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Local Business Enterprise Program

Contact for additional information
Iris Martin Lopez
(415) 554-3222
ilopez@sfwater.org

Our Local Business Enterprise Program (SFPUC-LBE) provides small regional construction firms located in the water service territory (Daly City to Hetch Hetchy) eligibility to be certified by the General Services Agency’s Contract Monitoring Division for construction contracting opportunities on SFPUC specified construction projects, as San Francisco based firms.

  • Established small/micro public works/construction, construction material suppliers, construction equipment rental, trucking, architect/engineering, and professional services firms located in the water service territory (defined by zip codes) are encouraged to apply for the certification program.

What has changed since the SFPUC-LBE Certification Program went into effect in 2006?

Since the SFPUC-LBE Certification Program went into effect, several enhancements have been enacted to improve the participation of and contracting opportunities for small/micro construction firms wishing to do business with SFPUC. For example, in April 2013, new language was added to the legislation to allow small construction firms to bid on regional construction projects (repair and replacement and capital improvement projects) located 70 miles beyond the jurisdictional line of the City and County of San Francisco.

And effective July 1, 2015, architect/engineering and professional services firms will be eligible to bid on SFPUC regional projects and have the status of construction, specialty construction, construction material suppliers, construction equipment rental firms and trucking pursuant to Chapter 14B.5.

The inclusion of professional services firms as part of the new change in the legislation applies only to architect/engineering and construction management services for SFPUC regional projects.

SFPUC-LBEs will be eligible for the 10% prime bid discount and can also receive LBE participation credit towards the LBE subcontracting goal.

What are the SFPUC-LBE Certification Program requirements?

Under San Francisco Administrative Code Chapter 14B, Section B (5), the SFPUC-LBE Certification Program requires established small public works/construction firms, as well as architect/engineering and professional services firms. (architectural/engineering and professional services only), as defined in 2) above to meet the requirements of Chapter 14B. Section 3 (B) or (C).

Average annual gross receipts and location of the business applying for certification are the key measurements used to determine eligibility. See more information on Chapter 14B.

What are the benefits of the SFPUC LBE Certification Program?

The following benefits are available:

  • When bidding as a subcontractor, certified SFPUC-LBEs shall be eligible to meet the LBE subcontracting goal requirements on SFPUC Regional WSIP construction projects; located outside of San Francisco County
  • When bidding as a prime, certified SFPUC-LBEs shall be eligible for 10% bid discount on SFPUC Regional construction projects. Located outside of San Francisco.

What zip codes are included in the SFPUC regional water system service area?

The SFPUC water system service area is defined by the cities/zip codes listed in Appendix I and may be amended by the SFPUC from time to time.

  • Zip codes under the SFPUC-LBE Program (new attachment appendix I)

What are the economic thresholds?

Small/micro construction and professional services firms are required to show average annual gross receipts from prior (3) years. Please note the average annual receipts for the last three (3) years cannot exceed the following limits:

Work

Micro

Bid Discount: 10%

Small

Bid Discount: 10%

Public Works/Construction Contractors (Class A & B license) $10 million $20 million
Specialty Construction Contractors  $5 million
$10 million
Trucking and Hauling
$1.75 million   $3.5 million
Goods, Materials and Equipment Suppliers  $5 million
$10 million
General Service Providers
$5 million  $10 million 
Architect/Engineering
$1.25 million $2.5 million
Professional Services
$1.25 million $2.5 million

Can regional small/micro construction firms bid on San Francisco construction projects and receive discount or LBE subcontractor goal credit?

Yes. Small/micro construction firms from the regional water service area are eligible to bid on San Francisco construction projects, however; these firms are non-eligible to meet subcontractor goal credit and will not receive the 10% bid discount. When bidding as a prime, the discount is available for regional capital improvement projects located 70 miles beyond the City and County of San Francisco.

Is there an Oversight Committee assisting the SFPUC with its contracting efforts in the regional water service area?

The Small Firm Advisory Committee was formed in 2006, with the adoption of SF Administrative Code Chapter 14B Section B(5) to assist the SFPUC with its efforts to provide meaningful business opportunities to small/micro, locally-based construction companies throughout the Hetch Hetchy water service area. Effective July 1, 2015, these opportunities will be extended to architect/engineering and professional services firms as well.

The five-member committee is representative of the SFPUC’s seven counties water system and provides public meeting opportunities to meet with small/micro construction firms and residents of Suburban water customer jurisdictions to discuss actions of the committee that affect those communities.

Can regional small/micro construction firms and professional services firms bid on SF construction projects and receive discount or LBE subcontractor goal credit?

Yes. Small/micro construction, architect/engineering and professional services firms from the regional water service area are eligible to bid on San Francisco construction projects; however, these firms are non-eligible to meet subcontractor goal credit and will not receive the 10% bid discount. The discount is available for regional capital improvement projects only. 

How long does the certification process take?

Application processing ranges from 14 to 30 business days.

What happens during the certification process?

Contract Monitoring Division staff will review the application and documents submitted, and request any additional items needed to complete the file. SFPUC staff will conduct a site visit of the premises and interview employees and/or the owner(s) at the site.

Certification Applications should be submitted to:
General Services Agency
Contract Monitoring Division, Attn: Certification Unit
30 Van Ness Avenue, Suite 200
San Francisco, CA 94102-6033

 

Last updated: 9/1/2015 2:31:10 PM