Equitable Procurement
Metro’s construction, operations and professional services contracts represent substantial economic activity that can either reinforce or counteract racial wealth gaps depending on who has visibility into and access to these competitive bidding opportunities. This indicator outlines how planners engage with Metro’s equitable procurement processes to direct spending toward certified small and disadvantaged businesses—particularly those based in or near project-affected communities.
Equitable procurement is a direct mechanism for creating wealth-building opportunities for business owners from communities historically excluded from public sector procurements. Metro certifies two designations directly: Disadvantaged Business Enterprise (DBE), which covers socially and economically disadvantaged individuals as defined under federal regulation, and Small Business Enterprise (SBE), a race- and gender-neutral program mirroring DBE eligibility criteria. Metro also recognizes the Local Small Business Enterprise (LSBE) designation for SBE-certified firms headquartered in Los Angeles County and the Disabled Veterans Business Enterprise (DVBE) certification issued by the California Department of General Services.
This indicator reinforces and makes visible Metro’s existing commitments to equitable procurement. Metro already tracks DBE/SBE participation goals, maintains a certified vendor database and publishes Small Business Award and Utilization Reports for major capital projects. LA Metro’s Diversity & Economic Opportunity Department (DEOD) plays a formal role in the procurement process through market analyses; participation goal-setting; certification programs and compliance with applicable federal, state and agency requirements. Assessing this indicator in the planning/pre-solicitation phase is therefore less about creating new data collection burdens and more about collaborating with DEOD to ensure that small business goals are embedded in project design decisions—particularly acquisition strategy—early enough to meaningfully influence outcomes. Decisions made during project planning about how scopes of work are bundled or unbundled, how solicitations are sized, which evaluation criteria are used and which primes are engaged directly determine whether small and disadvantaged firms can realistically compete for the resulting work.
Early engagement with equitable procurement considerations is thus key to meaningful and successful small business outreach, engagement and participation. Equitable procurement considerations are relevant not only to construction contracts, but also to professional services, operations, goods and services, planning studies, technical support and other procurement types where certified small and disadvantaged businesses may have opportunities to participate. Engaging with equitable procurement evolves as projects progress from the project planning/pre-solicitation phase to the procurement/contract administration phase:
- During the planning/pre-solicitation phase, the goal is to benchmark, identify gaps and inform contract design. In the beginning stages of a project, the focus should be on engaging DEOD, reviewing relevant utilization and market availability data, identifying potential barriers to participation and informing procurement strategy, scope development, contract packaging and outreach. Early collaboration with DEOD helps planners inform and implement acquisition strategies that maximize opportunities for certified small and disadvantaged businesses. Project teams are encouraged to strengthen outreach efforts, expand awareness of upcoming opportunities, identify potential barriers to participation and support vendor development activities that increase the pool of qualified firms available to compete. Planners who engage with this indicator early—reviewing utilization data from comparable past Metro projects, assessing the certified vendor pool and flagging potential structural barriers—provide the procurement and construction teams with a stronger foundation for achieving equitable outcomes.
- During procurement and contract administration, the focus shifts to monitoring commitments, tracking utilization and ensuring compliance with applicable program requirements.
Metro staff can contact DEOD to collaborate on procurement opportunities at sbcomplianceinquiry@metro.net.
Understand Your Datasets
Metro’s own procurement data is a primary source for this indicator. Metro tracks contract awards, DBE/SBE/DVBE utilization and subcontractor payments through its Small Business Certification & Compliance Reporting System (B2Gnow). Metro also maintains a broader tracking and performance management structure, including Economic and Workforce Development metrics in its agency-wide sustainability strategy Moving Beyond Sustainability (MBS).
Planners should engage DEOD and Metro’s Vendor Contract Management (VCM) Department early in the planning/pre-solicitation phase to review historical participation data, assess market capacity, identify potential barriers to participation and inform procurement strategies appropriate for the project. Metro’s Vendor Portal provides publicly available information on current contracting opportunities, certified DBE/SBE vendors and Metro’s small business programs. Metro’s Small Business Award and Utilization Reports provide milestone-by-milestone tracking against goals and can be used as a key benchmarking resource for planners assessing a new project.
External datasets can provide additional context for Metro’s procurement performance against broader market conditions. The U.S. Census Bureau’s Annual Business Survey (ABS) provides data on business ownership by race, ethnicity and gender at the metropolitan area level, enabling comparison of contractor demographics against the available certified business population. The California Department of General Services (DGS) supplier diversity database lists certified small and DVBE firms operating in California. The U.S. Small Business Administration (SBA) Dynamic Small Business Search provides a national registry of small businesses under federal small business programs. Beyond utilization percentages, planners should track the tier at which diverse firms participate (prime vs. subcontractor), contract values and—where available—payment timing data, as these dimensions reveal whether equitable contracting commitments are translating into meaningful wealth-building outcomes.
Example Datasets:
1. Metro Doing Business with Metro / Vendor Portal: https://www.metro.net/about/doing-business-with-metro/
Instructions: Access Metro’s vendor portal to review certified partners. Cross-reference vendor addresses with project corridor geographies to assess whether local businesses are represented in Metro’s certified pool. Review posted solicitations, pre-bid conference attendees and contract award announcements to track the types and values of opportunities accessible to certified firms. Note that Metro accepts DBE certifications through the California Unified Certification Program (CUCP). SBE is Metro’s race- and gender-neutral small business program, and as of January 2025, it recognizes Bay Area Rapid Transit (BART) SBE certifications as part of SBE program, along with the DVBE certification through the California Department of General Services—the certified vendor pool is therefore broader than Metro-issued certifications alone. Planners should contact DEOD for project-specific utilization reports and guidance on small business goal setting.
Data Considerations: Vendor registry data reflects certified and registered firms but does not indicate whether firms have successfully competed for or received contracts. Certification status may lag with actual business activity. Small businesses that are not certified may still be eligible for contracts. While certified utilization remains the primary metric for measuring participation outcomes under Metro’s small business programs, overall small business participation may serve as a supplemental indicator of market engagement.
2. Small Business Participation Reports on Metro Contracts: https://www.metro.net/about/sbprmc/
Instructions: DEOD’s Small Business Participation Reports on Metro Contracts is where past Award and Utilization reports are housed. Locate Reports for past Metro projects with characteristics comparable to your current project (e.g., similar project type, scale and corridor demographics). Project teams should engage DEOD and VCM early to review historical participation data, assess market capacity, identify potential barriers to participation and inform procurement strategies appropriate for the project. For active solicitations, use these benchmarks to evaluate the feasibility of participation plans.
Data Considerations: Monthly small business participation reports provide information pertaining to a prime contractor’s utilization of small businesses on Metro contracts. Reports are published for major federally-funded capital projects and may not be available for all Metro projects. Utilization percentages reflect contract value, not number of firms, jobs or hours worked. A single large DBE subcontract can satisfy utilization goals while limiting the number of businesses benefiting. Decisions regarding contract packaging, scope segmentation, prime contracting opportunities and procurement strategy should be developed in coordination with DEOD, Procurement and other appropriate stakeholders. Construction Diversity Reports can help identify participation trends and potential barriers but should not be interpreted as directing a specific procurement approach.
Additionally, while prime versus subcontractor participation can provide valuable insight into the distribution of contracting opportunities, the data should be used to inform discussions regarding potential barriers, market capacity and participation strategies rather than presupposing that scopes should be carved out for direct prime procurement. Not all projects or procurements are suitable for that approach, and such decisions should be evaluated on a project-specific basis consistent with procurement requirements and operational needs.
3. U.S. Census Bureau — Annual Business Survey (ABS): https://www.census.gov/programs-surveys/abs.html
Instructions: Access ABS data tables for the Los Angeles-Long Beach-Anaheim metropolitan area to review business ownership rates by race, ethnicity and gender across industry sectors relevant to Metro contracting (construction, engineering, professional services) as a pre-solicitation market analysis. Use this data to establish a “Baseline Availability” benchmark and identify high minority-business density areas where Metro’s vendor pool is thin.
Data Considerations: ABS data has a 2–3-year reporting lag and uses sampling methodology that may produce wide confidence intervals for smaller demographic groups. Industry sector codes (NAICS) used in ABS may not align precisely with Metro’s procurement categories; use them as a directional benchmark rather than definitive comparison.
ABS data can help identify potential outreach opportunities, certification gaps or areas for vendor development rather than as a primary basis for procurement strategy decisions. Any recommendations regarding contract packaging, goal-setting, sourcing strategies or market availability should be developed in coordination with DEOD and Procurement using established methodologies and project-specific analyses.
4. SBA Dynamic Small Business Search: https://search.certifications.sba.gov/
Instructions: Use the SBA’s DSBS to conduct a targeted market-gap analysis by searching for small businesses by geography, industry (NAICS) and socioeconomic category (8(a), HUBZone, WOSB, SDVOSB). Filter by the Los Angeles area and relevant construction and professional services NAICS codes to understand the available pool of federally-certified small and disadvantaged businesses. Cross-reference these results with Metro’s certified vendor registry to evaluate market capacity and identify potential vendors not currently engaged with Metro’s procurement pipeline.
Data Considerations: Vendor outreach, procurement strategy, contract packaging or potential “Set-Asides” should not be based solely on DSBS data and should be developed in coordination with DEOD and Procurement. DSBS reflects federal certifications, which differ from California state and Metro’s own DBE certification requirements. While DSBS can be a useful supplemental resource for understanding the broader small business marketplace, federal certification categories do not directly correspond to Metro’s certification programs or participation goal methodologies. Treat this dataset as a supplemental source for understanding the broader small business ecosystem rather than a direct measure of Metro procurement eligibility.
5. California Department of General Services — Supplier Diversity Certification: https://www.dgs.ca.gov/PD/About/Page-Content/PD-Branch-Intro-Accordion-List/OSDS/OSDS?search=Disabled%20Veteran%20Business%20Enterprise%20(DVBE)%20Program
Instructions: Access the DGS small business and DVBE certification database to identify DVBE-certified firms operating in Los Angeles County by NAICS code. Metro does not issue the DVBE certification itself but recognizes the DGS-issued DVBE certification. Filter by relevant construction and professional services codes and cross-reference against Metro’s vendor registry to identify DVBE firms already engaged with Metro and those that represent an untapped pipeline for project procurement.
Data Considerations: Metro recognizes DGS DVBE certification but does not process it directly—firms must obtain certification through DGS separately from any Metro DBE or SBE application. DVBE certification is distinct from DBE/SBE and does not require racial or gender criteria; eligibility is based on ownership and control by a disabled U.S. military veteran.
Note that this dataset and the other linked external certification databases are valuable as supplemental market intelligence resources rather than tools for identifying specific firms for project-level engagement or procurement strategy development. Project teams should collaborate with DEOD and Procurement prior to any direct engagement with current or prospective bidders to identify barriers, support outreach and incorporate lessons learned into project planning.
Community Demographics Profiles Alignment
Employment by Industry
Equity Focus Communities
Explore the Index of Indicators in Metro’s Community Demographics Profiles Dashboard here.
Coordinate with Community Members
Early engagement with DEOD and Procurement can support planners in fostering a meaningful vendor engagement towards equitable procurement goals. Through existing processes, planners are able to engage directly with small and minority-owned businesses—particularly those in or near project corridors—to understand their experience with and barriers to competitive bidding on Metro projects. Partner with organizations that provide small business technical assistance and procurement readiness support, including Community Development Financial Institutions (CDFIs), Small Business Development Centers (SBDCs) and industry-specific trade associations serving minority contractors. Work in conjunction with local minority chambers of commerce in Los Angeles who facilitate economic growth and development of minority owned businesses. Host contractor readiness workshops in partnership with Metro’s SBPD office to connect local businesses with certification resources and upcoming solicitations.
Note the difference between general small business participation and participation recognized under Metro’s certification programs. While non-certified small businesses may be eligible to compete for contracting opportunities, only certified firms can be counted toward applicable DBE, SBE or other participation goals. Certified utilization remains the primary metric for measuring participation outcomes under Metro’s small business programs, while overall small business participation may serve as a supplemental indicator of market engagement. Additionally, gaps between overall participation and certified participation may identify opportunities for outreach, certification assistance and vendor development efforts.
Consider conducting structured interviews with DBE and small business owners who have previously bid on Metro contracts—both those who were awarded contracts and those who were not—to identify structural barriers in Metro’s procurement processes. Particular areas for discussion may include bonding and insurance requirements, bid package complexity, payment timing and subcontractor relationship dynamics with prime contractors. Establish feedback loops between DEOD, Metro’s project teams and the small business community throughout project planning and implementation to identify and address emerging barriers before they result in vendor attrition.
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