BILL NUMBER: SB 667	CHAPTERED
	BILL TEXT

	CHAPTER  367
	FILED WITH SECRETARY OF STATE  SEPTEMBER 20, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2006
	PASSED THE SENATE  AUGUST 29, 2006
	PASSED THE ASSEMBLY  AUGUST 24, 2006
	AMENDED IN ASSEMBLY  AUGUST 21, 2006
	AMENDED IN ASSEMBLY  AUGUST 7, 2006
	AMENDED IN ASSEMBLY  JUNE 20, 2006
	AMENDED IN SENATE  APRIL 21, 2005

INTRODUCED BY   Senator Migden

                        FEBRUARY 22, 2005

   An act to amend Section 10502 of, and to add and repeal Article
1.5 (commencing with Section 10506.4) of Chapter 2.1 of Part 2 of
Division 2 of, the Public Contract Code, relating to public
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 667, Migden  Public contracts: competitive bidding: University
of California.
   (1) Existing law requires the Regents of the University of
California to give public notice of a project to bidders by
publication once a week for at least 2 consecutive weeks next
preceding the day set for the receiving of bids.
   This bill would instead require the regents to give public notice
of a project by publication twice within the 60-day period preceding
the day set for the receiving of bids.
   (2) Existing law authorizes the Regents of the University of
California to enter into contracts for the erection, construction,
alteration, repair, or improvement of a university structure and
requires the regents to award contracts for projects to the lowest
responsible bidder.
   This bill would, until January 1, 2012, establish the Best Value
Construction Contract Pilot Program, which authorizes a single
University of California campus located in the City and County of San
Francisco to award contracts based on the best value, to the
university, as defined. This bill would require the university to
observe specified procedures when awarding best value contracts, as
provided. This bill would require, on or before January 1, 2010, the
Regents of the University of California to submit a report to the
appropriate policy committees of the Legislature and the Joint
Legislative Budget Committee regarding the pilot program, to include
specified information.
   (3) This bill requires bidders to verify specific information
under oath, thereby imposing a state-mandated local program by
expanding the scope of an existing crime.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 10502 of the Public Contract Code is amended to
read:
   10502.  The Regents of the University of California shall give
public notice of a project to bidders by publication twice within the
60-day period preceding the day set for the receiving of bids as
follows:
   (a) In one newspaper of general circulation published in the
county in which the major portion of the project is located and in
one such trade paper circulated in the county in which the major
portion of the work is to be done.
   (b) The notices shall state the time and place for the receiving
and opening of sealed bids, describe in general terms the work to be
done, and describe the bidding mode by which the lowest responsible
bidder will be selected.
  SEC. 2.  Article 1.5 (commencing with Section 10506.4) is added to
Chapter 2.1 of Part 2 of Division 2 of the Public Contract Code, to
read:

      Article 1.5.  Best Value Construction Contracting Pilot Program

   10506.4.  (a) This article provides for a pilot program for the
University of California when awarding construction contracts,
applicable only to a single University of California campus located
in the City and County of San Francisco.
   (b) The Regents of the University of California shall let any
contract for a project pursuant to this article to the lowest
responsible bidder or else reject all bids.
   (c) The lowest responsible bidder may be selected on the basis of
the best value to the university, as defined in Section 10506.5. In
order to implement this method of selection, the Regents of the
University of California shall adopt and publish procedures and
required criteria that ensure that all selections are conducted in a
fair and impartial manner. These procedures shall conform to the
requirements of Sections 10506.6 and 10506.7 and shall be mandatory
for the University of California campuses in the pilot program.
   (d) If one or more of the bids is substantially equal to the
lowest bid, and at least one of those bidders is a disadvantaged
business enterprise, a women business enterprise, or a disabled
veteran business enterprise, the regents may award the contract in
accordance with the policies and procedures adopted pursuant to
Section 10500.5.
   (e) If the regents deem it to be for the best interest of the
university, the regents may, on the refusal or failure of the
successful bidder for a project to execute a tendered contract, award
it to the second lowest responsible bidder. If the second lowest
bidder fails or refuses to execute the contract, the regents may
likewise award it to the third lowest responsible bidder.
   10506.5.  For purposes of this article, the following definitions
apply:
   (a) "Best value" means a procurement process whereby the lowest
responsible bidder may be selected on the basis of objective criteria
with the resulting selection representing the best combination of
price and qualifications.
   (b) "Best value contract" means a contract entered into pursuant
to the provisions of this article.
   (c) "Best value contractor" means a properly licensed person,
firm, or corporation that submits a bid for, or is awarded, a best
value contract.
   (d) "Demonstrated management competency" means the experience,
competency, capability, and capacity of the proposed management
staffing to complete projects of similar size, scope, or complexity.

   (e) "Financial condition" means the financial resources needed to
perform the contract. The criteria used to evaluate a bidder's
financial condition shall include, at a minimum, capacity to obtain
all required payment bonds, performance bonds, and liability
insurance.
   (f) "Labor compliance" means the ability to comply with, and past
performance with, contract and statutory requirements for the payment
of wages and qualifications of the workforce. The criteria used to
evaluate a bidder's labor compliance shall include, as a minimum, the
bidder's ability to comply with the apprenticeship requirements of
the California Apprenticeship Council and the Department of
Industrial Relations, its past conformance with such requirements,
and its past conformance with requirements to pay prevailing wages on
public works projects.
   (g) "Qualifications" means financial condition, relevant
experience, demonstrated management competency, labor compliance, the
safety record of the bidder, and, if required by the bidding
documents, some or all of the preceding qualifications as they
pertain to subcontractors proposed to be used by the bidder for
designated portions of the work.
   (h) "Relevant experience" means the experience, competency,
capability, and capacity to complete projects of similar size, scope,
or complexity.
   (i) "Safety record" means the prior history concerning the safe
performance of construction contracts. The criteria used to evaluate
a bidder's safety record shall include, as a minimum, its experience
modification rate for the most recent three-year period, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period.
   (j) "University" means the University of California.
   10506.6.  The university shall proceed in accordance with the
following when awarding best value contracts under this article.
   (a) The university shall prepare a solicitation for bids and give
notice pursuant to Section 10502.
   (b) The university shall establish a procedure to prequalify
bidders. The information required pursuant to this section shall be
verified under oath by the bidder in the manner in which civil
pleadings in civil actions are verified. Information submitted by the
bidder as part of the evaluation process shall not be open to public
inspection to the extent that information is exempt from disclosure
under the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code).
   (c) Each solicitation for bids shall do all of the following:
   (1) Invite prequalified bidders to submit sealed bids in the
manner prescribed by this article.
   (2) Include a section identifying and describing the following:
   (A) Criteria that the university will consider in evaluating bids.

   (B) The methodology and rating or weighting system that will be
used by the university in evaluating bids.
   (C) The relative importance or weight assigned to the criteria
identified in the request for bids.
   (d) Final evaluation of the best value contractor shall be done in
a manner that prevents cost or price information from being revealed
to the committee evaluating the qualifications of the bidders prior
to completion and announcement of that committee's decision.
   10506.7.  Selection of the best value contractor shall be made as
follows:
   (a) The university shall evaluate the qualifications of the
bidders based solely upon the criteria set forth in the solicitation
documents, and shall assign a qualifications score to each bid.
   (b) The award of the contract shall be made to the bidder whose
bid is determined, by the university in writing, to be the best value
to the university. To determine the best value contractor, the
university shall divide each bidder's price by its qualifications
score. The lowest resulting cost per quality point will represent the
best value bid.
   (c) The university shall issue a written decision of its contract
award.
   (d) Upon issuance of a contract award, the university shall
publicly announce its award identifying the best value contractor to
which the award is made, the project, the project price, and the
selected best value contractor's score based on the evaluation
criteria listed in the request for bids. The notice of award shall be
made public and include the score of the selected best value
contractor in relation to all other responsive bidders and their
respective prices. The contract file shall include documentation
sufficient to support the decision to award.
   10506.8.  On or before January 1, 2010, the Regents of the
University of California shall submit a report to the appropriate
policy committees of the Legislature and the Joint Legislative Budget
Committee. The report shall include, but is not limited to, the
following information:
   (a) A description of the projects awarded using the best value
procedures.
   (b) The contract award amounts.
   (c) The best value contractors awarded the projects.
   (d) A description of any written protests concerning any aspect of
the solicitation, bid, or award of the best value contracts,
including the resolution of the protests.
   (e) A description of the prequalification process.
   (f) The criteria used to evaluate the bids, including the
weighting of the criteria and an assessment of the effectiveness of
the methodology.
   (g) If a project awarded under this article has been completed, an
assessment of the project performance, to include a summary of any
delays or cost increases.
   10506.9.  This article shall remain in effect only until January
1, 2012, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2012, deletes or extends
that date.
  SEC. 3.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.