Disparity study finds underutilization of women‑owned firms and recommends targeted DBE elements; board to seek FTA waiver

Consultants presented a multi‑year disparity study and told the Board their analysis supports narrowly tailored race‑ and gender‑conscious program elements for federally funded SFMTA contracts. The study reviewed contracts from FY2009 through mid‑FY2015 and combined market‑area availability analysis, utilization statistics, economic capacity review and stakeholder testimony.

Key findings included substantial underutilization of women‑owned businesses across FTA‑funded contracts and evidence that Black contractors have been underrepresented in construction contracts. The consultants noted that prior race‑neutral steps taken by SFMTA had produced gains for Asian and Hispanic firms but had not fully mitigated disparities for women‑owned firms or Black construction contractors.

Recommendations to the Board included establishment of a women‑business enterprise component across federally funded contract categories, a focused program element to address underrepresentation of Black construction firms, continued reliance on race‑neutral small‑contract strategies (including bundling and breakdown of large contracts), and submission of a waiver application to the Federal Transit Administration to permit narrowly tailored race/gender‑conscious measures.

SFMTA staff said they already conducted extensive outreach during the study and will proceed to submit the waiver application if the Board approves. The Board voted to adopt the study findings and to seek the FTA waiver; several speakers urged staff to pursue changes to federal net‑worth and certification rules that stakeholders said can exclude otherwise eligible firms.

Next steps: Staff will submit the waiver application to the FTA and continue targeted outreach and program adjustments pending federal review and approval.