TranSystems Corporation - LGM Construction

February 28, 2000
Letter of Understanding re: Small Business Utilization Program
Mr. Barry Luboviski, Secretary-Treasurer
Building and Construction Trades Council of Alameda County
8400 Enterprise Way, Room 101
Oakland, CA 94621
RE: Port of Oakland Non-Discrimination and Small Local Business Utilization Program
Port of Oakland Maritime and Aviation Project Labor Agreement
Dear Mr. Luboviski:
In our negotiations for the Maritime and Aviation Project Labor Agreement, we discussed the
Port’s desire to continue to utilize its Non-Discrimination and Small/ Local Business Utilization
Program (hereafter Program) to assist qualifying small historically disadvantaged businesses to
become capable of bidding and completing construction work. The parties understand that the
Unions believe that such a program can operate completely within the framework of the
Agreement, and that they have pledged to cooperate with the Port for the purpose of growing
such local business capacity and overcoming the disadvantages that have resulted from the
operation of various economic, social and cultural forces. The parties reach the following
understanding concerning the utilization of Local Impact Area businesses that qualify as small
businesses under the Program.
The parties agreed that for the purposes of this agreement, the term “advertised” in Article II,
Section 1(a) does not include bid packages managed under the Program for work otherwise
covered by the scope of this Agreement that have an estimated value before bidding at or below
$300,000 where in the sole discretion of the Owner such exclusion will further the goal of
increasing the participation of small and historically disadvantaged Oakland-based construction
businesses. The aggregate value of all bid packages chosen by the Owner for exclusion from the
coverage of this Agreement will not exceed nine million dollars ($9,000,000) over the duration
of this Project Labor Agreement, except subject to the procedure outlined in this Letter of
Understanding. However, if work awarded under the Port of Oakland Vision 2000 (1999
Facilities) Project Labor Agreement has not resulted in the utilization of the $1,000,000
contained for such a program, the balance of such funds shall be available for use under this
program in order to reach the $10,000,000 original conceived for such efforts. All other contracts
awarded under the Program will be covered by the terms of the Project Labor Agreement.
It was further agreed that where a contractor qualifying for this Small Business exclusion has
received aggregate awards of $150,000 or a single award that exceeds $150,000 under the
Program excluded from coverage of this Project Labor Agreement, that such contractor will
thereafter be required to agree to comply with the PLA for all future contract awards within the
Scope of this Agreement whether or not the bid package is reserved for bidding under the
Program.
PORT OF OAKLAND MARITIME AND AVIATION PLA
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