LOS ANGELES UNIFIED SCHOOL DISTRICT
FACILITIES SERVICES DIVISION
PROCUREMENT ADMINISTRATION
THE DISTRICT’S
PREQUALIFICATION
PROGRAM
PRESENTED BY:
CIMONE WATSON – GEMARIE GUZMAN
PREQUALIFICATION UNIT
Prequalification 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 20110 et seq. and 20919 et
seq.

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
Prospective Bidders Interested in
Bidding on INFORMAL District
Projects:

Informal District contracts, $83,400 or less, are bid through the
Local District Maintenance & Operations Offices. Information
on Informal contracts may be found on the LAUSD M & O Web
Site @ http://mo.laschools.org/fis/existing-facilities/m-ando/bidwalks/

Contacts and telephone numbers to the Local M & O offices are
located in the Construction Bidder’s Handbook

Prospective bidders interested in bidding on Informal District
contracts only need to be Safety prequalified.

The Safety Questionnaire may be obtained by visiting the
Prequalification website @ http://www.laschools.org/newsite/prequalification/forms.

Fax completed Informal Questionnaires directly to
Prequalification at 562-654-9498.
Construction Contractor
Safety Prequalification
Contractor
Applicant
Overview
For the LAUSD School Repair and Construction Program
This presentation will walk you through the four
sections of the Safety Prequalification
Questionnaire.
 You have a copy of the Safety Questionnaire in
your handouts and may begin filling it out as we go
through this presentation. However, in most cases,
you will not be able to complete the entire
Questionnaire today. You will likely need to
◦ (a) contact your Insurance Carrier or Broker,
and
◦ (b) review company files to complete the
Questionnaire.

IMPORTANT NOTE:
The Safety Prequalification only applies to
firms performing construction work for the
School Repair and Construction Program.
 It does not apply to suppliers, vendors and
service contracts.

Prequalification is valid for one (1) year.
 Each firm must reapply prior to
expiration.
 If your firm is seeking to renew, your
firm’s safety and loss history will be
considered during the renewal process.
 The Safety Questionnaire is the same for
both Formal and Informal Prequalification.

Basic Requirements
Your firm must have a current and valid
California Contractor’s License in good
standing with the California State License
Board.
 The name of the firm applying for
Prequalification must be the same name that
is on the license.

Basic Requirements
Your firm must have a current Workers’
Compensation insurance policy.
 The policy must be in the same name as
the firm that is applying for Prequalification.

• You will be required to provide proof of
coverage in the form of a Certificate of
Insurance.
General Notes
Fill in every blank. Write “N/A” if not applicable.
 Make sure your answers are legible.
• If it can’t be read, it can’t be processed!
 Evaluation of your Questionnaire will not be
completed until all information is complete and all
fields are properly filled out.
 Do NOT send us anything we don’t ask for.

Contractor
Information
Questionnaire Header
Insurance Information
Section A
What is the EMR?



The Experience Modification Rate (EMR) is a
multiplier based on your firm’s Workers’
Compensation loss claim history that causes
your insurance premiums to go up, or down.
It impacts the cost of your firm doing business.
Base Rate x EMR = Your insurance cost
Where does EMR come from?

The EMR is not calculated by your
insurance broker or carrier.
• California (intrastate) EMRs are calculated by
the WCIRB (Workers Compensation Insurance
Rating Bureau).
• Interstate EMRs are calculated by NCCI (National
Council on Compensation Insurance).

In simple terms, the EMR is a ratio of actual
claims dollars incurred by your firm
compared to the industry average value for
firms that do the same kind of work you do.
◦ Good history causes it to go down.
◦ Adverse history causes it to rise.

It is desirable to have an EMR < 1.0.
◦ 1.0 is considered to be “average”.
If you DON’T have an EMR:
You must provide copies of your firm’s Workers’
Compensation Loss Runs for each of the last
three years, along with your questionnaire.
 Contact your Insurance Carrier or Broker to
obtain your Loss Runs.
 If you are a brand new company you will have
neither an EMR nor loss runs. Please note this in
writing on the questionnaire.

What the EMR means to you:

Let’s say you, Fred, are bidding against Joe and
Bob.
◦ Your EMR is 1.0,
◦ Joe’s is 0.5, and
◦ Bob’s is 2.0.

Let us also assume that your bids are
identical with respect to time, material and
labor hours, and include $10,000 as the
manual (base) rate for Workers’ Comp.
◦ Your insurance would cost you $10,000.
◦ Joe would pay $5,000 for the same
insurance.
◦ Bob would pay $20,000 for the same
insurance.

Who gets the job?
◦ JOE!

Who says safety doesn’t pay?

You can learn what your EMR is (if you have
one) by contacting your Workers’
Compensation Insurance carrier.

We will verify your answers.

Applicant may be disqualified if either its (a)
current EMR, or (b) average EMR for the most
recent three-year period, is above 1.00, in
which case, the District will determine, based
on information submitted, whether Applicant
has satisfied the requirements of Section A.
Incidence Rates:
Section B
Enter one (1) NAICS code
If you don’t know your firm’s NAICS Code, visit the
Facilities Vendor Registration web site at:
http://mo.laschools.org/lausd-vendor/register-ae
Click on “View NAICS” to see a list of codes, or
Type specialty trade in Primary box to get applicable code.
Incidence Rates...
…are based on employee injuries and
illnesses and total company man-hours per
CALENDAR YEAR, not insurance policy
year.
 They:

◦ are not based on OSHA inspections or
citations/violations.
◦ can be computed for every contractor EVEN
IF THERE ARE NO OSHA
‘RECORDABLE’ CASES.

A work-related injury or illness must be
recorded if it resulted in:
◦
◦
◦
◦
◦

Death or dismemberment
Loss of consciousness
Days away from work
Restricted work activity or job transfer
Medical treatment beyond first aid
Specific information on how to evaluate
whether an incident is to be considered
OSHA recordable can be found at
www.osha.gov/recordkeeping
Information Used for Calculating
Incidence Rates

Refer to your OSHA 300 Logs and/or your Loss
Runs and injury/illness records to determine the
number of injury cases you have incurred.

Company hours is the total sum of all work hours
by all employees (including those of a sole
proprietor/owner) for the calendar year.

Complete all information in this section of the
questionnaire! Fill in every blank EVEN IF THE
ANSWER IS “0.”
Calculating Your
Incidence Rates

The formula used to calculate the incidence
rates was established by the U.S.
Department of Labor - Bureau of Labor
Statistics.
◦ It’s been around for decades –
it’s THE standard formula for everyone.

Your rates are compared against the national
average rates for your NAICS code. See Table 1 at
http://www.bls.gov/iif/oshwc/osh/os/ostb3191.pdf

When an employer calculates the company’s
rates, the answer is a rate of incidents (injuries)
per 200,000 hours (100 people working 8 hours a
day, 50 weeks a year) - regardless of how many
hours the contractor worked!
Sample rate calculations:

In 2006, a company has 1 OSHA recordable
injury which did not involve lost workdays.
The company worked 30,000 hours that
year.
◦ The Total Case Incidence Rate is:
(1 x 200,000) / 30,000 = 6.7
◦ The Lost Workday Case Incidence Rate is:
(0 x 200,000) / 30,000 = 0
◦ The No Lost Workday Case Incidence Rate is:
(1 x 200,000) / 30,000 = 6.7

A company has 4 OSHA recordable injuries
in a 2008. Three cases were lost-workday
injuries. One case did not involve lost
workdays. The company worked 30,000
hours that year.
◦ The Total Case Incidence Rate is:
(4 x 200,000) / 30,000 = 26.7
◦ The Lost Workday Case Incidence Rate is:
(3 x 200,000) / 30,000 = 20
◦ The No Lost Workday Case Incidence Rate is:
(1 x 200,000) / 30,000 = 6.7
 If
you are a new firm, please add a note
on your forms that informs us of this.
 A new firm will be expected to have
very few, or possibly no, company
hours.
 We will verify this by checking the
effective date of your Contractor’s
License.
OSHA Citation History
Section C
 This
section looks at your firm’s OSHA
citation history.
 It considers 4 types of citations:
◦ serious
◦ willful
◦ failure to abate
◦ repeat.
 You
must report all such citations
that your firm has received.
 If you are contesting or appealing
an applicable citation and it has
not reached final resolution, you
must still report the citation!
 The
classification of the citation itself is
important, but we also look at:
◦ what happened
◦ what corrective action was taken
◦ your firm’s safety program to see
that it meets minimum
Cal/OSHA and Labor Code
requirements
 Citations
are public information.
 Citation information for all employers
is available using the “Establishment
Search” at www.osha.gov
 Your answers will be verified.
◦ We will check back 60 months as
stated in the Questionnaire!
Safety Policy &
Procedure Questions
Section D
 Read
each question carefully.
 The questions are based on
Cal/OSHA and California Labor
Code requirements.
 Understand what it is asking.
◦ The source regulation is listed
with every question (Labor Code
or Cal/OSHA).
 You
may be required to provide
documentation for any or all of
your answers - be prepared!
 A “yes” answer implies that you
have documentation available for
review for that item if you are
asked to provide it!
Certification:
You are responsible for the
accuracy of the information!
Still have questions?
Here are some sources for additional
information:
Your firm’s Insurance Broker or Insurance
Carrier Loss Control (Safety) Department,
 Cal/OSHA Consultation,
 Trade Associations your firm belongs to,
 Internet construction safety sources

Construction Contractor
Formal Prequalification
Contractor
Applicant
Overview
The Formal Prequalification
Questionnaire
Questionnaire is designed to thoroughly
evaluate a contractor’s:





Safety History
Quality and Workmanship
Past Performance
Bonding/Insurance/Licensing
Financial Capabilities
Contractors Interested in Bidding
on Formal District Projects:





Complete the most current Prime Contractor
Prequalification Questionnaire
Have a current and active California Contractors
License
Receive and maintain Safety Approval via the
Safety Prequalification section of the Questionnaire
Meet the Mandatory and General Qualifications
requirements
Provide bonds by a California-admitted surety
company

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 audited or reviewed financial
statement (SBE exemption)

Prequalification approval is valid for one (1) year.
THREE LEVELS OF PREQUALIFICATION
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.
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 either a prime
contractor or a subcontractor 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 either a prime
contractor or a subcontractor, with cumulative contract
value totaling at least $500,000.
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 either a
prime contractor or a subcontractor 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 either a prime
contractor or a subcontractor, with cumulative contract
value totaling at least $7,000,000.
Prequalification Scoring
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) contracts.
◦ Applicant must receive an average score of at least 35
points to prequalify.
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
For details, see Field and Compliance Scoring Summary on the
Prequalification web page at
http://www.laschools.org/new-site/prequalification/special-forms
QUESTIONS???