BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 741|
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CONSENT
Bill No: SB 741
Author: Dutton (R)
Amended: As introduced
Vote: 21
SENATE GOVERNMENTAL ORG. COMMITTEE : 13-0, 4/12/11
AYES: Wright, Anderson, Berryhill, Calderon, Cannella,
Corbett, De León, Evans, Hernandez, Padilla, Strickland,
Wyland, Yee
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : Alternative Protest Pilot Project
SOURCE : Department of General Services
DIGEST : This bill makes permanent the expiring
Alternative Protest Process that is administered by the
Department of General Services.
ANALYSIS :
Existing law:
1. Establishes the Alternative Protest Process, which
provides for alternative protest procedures in
connection with state agency acquisition of goods and
services, including the acquisition of information
technology goods and services, and requires the
Department of General Services (DGS) to administer the
CONTINUED
SB 741
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project until December 31, 2011.
2. Provides that the pilot project applies to the
following categories: information technology, materials,
supplies, equipment, and ancillary services.
3. Specifies that a contracting department, in order to be
eligible for the project, must agree to participate in
the project, and requires DGS to indicate prior to
release of the solicitation that it is required to be
conducted as part of the project solicitation.
4. Requires any bid protest conduct under the pilot project
to include one or more of the following alternative
procedures:
A. Prohibits the protest process from preventing
the commencement of work in accordance with the
terms of any other contract awarded pursuant to
the pilot project. Permits a contract to be
entered into pending a final decision on the
protest.
B. Requires DGS to review the protest within seven
days of the filing date to determine if the
protest is frivolous. If determined to be
frivolous, the protest is prohibited from
preceding under the Pilot Project until the bidder
posts a protest bond in an amount of not less than
10 percent of the estimated contract value.
C. Requires the director of DGS to issue a
decision within a period not to exceed 45 days
from the date the protest is filed.
D. Requires arbitration, as defined and
established by DGS, to be the resolution tool.
This bill deletes the sunset date on the Alternative
Protest Process, thereby extending the Alternative Protest
Process indefinitely.
Related Legislation
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The Pilot Project was established in 1998 by AB 1159
(Bowen), Chapter 762, Statutes of 1997, and was later
extended by SB 951 (Senate Governmental Organization
Committee), Chapter 610, Statutes of 2001, and again by SB
837 (Dutton), Chapter 272, Statutes of 2005.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 5/2/11)
Department of General Services (source)
ARGUMENTS IN SUPPORT : This bill permanently codifies the
Alternative Protest Process (APP) by repealing the sunset
date for Public Contract Code Section 12125. According to
DGS, the key to the APP process is a fast and fair protest
decision, and DGS has found the project to be a very
effective tool for resolution of protests on contract
awards.
DGS states that it has experienced considerable savings
from the use of the expedited protest process conducted
under the program. DGS reports that, in fact, the
resolution period for protests resolved under the pilot
project is one-half the time of those resolved under the
traditional protest process. DGS states that making these
alternative provisions permanent in statute allows DGS to
continue to utilize this streamlined protest process, make
government more efficient, and save money.
PQ:do 5/3/11 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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