Failure to Comply with this Article and the Rules and Procedures, Remedies.

Los Angeles Administrative Code § 10.25.6

in effect

Sec. 10.25.6. Failure to Comply with this Article and the Rules and Procedures, Remedies. (a) The penalties in Subsection (b) may be assessed on any Contractor that: (1) Fails to qualify or maintain its status as a Local Business, City Business, Local Small Business, or Local Transitional Employer for more than 60 days during the entire term of the Contract; (2) Fails to utilize the Subcontractor that provided the basis for the preference or, in the event the Subcontractor is unable to either perform the work or maintain its qualifying status, fails to replace the Subcontractor with another qualifying Subcontractor within 60 days of non-performance or loss of qualifying status; (3) Provides false or incorrect information for certification as a Local Business, City Business, Local Small Business, or Local Transitional Employer, and because of such certification, is awarded a Contract to which it would not otherwise be entitled; (4) Fails to cooperate with the DAA pursuant to Section 10.25.8; or (5) Fails to comply with the rules and procedures for this article. (b) The Awarding Authority may impose the following remedies: (1) Withhold or recover funds from the Contractor up to an amount that represents the value of the Bid or Proposal preference. The amount shall be determined as follows: a. For Bids – The difference between the amounts paid to the Contractor pursuant to the Contract and what the City’s costs would have been if the Contract had been awarded to the next lowest responsive responsible Bidder. b. For Proposals – Multiplying the percentage of the preference evaluation points awarded to the Contract dollar amount. (2) Additional costs and expenses to the City resulting from the Contractor’s failure to comply with this article. (3) Termination of all or part of the Contract. (c) The remedies available to the City under this section are in addition to all other contractual or legal rights and remedies available to the City under law. SECTION HISTORY Added by Ord. No. 187,121, Eff. 8-7-21. Amended by: Subsecs. (a)(1) - (a)(3), 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/0-0-0-93345Fetched: 10/24/2026