Best value procurement: school districts and county offices of education.

Assembly Member Schultz proposes expanding California's best value procurement program for school construction projects, allowing school districts and county offices of education statewide to evaluate contractors based on both price and qualifications rather than cost alone. The legislation builds upon a successful pilot program at Los Angeles Unified School District (LAUSD), which reported fewer project delays and change orders when using this procurement method.

The bill authorizes school districts and county offices of education to use best value procurement for projects exceeding $1 million through December 2030. Under this approach, contractors submit bids that are evaluated on criteria including financial capacity, relevant experience, management competency, labor compliance, and safety records. Districts must establish transparent procedures for evaluating qualifications and calculating a "best value score" that combines price and capability metrics.

To maintain oversight, participating districts and county offices must submit independent third-party reports to the Legislature by January 2030 detailing project outcomes, contractor selection processes, and any bid protests or performance issues. The bill also includes worker protection provisions requiring contractors to use skilled and trained workforces or operate under project labor agreements. For LAUSD specifically, the legislation removes sunset provisions to make their best value procurement authority permanent based on demonstrated success.

The measure institutes standardized definitions and procedures while preserving existing requirements that contracts ultimately be awarded to the lowest responsible bidder unless best value criteria are explicitly applied. Retention proceeds withheld from contractors remain capped at 5 percent when performance bonds are required, with proportional limits on retention from subcontractors.