Informal Contracts (A/B Letter) Bidder Qualification Requirements
*** IMPORTANT NOTICE TO VENDORS ***
LAUSD awards informal contracts based on Low Value Bid to the lowest responsive and responsible bidder.
LAUSD Small Business Enterprise (SBE) certified contractors will be provided a 8% bid preference, Micro-SBE 10% bid preference, and VBE/DVBE 10% bid preference when bidding
in response to invitations for bid for amounts under the annually adjusted bid threshold amount set for contracts
pursuant to Public Contract Code 20111. The contractor MUST submit their current LAUSD SBE, VBE/DVBE and/or
Microbusiness certification, or valid reciprocal agency certification with their bid, for the 8% SBE, 10% Micro-SBE, or 10% VBE/DVBE preference to be
applied. However, LAUSD SBE, VBE/DVBE and/or Microbusiness certification MUST be provided prior to issuance of a
purchase order (PO). Only One Program Can Be Utilized Per Bid. Any additional small business enterprise related inquiries can be answered by contacting the
Small Business Enterprise Program (SBEP) at (213) 241-1302, email: firstname.lastname@example.org or
The Contractor MUST have an LAUSD SAP vendor number at the time of bid submission in order to bid on informal
contracts. Contractors shall apply online at http://achieve.lausd.net/Page/3904 (Click on the 'Supplier Self-
Registration (for Vendor Number) Terms and Conditions' link). Any additional SAP vendor number application
inquiries can be answered by contacting Vendor Services at (562) 654-9404 or email: PSG-VSU@lausd.net.
FOR ALL LAUSD PROJECTS:
IN ADDITION TO THE ABOVE REQUIREMENTS, FOR ALL LAUSD PROJECTS GREATER THAN $15,000:
- The Contractor MUST have a valid State of California Contractors License, current at the time of bid submission (if applicable);
- The Contractor MUST be Safety Prequalified with the LAUSD, current at the time of bid submission and they
MUST comply with the safety standards. Any additional safety prequalification related inquiries can be
answered by contacting Facilities Contracts' Prequalification Unit at (213) 241-2651,
email: email@example.com or website:
- The Contractor MUST submit to LAUSD proof of General Liability Insurance coverage of $1,000,000 single occurrence / $2,000,000 aggregate (with an A-/VII or higher rating, according to the A.M. Best Company standards). Commercial Automotive Insurance coverage of $1,000,000 combined single limit; Worker’s Compensation Insurance; and, if applicable, Pollution Liability coverage of $2,000,000 (single) - $5,000,000 (multiple) site. The Contractor’s General Liability Insurance policy and Commercial Auto policy shall name the Los Angeles Unified School District, the Board, its officials, employees and agents as Additional Insureds and it will state that the coverage is Primary and Non-Contributory. All MUST be submitted on an Acord Certificate of Liability Insurance form. The Acord form is required per project and the certificate date is not to be greater than 60 days. OCIP is NOT provided on Informal Contracts.
- The contractor, its employees, agents, and subcontractors (“Contractor’s personnel”) who enter school sites when students are present is required to comply with the provisions of California Education Code Sections
45125.1 and 45125.2 at no cost to the District. The contractor MUST submit the Fingerprint and Criminal Background Check Certification form and Fingerprint Certification List, if applicable, to LAUSD prior to the start
of work. Any additional inquiries can be answered by contacting the Division of Risk Management and Insurance: https://achieve.lausd.net/Page/2793.
- When authorized, the Contractor shall use only Subcontractors that it has safety pre-qualified in accordance with the procedures outlined in the Safety Standards Manual
and verified by CONTRACTOR to have an Experience Modification Rate (EMR) of 1.0 or below.
- NONE of the most recent three (3) Contractor Performance Evaluation scores as reflected in the Bid
Tab – B Letter (Exhibit P) may fall below 20 out of a possible 50 points (Informal) or 100 out of a
possible 250 points (Formal, JOC or Non-LAUSD projects).
- Pursuant to California Labor Code 1771.5, LAUSD REQUIRES Contractors to pay the prevailing wage for each craft or class employed for projects of $15,000 or more when the project is for Alteration, Demolition, Repair, Maintenance or Warranty work. This is applied to the contract price, which means that Subcontractors also pay prevailing wage, regardless of their portion of the contract amount. LAUSD operates an approved Labor Compliance Program (LCP) which shall be enforced on public works projects that exceed the monetary threshold mentioned above. Copies of the prevailing rate of per diem wages are available at the LCP Office or website:
https://www.dir.ca.gov/OPRL/DPreWageDetermination.htm. For questions or assistance contact the LCP at (213) 241-4665, email:
firstname.lastname@example.org or website: http://www.laschools.org/new-site/labor-compliance/.
- The Contractor MUST submit a Payment and Performance Bond from an admitted surety, approvedby the LAUSD. The bond MUST be submitted on the LAUSD required Bonds for Material and Laborand Faithful Performance form (See Bond Requirements and Surety Qualification below).
- Pursuant to California Labor Code 1771.1, all vendors who work and/or bid on a public works project MUST register with the Department of Industrial Relations (DIR) as a Public Works Contractor. LAUSD is legally required to report all public works contracts to the DIR as required by Labor Code section 1773.3. Any additional related inquires can be answered by going to the DIR website.
- The Project Stabilization Agreement (PSA) applies to all construction and major rehabilitation work pursuant to all prime specialty contracts that exceed $20,000 that are funded, in whole or part, by monies from local bonds as set forth in Article 2 of the PSA. If the PSA applies to this Work, the Contractor and all Subcontractors of every tier are required to abide by its terms and agrees to be bound by the PSA. For information pertaining to the PSA, Contractor can refer to the PSA website.
- If the project is over $30,000, the Contractor MUST comply with apprenticeship requirements set forth in Labor Code 1777.5. The Contractor must submit a copy of the completed DAS 140 Form to LAUSD's LCP Office, email: email@example.com.
- The Contractor shall be responsible for the weekly submission of electronic certified payroll recordswithin ten (10) days of each week's ending date. The certified payroll reports shall be submitted to LAUSD's LCP Office in the method provided by the owner. The Contractor MUST also submit the LAUSD Public Works Payroll Reporting Form and the Notice to Public Entity on a weekly basis on the 10th day, after construction starts, and weekly thereafter to the Owner Authorized Representative (OAR).
- The Contractor MUST submit the Contractors Fringe Benefit Statement at contract closeout to the OAR and the LCP Office. Any additional Labor Compliance related inquiries can be answered by contacting the LAUSD's LCP Office at (213) 241-4665, email: firstname.lastname@example.org
- The Contractor MUST submit the invoice and Contractor Notice of Completion (CNOC), after District inspection in the method provided by the owner.
Bond Requirements / Surety Qualification:
CONTRACTOR shall apply for and furnish to OWNER separate payment and performance bonds for the Work on
forms provided by OWNER. The original penal sum of the performance bond shall be in a monetary amount equal
to 100% of the original Contract Amount, inclusive of all additive alternates, guaranteeing the prompt, competent
and faithful performance of all terms and conditions of the Contract. The payment bond shall be for 100% of the
Contract Amount and guarantee, without limitation, the payment in full of all claims for labor, services, materials,
supplies, and the like, for the Work as required by Civil Code §§ 9550 and 9554. A corporate surety authorized and
admitted to transact business in California shall provide the bonds. CONTRACTOR shall supply OWNER with
documentation establishing the necessary requirements of the surety consistent with California law. To the extent,
if any, the Contract Amount is increased in accordance with the Contract Documents, CONTRACTOR shall cause
the amount of the bonds to be increased accordingly and shall promptly deliver satisfactory evidence of such
increase to OWNER. In the case of an increase of the Contract Amount, the penal sum of the performance bond
shall automatically increase with the Contract Amount up to fifteen percent (15%) of the original Contract Amount;
provided, however, that OWNER may, in its discretion, require CONTRACTOR to secure an increase in the penal
sum from the performance bond surety beyond fifteen percent (15%) of the original Contract Amount. Subject to
the preceding sentence, the bonds shall further provide no change or alteration of the Contract Documents
(including, without limitation, an increase in the Contract Amount, as referred to above), adjustment to the
Milestones and/or Contract Time, or modifications of the time, terms, or conditions of payment to the
CONTRACTOR will release the sureties. If CONTRACTOR fails to furnish the required bonds, secure required
increases in the penal sum of the performance bond, or fails to keep such bonds in full force and effect up through
such times that such bonds are otherwise obligated to be in force and effect under the law, OWNER may terminate
CONTRACTOR right to proceed with the Work and/or terminate the Contract for cause. The performance bond
shall be in the form and contain the content shown in Document 00 6114. The payment bond shall be in the form
and contain the content shown in Document 00 6113. The bonds shall also contain all other requirements
prescribed by law. Only bonds executed by admitted surety insurers as defined in Code of Civil Procedure §
995.120 shall be accepted. Surety must be a California-admitted surety and listed by the U.S. Treasury with a
bonding capacity in excess of the Contract Amount. (ref General Conditions Section 00 7000 5.16 -5.17 Bond
Requirements and Surety Qualification)