Awarding Preferences - Contracts over $150,000.

Los Angeles Administrative Code § 10.25.5

in effect

Sec. 10.25.5. Awarding Preferences - Contracts over $150,000. (a) Award of Local Business and City Business Preference. An Awarding Authority shall award a 6% preference to a Local Business. A Local Business that is also a City Business shall be awarded an additional 4% preference. The preferences shall be applied to a Bid and Proposal in the following manner: (1) Bid. The Awarding Authority shall apply the preference to a Bid price solely for Bid evaluation purposes such that the total Bid price by a Local Business shall be reduced by 6% of the Bid amount. The total Bid price by a Local Business that is also a City Business shall be further reduced by 4% of the Bid amount. The reduced Bid amount shall be deemed the amount Bid by the Bidder. If the Local Business or City Business also receive any of the preferences in Section 10.25.5(b), the total Bid price shall be further reduced by the additional preferences awarded. (2) Proposal. The Awarding Authority shall apply the preference to a Proposal solely for Proposal evaluation purposes such that the score awarded to a Proposal submitted by a Local Business shall be increased by 6% of the total possible evaluation points. The score awarded to a Local Business that is also a City Business shall be further increased by 4% of the total possible evaluation points. If the Local Business or City Business also receives any of the preferences in Section 10.25.5(b), the Proposal’s score shall be further increased by the additional preferences awarded. (b) Award of Additional Preferences. A Local Business or City Business that is awarded a preference in Section 10.25.5(a) may receive an additional preference as provided in this subsection, subject to the limitations in Section 10.25.5(d). (1) A Local Business or City Business that is also a Local Small Business or Local Transitional Employer shall receive an additional 2% preference for each certification. (2) A Local Business or City Business that is not eligible for the additional preference in Section 10.25.5(b)(1), but that identifies a Subcontractor that is a Local Small Business or a Local Transitional Employer, shall receive up to a 2% preference for each Subcontractor certification. The additional preferences under this subsection shall be applied as follows: a. Bid. The Awarding Authority shall provide a 1% preference to the Bid price for every 10% of the total Bid amount to be performed by the qualifying Subcontractor. b. Proposal. The Awarding Authority shall provide a 1% increase of the total possible evaluation points for every 10% of the total cost of the proposed work under the Contract to be performed by the qualifying Subcontractor. c. The Bid or Proposal must identify each qualifying Subcontractor, the proposed work of the Subcontractor and the cost of the work for each Subcontractor. (c) Award of Subcontractor Preference. A Bid or Proposal that does not qualify for the preferences in Subsections (a) and (b) of Section 10.25.5 may receive up to a 5% preference if it identifies a Subcontractor that is a Local Business, City Business, Local Small Business or Local Transitional Employer. (1) The Bid or Proposal must identify each Subcontractor, the proposed work of the Subcontractor and the cost of the work for each Subcontractor. (2) The Subcontractor preference shall be applied to a Bid or Proposal in the same manner as applied in Subsections a. through c. of Section 10.25.5(b)(2). (d) Maximum Preference Awards and Value Cap. (1) The maximum preference awarded to a Local Business under this article shall not exceed 10%. (2) The maximum preference awarded to a City Business under this article shall not exceed 12%. (3) The maximum value of the combined preferences awarded under this article shall not exceed one million dollars. SECTION HISTORY Added by Ord. No. 187,121, Eff. 8-7-21. Amended by: Ord. No. 188,147, Eff. 3-15-24.

Source: City of Los Angeles, Charter and Codes (American Legal Publishing, codelibrary.amlegal.com)URL: https://codelibrary.amlegal.com/codes/los_angeles/latest/laac/0-0-0-93378Fetched: 10/24/2026