The City of Los Angeles has unveiled an innovative initiative aimed at empowering small, local, and diverse construction contractors through its “community level contracting” (CLC) program. This trailblazing effort is set to provide prime contractor opportunities for these contractors, particularly in the realm of essential sidewalk construction and repair services. The city has already pre-qualified over 30 contractors who are eligible to receive work packages valued at up to $150,000 each, with the first projects expected to start in late November 2024. This move follows a request for qualifications (RFQ) issued by the Department of Public Works (DPW) in late 2023, marking a significant milestone in the city’s commitment to fostering equitable business opportunities.
Workshop Support and Pre-Qualification Process
In support of this initiative, Merriwether & Williams Insurance Services (MWIS) hosted a workshop on November 1, 2023, aimed at assisting contractors in the preparation of their statement of qualifications (SOQ) packages. This workshop was part of the Los Angeles Regional Contractor Development and Bonding Program (CDABP), which is managed by MWIS and supported by the City of Los Angeles, L.A. Metro, and the County of Los Angeles. During the workshop, MWIS provided invaluable technical assistance, guiding attendees through the RFQ documentation process, explaining submission procedures, and addressing pressing questions from the contractors.
The requirements for participation in the CLC program are stringent but attainable, ensuring that only qualified contractors are pre-approved. These requirements include a $150,000 bond, relevant insurance, necessary contractor licenses, registration with the Regional Alliance Marketplace for Procurement (RAMP) and the California Department of Industrial Relations (DIR), along with an SOQ cover letter. The result of these efforts was a list of 34 contractors on the pre-qualified on-call (PQOC) list, with 29 of them being active participants in the CDABP.
Benefits for Contractors and Communities
The CLC program is designed to provide significant advantages not only to contractors but also to taxpayers and the community at large. By breaking down larger projects into smaller work packages, the program enables smaller contractors to function as prime contractors, thereby gaining crucial experience and building a robust business profile. Smaller contractors who become prime contractors can enjoy higher profit margins and foster business growth. Additionally, this segmentation increases the pool of bidding firms, fostering greater innovation and potentially leading to cost savings, which ultimately benefits taxpayers.
The program’s emphasis on job equality and supporting local economies cannot be understated. By keeping more contracting dollars within the community, the CLC program helps to bolster the local economy and create a more competitive market. This approach aligns with the broader goals of the City of Los Angeles to promote economic equity and ensure that public works projects generate widespread community benefits. These efforts, in turn, help to strengthen community ties and support the local workforce, creating a positive cycle of growth and development.
Success Stories and Future Opportunities
The City of Los Angeles has launched an innovative program designed to support and empower small, local, and diverse construction contractors through its “community level contracting” (CLC) initiative. This groundbreaking program aims to provide prime contractor opportunities specifically for contractors focused on essential sidewalk construction and repair services. Already, over 30 contractors have been pre-qualified by the city to receive work packages valued at up to $150,000 each, with the initial projects anticipated to begin in late November 2024. This development comes in response to a request for qualifications (RFQ) issued by the Department of Public Works (DPW) in late 2023. The CLC program represents a significant milestone in Los Angeles’ commitment to promoting equitable business opportunities and fostering a fair playing field for diverse contractors. Overall, this initiative not only aims to enhance the city’s infrastructure but also supports local businesses and contributes to economic growth in the community.