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Small Business Program
Together...We Build Schools

You will need Acrobat Reader to view and print all PDF Links.

The Los Angeles Unified School District (LAUSD) has embarked on an aggressive, multi-billion dollar school construction and renovation program that will deliver new and modernized school facilities and more than 180,000 new classroom seats by the year 2012. LAUSD's investment of $20.3 billion in new and existing school facilities represents the largest school construction and renovation program in the western United States. In recognition that the school construction and renovation program will require a large pool of qualified contractors and that the construction activity will take place in diverse neighborhoods throughout Los Angeles and neighboring cities, the Board of Education deems it imperative that small businesses compete for these economic opportunities.

25% Small Business Enterprise Participation Goal

In February 2003, the Board of Education established a 25% Small Business Enterprise (SBE) participation goal on all District contracts. This far-reaching SBE participation goal is the guiding principle for the Small Business Program.

The mission of the Small Business Program is to increase the pool of qualified firms competing for LAUSD bond-funded contracts. The Small Business Program provides SBE firms with information and access to compete for bond-funded construction, architecture, engineering, and professional services contracts; and referral services to technical assistance, financial, bonding and insurance, and certification services that promote the long-term competitive capacity of SBE firms.

Small Business Enterprise (SBE) Certification

LAUSD's streamlined SBE certification program facilitates the recognition of eligible small businesses that are not currently certified by another public agency. The SBE certification application is available as a PDF file

A small business is one that meets the U.S. Small Business Administration guidelines for gross sales receipts (averaged over the past three years) or number of employees based upon industry. Use this link to find your small business size standard or applicable North American Industry Classification System (NAICS) code.

The LAUSD SBE certification is recognized and accepted by the Metropolitan Water District of Southern California and its reciprocating agencies. The LAUSD recognizes and accepts certifications from other major public agencies:

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Contractor BondWorks Program

Contractor BondWorks complements the Small Business Program's innovative slate of capacity-building seminars for small contractors by eliminating the barriers to bonding and access to capital. Small contractors who graduate from the Small Business Boot Camp Program and who meet other eligibility requirements may apply for bonding and finance guarantees for LAUSD construction contracts.

Building your business is our investment

Whether your small business is a seasoned or newly established construction company, Contractor BondWorks can help maximize your contracting potential by eliminating the barriers to bonding and working capital.

Bid, Performance and Payment Bond Guarantees

Eligible contractors will be positioned to secure bid, performance and payment bonds for LAUSD contracts. The bond guarantee maximum is 40% of bond or $400,000, whichever is less, per contract, per contractor.

Contract Financing Guarantees

Working capital is essential to small business growth. Contractors will have access to contract financing guarantees of up to 50% of contract specific financing or $200,000, whichever is less, to pay for materials, subcontractors and labor costs associated with LAUSD contracts. Contractors may utilize a combination of bond and finance guarantees up to a maximum value of $400,000.

Contractor Consultation & Technical Assistance

Contractors will be provided with one-on-one consultations to determine bonding and financing eligibility, and access to financial management workshops.

Third Party Funds Administration

Participating contractors will be provided with funds administration services to ensure timely payment to suppliers and subcontractors, and to fulfill labor expense obligations. A successful payment history will increase contractor credit worthiness for continued access to bonding and capital.

Program Eligibility

The Contractor BondWorks Program serves Small Business Enterprise (SBE) contractors who meet the following eligibility requirements:

  • Graduation from the Small Business Boot Camp or Contractor Academy
  • Labor Compliance Training Certificate
  • Project Stabilization Agreement Training Certificate
  • Safety or Contractor Prequalification
Get the bonding and financial capacity to compete. Enroll today!
Los Angeles Unified School District
Small Business Program
333 S. Beaudry Ave., 23rd Floor
Los Angeles, CA 90017

Contact: Michael Bejarano
Phone: 213-241-4973
Fax: 213-241-6845
E-Mail: michael.bejarano@lausd.net

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Small Business Boot Camp

Our partners

In partnership with the Internal Revenue Service Minority Business Development Center Employment Development Department
Small Business Program Boot Camp Graduates

The Los Angeles Unified School District (LAUSD) Small Business Boot Camp is an eight week program that provides small contractors with the tools necessary to improve their competitive capacity through a comprehensive, hands-on curriculum. At the conclusion of the eight-week program, graduating small contractors will be ready to bid on LAUSD contracts, and will be well-prepared to pursue contracts with other public agencies. The program has both short and long-term benefits for participating contractors and will serve to expand the District's pool of qualified contractors.

The Small Business Boot Camp will provide a definitive curriculum on the following topics:

  • Bonding & Certification

  • Public Contract Law

  • Principles of Scheduling

  • How to bid on LAUSD Informal and Formal contracts

  • How to develop Safety Plan

  • Access to Capital

  • LAUSD Contractor Prequalification

  • Labor Compliance and Project Stabilization Agreement (PSA)

  • 10 Hour Construction Safety and Health Outreach Program Training

The Small Business Boot Camp seminars are conducted at the following locations to ensure access and participation by small contractors.

Central Los Angeles

Location: TBD
Start Date: TBD

East Los Angeles

Location: TBD
Start Date: TBD

San Fernando Valley

Location: TBD
Start Date: TBD

Seminar Descriptions

Bonding & Certification

Learn how to increase your company's bonding capacity through the U.S. SBA's Surety Bond Guarantee Program, and participate in Contractor BondWorks, the District's bond and finance assistance program. Contractors will also apply for the LAUSD Small Business Enterprise (SBE) certification for future recognition in the District's 25% SBE goal.

Public Contract Law

An LAUSD attorney will walk contractors through a contract and explain its components to familiarize and better prepare their company to comply with contract performance requirements, and to understand both short and long-term expectations. A thorough overview of the General Conditions will also be conducted to acquaint contractors with common public sector contracting terms and conditions. This seminar includes a briefing on the District's Owner Controlled Insurance Program (OCIP), the Field Act and the processes for stop notices, change orders, and subcontractor subsitution.

The Principles of Scheduling

A seasoned construction scheduler will show contractors the principals of developing a project schedule using Primavera software as required by LAUSD contract specifications.

How to Bid on Informal and Formal Contracts

Capture new contracting opportunities by learning how to prepare a bid and manage informal (under $76,700) and formal competitive contracts (above $76,700). Acquire up-to-date information on LAUSD's bidding policies to successfully compete and meet contract performance requirements. Get an overview of the contract process, from the pre-bid phase, through the bid and award phase, and project completion.

How to Develop a Safety Plan

Cal OSHA Consultation Service will guide you through the process of developing an Injury & Illness Prevention Program (IIPP) and Hazard Communication Program to facilitate compliance with the California Occupational Safety and Health Act (Cal/OSHA). Cal OSHA requires all California employers to provide and maintain a safe and healthful workplace for its employees.

Access to Capital & Government Tax Guidelines

Public and private sector financial services professionals will guide contractors through eligibility criteria, loan options, and lending terms for small business loans. Also, learn how to comply with State and Federal Government tax laws regulated by the Employment Development Department (EDD) and the Internal Revenue Service(IRS).

LAUSD Contractor Prequalification

LAUSD will guide you through the Contractor Pre-qualification Questionnaire (including Safety Pre-qualification) in a hands-on workshop environment. Safety and Contractor Prequalification is required to bid on informal and formal contracts, respectively.

Labor Compliance and Project Stabilization Agreement (PSA)

Avoid Labor Code violations that can adversely affect your bottom line. Obtain clear and easy access to compliance tools to ensure that your business adheres to Department of Labor laws and regulations, specifically certified payroll and prevailing wage requirements. This seminar also includes a briefing on the Project Stabilization Agreement (PSA), and the "We Build" Program.

10-Hour Construction Safety and Health Outreach Program Training

This training session introduces OSHA policies, procedures, and standards as well as construction safety and health principles. The course will review the scope and application of the Occupational Safety and Health Act and General Duty Clause, as well as examine areas that are most hazardous. Upon successful completion of the course, participants will receive an OSHA construction safety and health 10-hour course completion card.

Promissory Commitment

Contractors enrolled in the program must attend and actively participate in the eight (8) seminars in order to graduate from the Small Business Boot Camp. Each seminar is approximately three hours in the evening, one seminar per week, and will require homework. There is no enrollment cost to participate, however, there is a significant investment of time that is required of each contractor and contractors must possess a valid contractor's license.

Enrollment

Please complete the Enrollment Application (PDF file) to register for the Small Business Boot Camp. The application deadline is April 7, 2009 and the seminars begin on April 14, 2009.

For further information, view the Small Business Boot Camp Fact Sheet(PDF file)


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Contractor MoneyWork$

Contractor MoneyWork$ is a five-month seminar program that improves the financial literacy and capacity of small businesses to compete in the public sector. Developing and honing practical skills, such as managing cash flow, improving credit worthiness, complying with state and federal tax requirements, optimizing business structure and preparing financial statements better positions small contractors for growth and to qualify for capital and bonding. Learn more about this new program!

Building your business is our investment

Whether your small business is new or established, the Contractor MoneyWork$ program can help you maximize its potential through basic business-building financial skills. The five business-building seminars include:

  • Cash Flow Management: Managing cash flow and keeping accurate records are crucial to the success of any business. Acquire the tools necessary to determine the costs and profits of operating your small business, including the importance of recordkeeping, its link to cash flow projections, maintaining cash reserves and positive cash flow planning.
  • Credit Clean-Up: A good credit rating is essential for obtaining bonding and capital. Learn how credit information affects your business' ability to qualify for bonding, how to improve your credit rating and how to resolve negative credit information. Become familiar with your rights under the "Fair Credit Reporting Act" and learn how to obtain your credit information free of charge.
  • State & Federal Tax Guidelines: State and Federal Tax requirements can be complex and confusing. Avoid common tax problems by learning about tax requirements, tax schedules, and resolution of tax liens.
  • Legal Business Structure: Business organization is critical to protecting your personal and business assets. Learn about legal business structures and the unique advantages and disadvantages of each business model: corporations, limited liability companies (LLC), partnerships and sole proprietorships.
  • Financial Statements: Knowledge of financial and income statements are essential to obtaining a small business loan. Learn how balance sheets, income statements, accounts receivables, inventory, assets, net worth and notes payables are used to navigate your business to generate higher profits and avoid losses.

Promissory Commitment

Contractors enrolled in the program must attend and actively participate in the five (5) seminars in order to graduate from the Contractor MoneyWorks. Each seminar is approximately two hours in the evening, one seminar per month. There is no cost to enroll in the program, however, there is a significant investment of time that is required of each contractor to attain the greatest benefit from the program.

Enrollment

Please complete the Enrollment Application to register for the Contractor MoneyWorks. Classes begin in Winter 2009.

Seminar Location

Location: TBD

Further Information:

Contact: Michael Bejarano
Phone: 213-241-4973
Fax: 213-241-6845
E-Mail: michael.bejarano@lausd.net

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Plan Viewing Sites

The Small Business Program and business organizations have partnered to provide Plan Viewing Sites for LAUSD construction projects. The cost of purchasing plans & specifications precludes many small businesses from attempting to bid on LAUSD projects, therefore, it is possible for potential bidders to visit these locations to view the plans and specs. Please see flyer for a plan viewing site locations near you.


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Links to other resources of interest to Small Businesses



Construction Contractor Safety Prequalification

The Los Angeles Unified School District is committed to the safety of its contractors on project job sites. LAUSD requires its contractors to submit a Safety Prequalification Questionnaire prior to bidding on either formal or informal contracts. The application overview will guide you through the Safety Prequalification Questionnaire.The application requests that contractors demonstrate their past safety performance, including incidence rates and OSHA citations, contractor's safety policy and procedures, and show proof of Workers Compensation insurance.

Other Contractor Business Resource links

Bonding & Financial Services

Bonding and access to working capital are of significant concern to small businesses, specifically in their effort to grow their companies. Please visit the following resource sites for information on these topics.

Technical Assistance Providers and Business Organizations

The Small Business Program works in partnership with a cross-section of agencies and business organizations to provide contractors with access to technical assistance and capacity-building resources.

Training Program & Labor Resource

The "We Build" Program

In recognition of the size and complexity of the District's school construction program, the Board of Education entered into a Project Stabilization Agreement (PSA) to ensure labor stability and to maximize local economic benefits through a 50% Local Worker participation goal. This ambitious Local Worker participation objective is the guiding principle for the "We Build" Program.

The "We Build" Program provides local District residents with an opportunity to enroll in a comprehensive, ten-week pre-apprenticeship training offered at seven LAUSD Division of Adult and Career Education Occupational/Skills Centers and through its partnership with the Century Community Training Program (CCTP) and other community-based training programs. Upon completion "We Build" graduates will be competitively positioned to enroll in Union Apprenticeship Training Programs and placement on LAUSD construction projects. Use this link to learn more about the "We Build" Program.



Disabled Veteran Business Enterprise (DVBE)

The LAUSD supports the State of California's DVBE participation goal of 3%. To be certified as a DVBE, a business must be at least 51% owned by one or more disabled veterans, have its daily operations managed and controlled by one or more disabled veterans, and have its home office located in the United States. The LAUSD will accept the State of California, Department of General Services DVBE certification for participation as an SBE contractor for District construction bids. Please visit http://www.pd.dgs.ca.gov/smbus/default.htm to search for DVBE firms, or to learn how to become certified as a DVBE.


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Contact Information

Small Business Program
Los Angeles Unified School District
Facilities Services Division
333 S. Beaudry Avenue, 23rd Floor
Los Angeles, CA 90017

For additional information, please contact Veronica Soto, Director of Contractor Relations & Small Business Program, at veronica.soto@lausd.net

For questions about Facilities Contract Services fcs@laschools.org


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