BILL ANALYSIS �
AB 963
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Date of Hearing: April 3, 2013
ASSEMBLY COMMITTEE ON ACCOUNTABILITY AND ADMINISTRATIVE REVIEW
Jim Frazier, Chair
AB 963 (Levine) - As Amended: March 20, 2013
SUBJECT : State Contracts: Request for Proposal: Procedures
SUMMARY : Requires state agencies to give a preference to
bidders with records of environmentally preferable purchasing
even if their bids are slightly more expensive than the lowest
bids.
Specifically, this bill :
1)Requires agencies to select the lowest responsible bidder with
a record of environmentally preferable purchasing instead of a
bidder without this designation if the amounts of the two bids
are identical.
2)Requires agencies to select the bidder with a record of
environmentally preferable purchasing instead of the lowest
bidder without this designation, as long as the lowest bid was
not more than 3 percent less than the bidder with the
environmentally preferable purchasing record. If both the
lowest and second lowest bidders have records of
environmentally preferable purchasing, then the agency shall
select the lowest responsible bidder.
EXISTING LAW Current law does not provide a specific preference
to bidders with records of environmentally preferable
purchasing. However, Public Contract Code defines
"environmentally preferable purchasing" as "the procurement or
acquisition of goods and services that have a lesser or reduced
effect on human health and the environment when compared with
competing goods or services that serve the same purpose. This
comparison shall take into consideration, to the extent
feasible, raw materials acquisition, production, manufacturing,
packaging, distribution, reuse, operation, maintenance,
disposal, energy efficiency, product performance, durability,
safety, the needs of the purchaser, and cost."
FISCAL EFFECT : Unknown
COMMENTS : This bill would require agencies to select the
bidder with a record of environmentally preferable purchasing
AB 963
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instead of the lowest bidder without this designation, as long
as the lowest bid was not more than 3 percent less than the
bidder with the environmentally preferable purchasing record.
Currently, those bidding on a state request for proposal (RFP)
do not receive a specific preference for having a record of
"environmentally preferable purchasing." The bill would
establish a specific financial preference, which could mean that
slightly more expensive bids than the lowest ones could be
awarded.
Some types of businesses currently receive preferences when
bidding for state contracts. For example, DGS has a process to
certify businesses as "small." Under Government Code Section
14838, "in solicitations where an award is to be made to the
lowest responsible bidder meeting specifications, the preference
to small business and microbusiness shall be 5 percent of the
lowest responsible bidder meeting specifications."
The type of preference provided for small businesses is in line
with the type of preference that would be provided for those
with a record of environmentally preferable purchasing under
this bill.
The Department of General Services (DGS) is responsible for
implementing the "environmentally preferable purchasing" section
of the Public Contract Code. According to DGS' Buying Green
Guide, the state looks for the "best value" when purchasing,
which includes balancing environmental specifications, cost,
performance and market competitiveness. According to the guide,
"the protection of human health and the environment, not just
price alone, can factor into a contract award."
Public Contract Code defines "environmentally preferable
purchasing" as "the procurement or acquisition of goods and
services that have a lesser or reduced effect on human health
and the environment when compared with competing goods or
services that serve the same purpose." However, DGS does not
require a specific certification to determine environmentally
preferable purchasing, and various certifications exist. A way
to certify under DGS' program is to require contractors to
attest to compliance with the Federal Trade Commission's
guidelines for environmental marketing claims. Also, DGS
recognizes certifications that are recognized by the U.S. Green
Building Council Leadership in Energy and Environmental Design
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(LEED).
Some other states, including Arkansas, Connecticut, Hawaii,
Idaho and Virginia, provide bid preferences for environmentally
preferred goods and/or services. Some states provide bid
preferences of as much as 10 percent.
REGISTERED SUPPORT / OPPOSITION :
Support
California Teamsters Public Affairs Council
UPS
Opposition
None on file
Analysis Prepared by : Scott Herbstman / A. & A.R. / (916)
319-3600