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Contractors' Newsletter

• Contractor News, Vol 1

Small Business Program
Together...We Build Schools

• About us
• Small Business Enterprise Program
• Small Business Boot Camp
  • Small Business Boot Camp Fact Sheet
  • Boot Camp Enrollment Application
  • Boot Camp Seasonal Schedule
• Contractor MoneyWorks Program
  • Contractor MoneyWorks Brochure
  • Contractor Enrollment Application
• Plan Viewing Sites
• Links to Other Resources of Interest to Small Business
• Contact Information

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 $19.2 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:

• State of California, Department of General Services

• California Department of Transportation (CalTrans)

• California Unified Certification Program

• City of Los Angeles

• Los Angeles County Metropolitan Transportation Authority (MTA)

• Los Angeles County Office of Compliance and Certification

• U.S. Small Business Administration (SBA)

Small Business Boot Camp

Our partners

Minority Business Development Center	Small Business Development Center	Barrio Planners Incorporated
In partnership with the Internal Revenue Service		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 Estimating & 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

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

Central Los Angeles

East Los Angeles

San Fernando Valley

Seminar Descriptions

Bonding & Certification

Acquire the basic bonding principles that will help your company increase its bonding capacity to pursue larger or additional contracts, and apply for the U.S. Small Business Administration's Surety Bond Guarantee Program, which may guarantee up to 90% of a surety company's potential loss. Contractors will also apply for the LAUSD Small Business Enterprise (SBE) certification.

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), and the processes for stop notices, change orders, and subcontractor subsitution.

The Principles of Estimating

A leading engineer will show contractors how to break down project costs and prepare a competitive price estimate utilizing standard industry principles and proven cost-cutting approaches for construction bids. The seminar will also provide guidance on how to deduct Workers' Compensation and general liability insurance costs from bids in accordance with the District's Owner Controlled Insurance Program (OCIP).

How to Bid on Informal and Formal Contracts

Capture new contracting opportunities by learning how to prepare a bid and manage informal (under $69,000) and formal competitive contracts (above $69,000). 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

Safety experts 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

Discover private and non-profit sector financing options for your business, and begin the process of preparing a business financial portfolio that you can submit for consideration for a small business loan. Financial services professionals will guide contractors through the maze of eligibility criteria, loan options, and lending terms.

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

Avoid employment law and 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).

10-Hour Construction Safety and Health Outreach Program

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 September 1, 2007 and the seminars begin on September 18, 2007.

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

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. The application deadline is September 25, 2007 and the seminars begin on October 3, 2007.

Seminar Location

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 review the attached flyer for a plan viewing site locations near you.

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

• Workers Compensation

• State of California Division of Occupational Safety and Health

• Cal/OSHA Consultation Services

• Contractors State Licensing Board

• State of California Employment Development Department (EDD)

  • EDD Events

• I.R.S. For Construction

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.

• Small Business Loans
  U.S. Small Business Administration
  California Technology, Trade & Commerce Agency
  County of Los Angeles Community Development Commission

• Surety Bond Guarantee Program
  U.S. Small Business Administration

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.

Technical Assistance Providers



• CHARO SBA Women's Center

• CHARO Small Business Development Center

• East Los Angeles Minority Business Development Center

• FAME Renaissance Business Enterprise Center

• Latin Business Association Institute

• National Center for American Indian Enterprise Development

• North Los Angeles County Small Business Development Center

• Pacific Asian Consortium in Employment & Business Development Center

• University of Southern California Minority Business Development Center

• Valley Economic Development Center (VEDC)

Business Organizations



• American Indian Chamber of Commerce

• Asian American Architects & Engineers Association

• Asian Business Association

• Asian Business Association-Orange County

• Asian Business League

• Black Business Association

• Boyle Heights Chamber of Commerce

• California Disabled Veterans Business Enterprise (DVBE) Alliance

• Chinese American Construction Professionals

• Christian Latin Business Association

• Economic Alliance of the San Fernando Valley

• Greater Los Angeles African American Chamber of Commerce

• Latin Business Association

• National Association of Women Business Owners-Los Angeles

• Society of Hispanic Professional Engineers

Training Program & Labor Resource

• "We Build" Program

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.

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