Informal Contracts - A/B Letter Contracts

The Informal Contracts Unit is responsible for developing, recommending and administering all policies related to informally bid construction contracts (A/B Letters) which are those awarded for a sum below the applicable Public Contract Code (PCC) Section 20111 competitive bidding threshold.

An 'A' letter contract is strictly a "time and materials" contract used when it is not possible to determine the extent of work or services to be performed.

A 'B' letter contract is a fixed price contract used whenever the scope of work is fixed or predetermined.

The following are the only expenditures for which A/B Letter Contracts may be used:

Public Project Construction Services - $14,999.99 Maximum
- Issued for painting and repainting, alteration, improvement, demolition, renovation, erection, construction, reconstruction and repair of an LAUSD-owned, leased or operated facility (PCC Section 22002 (c) up to the maximum of $14,999.99.
Maintenance and Equipment Repair - Annually Adjusted Bid Threshold
- As defined in PCC 20115, issued for routine, recurring and usual work for the preservation, protection and keeping of any LAUSD-owned facility. All paint projects are excluded.

How to Get Started

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A/B Letter (Informal Contracts) Bidder Qualification Requirements

LAUSD awards informal contracts based on Low Value Bid to the lowest responsive and responsible bidder. LAUSD Small Business Enterprise (SBE) certified contractors will be provided a 8% bid preference, Micro-SBE 10% bid preference, and VBE/DVBE 10% bid preference when bidding in response to invitations for bid for amounts under the annually adjusted bid threshold amount set for contracts pursuant to Public Contract Code 20111. The contractor MUST submit their current LAUSD SBE, VBE/DVBE and/or Microbusiness certification, or valid reciprocal agency certification with their bid, for the 8% SBE, 10% Micro-SBE, or 10% VBE/DVBE preference to be applied. However, LAUSD SBE, VBE/DVBE and/or Microbusiness certification MUST be provided prior to issuance of a purchase order (PO). Only One Program Can Be Utilized Per Bid. Any additional small business enterprise related inquiries can be answered by contacting the Small Business Enterprise Program (SBEP) at (213) 241-1302, email: [email protected] or website: https://facilities.lausd.org/apps/pages/sbe-registration-certification

For All LAUSD Projects

The Contractor MUST have an LAUSD SAP vendor number at the time of bid submission in order to bid on informal contracts. Contractors shall apply online at https://procurement.lausd.org/apps/pages/Vendor-Services (Click on the 'Self- Registration Page' hyperlink). Any additional SAP vendor number application inquiries can be answered by contacting Vendor Services at (562) 654-9404 or email: [email protected].

The Contractor MUST have a valid State of California Contractors License, current at the time of bid submission (if applicable)
The Contractor MUST be Safety Prequalified with the LAUSD, current at the time of bid submission and they MUST comply with the safety standards. Any additional safety prequalification related inquiries can be answered by contacting Facilities Contracts' Prequalification Unit at (213) 241-2651, email: [email protected] or website: https://procurement.lausd.org/apps/pages/Prequalification
The Contractor MUST submit to LAUSD proof of General Liability Insurance coverage of $1,000,000 single occurrence / $2,000,000 aggregate (with an A-/VII or higher rating, according to the A.M. Best Company standards). Commercial Automotive Insurance coverage of $1,000,000 combined single limit; Worker’s Compensation Insurance; and, if applicable, Pollution Liability coverage of $2,000,000 (single) - $5,000,000 (multiple) site. The Contractor’s General Liability Insurance policy and Commercial Auto policy shall name the Los Angeles Unified School District, the Board, its officials, employees and agents as Additional Insureds and it will state that the coverage is Primary and Non-Contributory. All MUST be submitted on an Acord Certificate of Liability Insurance form. The Acord form is required per project and the certificate date is not to be greater than 60 days. OCIP is NOT provided on Informal Contracts.
The contractor, its employees, agents, and subcontractors (“Contractor’s personnel”) who enter school sites when students are present is required to comply with the provisions of California Education Code Sections 45125.1 and 45125.2 at no cost to the District. The contractor MUST submit the Fingerprint and Criminal Background Check Certification form and Fingerprint Certification List, if applicable, to LAUSD prior to the start of work. Any additional inquiries can be answered by contacting the Division of Risk Finance and Insurance Services: https://riskfinance.lausd.org/
When authorized, the Contractor shall use only Subcontractors that it has safety pre-qualified in accordance with the procedures outlined in the Safety Standards Manual and verified by CONTRACTOR to have an Experience Modification Rate (EMR) of 1.0 or below.
NONE of the most recent three (3) Contractor Performance Evaluation scores as reflected in the Bid Tab – B Letter (Exhibit P) may fall below 20 out of a possible 50 points (Informal) or 100 out of a possible 250 points (Formal, JOC or Non-LAUSD projects).

In Addition, For All LAUSD Projects Greater Than $15,000

Pursuant to California Labor Code 1771.5, LAUSD REQUIRES Contractors to pay the prevailing wage for each craft or class employed for projects of $15,000 or more when the project is for Alteration, Demolition, Repair, Maintenance or Warranty work. This is applied to the contract price, which means that Subcontractors also pay prevailing wage, regardless of their portion of the contract amount. LAUSD operates an approved Labor Compliance Program (LCP) which shall be enforced on public works projects that exceed the monetary threshold mentioned above. Copies of the prevailing rate of per diem wages are available at the LCP Office or website: https://www.dir.ca.gov/public-works/prevailing-wage.html For questions or assistance contact the LCP at (213) 241-4665, email: [email protected] or website: https://facilities.lausd.org/apps/pages/lcp
The Contractor MUST submit a Payment and Performance Bond from an admitted surety, approved by the LAUSD. The bond MUST be submitted on the LAUSD required Bonds for Material and Labor and Faithful Performance form (See Bond Requirements and Surety Qualification below).
Pursuant to California Labor Code 1771.1, all vendors who work and/or bid on a public works project MUST register with the Department of Industrial Relations (DIR) as a Public Works Contractor. LAUSD is legally required to report all public works contracts to the DIR as required by Labor Code section 1773.3. Any additional related inquires can be answered by going to the DIR website.
The Project Stabilization Agreement (PSA) applies to all construction and major rehabilitation work pursuant to all prime specialty contracts that exceed $20,000 that are funded, in whole or part, by monies from local bonds as set forth in Article 2 of the PSA. If the PSA applies to this Work, the Contractor and all Subcontractors of every tier are required to abide by its terms and agrees to be bound by the PSA. For information pertaining to the PSA, Contractor can refer to the PSA website. If the project is over $30,000, the Contractor MUST comply with apprenticeship requirements set forth in Labor Code 1777.5. The Contractor must submit a copy of the completed DAS 140 Form to LAUSD's LCP Office, email: [email protected].
The Contractor shall be responsible for the weekly submission of electronic certified payroll records within ten (10) days of each week's ending date. The certified payroll reports shall be submitted to LAUSD's LCP Office in the method provided by the owner. The Contractor MUST also submit the LAUSD Public Works Payroll Reporting Form and the Notice to Public Entity on a weekly basis on the 10th day, after construction starts, and weekly thereafter to the Owner Authorized Representative (OAR).
The Contractor MUST submit the Contractors Fringe Benefit Statement at contract closeout to the OAR and the LCP Office. Any additional Labor Compliance related inquiries can be answered by contacting the LAUSD's LCP Office at (213) 241-4665, email: [email protected]
The Contractor MUST submit the invoice and Contractor Notice of Completion (CNOC), after District inspection in the method provided by the owner.

Informal Contracts Unit

(213) 241-1188
[email protected]

Stella Onuaguluchi
Assistant Contract Administration Manager
[email protected]

Brian Wong
Assistant Contract Administration Analyst
[email protected]