BILL NUMBER: SB 502	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 11, 2014
	AMENDED IN ASSEMBLY  AUGUST 7, 2013

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 to  $1,000,000   $750,000  .
    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 exceeds  $400,000  
$300,000  but does not exceed  $1,000,000, 
 $750,000,  as specified.  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. 
   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
Regents of the University of California, 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
 one million   seven hundred fifty thousand
 dollars  ($1,000,000),   ($750,000), 
the regents shall solicit bids in writing and shall award the work
to the lowest responsible bidder or reject all bids.
   (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   three  hundred thousand
dollars  ($400,000)   ($300,000)  but does
not exceed  one million   seven hundred fifty
thousand  dollars  ($1,000,000)  
($750,000)  .
   (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   Pre-qualification  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.

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