AB 2440 Summary

• Increases the contracting threshold for Los Angeles County Metropolitan Transportation Authority (LACMTA) from $100,000 to $150,000 for purchases requiring competitive bidding to lowest responsible bidder or best value proposer.

• Raises the quotation requirement threshold from $100,000 to $150,000 for contracts where LACMTA must obtain a minimum of three written or oral quotations.

• Allows LACMTA to use objective selection criteria beyond price (such as design approach, life-cycle costs, and features) when awarding design-build contracts, while maintaining a 60-day publication requirement for contracts exceeding $10,000,000 and reducing it to 30 days for smaller contracts.

• Establishes a prequalification program for construction bidders requiring prospective bidders on public projects to submit a standardized questionnaire and financial statement to LACMTA.

• Repeals previous prequalification questionnaire requirements and changes order procedures, replacing them with new provisions stating legislative intent that LACMTA should improve its construction change order and claims process through input from contractors and peer agencies.