SACRAMENTO-The California High-Speed Rail Authority has begun the process of establishing a policy encouraging participation in project contracts by small businesses and Disabled Veteran Business Enterprises. The policy will be circulated to key stakeholders and small business organizations throughout the state, and will return to the board for approval at a future meeting.

“Small businesses are the backbone of California’s economy, making up 90% of all businesses in the state,” says Curt Pringle, chairman of the California High-Speed Rail Authority. “We are going to be spending more than $40 billion on contracts to construct a statewide high-speed rail system and we need to strongly include small businesses in that equation.”

As it currently reads, the policy calls for minimum contracting goals of 25% for small businesses, and 3% for disabled veteran-owned businesses. The policy reflects current practices already being implemented by the Authority. In fiscal year 2009-2010, the Authority reported small business participation at 27.72% and 7.07% disabled veteran-owned businesses participation, of the nearly $18.5 million in contracts let during that fiscal year. However, the development of this policy would also strengthen current practices by imposing a small business goal on the federally funded portions of the project, according to a prepared statement.

“Frankly, we have been focused on ensuring we have small business and disabled veteran-owned businesses participation all along,” Pringle says. “But by creating this policy, we are ensuring staff is clear that we are encouraging the same levels of participation within the federally-funded contracts as well.”

The Authority is also developing an outreach program to encourage the participation of minority- and women-owned businesses in building the state's high-speed train project. “We’re developing a policy that conforms to the law,” says Authority Board vice-chair Tom Umberg. “However, the board is giving clear direction that the Authority needs to establish an outreach program with all businesses, to ensure we have an ongoing pool of talent that is strong, diverse, and capable.”

Construction on California’s high-speed rail project will begin in the second half of 2012 in the heart of the Central Valley. The State’s high-speed train system will operate at speeds of up to 220 miles per hour, connecting the state’s urban centers, including the Bay Area, Fresno, Bakersfield and Los Angeles. The first phase of the project, projected to cost about $43 billion, will begin train operation once the first operable segment—150-200 miles—is built, connecting the system to at least one major metropolitan center. The project is being funded through a voter-approved bond, public-private partnerships and federal grants.

Obama Administration’s Plans

In other high-speed rail news, California’s high-speed rail project took center stage this week in Philadelphia as vice president Joe Biden and Transportation Secretary Raymond LaHood unveiled the Obama administration’s plans to invest $53 billion in high-speed rail development over the coming six years.

“This is the kind of bold investment in the future of our nation’s infrastructure that will get the attention of the private sector and make high-speed travel a reality in the US,” says van Ark, who attended the event in Philadelphia. “Californians are already doing their part to invest in and develop a fast, clean and low-cost transportation system, and we are pleased to have the partnership of our federal government.”

Van Ark adds that “True high-speed rail that travels faster than 200 miles per hour over long distances between California’s major metropolitan centers will mean strengthening our state’s economy in the long term. In the near term, development of this system will mean tens of thousands of jobs at a time when we need them the most and a huge boost that will assist our state’s economy.”

Environmental Impact

In further recent high-speed rail news, Roelof van Ark, CEO of the California High-Speed Rail Authority, says that “Two sections of the alignment, namely San Francisco to San Jose and Los Angeles to Anaheim, are quite technically challenging. Furthermore, both of these sections, where high-speed trains may operate at reduced speeds, offer great opportunity for phased implementation that can also bring benefits to existing services.”

He points out that the Authority will be working with the local and regional agencies and the communities to incorporate a phased implementation approach into the project environmental documents “while ensuring that the environmental documents would continue to portray the full build out of the section as well, as required by law.”

Considering this, he says, and as these sections are no longer ARRA sections, “we recommend that the draft environmental impact report not be issued before the end of 2011 for these two segments. This will allow all stakeholders to participate in the further investigation and development of the alignments, and some of the technical complexities of the operations and alignments can be further analyzed.”

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Rail Authority Sets New Policy

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