Assembly Member Schultz proposes expanding California's best value procurement method - currently limited to Los Angeles Unified School District - to all school districts statewide for construction projects exceeding $1 million. The legislation would make permanent what began as a pilot program, allowing districts to evaluate contractors based on both price and qualifications rather than defaulting to the lowest responsible bidder.

The bill establishes specific criteria for evaluating contractor qualifications, including financial capacity, relevant experience, management competency, labor compliance, and safety records. School districts opting to use this procurement method must adopt and publish procedures ensuring fair and impartial contractor selection. The legislation caps retention proceeds withheld from selected contractors at 5 percent when performance and payment bonds are required, with similar limitations extending to subcontractor agreements.

This measure removes the previous program's December 2025 expiration date and eliminates associated reporting requirements to the Legislature. While maintaining school districts' authority to award contracts to lowest responsible bidders, it provides an alternative pathway for complex construction projects where contractor qualifications may warrant additional consideration alongside cost factors.