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Purchasing & Contracting

Prequalification Program

The Prequalification Program ensures compliance with Municipal Code §22.3004(a). The code requires contractors desiring to bid as a prime contractor on City of San Diego public works projects to be prequalified based on:

  • Financial strength;
  • Technical expertise;
  • Experience;
  • A satisfactory record of past performance; and
  • Compliance with the law.

Process

To become prequalified to bid on City public works projects as a prime contractor, contractors must complete the Prequalification Program application found on the City's vendor portal and submit the following:

  • A current financial statement compiled and either reviewed or audited by an independent accountant;
  • A current bond letter addressed to The City of San Diego; and
  • A list of three (3) previous clients of the contractor to serve as references. 

City staff will verify the information submitted via the application, the bond letter, and financial statement and interview the contractor's previous clients. City staff will use standardized rating criteria to evaluate the information and interviews and determine the contractor's maximum bidding capacity (MBC).

Once prequalified, contractors will be eligible to bid on City projects for two years, subject to their MBC.

To remain eligible after the initial 2-year period, contractors must renew their prequalified status every two years by submitting a Prequalification Program renewal application through the City’s vendor portal, along with updated references, an updated financial statement, and an updated bond letter.

Emerging or Small Local Businesses

Contractors certified as an emerging or small local business under the City's Small Local Business Enterprise (SLBE) Program do not have to submit a reviewed or audited financial statement to become prequalified to bid on projects as a prime contractor. A financial statement compiled (but has not been reviewed or audited) by an independent accountant will suffice. However, their MBC will be limited to either their single-project bond limit or $1 million, whichever is less. For more detailed information, see the Prequalification Program application on the City's vendor portal.

In addition, SLBE-certified contractors that have not previously completed a public works project as a prime contractor must first complete City-provided training on public works project administration before submitting a bid.

Maximum Bidding Capacity

The MBC (also known as the project range) for which the prime contractor will be prequalified is determined based on the information provided in the bond letter and financial statement, including whether the financial statement has been reviewed or audited by an independent accountant.

Project Range (MBC)Financial Information Type
Up to single-project bond limit or $1 million, whichever is lessBond letter with compiled financial statement (for SLBE-certified firms only)
Up to single-project bond limit or $30 million, whichever is lessBond letter with reviewed financial statement
Up to single-project bond limitBond letter with audited financial statement

Notes

  • A complete Prequalification Program application must be received at least ten (10) City working days prior to any bid opening on which the prime contractor wishes to bid to allow time for review, verification, and approval.
  • Complete and accurate answers to the questions in the Prequalification Program application are required. Omission of requested information can result in automatic disqualification. The information provided will be the basis of rating prime contractors with respect to the size and scope of contracts on which they are prequalified to bid. The City reserves the right to check other available sources.
  • Each completed Prequalification Program application must be submitted under penalty of perjury by an individual who has the legal authority to bind the prime contractor on whose behalf the application is submitted. If any information provided by a prime contractor changes, the prime contractor must immediately notify the City and provide accurate updated information.
  • As a result of the City's legal requirement to safeguard vendor data, City staff is not able to provide information regarding the prequalification status of contractors via the telephone. Contractors may access real-time information about their prequalification status via their profile on the City's vendor portal.
  • Prequalification Program documents are not public records, are not subject to the Public Records Act, and are not open for public inspection. All information provided will be kept confidential to the extent permitted by law. The City reserves the right to reject any and all submittals and to waive any irregularities in the information contained therein.