Best value procurement: school districts.

Assembly Member Schultz proposes expanding California's best value procurement program for school construction projects, building on practices previously limited to the Los Angeles Unified School District (LAUSD). The legislation makes LAUSD's authorization permanent while extending similar procurement options to all other California school districts through 2030 for projects exceeding $1 million.

Under the best value approach, school districts may select contractors based on both price and qualifications rather than lowest bid alone. Districts must establish transparent procedures for evaluating bidders' financial capacity, relevant experience, management competency, labor compliance, and safety records. The selection process requires confidential evaluation of qualifications before considering cost information to ensure impartial assessment.

The bill maintains existing protections while adding new requirements. Contractors must commit to using skilled and trained workforces unless operating under qualifying project labor agreements. Districts cannot withhold more than 5% in retention proceeds when performance and payment bonds are required. Subcontractors retain all existing statutory protections regarding payment and working conditions.

School districts implementing best value procurement must document their experience through independent third-party reports to the Legislature by January 2030. These reports must detail project awards, contractor selection, bid protests, evaluation criteria, and completed project performance including any delays or cost increases. The authorization for districts other than LAUSD expires January 1, 2031, while LAUSD's program continues indefinitely.