BILL NUMBER: AB 2403 CHAPTERED 09/28/08 CHAPTER 495 FILED WITH SECRETARY OF STATE SEPTEMBER 28, 2008 APPROVED BY GOVERNOR SEPTEMBER 28, 2008 PASSED THE SENATE AUGUST 14, 2008 PASSED THE ASSEMBLY AUGUST 18, 2008 AMENDED IN SENATE JUNE 30, 2008 AMENDED IN ASSEMBLY MAY 23, 2008 AMENDED IN ASSEMBLY APRIL 15, 2008 AMENDED IN ASSEMBLY APRIL 1, 2008 INTRODUCED BY Assembly Member Smyth FEBRUARY 21, 2008 An act to add and repeal Section 140.2 of the Streets and Highways Code, relating to transportation. LEGISLATIVE COUNSEL'S DIGEST AB 2403, Smyth. Department of Transportation: vehicle and equipment procurement. Existing law generally requires public contracts to be awarded by competitive bidding pursuant to procedures set forth in the Public Contract Code, subject to certain exceptions. Until January 1, 2014, this bill would authorize the Department of Transportation to purchase and equip heavy mobile fleet vehicles and special equipment by means of best value procurement, as defined, subject to an annual limitation of $15,000,000. The bill would require the department to report to the Legislature with regard to this process, as specified. The bill would provide that it shall become operative only if AB 2560 of the 2007-08 Regular Session is also enacted and becomes operative. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 140.2 is added to the Streets and Highways Code, to read: 140.2. (a) Notwithstanding any other provision of law, except Section 13332.09 of the Government Code, the department may purchase and equip heavy mobile fleet vehicles and special equipment by means of best value procurement. As used in this section, "best value procurement" means a method of selecting a proposal based on an evaluation of the following factors in addition to price: (1) Total cost of ownership, including warranty, under which all repair costs are borne solely by the warranty provider, repair costs, maintenance costs, fuel consumption, or salvage value. (2) Product performance and productivity. (3) Supplier's ability to perform to the contract requirements. (4) Environmental benefits, including reduction of greenhouse gas emissions, reduction of air pollutant emissions, or reduction of toxic or hazardous materials. (b) In addition to disclosure of the minimum requirements for qualification, the solicitation document provided to a prospective bidder shall specify that one or more of the factors described in subdivision (a), as applicable to the bidder's product, will be given a weighted value. If deemed qualified to bid, the department shall then utilize a scoring method based on those factors and price in determining the successful bid. (c) Best value procurements shall be limited to fifteen million dollars ($15,000,000) annually. (d) On or before December 31, 2011, and again by October 1, 2013, the department shall submit a report to the Legislature that includes an evaluation of the best value procurement bidding process. (e) This section shall remain in effect only until January 1, 2014, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2014, deletes or extends that date. SEC. 2. This act shall become operative only if Assembly Bill 2560 of the 2007-08 Regular Session is also enacted and becomes operative.