Big news for small businesses: Metro simplifies prequalification rules for certain contracts 

Metro is rolling out a change that’s a big win for small businesses and vendors. Beginning this year, firms bidding on most Metro contracts valued at $500,000 or less will no longer need to go through the prequalification process — except for construction and public works contracts, which are still required to follow the existing rules. 

Historically, there have been no exceptions to the prequalification process for small, minority-owned, or disadvantaged businesses. The updated threshold addresses these inequities and is part of our commitment to fostering equity and inclusion in Metro’s procurement practices.

Here’s why this change is so impactful: For 20 years, the prequalification threshold was set at $100,000. Any contractor working on a contract above that amount must go through a prequalification review. While that process helps Metro ensure vendors are responsible and financially sound, it also adds time to the procurement timeline and increases administrative work for small businesses. 

In the past two years, 35% of prequalification reviews fell into the $100,000 to $499,999 range — with 15% involving small businesses. By raising the threshold to $500,000, Metro is removing a significant hurdle for smaller firms and allowing them to bid on contracts without the added time, paperwork and cost.

“This change is an important update to the program, not just because it opens more opportunities for smaller businesses, but because it also helps Metro increase its pool of firms,” said Dr. Irma L. Licea, Executive Officer over the Prequalification Program. 

Professional services contracts are expected to benefit the most, as they pose minimal risk to Metro while offering significant opportunities to local businesses. With the new rules, Metro’s existing prequalification staff will also be able to focus on higher-risk procurements, such as rolling stock and other time-sensitive projects, speeding up processing times for everyone. 

With the Olympics on the horizon and Metro’s push for modernization, these updates are perfectly timed to expand benefits of working with government to small businesses.

Want to work with Metro? Visit the Metro Connect vendor portal website to learn more about our prequalification program explore our procurement opportunities and start bidding today!