(a) This article provides for a pilot program for the Los Angeles Unified School District to use best value procurement for projects over one million dollars ($1,000,000).

(b) The governing board, for projects over one million dollars ($1,000,000), before December 31, 2025, may use the best value procurement method in accordance with this article.

Terms Used In California Public Contract Code 20119.2

  • Best value: means a procurement process whereby the selected bidder may be selected on the basis of objective criteria for evaluating the qualifications of bidders with the resulting selection representing the best combination of price and qualifications. See California Public Contract Code 20119.1
  • Best value contractor: means a properly licensed person, firm, or corporation that submits a bid for and is awarded a best value contract. See California Public Contract Code 20119.1
  • Best value score: means the resulting score when the school district divides the bidder's price by the bidder's qualification score. See California Public Contract Code 20119.1
  • Contract: A legal written agreement that becomes binding when signed.
  • governing board of the school district: means the governing board of the Los Angeles Unified School District. See California Public Contract Code 20119.1
  • Project: means the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order. See California Public Contract Code 20919.21
  • Qualifications: means financial condition, relevant experience, demonstrated management competency, labor compliance, the safety record of the bidder, and, to the extent relevant, the preceding qualifications as they pertain to all subcontractors proposed to be used by the bidder for designated portions of the work. See California Public Contract Code 20119.1
  • School district: means the Los Angeles Unified School District. See California Public Contract Code 20119.1
  • Subcontractor: means any person, firm, or corporation, other than the employees of the job order contractor, who is bonded and general liability insured and who contracts to furnish labor, or labor and materials, at the worksite or in connection with a job order, whether directly or indirectly on behalf of the job order contractor. See California Public Contract Code 20919.21

(c) The bidder may be selected on the basis of the best value to the governing board of the school district. In order to implement this method of selection, the governing board of the school district shall adopt and publish procedures and required guidelines for evaluating the qualifications of the bidders that ensure the best value selections by the school district are conducted in a fair and impartial manner. These procedures and guidelines shall conform to this article and shall be mandatory for the school district when using best value selection.

(d) If the governing board of the school district deems it to be for the best interest of the school district, the governing board of the school district, on the refusal or failure of the selected bidder for a project to execute a tendered contract, may award it to the bidder with the second lowest best value score. If the second bidder fails or refuses to execute the contract, the governing board of the school district may likewise award it to the bidder with the third lowest best value score.

(e) The governing board of the school district shall let any contract for a project pursuant to this article to the selected bidder that represents the best value or else reject all bids.

(f) (1) If the school district elects to award a project pursuant to this section, retention proceeds withheld by the district from the selected best value contractor shall not exceed 5 percent if a performance and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.

(2) In a contract between the selected best value contractor and a subcontractor, and in a contract between a subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall not exceed the percentage specified in the contract between the district and the selected best value contractor. If the selected best value contractor provides written notice to a subcontractor that, prior to or at the time the bid is requested, a bond may be required and the subcontractor subsequently is unable or refuses to furnish a bond to the selected best value contractor, then the selected best value contractor may withhold retention proceeds in excess of the percentage specified in the contract between the district and the selected best value contractor from any payment made by the selected best value contractor to the subcontractor.

(g) All subcontractors bidding on contracts pursuant to this chapter shall be afforded the protection contained in Chapter 4 (commencing with Section 4100) of Part 1.

(Amended by Stats. 2020, Ch. 46, Sec. 3. (AB 1981) Effective January 1, 2021. Repealed as of January 1, 2026, pursuant to Section 20119.7.)

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