LOS ANGELES UNIFIED SCHOOL DISTRICT LOS ANGELES UNIFIED SCHOOL DISTRICT FACILITIES SERVICES DIVISION FACILITIES SERVICES DIVISION FACILITIES CONSTRUCTION CONTRACTS FACILITIES CONSTRUCTION CONTRACTS THE DISTRICT’S PREQUALIFICATION PROGRAM PRESENTED BY: GEMARIE GUZMAN & THOMAS WARD PREQUALIFICATION UNIT
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LOS ANGELES UNIFIED SCHOOL DISTRICT FACILITIES SERVICES DIVISION FACILITIES CONSTRUCTION CONTRACTS THE DISTRICT’S PREQUALIFICATION PROGRAM PRESENTED BY:
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LOS ANGELES UNIFIED SCHOOL LOS ANGELES UNIFIED SCHOOL DISTRICTDISTRICT
FACILITIES CONSTRUCTION FACILITIES CONSTRUCTION CONTRACTSCONTRACTS
THE DISTRICT’S PREQUALIFICATION
PROGRAM
PRESENTED BY:
GEMARIE GUZMAN & THOMAS WARD
PREQUALIFICATION UNIT
Prequalification ProgramPrequalification 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
Prequalification TypesPrequalification Types
Safety (Informal) Prequalificationo Required to bid informal contracts, JOC job orders, and
other projects for which safety prequalification is required.
Subcontractor Prequalification (MEP)o Required for Mechanical, Electrical, and Plumbing
subcontractors on formal contracts Formal Prequalification
o Required to bid formal contracts, JOC Contracts, 17406 Project-Specific Prequalification
Prospective Bidders Interested in Prospective Bidders Interested in Bidding on INFORMAL District Bidding on INFORMAL District
Projects:Projects: Informal District contracts, $86,000 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-and-o/bidwalks/
Contacts and telephone numbers to the Local M & O offices are located in the Construction Bidder’s Handbook, available on the web site at http://www.laschools.org/new-site/bidding-opportunities/
Prospective bidders interested in bidding on Informal District contracts only need to be Safety prequalified.
The Contractor Safety Prequalification Questionnaire may be obtained by visiting the Prequalification website @ http://www.laschools.org/new-site/prequalification/forms.
Submit Informal Questionnaires directly to Prequalification by fax to 562-654-9499 or email to [email protected].
Construction Contractor Construction Contractor Safety PrequalificationSafety Prequalification
ContractorApplicantOverview
For the LAUSD School Repair and Construction Program
Safety Prequalification Questionnaire: Four primary sections
Sources needed to complete the Questionnaire: ◦(a) Your Insurance Carrier or Broker ◦(b) Company files
IMPORTANT NOTES:IMPORTANT NOTES:
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.
Renewals: Your firm’s safety and loss history will be considered during the renewal process.
The Safety Prequalification Questionnaire is included in the Prime and Subcontractor Prequalification.
IMPORTANT NOTES:IMPORTANT NOTES:
BASIC REQUIREMENTS:BASIC REQUIREMENTS:
Current and valid California Contractor’s License in good standing with the California State License Board (CSLB)
Applicant name must match the same name on the CSLB license
BASIC REQUIREMENTS:BASIC REQUIREMENTS:
Workers’ Compensation (WC) insurance policy◦ required of all companies, including companies
with no employees (‘owner-operator’)◦ NO EXCEPTIONS
WC policy must identify the name of the Applicant ◦ You will be required to provide proof of
coverage in the form of a Certificate of Insurance if it does not appear on the CSLB
Useful Tips:Useful Tips:
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 in the questionnaire.
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 (Premium Rate) x EMR = Your insurance cost (Modified Rate)
What is the Experience What is the Experience Modification Rate (EMR)?Modification Rate (EMR)?
Where does EMR come Where does EMR come from?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 If you DON’T have an EMR: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 What the EMR means to you: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.
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-aeClick on “View NAICS” to see a list of codes, orType specialty trade in Primary box to get applicable code.
Incidence Rates...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
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.”
Information Used for Information Used for CalculatingCalculating
Incidence RatesIncidence 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.
Calculating Your Calculating Your Incidence RatesIncidence Rates
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/ostb3958.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!
In 2012, a company has 1 OSHA recordable injury which did not involve lost workdays. The company worked 20,000 hours that year.◦The Total Case Incidence Rate is:
(1 x 200,000) / 20,000 = 10.0◦The Lost Workday Case Incidence Rate is:
(1 x 200,000) / 20,000 = 10.0◦The No Lost Workday Case Incidence Rate
A company has 4 OSHA recordable injuries in 2014. 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.
Questionnaire is designed to thoroughly evaluate a contractor’s:Safety HistoryQuality and WorkmanshipPast PerformanceBonding/Insurance/LicensingFinancial Capabilities
PCC 20111.6 requirement for Mechanical, Electrical and Plumbing subcontractors on projects of $1 million or more.
LAUSD has applied this requirement to all formal contracts and JOC job orders.
License classes affected:
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.
Subcontractor Prequalification Subcontractor Prequalification Program ExpansionProgram Expansion
Formal PrequalificationFormal Prequalification
Prequalification program implemented pursuant to PCC 20111.5 and 20919.4.
Required to bid as a prime contractor on formal projects, including JOC and 17406
Assigned a bid rating based on bonding and experience
THREE LEVELS OF FORMAL PREQUALIFICATION BASED ON EXPERIENCE::
Level IEntitled 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 IIEntitled 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.
THREE LEVELS OF FORMAL PREQUALIFICATION BASED ON EXPERIENCE::
THREE LEVELS OF FORMAL PREQUALIFICATION BASED ON EXPERIENCE::
Level IIIEntitled 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.
DIR Public Works Contractor DIR Public Works Contractor Registration RequirementsRegistration 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.
QUESTIONS???QUESTIONS???
Prequalification UnitPrequalification UnitContact InformationContact Information