Amended in Assembly August 7, 2013

Senate Bill No. 502

Introduced by Senator Block

February 21, 2013

An act to amend Section 10504.5 of the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

SB 502, as amended, Block. University of California: bidding requirements.

Existing law requires the Regents of the University of California, except as specified, to let any contract for a project to the lowest responsible bidder. Existing law also provides that where the Regents of the University of California are of the view that a project of $100,000 or less does not require the application of all provisions of law relating to competitive bidding by the university, the regents shall solicit bids in writing and award the work to the lowest responsible bidder or reject all bids.

This bill would raise begin delete the end delete begin insert this end insert dollar threshold for the cost of a project to begin delete $600,000 and require the regents, on a 2-year basis, to adjust that amount upward or downward to reflect the percentage change in the California Construction Index, as provided end delete begin insert $1,000,000 end insert .

begin insert

Existing law, until January 1, 2017, establishes a pilot program to authorize all campuses of the University of California, including the medical centers, to award best value contracts based on best value procedures, as specified, for projects over $1,000,000. Existing law requires the University of California, for purposes of this pilot program, to establish a procedure for the prequalification of bidders, invite prequalified bidders to submit sealed bids as part of a solicitation for bids, and to award the contract to the bidder whose bid is determined to be the best value to the university.

end insert begin insert

The bill would require the Regents of the University of California, with respect to projects that do not require the application of all competitive bidding provisions, to establish a procedure to qualify and rate a bidder for work to be awarded when the cost of the project exceeds $400,000 but does not exceed $1,000,000, as specified.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 10504.5 of the Public Contract Code is
amended to read:

10504.5.  

(a) Where the nature of the work, in the opinion of
the begin delete regents end delete begin insert Regents of the University of California end insert , is such that the
application of all of the provisions of this chapter in connection
with that work is not required, and the cost of the project does not
exceed begin delete six hundred thousand end delete begin insert one million end insert dollars begin delete ($600,000) end delete
begin insert ($1,000,000) end insert , the regents shall solicit bids in writing and shall
award the work to the lowest responsible bidder or reject all bids.

begin delete

(b) On January 1, 2016, and biennially thereafter, the project
cost limit shall be adjusted upward or downward by the regents to
reflect the percentage change in the annual California Construction
Index as used by the Department of General Services. The amount
shall be rounded off to the nearest one-thousand-dollar ($1,000)
figure.

end delete begin insert

(b) (1) The Regents of the University of California shall
establish a procedure to qualify and rate a bidder for work to be
awarded pursuant to subdivision (a) when the cost of the project
exceeds four hundred thousand dollars ($400,000) but does not
exceed one million dollars ($1,000,000).

end insert begin insert

(2) The procedures shall require a bidder to complete and
submit a qualification questionnaire. The qualification
questionnaire shall cover, at a minimum, the issues covered by the
Model Prequalification Questionnaire developed in 1999 by the
Department of Industrial Relations pursuant to subdivision (a) of
Section 20101. The procedures shall also require a bidder to
complete and submit a financial statement, unless the bidder is a
contractor who has qualified as a Small Business Administration
entity pursuant to paragraph (1) of subdivision (d) of Section 14837
of the Government Code. A bidder who is required to complete
and submit a qualification questionnaire shall include the general
contractor and, if utilized, the electrical, mechanical, and plumbing
subcontractor, except that the nonqualification of a subcontractor
shall not disqualify an otherwise qualified contractor.

end insert begin insert

(3) Each campus or facility shall adopt and apply a uniform
system of rating a bidder on the basis of the completed qualification
questionnaire and, if available, financial statements to determine
the minimum requirements permitted for qualification to submit
a bid. Each campus or facility may process qualification
questionnaires and financial statements on a quarterly basis to
qualify a prospective bidder for a period of one calendar year
from the date of qualification.

end insert