BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 502
Author: Block (D)
Amended: 6/25/14
Vote: 21
SENATE EDUCATION COMMITTEE : 9-0, 5/1/13
AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff,
Jackson, Monning
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 37-0, 5/16/13 (Consent)
AYES: Anderson, Beall, Berryhill, Block, Calderon, Cannella,
Corbett, Correa, De León, DeSaulnier, Emmerson, Evans, Fuller,
Gaines, Galgiani, Hancock, Hernandez, Hill, Hueso, Huff,
Jackson, Knight, Lara, Leno, Lieu, Liu, Monning, Nielsen,
Padilla, Pavley, Roth, Steinberg, Walters, Wolk, Wright,
Wyland, Yee
NO VOTE RECORDED: Price, Vacancy, Vacancy
ASSEMBLY FLOOR : 56-19, 8/19/14 - See last page for vote
SUBJECT : University of California: bidding requirements
SOURCE : University of California
DIGEST : This bill increases the threshold in which the
University of California (UC) may use a streamlined bidding
process for constructions projects.
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SB 502
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Assembly Amendments increase the UC streamlined bidding process
for construction projects from the cap of $600,000 to $640,000;
set a qualifications process for prospective bidders on projects
where costs exceed $300,000; require a bidder to complete and
submit a qualification questionnaire, as specified; require each
campus or facility to adopt and apply a uniform bidding system;
and require the public posting of certain contract information.
ANALYSIS : Existing law authorizes the UC Regents, where they
determine that statutorily prescribed competitive bidding
procedures are not required and the cost of the project does not
exceed $100,000 to solicit bids in writing and award the work to
the lowest responsible bidder or reject all bids.
Existing law establishes the State Contract Act, and authorizes
specified departments, where the nature of the work in the
opinion of the department is such that its services in
connection with a project are not required, to permit the
carrying out of the project directly by the state agency
concerned with the project, if the estimated project cost does
not exceed $600,000, as specified.
This bill increases the threshold in which the UC may use a
streamlined bidding process for constructions projects.
Specifically this bill:
1. Increases the threshold from $100,000 to $640,000.
2. Sets a qualifications process for prospective bidders on
projects where costs exceed $300,000.
3. Requires the public posting of certain contract information.
Comments
Minor capital projects . The UC defines minor capital projects
as those that involve construction or facilities related
projects below the current $100,000 contract threshold, i.e.
they are defined by the threshold. Generally, these smaller
construction projects involve a retrofit, or a modification of
an existing facility. This bill will result in a redefinition of
minor capital outlay projects as those below the $600,000
proposed threshold.
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California Construction Index . The State Contract Act governs
contracting between state agencies and private contractors, and
establishes thresholds for contracting that are adjusted every
two years by the Director of Finance to reflect the percentage
change in the annual California Construction Index as used by
the Department of General Services.
Prior legislation
SB 1280 (Pavley, Chapter 708, Statutes of 2012) modified Public
Contract Code to authorize the UC to let any contract for
expenditures greater than $100,000 for the purchase of supplies
and materials in accordance with "best value" policies as
adopted by the UC Regents.
SB 835 (Wolk, Chapter 636, Statutes of 2011) extended the sunset
whereby the UC can award construction contracts on a "best
value" basis, rather than just to the lowest bid, from 2012 to
2017.
SB 1122 (Wright, Chapter 638, Statutes of 2010) modified Public
Contract Code to increases the threshold above which the UC is
required to competitively bid contracts for materials, goods and
services from $50,000 to $100,000.
SB 667 (Migden, Chapter 367, Statutes of 2006) modified Public
Contract Code to authorize the UC to conduct a pilot program at
their San Francisco campus that allows for construction
contracts to be awarded on a "best value" basis, rather than
just to the lowest bidder.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 8/19/13)
University of California (source)
Associated General Contractors
ASSEMBLY FLOOR : 56-19, 8/19/14
AYES: Achadjian, Alejo, Ammiano, Bloom, Bocanegra, Bonilla,
Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau,
Chesbro, Cooley, Dababneh, Daly, Dickinson, Eggman, Fong, Fox,
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Frazier, Garcia, Gatto, Gonzalez, Gordon, Gorell, Hagman,
Hall, Roger Hernández, Holden, Jones-Sawyer, Levine,
Lowenthal, Medina, Mullin, Muratsuchi, Nazarian, Pan, Perea,
John A. Pérez, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon,
Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Weber,
Wieckowski, Williams, Yamada, Atkins
NOES: Allen, Bigelow, Chávez, Conway, Dahle, Donnelly, Beth
Gaines, Grove, Harkey, Jones, Logue, Maienschein, Mansoor,
Melendez, Nestande, Patterson,
Wagner, Waldron, Wilk
NO VOTE RECORDED: Gomez, Gray, Linder, Olsen, Vacancy
PQ:d:n 8/19/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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