Contractor Pre-Qualification
All You Need to Know
CMAA Legal Committee
March 12, 2015
Cerritos • Fresno • Irvine • Pasadena • Riverside • Pleasanton • Sacramento • San Diego
Panel Members & Seminar Leader
Panel Participants:
• Mark Hovatter, Chief Facilities Executive
Los Angeles Unified School District
Bryan Payne, Director – Contract Administration
Build LACCD Program Management Office
• Mark Rose, P.E., Asst. Chief Harbor Engineer – Construction Division
Port of Los Angles
• Todd Cozolino, Associate Principal
Spire Consulting Group
Seminar Leader
• Terry Tao, AIA, Partner
Atkinson, Andelson, Loya, Ruud & Romo
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Purposes for Prequalification
• Helps to create a pool of contractors that have the quality,
capacity and ability to perform work on projects of a
particular size and complexity
• Weeds out contractors with a history of litigation, claims,
and performance failures
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Basics of Prequalification
• Public Contract Code 20101
– Standardized questionnaire and financial statement as developed by
DIR
• Developed in conjunction with cities, counties, construction industry,
surty industry and other interested parties
– Experience performing public works
– Verified under oath
– Financial statements
– Not public records/confidential
– Due process rights
– Uniform System
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Other Prequalification Statutes
– Public Contract Code Section 20111.5 (Schools non-State Funded)
– Public Contract Code Section 20111.6 (Schools State Funded)
• Projects over $1 million
• Mechanical, Electrical, and Plumbing Subcontractors
– Public Utilities Code Section 130051.21 (MTA)
– Public Contract Code Section 10760 (Cal State)
– Public Contract Code Section 10303 (DGS)
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LOS ANGELES UNIFIED SCHOOL DISTRICT
FACILITIES SERVICES DIVISION
FACILITIES CONSTRUCTION CONTRACTS
THE DISTRICT’S PREQUALIFICATION
PROGRAM
Mark Hovatter, Chief Facilities Executive
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Pre-Qualification Program
 It is the intent of the District to do business with quality
contractors by identifying such contractors through a
uniform system of rating bidders to obtain the best
quality construction for the lowest price practicable
under the circumstances.
 The District’s prequalification programs are adopted
pursuant to Public Contract Code 20111.5, 20111.6
and 20919.4.
 Requires all contractors interested in bidding either
formal or informal, competitively bid public works
projects to prequalify before submitting a bid to the
District
 Provides standard on-going prequalification enrollment
for prospective bidders
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Pre-Qualification Types
 Safety (Informal) Prequalification
o
Required to bid informal contracts and other projects for which
safety prequalification is required.
 Subcontractor Prequalification
o
Required for first-tier subcontractors
 Formal Prequalification
o
Required to bid formal contracts, JOC Contracts, 17406
 Project-Specific Prequalification
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Changes to Pre-Qualification Programs
Effective April 15, 2015
• Subcontractor Prequalification will apply to all listed
subcontractors.
• If safety prequalified only, subcontractors must
complete Prime or Subcontractor questionnaire.
• The list of Approved Subcontractors will be posted on
the Facilities Contracts web site.
• Prime and subcontractors must be approved at least
five days prior to bid date.
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DIR Public Works Contractor
Registration Requirements
• Senate Bill 854 - public works contractor registration
program.
• Effective March 1, 2015 - All Contractors and
subcontractors listed on a bid must be registered
(informal, formal and JOC).
• Effective April 1, 2015 - All contractors and
subcontractors working on any public works contract
awarded on or after this date must be registered.
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Formal & Subcontractor Pre-Qualification
• Complete the most current Prime Contractor
Prequalification Questionnaire or Subcontractor
Prequalification Questionnaire
• Have a current and active California Contractors
License
• Receive and maintain Safety Approval via the Safety
Prequalification section of the Questionnaire
• Meet Part II: Mandatory Requirements
• Achieve passing score on PART V. Scorable
Questions
• Provide bonds by a California-admitted surety
company
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Formal & Subcontractor Pre-Qualification
 Provide proof of Workers’ Comp and Liability
coverage by an Insurance Company licensed to
do business in California
 Provide references of projects completed within
the last 36 months
 Submit a current financial statement (at least
balance sheet and income statement)
 Achieve passing Contractor Performance Score
 Prequalification approval is valid for one (1) year
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Contractor Performance Score
Contractor performance history will be measured according to
two separate components, Field and Compliance.
Field Component (Maximum Score 50, Passing Score 35)
◦ Average score of Contractor Performance Evaluations for
the last three (3) LAUSD contracts.
◦ Applicant must receive an average score of at least 35
points to prequalify.
Contractors with no LAUSD contract history will receive a
default score of 40.
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Compliance Component
(Maximum Score 50, Passing Score 35):
1.Labor Compliance
2.Project Stabilization Agreement (PSA)
3.Bid Issues/Protests
4.Assessments
5.Failure to comply with LAUSD contract Warranty
requirements
Contractors with no contract history with LAUSD will be given a
default score of 50
For details, see Field and Compliance Scoring Summary on the
Prequalification web page at http://www.laschools.org/newsite/prequalification/forms
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THREE LEVELS OF FORMAL PRE-QUALIFICATION
BASED ON EXPERIENCE:
Level I
 Entitled to bid on contracts in an amount not to
exceed $350,000.
 Non-LAUSD experience: Within the past three (3)
years, at least three (3) public or private works as
either a prime contractor or a subcontractor with
cumulative contract value totaling at least $500,000.
 LAUSD experience: Within the past three (3) years,
at least three (3) LAUSD contracts as either a prime
contractor or a subcontractor, with cumulative
contract value totaling at least $100,000.
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THREE LEVELS OF FORMAL PRE-QUALIFICATION
BASED ON EXPERIENCE:
Level II



Entitled to bid on contracts in an amount not to
exceed $5,000,000.
Non-LAUSD experience: Within the past three (3)
years, at least three (3) public or private works as a
prime contractor, with cumulative contract value
totaling at least $2,000,000.
LAUSD experience: Within the past three (3) years,
at least three (3) LAUSD contracts as a prime
contractor, with cumulative contract value totaling at
least $500,000.
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THREE LEVELS OF FORMAL PRE-QUALIFICATION
BASED ON EXPERIENCE:
Level III
 Entitled to bid on contracts in an amount in excess of
$5,000,000.
 Non-LAUSD experience: Within the past three (3)
years, at least three (3) public or private works as a
prime contractor, with cumulative contract value
totaling at least $10,000,000.
 LAUSD experience: Within the past three (3) years, at
least three (3) LAUSD contracts as a prime
contractor, with cumulative contract value totaling at
least $7,000,000.
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Prequalification Unit
Contact Information
• Phone: (213) 241-2651
• Fax: (562) 654-9499
• Email: prequalification@laschools.org
• Web site: www.laschools.org/newsite/prequalification
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Practical Considerations in Prequalification
Get the most out of it!
Todd Cozolino, Associate Principal
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Practical Considerations in Pre-Qualification
Get the most out of it!
• Prequalification may be statutorily mandated, but it’s a best practice
regardless. Embrace it, don’t resist it.
• Bid or Proposal Review is burdensome on the owner, particularly in
alternative delivery methods; don’t waste administrative time
reviewing proposals of firms that may not be able to perform.
• A company is only as good as the people it is made of; understand the
individuals proposed for your project and enforce their assignment.
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Practical Considerations in Pre-Qualification
Get the most out of it!
• Customize the qualifications to your project or group of projects; a
data center contractor is not qualified to build a stadium, and vice
versa.
• Make the process efficient and scalable; if you have a series of
analogous projects, consider globally crafting the prequalification.
• Consider the effect on access and participation on the industry;
would a stratified dollar amount pool system afford more
opportunity?
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Practical Considerations in Pre-Qualification
Get the most out of it!
• When requesting references and project lists, don’t allow “cherry
picking;” create a system that is an accurate sample of performance.
• Consider the extent of specific jurisdictional experience limitations
(e.g. OSHPD, DSA, etc.); are we eliminating highly qualified firms?
• Consider FOIA and CPRA Implications; delineate non-public
documents and administer according to counsel’s advice.
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Los Angeles Community College District
PROGRAM MANAGEMENT SERVICES
PUBLIC CONTRACTING LAW
AND
HOW TO BID ON BuildLACCD PROJECTS
Bryan Payne
Director, Contract Administration
Building for tomorrow’s leaders
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LACCD Overview
• Established in 1969
• Governed by seven-member Board
of Trustees
• Nation’s largest community college
district
• Encompasses 36 cities within 882
square miles
• Nine college campuses and two
satellite campuses serve more than
149,000 students
• Build-LACCD managed by Program
Management Office (PMO)
Building for tomorrow’s leaders
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Bond Program Overview – $6.26B
Bond
Measure
Year and
Amount
Proposition A
2001
$1.245 billion
To repair, rehabilitate, modernize,
and construct new facilities at all
nine colleges.
Proposition AA
2003
$908 million
To repair, rehabilitate, modernize,
and construct new facilities at all
nine colleges.
Measure J
2008
$3.5 billion
Essential Purpose
To further the colleges’ master plans,
land acquisitions and the buyout of
energy contracts.
“J is for Jobs”
Building for tomorrow’s leaders
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College Projects Remaining
160+ Projects Remaining
(Pre-Construction)
*Other includes demo, landscape/hardscape, parking, P.E. fields, roadways/street, stormwater, etc.
Building for tomorrow’s leaders
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Categories
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
26)
A-General Engineering Contractor
B-General Building Contractor
General Contractor with ADA Specific Experience
Qualified SWPPP Developer, Qualified SWPPP Practitioner
C-2 Insulation & Acoustical
C-5 Carpentry
C-7 Low Voltage Systems
C-8 Concrete
C-10 Electrical
C-12 Earthwork & Paving
C-13 Fencing
C-15 Flooring and Floor Covering
C-16 Fire Protection
C-20 Warm-Air Heating, Ventilating and Air Conditioning Contractor
C-21 Building Moving/Demolition
C-27 Landscaping
C-28 Lock & Security
C-31 Construction Zone Traffic Control
C-32 Parking & Highway Improvement
C-33 Painting and Decorating
C-36 Plumbing
C-39 Roofing
C-42 Sanitation
C-45 Electrical Signs
ASB Asbestos Abatement
HSR Hazardous Substance
Removal
Building
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Prequalification Questionnaire – Attachment 1
• Section I
– General Company Information
•
•
•
•
Form of Company
Key Personnel
Contact Info
Not Scored
• Section II
– Part A – General Requirements
• Pass/Fail – yes/no questions
– Part B – General Qualifications
• Scored
• Minimum passing score 80%
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Prequalification Questionnaire – Attachment 2
• Firm Experience & Key Personnel by Category
– Scored
– Minimum passing score 80%
• Describe Experience & Approach
• Key Personnel & Resumes
• 3 past projects in the last 10 years performing work in
the category
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Prequalification Questionnaire – Attachment 2
• Firm Experience & Key Personnel by Category
– Scored
– Minimum passing score 80%
• Describe Experience & Approach
• Key Personnel & Resumes
• 3 past projects in the last 10 years performing work in
the category
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SB854 - CONTRACTOR REGISTRATION
• In June, 2014, Senate Bill 854 passed the State Legislature
creating a public works contractor registration program.
• A contractor bidding or working on ANY public works contract
within the Sate of CA must register online and pay an annual
$300 fee.
• Effective March 1, 2015 ‐ All Contractors and subcontractors
listed on a bid must be registered with the State.
• Effective April 1, 2015 ‐ All contractors and subcontractors
working on any public works contract awarded on or after this
date must be registered.
• Registration is an online process with the Dept. of Industrial
Relations (DIR):
http://www.dir.ca.gov/Public-Works/PublicWorks.html
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SB854 - CONTRACTOR REGISTRATION
• Bids can be deemed non-responsive if primes and listed
subcontractor are not registered with DIR.
• Inadvertent listing of unregistered subcontractor at the time of
bid doesn’t invalidate bid and may be cured.
• Failure to register is grounds for substituting subcontractors.
• Contract with unregistered contractor or subcontractor subject to
cancellation but is not void.
• Lower tier subcontractors must also be registered. Tracking will
be managed via certified payroll.
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ONLINE VENDOR REGISTRATION
www.build-laccd.org
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Building for tomorrow’s leaders
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ONLINE VENDOR PORTAL
1,200+ Firms Registered
Diversity Reporting
http://www.planetbids.com/portal/portal.cfm?CompanyID=21372
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ONLINE VENDOR PORTAL REGISTRATION
• Must Register with LACCD PlanetBids Portal
• ALL information is put on PlanetBids
• NO contact with the District PMO via calls or email is allowed.
– By directing all questions to PlanetBids all contractors receive
the same information
• Must Sign up for each Procurement to receive information about
a particular project. We only send out notices to contractors who
have signed up for that particular bid.
– Option to sign up as bidder or non-bidder (to receive the
information only)
• LACCD uses existing business class categories in PlanetBids to
define a firms area of work. Bid alert notifications are sent based
on the categories selected.
– Suggest contractors select General Contracting-236220 as
one of your categories (236220 is used on all our bids)
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Los Angeles Valley College
Valley Academic & Cultural Center
(Formerly MAPA)
Northern end of the central mall
Architect:
Steven Ehrlich Architects
Construction Budget: $66M
Delivery Type:
Lease Leaseback
Project Type:
New Construction
Expected RFQ/RFP Issuance Date:
Expected Construction Commencement (Notice to Proceed):
Building for tomorrow’s leaders
Mar 2015
Aug 2015
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Los Angeles Pierce College
Expanded Automotive & New Technical
Education Facilities
Campus Improvement Package
(Construction Budget = $ 45.5M)
•
•
•
•
•
•
Campus-Wide Utilities Extension $ 2.5M
Central Plant Expansion
$ 6M
Mason Street Re-route
$ 3.2M
Fire Access Road Improvements $ 379K
Parking Lots & Roadways
$ 2.5M
Pierce Storm Water
$ 3.4M
Architect:
TBD
Construction budget: $ 27M
Delivery Type:
Lease Leaseback
Project Type:
New Construction & Renovation
Expected AOR RFQ/RFP Issuance Date:
Expected Construction RFQ/RFP Issuance Date:
Expected Construction Commencement (Notice to Proceed):
Building for tomorrow’s leaders
Mar 3, 2015
Mar 30, 2015
Mar 2017
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Professional Services Procurements
Services
Estimated Dates
Environmental
Services
2015 Q2
Bench Contracts
Information
Technology Support
Services Bench
Contracts
2015 Q2
As-Needed
Register online at planetbids.com
Project Specific
Architect and Engineer
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For more information
www.build-laccd.org
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End
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