BILL ANALYSIS Ó SB 1068 Page 1 Date of Hearing: August 8, 2012 ASSEMBLY COMMITTEE ON APPROPRIATIONS Felipe Fuentes, Chair SB 1068 (Rubio) - As Amended: May 17, 2012 Policy Committee: TransportationVote:11-0 (Consent) Urgency: No State Mandated Local Program: Yes Reimbursable: No SUMMARY This bill sets procurement thresholds for specified transit districts consistent with federal procurement guidelines. Specifically, this bill: 1)Authorizes the Golden Empire Transit District (GET) and the Sacramento Regional Transit District (Sac RT) to award contracts for the purchase of supplies, equipment, and materials over $100,000 either to the lowest responsible bidder or to the bidder that, at the district's discretion, submitted a proposal representing the "best value," as defined. 2)Requires the districts, to the extent practicable, to obtain a minimum of three quotations for contracts for supplies, equipment, and materials valued at between $2,500 (for GET) or $3,000 (for Sac RT) and $100,000. FISCAL EFFECT Likely administrative costs savings to the GET and SacRT from efficiencies provided by a streamlined procurement process. COMMENTS Purpose . The Federal Transit Administration's "Best Practices Procurement Manual" encourages transit operators, to the extent permitted under state law, to use a less formal procurement method for small purchases (under $100,000) for which it would otherwise "cost more to conduct formal competition than the SB 1068 Page 2 value expected to be yielded by the formal competition." According to the author, the current thresholds placed on the districts' procurement practices increase costs and lengthen the lead time for minor procurements. Furthermore, the author contends the allowing the districts to use "best value" protocols will provide opportunities to evaluate other criteria (such as warranties) in evaluating contract bids. This bill is consistent with a number of bills enacted in recent years to update various transit districts' procurement thresholds. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081