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Committee advances AB 361 to expand "best value" procurement option statewide for school construction
Summary
AB 361 would remove the sunset on Los Angeles Unified School District's best-value procurement pilot and authorize other districts to opt in. Supporters said it reduces delays and change orders; opponents warned it could disadvantage small, local contractors.
The Senate Education Committee voted to send AB 361 to Senate Appropriations after extended debate over expanding the “best value” procurement method beyond Los Angeles Unified School District.
Assemblymember Schultz presented the bill, saying LAUSD’s decade-long pilot lets districts consider experience, quality and performance in addition to price when awarding construction contracts. Supporters, including LAUSD sponsor Sasha Horwitz, cited an independent report that found fewer change orders, fewer delays and lower administrative costs under the pilot.
Opponents, including public commenters and at least one senator, warned expansion could harm small, locally owned contractors that rely on lowest-bid awards and might not meet union/PLA-related criteria emphasized in some best-value evaluations. Senator Choi gave a lengthy personal account of a multi-generation local contractor in her district and urged a “no” vote, arguing the proposal could exclude longstanding local businesses. Other members raised concerns about corruption risks and whether qualifications could overwhelm price consideration.
Supporters noted safeguards in AB 361: participation is voluntary for districts, a reporting requirement to the Legislature and a five-year sunset for statewide application to permit later analysis. One technical witness said average selected-bid deltas were typically less than 20% compared with lowest bidders and emphasized that best-value selection sometimes still selects the low bidder once qualifications are weighed.
The committee vote to refer AB 361 to Appropriations carried, with several members signaling continued interest in safeguards and data collection if the policy expands beyond LAUSD.
