Amended in Assembly June 11, 2014

Amended in Assembly August 7, 2013

Senate BillNo. 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 this dollar threshold for the cost of a project tobegin delete $1,000,000end deletebegin insert $750,000end 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.

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 exceedsbegin delete $400,000end deletebegin insert $300,000end insert but does not exceedbegin delete $1,000,000,end deletebegin insert $750,000,end insert as specified.begin insert The bill would also require each campus or facility to publicly post a brief description of the project, the awarded amount, and contractor’s name.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:

P2    1

SECTION 1.  

Section 10504.5 of the Public Contract Code is
2amended to read:

3

10504.5.  

(a) Where the nature of the work, in the opinion of
4the Regents of the University of California, is such that the
5application of all of the provisions of this chapter in connection
6with that work is not required, and the cost of the project does not
7exceedbegin delete one millionend deletebegin insert seven hundred fifty thousandend insert dollars
8begin delete ($1,000,000),end deletebegin insert ($750,000),end insert the regents shall solicit bids in writing
9 and shall award the work to the lowest responsible bidder or reject
10all bids.

11(b) (1) The Regents of the University of California shall
12establish a procedure to qualify and rate a bidder for work to be
13awarded pursuant to subdivision (a) when the cost of the project
14exceedsbegin delete fourend deletebegin insert threeend insert hundred thousand dollarsbegin delete ($400,000)end deletebegin insert ($300,000)end insert
15 but does not exceedbegin delete one millionend deletebegin insert seven hundred fifty thousandend insert
16 dollarsbegin delete ($1,000,000)end deletebegin insert ($750,000)end insert.

17(2) The procedures shall require a bidder to complete and submit
18a qualification questionnaire. The qualification questionnaire shall
19cover, at a minimum, the issues covered by the Model
20begin delete Prequalificationend deletebegin insert Pre-qualificationend insert Questionnaire developed in
211999 by the Department of Industrial Relations pursuant to
22subdivision (a) of Section 20101. The procedures shall also require
23a bidder to complete and submit a financial statement, unless the
24bidder is a contractor who has qualified as a Small Business
25Administration entity pursuant to paragraph (1) of subdivision (d)
P3    1of Section 14837 of the Government Code. A bidder who is
2required to complete and submit a qualification questionnaire shall
3include the general contractor and, if utilized, the electrical,
4mechanical, and plumbing subcontractor, except that the
5nonqualification of a subcontractor shall not disqualify an otherwise
6qualified contractor.

7(3) Each campus or facility shall adopt and apply a uniform
8system of rating a bidder on the basis of the completed qualification
9questionnaire and, if available, financial statements to determine
10the minimum requirements permitted for qualification to submit
11a bid. Each campus or facility may process qualification
12questionnaires and financial statements on a quarterly basis to
13qualify a prospective bidder for a period of one calendar year from
14the date of qualification.

begin insert

15(4) Upon award to the lowest responsible bidder, each campus
16or facility shall publicly post on its Internet Web site a brief
17description of the project and the awarded amount along with the
18name of the contractor who is the lowest responsible bidder.

end insert


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