages we're going to put together a workshop well in advance of releasing it for quotes so that we can walk people through exactly what we're looking for. We can talk to them about potential includes and excludes and things to consider as they're looking at building their bids to us, and we're gonna make sure that our team is available to them to make sure that we're answering any questions that they have, you know, and help them navigate through our systems for accessing the bid packages and just get to know us so that they're looking forward to working with us.
Mark
That's part of our expectation and that is what Metro is looking for. The types of programs and also the type of commitment that you. Talking about because communication is key, communicate, communicate, and communicate. As I said before, this is a collaboration at the highest levels. When we start talking between Metro joint venture, VTP and also the subcontractor community based. But the one thing that I'm not saying we cannot forget, we also have the public and the public is part of that communication process. So, all the things that you're doing that is exactly what we're looking for in order to make sure that there is a complete collaboration with no misunderstandings and no misconceptions in the light. So everybody's on the same page and we're looking for a successful implementation of the system. That the community can be proud of and at the same time successful from Metro and also VTP, it's a win win situation for everybody.
Melissa
Absolutely, And the VTP perspective, our joint venture partners and we've been following the G Line project for couple of years before it was even advertised. So I have done a ton of homework. Super excited about being selected to deliver the work and excited to be in the community, so we're mapping out our calendars for where we can show up and meet people and what we can host to introduce them to us. And we've got our website up and running. We're launching our podcast and we'll be sending out all kinds of information to keep people in the loop but I think you know at the end of the day the goal is to get people work right and to set them up for success in delivering that work, and that's what we're gonna do.
Mark
Perfect. And that's what we look forward to and you know it's a nonstop effort to it just doesn't stop right now it just doesn't just begin, it's an ongoing effort and the collaboration and the commitment on the part of everyone involved, we got the stakeholders and the like. So again, it's a collaboration and with that collaboration comes nothing but success. Communication that's part of the equation also. So yes, no question about it. We're happy with what VTP is doing at the moment. And again, we do have our monthly DEOD meetings to make sure that the small business community is not only recognized, but at the same time we want to make sure that we're in full compliance of all the rules and regulations. So everyone is playing on the same page and we move forward.
Melissa
And that's something I think our team has really appreciated is that you all have been very, very clear on what we're supposed to be doing is very clear. You've been very quick to respond to any kind of inquiries or clarification that we're looking for. So, we think that this is a great project and it's going to be great. You know, as we're working through this beginning phase, but it's going to. You know it's going to be great when we get into construction. We start seeing some things actually happening out in the field.
Mark
Alright. And we're looking forward to the earlier works packages that are currently being prepared and talked about and discussed. So we'll be waiting for those in order to get that second phase started.
Melissa
Working on early works packages now. My understanding is sort of our tentative schedule is that we're going to be looking for bids from subcontractors, subcontractor quotes later this year. So, we're going to start doing some bid workshops and some outreach, some more robust outreach activities as we kind of get into the summer months here, but we wanted to set the stage by introducing sort of our key cast of characters, if you will through our podcast, so we will know who we are as a team. Both LA Metro and VTP, and that we're here to help and we're excited about delivering this work.
Mark
That's fantastic. And I will say one thing. The podcast that is an excellent communication vehicle to get the message out to everybody. There's no question about it. We think this is just a great idea with the podcast. So, we're definitely looking forward to more podcasts and being a part of the sessions and how many give and take in terms of what our expectations are and what the VTP team is experiencing and things that they might see that process is even better.
Melissa
We're super excited that you let us do. This because we. We we're not sure that the LA Metro communications was going to give us a green light, but you know, time is money and when you're a small business owner and you're running from job to job and meeting to meeting, if you can get the information you need in the car on your way as opposed to having to show up at one more place or track something down then that’s all the more effective that we're going to work together on delivering these interviews.
Mark
Fantastic, this is technology at it's best, you know, with all the communication vehicles available to us might as well take full advantage of all the media type tools that we have.
Melissa
Absolutely. So, I would say for folks that are listening that want to learn more about the timing and subcontracting opportunities and how to reach our team, they can visit us at Valley Transit partners.com and would you mind Mark, just sharing one more time the website where people can find more information about certain information and resources?
Mark
Absolutely. It's it's Metro's vendor portal, and the website is www.metro.net/connect and has a wealth of information, I guarantee you will find it very informative and it might surprise you in terms of what Metro is actually doing, particularly the 12 month look aheads and you're looking at the potential plans that we have for the organization projects on the horizon.
Melissa
I know there's a lot of work going on right now, and there's even more coming up in the near future, so people need to go check out that 12 month look ahead. They need to. Look at their certification to make sure that they've got, you know, all of the appropriate codes and things of that nature up and to get up to speed on all of that and reach out to our team because we're looking for subcontractors and excited about working.
Mark
That is fantastic.
Melissa
Well, Mark, this concludes our interview. I want to thank you so much for taking the time to do this. We are definitely going to be hitting you up again to do another interview as we progress on getting through this first phase and start working toward our bid packages and our workshops as we move on into the summer. But thank you so much for doing this. This is really great that we're going to collaborate like this and get the information out to the Community this way.
Mark
It is my pleasure and thank you for having me. Thank you for thinking about me as being the 1st guest on this podcast. And as you said. Look forward to big and better things and a successful business relationship. And there's no question, yeah, we have a wealth of information. You have a wealth of information. We're here to share it not only amongst ourselves, but also with the business community and also the public to let them know exactly what we're doing and the success that we expect to have on this program.
Melissa
Absolutely could not agree with you more.
Melissa
Thank you so much for joining us for G Line 2.0, the podcast for small and disabled Veteran businesses seeking opportunities on the LA Metro G Line bus rapid transit improvements project. It was great to kick things off on our interviews with DEOD’s Mark Penn and we look forward to having him back. We're excited to share future interviews and project information, so to stay in the know with G Line 2.0 like and subscribe to this podcast. See you next time.