The Los Angeles County Metropolitan Transportation Authority is paving the way for small businesses to have a shot at multi-million dollar prime contracts that until recently seemed out of reach. In June, Metro awarded its largest contract of close to $100 million dollars to two small, minority-owned businesses. The deal is being discussed throughout the country as a business model for other public agencies.
The joint venture between Kal Krishnan Consulting Services and Triunity Engineering & Management is an example of two small firms working together to fulfill a larger contract through a joint venture. Contracts of this size usually go to larger companies that are known as “traditional primes”. But in this case, the larger company, CH2M, will serve as a sub-contractor and mentor to these smaller firms.
“When LA Metro CEO Phil Washington said that he was committed to providing more opportunities to small businesses, we believed him,” said Dev Krishnan, president/CEO of KKCS. “We took a big leap of faith by competing against the larger firms, but our experience matched theirs, and we are proud that LA Metro recognized our qualifications.”
Through this contract, the team will supply skilled consultants who will serve as an extension of Metro staff. They will provide areas of expertise where needed to execute the projects and programs in Measure M, a Los Angeles sales tax measure approved by voters last year which is designed to create a world class transit system.
With its new push for innovation, Metro has been actively encouraging businesses registered with its Disadvantaged Business Enterprise program to use traditional primes such as CH2M as sub-contractors to help mentor and fulfill larger contracts. These mentor/protégé programs are game changers for small businesses that just need a chance to prove they can get the job done.
“We are proud to support this team and continue our longstanding working relationship with these two firms,” explained Gerard Orozco, CH2M senior vice president. “This team proves that this mentor/protégé program really works. We support the LA Metro vision.”
The KKCS/Triunity JV contract allows the consultants to scale support efforts up or down, depending on Metro’s transit, highway, regional rail and other capital improvement needs. The Board awarded a $90.8 Million contract for seven years. It covers services as varied as project management, cost and schedule control and support services.
“Our firm has a long history of solidly delivering on our contracts and this opportunity seemed like a natural fit,” said Jonnie L. Thomas, co-founder and CEO of Triunity. “We are humbled and ecstatic about this opportunity and confident we can get the job done. Our motto is that we prize hard work and that is what our company is built on.”
In creating this kind of historic deal, LA Metro is truly changing the landscape for small businesses and creating a stronger, more inclusive marketplace.
