Prequalification in 2014 Cate Boskoff [email protected] Nancy Taylor [email protected] Orbach Huff Suarez & Henderson LLP The New Law PCC § 20111.6 per AB 1565 Some Basics on the New Law: Mandatory: (b) .. [D]istrict shall require … each prospective bidder … submit …a standardized questionnaire and financial statement [“[Prequal Forms]”… must be verified under oath and shall not be public records. $1m State-Funded Projects: (a) [P]ublic projects, [using state funds] … that involves a projected expenditure … $1,000,000 or more … After Jan. 1, 2014: (m) This section shall apply to contracts awarded on or after January 1, 2014. 2019 Sunset: (o) … inoperative on January 1, 2019, and, as of July 1, 2019, is repealed. The New Law PCC § 20111.6 per AB 1565 More on the New Law (Emphases added): Uniform: (c) … uniform system of rating bidders on the basis of the completed [Prequal Forms]… Ten Days: (f) [Bids can only be accepted from entity that has submitted its Prequal Forms “at least ten business days prior to the date fixed for the public opening of sealed bids” and has been prequalified for at least five business days prior to that date.” Quarterly or Annual Process: (g) [D]istrict may prequalify[ ] prospective bidders … on a quarterly or annual basis and may …be considered valid for up to one calendar year … The New Law PCC § 20111.6 per AB 1565 And Yet More on the New Law (Emphases added): DIR form’s Issues: (d) The [Prequal Forms]… and the uniform system … shall cover, at a minimum, the issues covered by the standardized questionnaire and model guidelines … developed by the Department of Industrial Relations... DIR Report in 2018: (n) [DIR shall report on evaluation of violations of the Labor Code pre and post enactment on or before January 1, 2018]. The New Law PCC § 20111.6 per AB 1565 Subcontractors Under the New Law: GC and MEP Subs: (i) … “bidders” shall include the general contractor and, if utilized, all electrical, mechanical, and plumbing [“[MEP]”] subcontractors. Prequal List: (j) If … project … includes [MEP] components that will be performed by [MEP] contractors, a list of prequalified general contractors and [MEP] subcontractors shall be made available by the … district to all bidders at least five business days prior to … opening of sealed bids. “MEP” Defined: (k) MEP subcontractors are subcontractors holding the following license classifications: C-4, C-7, C-10, C16, C-20, C-34, C-36, C-38, C-42, C-43, and/or C-46. Subcontractor Prequalification: MEP or All? PCC § 20111.6 states that all electrical, mechanical and plumbing subcontractors must be prequalified. Some Districts prequalify all subcontractors on large projects . WCCUSD proposes prequalification of subs holding contracts in excess of $500,000. WCCUSD Prequalification Trade Contractors and Subcontractors required to be prequalified before submitting a bid for a Major Project. (Major Project: project in excess of ten million dollars, $10,000,000.) Bidding to perform any subcontract work in excess of $500,000 on a Major Project. Trade Contractors and Subcontractors not required to be prequalified if bidding to perform subcontract work on District projects less than $500,000. Trade Contractors/Subcontractors Prequalification: Evaluation Process - Major Essential Criteria Minimum of two (2) DSA approved Public School Construction within past five (5) years with a contract value of more than $350,000. Previous project experience similar in work and scope for the past five (5) years. No Default, Bankruptcies or Receivership within the past five (5) years. No Disqualifications, Disbarments, Non-Responsibility Determinations within past five (5) years. Claims against firm or filed by subcontractor against public agency (case by case basis). Audited or reviewed Financial Statements for the past three (3) years. Submit a complete packet.