1. LOS ANGELES UNIFIED SCHOOL DISTRICT
FACILITIES SERVICES DIVISION
PROCUREMENT ADMINISTRATION
THE DISTRICT’S
PREQUALIFICATION
PROGRAM
PRESENTED BY:
CIMONE WATSON – GEMARIE GUZMAN
PREQUALIFICATION UNIT

2. 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 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

3. Prospective Bidders Interested inProspective Bidders Interested in
Bidding onBidding on INFORMALINFORMAL DistrictDistrict
Projects: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-and-
o/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/new-
site/prequalification/forms.
 Fax completed Informal Questionnaires directly to
Prequalification at 562-654-9498.

4. Construction ContractorConstruction Contractor
Safety PrequalificationSafety Prequalification
Contractor
Applicant
Overview
For the LAUSD School Repair and Construction Program

5. 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.

6. IMPORTANT NOTE: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.

7. 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.

8. Basic RequirementsBasic 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.

9. Basic RequirementsBasic 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.

10. General NotesGeneral 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.

11. ContractorContractor
InformationInformation
Questionnaire Header

13. Insurance InformationInsurance Information
Section A

14. 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
What is the EMR?What is the EMR?

15. Where does EMR come from?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).

16. 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”.

17. If you DON’T have an EMR: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.

18. What the EMR means to you: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.

19. 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.

20. Who gets the job?
◦ JOE!
Who says safety doesn’t pay?

21. 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.

22. Enter one (1) NAICS code
Incidence Rates:Incidence Rates:
Section B

23. 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.

24. 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.

25. 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

26. 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 CalculatingInformation Used for Calculating
Incidence RatesIncidence Rates

28. 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 YourCalculating Your
Incidence RatesIncidence Rates

29. 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!

30. 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
Sample rate calculations:Sample rate calculations:

31. 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

33. 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.

34. OSHA Citation HistoryOSHA Citation History
Section C

35. This section looks at your firm’s OSHA
citation history.
It considers 4 types of citations:
◦ serious
◦ willful
◦ failure to abate
◦ repeat.

36. 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!

37. 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

38. 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!

39. Safety Policy &Safety Policy &
Procedure QuestionsProcedure Questions
Section D

41. 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).

42. 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!

43. Certification:Certification:
You are responsible for the
accuracy of the information!

44. 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
Still have questions?Still have questions?
Here are some sources for additional
information:

45. Contractor
Applicant
Overview
Construction ContractorConstruction Contractor
Formal PrequalificationFormal Prequalification

46. The Formal PrequalificationThe Formal Prequalification
QuestionnaireQuestionnaire
Questionnaire is designed to thoroughly
evaluate a contractor’s:
Safety History
Quality and Workmanship
Past Performance
Bonding/Insurance/Licensing
Financial Capabilities

47. Contractors Interested in BiddingContractors Interested in Bidding
onon FormalFormal District Projects: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

48.  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.

49. 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.

50. 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.

51. 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.

52. Prequalification ScoringPrequalification 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.

53. 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

54. QUESTIONS???QUESTIONS???