Caltrain’s Board of Directors has authorized the publication of a participation goal for disadvantaged business enterprises (DBEs) as part of the rail agency’s Peninsula Corridor Electrification Project.
Based on an extensive research process, which included engagement with the Federal Transit Administration, Caltrain staff recommends a DBE goal of 5.2 percent of the total contract for the electrification project. DBE hiring standards are included to prevent discrimination and ensure that small, disadvantaged businesses can compete fairly and have proper representation in large-scale projects. The federal government defines DBEs as for-profit businesses where socially and economically disadvantaged individuals own at least a 51 percent interest while also controlling management and daily business operations.
The 5.2 percent figure for the electrification project was determined after Caltrain engaged in a process based on methodology established by the federal government. The process, which is available here, factored in the availability of DBEs within Caltrain’s market area relative to all area businesses, while examining other DBE availability factors. The Caltrain board authorized the publication of the recommended DBE goal at its December meeting.
To qualify as a DBE, the individual in charge of the business must be a U.S. citizen, a member of a socially or economically-disadvantaged group and have a personal net worth of less than $1.32 million. Minority group and women-owned businesses qualify as DBEs.
Federal and state certifiers determine whether a company qualifies as a DBE based upon on-site visits, personal interviews, reviews of licenses, stock ownership, equipment, bonding capacity, work completed, and resume’ of principal owners and financial capacity.
Caltrain is scheduled to be operating electrified train service between winter 2020 and spring 2021. Electrifying the Caltrain system will improve corridor air quality by up to 97 percent by 2040, more than double current weekday ridership with increased service and the proposed downtown San Francisco extension, and take more than 600,000 daily vehicle miles off the region’s roadways.
At its December meeting, the Caltrain board received the Final Environmental Impact Report of the electrification project. That document will be up for approval at the board’s January meeting.
