BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: ab 117
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: beall
VERSION: 4/2/08
Analysis by: Art Bauer FISCAL: yes
Hearing date: May 13, 2008
SUBJECT:
Procurement of supplies, equipment, and materials
DESCRIPTION:
This bill increases the minimum value for which the
Alameda-Contra Costa (AC) Transit District, Santa Clara Valley
Transit Authority (VTA), and the San Mateo County Transit
District (SAMTRANS) must award bids to the lowest responsible
bidder from $25,000 to $100,000.
This bill increases the minimum value for which the Golden Gate
Bridge, Highway and Transportation District (GGBHTD) must award
bids to the lowest responsible bidder from $20,000 to $100,000.
ANALYSIS:
Existing law:
1. Authorizes AC Transit to award contracts for
supplies, equipment, and materials valued at $25,000 or
more to the lowest responsible bidder.
2. Authorizes VTA to award contracts for supplies,
equipment, and materials valued a $25,000 or more to the
lowest responsible bidder after a competitive
procurement.
3. Authorizes SAMTRANS to award contracts for supplies,
equipment, and materials valued at $25,000 or more to the
lowest responsible bidder after a competitive
procurement, except in an emergency declared by a vote of
seven of the nine governing board members.
4. Authorizes SAMTRANS' governing board to authorize
the general manager to act on its behalf if the value of
the contract is $50,000 or less.
AB 117 (BEALL) Page 2
5. Authorizes GGBHTD to award contracts for supplies,
equipment, and materials in excess of $20,000 to the
lowest responsible bidder, provided the announcement of
the bidding opportunity is published in a newspaper in at
least one of the six counties included in the district.
This bill
1. Raises the threshold from $25,000 to $100,000 for
awarding contracts for supplies, equipment, and materials
to the lowest responsible bidder by a competitive
procurement process for AC Transit, VTA, and SAMTRANS.
2. Raises the threshold from $20,000 to $100,000
awarding contracts for supplies, equipment, and materials
to the lowest responsible bidder by a competitive
procurement process by the GGBHTD.
3. Authorizes AC Transit, VTA, SAMTRANS, and GGBHTD to
award contracts with a value greater than $100,000 using
the "best value" procurement process, provided the
evaluation criteria are identified in the agencies'
solicitation for bids.
4. Defines "best value" for all four agencies as
meaning the "overall combination of quality, price, and
other elements of a proposal that, when considered
together, provide the greatest overall benefit in
response to the requirements described in the
solicitation documents."
5. Authorizes AC Transit, VTA, SAMTRANS, and GGBHTD
when soliciting bids with a value of between $2,500 and
$100,000 for purchasing supplies, equipment, and
materials to obtain three quotes either in writing or
verbally that permit prices and terms to be compared.
6. Requires the general manager of SAMTRANS to notify
"promptly" the agency's governing board when a contract
of $100,000 or less is awarded.
AB 117 (BEALL) Page 3
7. Requires SAMTRANS to publish in a paper of general
circulation notice requesting bids at least ten days
prior submittal date. (AC Transit and VTA already has
this provision in existing law.)
COMMENTS:
1. Purpose . This bill endeavors to bring AC Transit, VTA,
SAMTRANS, and GGBHTD into conformity with contemporary
procurement practices. It is substantially similar to SB
1687 (Murray), Chapter 1687, Statutes of 2006, which
granted similar authorization to BART and to the Los
Angeles County Metropolitan Transportation Authority (MTA).
2. Competitive procurement required . It is important to
note that this bill does not authorize sole source
procurements for goods of $100,000 or less in value. It
establishes a less structured process, but competitive
nonetheless, for the procurement of relatively small
contracts.
3. Author's amendment . The author will offer an amendment
that clarifies that in the case of VTA, SAMTRANS, and
GGBHTD the increase in bidding limits apply only to the
procurement of supplies, equipment, and materials and not
to the procurement of construction contracts. This removes
the concerns of the opposition who want to ensure that the
procurement provisions do not apply to construction
contracts. AC Transit already has a similar provision in
existing law.
4. Suggested technical amendment . On page 5, line 18.
strike "promptly" and substitute " shall within
thirty-days ." This proposed amendment removes possible
ambiguity regarding the notification of the governing of
the award of a contract of $100,000 or less sets a specific
date for the SAMTRANS general manger to report the agency's
governing the award of a contract of $100,000 or less in
value.
5. Assembly votes not germane . The Assembly votes on this
bill are not germane as it addressed another subject until
amended in the Senate.
POSITIONS: (Communicated to the Committee before noon on
AB 117 (BEALL) Page 4
Wednesday,
May 7, 2008)
SUPPORT: Santa Clara Valley Transportation Authority
(Sponsor)
OPPOSED: Engineering Contractors' Association
California Fence contractors' Associations
Flasher/Barricade Association
Construction Industry Force Account Council
California Chapters of the National Electrical
Contractors Association
California Legislative Conference of the
Plumbing, Heating and Piping Industry
Air Conditioning Sheet Metal Association
Air Conditioning & Refrigeration Contractors
Association