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Authority details small‑business compliance and conflict‑of‑interest safeguards for PDS contract
Summary
Staff reported on small business participation and a supplemental conflict mitigation plan for the AECOM/Fluor PDS contract; presentation covered monitoring systems, monthly reporting, supplemental conflict reports and mitigation measures tied to related projects.
Authority staff presented the annual small business compliance update and a separate report on conflict‑of‑interest compliance for the Program Delivery Support (PDS) contract at the Jan. 23 board meeting.
Katrina Blair, who leads the Small Business Development and Compliance Program, said the PDS prime (the AECOM/Fluor joint venture referred to in board materials) must comply with the authority’s Small and Disadvantaged Business Enterprise program and monitor payments and utilization through a compliance management system. Blair described routine measures: monthly compliance forms, a system that notifies subcontractors to validate payments, regular meetings between the authority’s small‑business staff and the prime’s small‑business officer, outreach workshops and participation in the authority’s Business Advisory Council and small‑business fair.
Blair said the prime is meeting its overall 30% small business goal based on expended values for the October 2024 reporting period and that staff are working with the prime to increase participation by disadvantaged business enterprises (DBEs) and disabled‑veteran‑owned businesses (DVBEs). She described escalation steps for noncompliance — nonconformance reports, efforts‑to‑achieve‑participation documentation, involvement of the contract manager and, if necessary, suspension of work until a firm remedies compliance failures. Blair told the board the authority posts contract payment reports publicly and monitors payment validation under California’s Prompt Payment rules.
On conflict of interest, Tonya (Tonya) Southern, authority counsel, described the PDS contract’s supplemental conflict mitigation plan. Southern said the plan requires quarterly reporting, supplemental reports when potential or actual conflicts arise, identification of key personnel and mitigation measures, separate information‑access controls and live web‑based conflict training for PDS staff. Since the contract’s November 2022 execution, the joint venture has submitted nine supplemental reports; four pertained to the most recent year, including potential conflicts tied to related projects such as Transbay and Link US. Southern said mitigation measures have been accepted and have so far avoided removing key personnel from the PDS team.
Board members asked about enforcement and whether the same rigorous processes apply to other large contracts and to authority employees. Counsel and staff said organizational conflict‑of‑interest requirements apply broadly in procurement, that procurement‑evaluation panels and contract managers file conflict disclosures during selection, and that state ethics rules govern individual staff, including cooling‑off restrictions for former employees.
Board members commended the small‑business team for improved payment practices and ongoing outreach; staff said they will continue monitoring utilization and provide additional data upon request.
