School District Can Bypass Competitive Bidding for Construction, Judge Rules

The Los Alamitos Unified School District’s decision to award more than $100 million in no-bid construction contracts was upheld recently after Superior Court judge threw out a lawsuit the district, the Orange County Register reports.

In a statement, the district lauded the Tuesday ruling and said it vindicated the District's use of the "lease-leaseback" contract method.

According to the Register, supporters say lease-leaseback helps school districts quickly get the best construction firms for the least amount of money, but some legal scholars and  business owners say the practice removes free enterprise and competition by allowing the district to sidestep the bidding process usually required by state law.

The issue was also the focus of an article by the Register earlier this month.

Attorneys for Los Alamitos businessman Stan Howard of Howard Contracting -- the company that brought the lawsuit against the district questioning the legality of the lease-leaseback method-- said they would ask for a new trial, and appeal the case if necessary.

In an interview with Patch after the ruling, School Board member Diana Hall said the process, was an “efficient use of taxpayer dollars.”

“We always knew that it was OK and that were we were doing everything we were supposed to and that it was a very successful way to be doing our construction,” said Hall.

According to the district, over the past five years, the District has the used contracting process to complete construction at McGaugh Elementary School, McAuliffe Middle School, Los Alamitos Elementary School, Hopkinson Elementary School, Roosmoor Elementary School, Lee Elementary School and Los Alamitos High School Gymnasium.

To read the full story, click here.