SB 785, as amended, Wolk. Design-build.
Existing law authorizes the Department of General Services, the Department of Corrections and Rehabilitation, and various local agencies to use the design-build procurement process for specified public works under different laws.
This bill would repeal those authorizations, and enact provisions that would authorize the Department of General Services, the Department of Corrections and Rehabilitation, and those local agencies, as defined, to use the design-build procurement process for specified public works. The bill would authorize the Marin Healthcare District to use the design-build process when contracting for the construction of a building and improvements directly related to a hospital or health facility building at the Marin General Hospital. The bill would require moneys that are collected under these provisions to be deposited into the State Public Works Enforcement Fund, subject to appropriation by the Legislature. The bill would require specified information to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the Marin Healthcare District.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
It is the intent of the Legislature to consolidate
2existing design-build statutes and eliminate inconsistencies in
3statutory language by adopting authority of general application to
4identified agencies and repealing superseded sections.
Section 14661 of the Government Code is repealed.
Section 14661.1 of the Government Code is repealed.
Section 32132.5 of the Health and Safety Code is
8amended to read:
(a) Notwithstanding Section 32132 or any other law,
10upon approval by the board of directors of the Sonoma Valley
11Health Care District or the Marin Healthcare District, as applicable,
12the design-build procedure described in Chapter 4 (commencing
13with Section 22160) of Part 3 of Division 2 of the Public Contract
14Code may be used to assign contracts for the construction of a
15building or improvements directly related to construction of a
16hospital or health facility building at the Sonoma Valley Hospital
17or the Marin General Hospital.
P3 1(b) For purposes of this section, all references in Chapter 4
2(commencing with Section 22160) of Part 3 of Division 2 of
the
3Public Contract Code to “local agency” shall mean the Sonoma
4Valley Health Care District and the Marin Healthcare District.
5(c) A hospital building project utilizing the design-build process
6authorized by subdivision (a) shall be reviewed and inspected in
7accordance with the standards and requirements of the Alfred E.
8Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
9(commencing with Section 129675) of Part 7 of Division 107).
Article 6 (commencing with Section 10186) is added
11to Chapter 1 of Part 2 of Division 2 of the Public Contract Code,
12to read:
13
(a) The Legislature finds and declares that the
17design-build method of project delivery, using a best value
18procurement methodology, has been authorized for various
19agencies that have reported benefits from such projects including
20reduced project costs, expedited project completion, and design
21features that are not achievable through the traditional
22design-bid-build method.
23(b) It is the intent of the Legislature that the following occur:
24(1) This article provides general authorization for certain state
25agencies to use design-build for projects, excluding projects on
26the state highway system.
27(2) This article shall not be deemed to provide a preference for
28the design-build method over other procurement methodologies.
For purposes of this article, the following definitions
30apply:
31(a) “Best value” means a value determined by evaluation of
32objective criteria related to price, features, functions, life-cycle
33costs, experience, and past performance. A best value determination
34may entail selection of the lowest priced technically acceptable
35proposals or selection of the best proposal for a fixed price
36established by the procuring agency, or it may consist of a tradeoff
37between price and other specified factors.
38(b) “Construction subcontract” means each subcontract awarded
39by the design-build entity to a subcontractor that will perform work
40or
labor or render service to the design-build entity in or about the
P4 1construction of the work or improvement, or a subcontractor
2licensed by the State of California that, under subcontract to the
3design-build entity, specially fabricates and installs a portion of
4the work or improvement according to detailed drawings contained
5in the plans and specifications produced by the design-build team.
6(c) “Department” means the Department of General Services
7and the Department of Corrections and Rehabilitation.
8(d) “Design-build” means a project delivery process in which
9both the design and construction of a project are procured from a
10single entity.
11(e) “Design-build entity” means a corporation, limited liability
12 company, partnership,
joint venture, or other legal entity that is
13able to provide appropriately licensed contracting, architectural,
14and engineering services as needed pursuant to a design-build
15
contract.
16(f) “Design-build team” means the design-build entity itself and
17the individuals and other entities identified by the design-build
18entity as members of its team. Members shall include the general
19contractor and, if utilized in the design of the project, all electrical,
20mechanical, and plumbing contractors.
21(g) “Director” means, with respect to procurements undertaken
22by the Department of General Services, the Director of General
23Services or, with respect to procurements undertaken by the
24Department of Corrections and Rehabilitation, the secretary of that
25department.
(a) Notwithstanding any other law, the director,
27following notification to the State Public Works Board, may
28procure design-build contracts for public works projects in excess
29of one million dollars ($1,000,000), awarding the contract using
30either the low bid or best value, provided that this article shall not
31apply to any projects on the state highway system.
32(b) The director shall develop guidelines for a standard
33organizational conflict-of-interest policy, consistent with applicable
34law, regarding the ability of a person or entity, that performs
35services for the department relating to the solicitation of a
36design-build project, to submit a proposal as a design-build
entity,
37or to join a design-build team. This conflict-of-interest policy shall
38apply to each department entering into design-build contracts
39authorized under this article.
(a) For contracts for public works projects awarded on
2or after the effective date of the regulations adopted by the
3Department of Industrial Relations pursuant to subdivision (g) of
4Section 1771.5 of the Labor Code, the department shall reimburse
5the Department of Industrial Relations for its reasonable and
6directly related costs of performing prevailing wage monitoring
7and enforcement on public works projects pursuant to rates
8established by the department as set forth in subdivision (h) of
9Section 1771.5 of the Labor Code. All moneys collected pursuant
10to this subdivision shall be deposited in the State Public Works
11Enforcement Fund, created by Section 1771.3 of the Labor Code,
12and shall, subject to appropriation by the Legislature, be used only
13for enforcement of prevailing wage requirements on those
projects.
14(b) In lieu of reimbursing the Department of Industrial Relations
15for its reasonable and directly related costs of performing
16monitoring and enforcement on public works projects, the
17department may elect to continue operating an existing previously
18approved labor compliance program to monitor and enforce
19prevailing wage requirements on the project if it has either not
20contracted with a third party to conduct its labor compliance
21program and requests and receives approval from the department
22to continue its existing program or it enters into a collective
23bargaining agreement that binds all of the contractors performing
24work on the project and that includes a mechanism for resolving
25disputes about the payment of wages.
The director shall notify the State Public Works Board
27regarding the method to be used for selecting the design-build
28entity, prior to advertising the design-build project.
The procurement process for the design-build projects
30shall progress as follows:
31(a) (1) The director shall prepare a set of documents setting
32forth the scope and estimated price of the project. The documents
33may include, but need not be limited to, the size, type, and desired
34design character of the project, performance specifications covering
35the quality of materials, equipment, workmanship, preliminary
36plans or building layouts, or any other information deemed
37necessary to describe adequately the department’s needs. The
38performance specifications and any plans shall be prepared by a
39design professional who is duly licensed and registered in
40California.
P6 1(2) The documents shall not include a design-build-operate
2contract for any project.
3(b) Based on the documents prepared under subdivision (a), the
4director shall prepare and issue a request for qualifications in order
5to prequalify or short-list the design-build entities whose proposals
6shall be evaluated for final selection. The request for qualifications
7shall include, but need not be limited to, the following elements:
8(1) Identification of the basic scope and needs of the project or
9contract, the expected cost range, the methodology that will be
10used by the department to evaluate proposals, the procedure for
11final selection of the design-build entity, and any other information
12deemed necessary by the director to inform
interested parties of
13the contracting opportunity.
14(2) (A) Significant factors that the department reasonably
15expects to consider in evaluating qualifications, including technical
16design and construction expertise, skilled labor force availability,
17and all other nonprice-related factors.
18(B) For purposes of subparagraph (A), skilled labor force
19availability shall be deemed satisfied by the existence of an
20agreement with a registered apprenticeship program, approved by
21the California Apprenticeship Council, that has graduated at least
22one apprentice in each of the preceding five years. This graduation
23requirement shall not apply to programs providing apprenticeship
24training for any craft that was first deemed by the federal
25Department of Labor and the
Department of Industrial Relations
26to be an apprenticeable craft within the five years prior to the
27effective date of this article.
28(3) A standard template request for statements of qualifications
29prepared by the department. In preparing the standard template,
30the department may consult with the construction industry, the
31building trades and surety industry, and other agencies interested
32in using the authorization provided by this article. The template
33shall require the following information:
34(A) If the design-build entity is a privately held corporation,
35limited liability company, partnership, or joint venture, a listing
36of all of the shareholders, partners, or members known at the time
37of statement of qualification submission who will perform work
38on the project.
39(B) Evidence that the members of the design-build team have
40completed, or demonstrated the experience, competency, capability,
P7 1and capacity to complete projects of similar size, scope, or
2complexity, and that proposed key personnel have sufficient
3experience and training to competently manage and complete the
4design and construction of the project, and a financial statement
5that ensures that the design-build entity has the capacity to
6complete the project.
7(C) The licenses, registration, and credentials required to design
8and construct the project, including, but not limited to, information
9on the revocation or suspension of any license, credential, or
10registration.
11(D) Evidence that establishes that the design-build
entity has
12the capacity to obtain all required payment and performance
13bonding, liability insurance, and errors and omissions insurance.
14(E) Information concerning workers’ compensation experience
15history and a worker safety program.
16(F) If the proposed design-build entity is a corporation, limited
17liability company, partnership, joint venture, or other legal entity,
18a copy of the organizational documents or agreement committing
19to form the organization.
20(G) An acceptable safety record. A proposer’s safety record
21shall be deemed acceptable if its experience modification rate for
22the most recent three-year period is an average of 1.00 or less, and
23its average total recordable injury or illness rate and average lost
24work
rate for the most recent three-year period does not exceed
25the applicable statistical standards for its business category or if
26the proposer is a party to an alternative dispute resolution system
27as provided for in Section 3201.5 of the Labor Code.
28(4) (A) The information required under this subdivision shall
29be certified under penalty of perjury by the design-build entity and
30its general partners or joint venture members.
31(B) Information required under this subdivision that is not
32otherwise a public record under the California Public Records Act
33(Chapter 3.5 (commencing with Section 6250) of Division 7 of
34Title 1 of the Government Code) shall not be open to public
35inspection.
36(c) Based on the
documents prepared as described in subdivision
37(a), the director shall prepare a request for proposals that invites
38prequalified or short-listed entities to submit competitive sealed
39proposals in the manner prescribed by the department. The request
P8 1for proposals shall include, but need not be limited to, the following
2elements:
3(1) Identification of the basic scope and needs of the project or
4contract, the estimated cost of the project, the methodology that
5will be used by the department to evaluate proposals, whether the
6contract will be awarded on the basis of low bid or best value, and
7any other information deemed necessary by the department to
8inform interested parties of the contracting opportunity.
9(2) Significant factors that the department reasonably expects
10to consider
in evaluating proposals, including, but not limited to,
11cost or price and all nonprice-related factors.
12(3) The relative importance or the weight assigned to each of
13the factors identified in the request for proposals.
14(4) Where a best value selection method is used, the department
15may reserve the right to request proposal revisions and hold
16discussions and negotiations with responsive proposers, in which
17case the department shall so specify in the request for proposals
18and shall publish separately or incorporate into the request for
19proposals applicable procedures to be observed by the department
20to ensure that any discussions or negotiations are conducted in
21good faith.
22(d) For those projects utilizing low bid as the
final selection
23method, the competitive bidding process shall result in lump-sum
24bids by the prequalified or short-listed design-build entities, and
25awards shall be made to the design-build entity that is the lowest
26responsible bidder.
27(e) For those projects utilizing best value as a selection method,
28the design-build competition shall progress as follows:
29(1) Competitive proposals shall be evaluated by using only the
30criteria and selection procedures specifically identified in the
31request for proposals.begin insert The following minimum factors, however,
32shall be weighted as deemed appropriate by the department:end insert
33(A) Price.
end insertbegin insert34(B) Technical design and construction expertise.
end insertbegin insert35(C) Life-cycle costs over 15 or more years.
end insert
36(2) Pursuant to subdivision (c), the department may hold
37discussions or negotiations with responsive proposers using the
38process articulated in the department’s request for proposals.
39(3) When the evaluation is complete, the responsive proposers
40shall be ranked based on a determination of value provided,
P9 1provided that no more than three proposers are required to be
2ranked.
3(4) The award of the contract shall be made to the responsible
4design-build
entity whose proposal is determined by the director
5to have offered the best value to the public.
6(5) Notwithstanding any other provision of this code, upon
7issuance of a contract award, the director shall publicly announce
8its award, identifying the design-build entity to which the award
9is made, along with a written decision supporting its contract award
10and stating the basis of the award.
11(6) The written decision supporting the director’s contract award,
12described in paragraph (5), and the contract file shall provide
13sufficient information to satisfy an external audit.
(a) The design-build entity shall provide payment and
15performance bonds for the project in the form and in the amount
16required by the director, and issued by a California admitted surety.
17The amount of the payment bond shall not be less than the amount
18of the performance bond.
19(b) The design-build contract shall require errors and omissions
20insurance coverage for the design elements of the project.
21(c) The department shall develop a standard form of payment
22and performance bond for its design-build projects.
(a) The department, in each design-build request for
24proposals, may identify specific types of subcontractors that must
25be included in the design-build entity statement of qualifications
26and proposal. All construction subcontractors that are identified
27in the proposal shall be afforded all the protections of Chapter 4
28(commencing with Section 4100) of Part 1.
29(b) Following award of the design-build contract, the
30design-build entity shall proceed as follows in awarding
31construction subcontracts with a value exceeding one-half of 1
32percent of the contract price allocable to construction work:
33(1) Provide
public notice of availability of work to be
34subcontracted in accordance with the publication requirements
35applicable to the competitive bidding process of the department,
36including a fixed date and time on which qualifications statements,
37bids, or proposals will be due.
38(2) Establish reasonable qualification criteria and standards.
39(3) Award the subcontract either on a best value basis or to the
40lowest responsible bidder. The process may include prequalification
P10 1or short-listing. The foregoing process does not apply to
2construction subcontractors listed in the original proposal.
3Subcontractors awarded construction subcontracts under this
4subdivision shall be afforded all the protections of Chapter 4
5(commencing with Section 4100) of Part 1.
(a) If the department elects to award a project pursuant
7to this article, retention proceeds withheld by the department from
8the design-build entity shall not exceed 5 percent if a performance
9and payment bond, issued by an admitted surety insurer, is required
10in the solicitation of bids.
11(b) In a contract between the design-build entity and a
12subcontractor, and in a contract between a subcontractor and any
13subcontractor thereunder, the percentage of the retention proceeds
14withheld may not exceed the percentage specified in the contract
15between the department and the design-build entity. If the
16design-build entity provides written notice to any subcontractor
17that
is not a member of the design-build entity, prior to or at the
18time the bid is requested, that a bond may be required and the
19subcontractor subsequently is unable or refuses to furnish a bond
20to the design-build entity, then the design-build entity may withhold
21retention proceeds in excess of the percentage specified in the
22contract between the department and the design-build entity from
23any payment made by the design-build entity to the subcontractor.
Nothing in this article affects, expands, alters, or limits
25any rights or remedies otherwise available at law.
Section 20133 of the Public Contract Code is repealed.
Section 20175.2 of the Public Contract Code is
28repealed.
Section 20193 of the Public Contract Code is repealed.
Section 20209 of the Public Contract Code is repealed.
end deleteSection 20301.5 of the Public Contract Code is
33repealed.
Article 22 (commencing with Section 20360) of
36Chapter 1 of Part 3 of Division 2 of the Public Contract Code is
37repealed.
Section 20688.6 of the Public Contract Code is
40repealed.
Chapter 4 (commencing with Section 22160) is added
3to Part 3 of Division 2 of the Public Contract Code, to read:
4
(a) The Legislature finds and declares that the
8design-build method of project delivery, using a best value
9procurement methodology, has been authorized for various
10agencies that have reported benefits from such projects including
11reduced project costs, expedited project completion, and design
12features that are not achievable through the traditional
13design-bid-build method.
14(b) It is the intent of the Legislature that the following occur:
15(1) This chapter provides general authorization for local agencies
16to use design-build for projects, excluding projects on the state
17highway system.
18(2) This chapter shall not be deemed to provide a preference
19for the design-build method over other procurement methodologies.
For purposes of this chapter, the following definitions
21apply:
22(a) “Best value” means a value determined by evaluation of
23objective criteria related to price, features, functions, life-cycle
24costs, experience, and past performance. A best value determination
25may entail selection of the lowest priced technically acceptable
26proposal or selection of the best proposal for a fixed price
27established by the procuring agency, or it may consist of a tradeoff
28between price and other specified factors.
29(b) “Construction subcontract” means each subcontract awarded
30by the design-build entity to a subcontractor that will perform work
31or
labor or render service to the design-build entity in or about the
32construction of the work or improvement, or a subcontractor
33licensed by the State of California that, under subcontract to the
34design-build entity, specially fabricates and installs a portion of
35the work or improvement according to detailed drawings contained
36in the plans and specifications produced by the design-build team.
37(c) “Design-build” means a project delivery process in which
38both the design and construction of a project are procured from a
39single entity.
P12 1(d) “Design-build entity” means a corporation, limited liability
2company, partnership, joint venture, or other legal entity that is
3able to provide appropriately licensed contracting, architectural,
4and engineering services as needed pursuant to a design-build
5contract.
6(e) “Design-build team” means the design-build entity itself
7and the individuals and other entities identified by the design-build
8entity as members of its team. Members shall include the general
9contractor and, if utilized in the design of the project, all electrical,
10mechanical, and plumbing contractors.
11(f) “Local agency” means the following:
12(1) A city, county, or city and county.
13(2) A special district that operates wastewater facilities, solid
14waste management facilities,begin delete orend delete water recycling facilitiesbegin insert, or fire
15
protection facilitiesend insert.
16(3) Any transit district, included transit district, municipal
17operator, included municipal operator,begin delete or transit development begin insert anyend insert consolidated agency, as
18board, as defined in Section 99210 of the Public Utilities Code, or
19aend deletebegin delete definedend deletebegin insert describedend insert in Section
20132353.1 of the Public Utilities Code,begin delete orend delete any joint powers authority
21formed to provide transit servicebegin insert,
any county transportation
22commission created pursuant to Section 130050 of the Public
23Utilities Code, or any other local or regional agency, responsible
24for the construction of transit projectsend insert.
25(g) (1) For a local agency defined in paragraph (1) of
26subdivision (f), “project” means the construction of a buildingbegin insert or
27buildingsend insert and improvements directly related to the construction
28of abegin delete building, andend deletebegin insert building or buildings,end insert county sanitation
29wastewater treatment facilities,begin insert and park
recreational facilities,end insert
30 but does not include the construction of other infrastructure,
31including, but not limited to, streets and highways, public rail
32transit, or water resources facilities and infrastructure. For a local
33agency defined in paragraph (1) of subdivision (f) that operates
34wastewater facilities, solid waste management facilities, or water
35recycling facilities, “project” also means the construction of
36regional and local wastewater treatment facilities, regional and
37local solid waste facilities, or regional and local water recycling
38facilities.
39(2) For a local agency defined in paragraph (2) of subdivision
40(f), “project” means the construction of regional and local
P13 1wastewater treatment facilities, regional and local solid waste
2facilities,begin delete orend delete
regional and local water recycling facilitiesbegin insert, or fire
3protection facilitiesend insert.
4(3) For a local agency defined in paragraph (3) of subdivision
5(f), “project” means a transit capital projectbegin insert, but does not include
6state highway construction or local street and road projectsend insert.
(a) Notwithstanding any other law, a local agency,
8with approval of its governing body, may procure design-build
9contracts for public works projects in excess of one million dollars
10($1,000,000), awarding the contract either the low bid or the best
11value, provided that this article shall not apply to any projects on
12the state highway system.
13(b) The local agency shall develop guidelines for a standard
14organizational conflict-of-interest policy, consistent with applicable
15law, regarding the ability of a person or entity, that performs
16services for the local agency relating to the solicitation of a
17design-build project, to submit a proposal as a design-build entity,
18or
to join a design-build team. This conflict-of-interest policy shall
19apply to each local agency entering into design-build contracts
20authorized under this article.
(a) For contracts for public works projects awarded on
22or after the effective date of the regulations adopted by the
23Department of Industrial Relations pursuant to subdivision (g) of
24Section 1771.5 of the Labor Code, the local agency shall reimburse
25the department for its reasonable and directly related costs of
26performing prevailing wage monitoring and enforcement on public
27works projects pursuant to rates established by the department as
28set forth in subdivision (h) of Section 1771.5 of the Labor Code.
29All moneys collected pursuant to this subdivision shall be deposited
30in the State Public Works Enforcement Fund, created by Section
311771.3 of the Labor Code, and shall, subject to appropriation by
32the Legislature, be used only for enforcement of prevailing wage
33requirements on those projects.
34(b) In lieu of reimbursing the Department of Industrial Relations
35for its reasonable and directly related costs of performing
36monitoring and enforcement on public works projects, the local
37agency may elect to continue operating an existing previously
38approved labor compliance program to monitor and enforce
39prevailing wage requirements on the project if it has either not
40contracted with a third party to conduct its labor compliance
P14 1program and requests and receives approval from the department
2to continue its existing program or it enters into a collective
3bargaining agreement that binds all of the contractors performing
4work on the project and that includes a mechanism for resolving
5disputes about the payment of wages.
The procurement process for the design-build projects
7shall progress as follows:
8(a) (1) The local agency shall prepare a set of documents setting
9forth the scope and estimated price of the project. The documents
10may include, but need not be limited to, the size, type, and desired
11design character of the project, performance specifications covering
12the quality of materials, equipment, workmanship, preliminary
13plans or building layouts, or any other information deemed
14necessary to describe adequately the local agency’s needs. The
15performance specifications and any plans shall be prepared by a
16design professional who is duly licensed and registered in
17California.
18(2) The documents shall not include a design-build-operate
19contract for any project.
20(b) Based on the documents prepared under subdivision (a), the
21local agency shall prepare and issue a request for qualifications in
22order to prequalify or short-list the design-build entities whose
23proposals shall be evaluated for final selection. The request for
24qualifications shall include, but need not be limited to, the
25following elements:
26(1) Identification of the basic scope and needs of the project or
27contract, the expected cost range, the methodology that will be
28 used by the local agency to evaluate proposals, the procedure for
29final selection of the design-build entity, and any other information
30deemed necessary by the local
agency to inform interested parties
31of the contracting opportunity.
32(2) (A) Significant factors that the local agency reasonably
33expects to consider in evaluating qualifications, including technical
34design and construction expertise, skilled labor force availability,
35begin insert acceptable safety record,end insert and all other nonprice-related factors.
36(B) For purposes of subparagraph (A), skilled labor force
37availability shall be deemed satisfied by the existence of an
38agreement with a registered apprenticeship program, approved by
39the California Apprenticeship Council, that has graduated at least
40one apprentice in each of the preceding five years. This graduation
P15 1requirement shall
not apply to programs providing apprenticeship
2training for any craft that was first deemed by the federal
3Department of Labor and the Department of Industrial Relations
4to be an apprenticeable craft within the five years prior to the
5effective date of this article.
6(3) A standard template request for statements of qualifications
7prepared by the local agency. In preparing the standard template,
8the local agency may consult with the construction industry, the
9building trades and surety industry, and other local agencies
10interested in using the authorization provided by this article. The
11template shall require the following information:
12(A) If the design-build entity is a privately held corporation,
13limited liability company, partnership, or joint venture, a listing
14of all of the
shareholders, partners, or members known at the time
15of statement of qualification submission who will perform work
16on the project.
17(B) Evidence that the members of the design-build team have
18completed, or demonstrated the experience, competency, capability,
19and capacity to complete projects of similar size, scope, or
20complexity, and that proposed key personnel have sufficient
21experience and training to competently manage and complete the
22
design and construction of the project, and a financial statement
23that ensures that the design-build entity has the capacity to
24complete the project.
25(C) The licenses, registration, and credentials required to design
26and construct the project, including, but not limited to, information
27on the revocation or suspension of any license, credential, or
28registration.
29(D) Evidence that establishes that the design-build entity has
30the capacity to obtain all required payment and performance
31bonding, liability insurance, and errors and omissions insurance.
32(E) Information concerning workers’ compensation experience
33history and a worker safety program.
34(F) If the proposed design-build entity is a corporation, limited
35liability company, partnership, joint venture, or other legal entity,
36a copy of the organizational documents or agreement committing
37to form the organization.
38(G) An acceptable safety record. A proposer’s safety record
39shall be deemed acceptable if its experience modification rate for
40the most recent three-year period is an average of 1.00 or less, and
P16 1its average total recordable injury or illness rate and average lost
2work rate for the most recent three-year period does not exceed
3the applicable statistical standards for its business category or if
4the proposer is a party to an alternative dispute resolution system
5as provided for in Section 3201.5 of the Labor Code.
6(4) (A) The
information required under this subdivision shall
7be certified under penalty of perjury by the design-build entity and
8its general partners or joint venture members.
9(B) Information required under this subdivision that is not
10otherwise a public record under the California Public Records Act
11(Chapter 3.5 (commencing with Section 6250) of Division 7 of
12Title 1 of the Government Code) shall not be open to public
13inspection.
14(c) Based on the documents prepared as described in subdivision
15(a), the local agency shall prepare a request for proposals that
16invites prequalified or short-listed entities to submit competitive
17sealed proposals in the manner prescribed by the local agency.
18The request for proposals shall include, but need not be limited
19to, the following elements:
20(1) Identification of the basic scope and needs of the project or
21contract, the estimated cost of the project, the methodology that
22will be used by the local agency to evaluate proposals, whether
23the contract will be awarded on the basis of low bid or best value,
24and any other information deemed necessary by the local agency
25to inform interested parties of the contracting opportunity.
26(2) Significant factors that the local agency reasonably expects
27to consider in evaluating proposals, including, but not limited to,
28cost or price and all nonprice-related factors.
29(3) The relative importance or the weight assigned to each of
30the factors identified in the request for proposals.
31(4) Where a best value selection method is used, the local agency
32may reserve the right to request proposal revisions and hold
33discussions and negotiations with responsive proposers, in which
34case the local agency shall so specify in the request for proposals
35and shall publish separately or incorporate into the request for
36proposals applicable procedures to be observed by the local agency
37to ensure that any discussions or negotiations are conducted in
38good faith.
39(d) For those projects utilizing low bid as the final selection
40method, the competitive bidding process shall result in lump-sum
P17 1bids by the prequalified or short-listed design-build entities, and
2awards shall be made to the design-build entity that is the lowest
3responsible bidder.
4(e) For those projects
utilizing best value as a selection method,
5the design-build competition shall progress as follows:
6(1) Competitive proposals shall be evaluated by using only the
7criteria and selection procedures specifically identified in the
8request for proposals.begin insert The following minimum factors, however,
9shall be weighted as deemed appropriate by the local agency:end insert
10(A) Price.
end insertbegin insert11(B) Technical design and construction expertise.
end insertbegin insert12(C) Life-cycle costs over 15 or more years.
end insert
13(2) Pursuant to subdivision (c), the local agency may hold
14discussions or negotiations with responsive proposers using the
15process articulated in the local agency’s request for proposals.
16(3) When the evaluation is complete, the responsive proposers
17shall be ranked based on a determination of value provided,
18provided that no more than three proposers are required to be
19ranked.
20(4) The award of the contract shall be made to the responsible
21design-build entity whose proposal is determined by the local
22agency to have offered the best value to the public.
23(5) Notwithstanding any other provision of this code, upon
24issuance of a contract award, the local agency shall publicly
25announce its award, identifying the
design-build entity to which
26the award is made, along with a written decision supporting its
27 contract award and stating the basis of the award.
28(6) The written decision supporting the local agency’s contract
29award, described in paragraph (5), and the contract file shall
30provide sufficient information to satisfy an external audit.
(a) The design-build entity shall provide payment and
32performance bonds for the project in the form and in the amount
33required by the local agency, and issued by a California admitted
34surety. The amount of the payment bond shall not be less than the
35amount of the performance bond.
36(b) The design-build contract shall require errors and omissions
37insurance coverage for the design elements of the project.
38(c) The local agency shall develop a standard form of payment
39and performance bond for its design-build projects.
(a) The local agency, in each design-build request for
2proposals, may identify specific types of subcontractors that must
3be included in the design-build entity statement of qualifications
4and proposal. All construction subcontractors that are identified
5in the proposal shall be afforded all the protections of Chapter 4
6(commencing with Section 4100) of Part 1.
7(b) Following award of the design-build contract, the
8design-build entity shall proceed as follows in awarding
9construction subcontracts with a value exceeding one-half of 1
10percent of the contract price allocable to construction work:
11(1) Provide
public notice of availability of work to be
12subcontracted in accordance with the publication requirements
13applicable to the competitive bidding process of the local agency,
14including a fixed date and time on which qualifications statements,
15bids, or proposals will be due.
16(2) Establish reasonable qualification criteria and standards.
17(3) Award the subcontract either on a best value basis or to the
18lowest responsible bidder. The process may include prequalification
19or short-listing. The foregoing process does not apply to
20construction subcontractors listed in the original proposal.
21Subcontractors awarded construction subcontracts under this
22subdivision shall be afforded all the protections of Chapter 4
23(commencing with Section 4100) of Part 1.
(a) If the local agency elects to award a project pursuant
25to this article, retention proceeds withheld by the local agency
26from the design-build entity shall not exceed 5 percent if a
27performance and payment bond, issued by an admitted surety
28insurer, is required in the solicitation of bids.
29(b) In a contract between the design-build entity and a
30subcontractor, and in a contract between a subcontractor and any
31subcontractor thereunder, the percentage of the retention proceeds
32withheld may not exceed the percentage specified in the contract
33between the local agency and the design-build entity. If the
34design-build entity provides written notice to any subcontractor
35that
is not a member of the design-build entity, prior to or at the
36time the bid is requested, that a bond may be required and the
37subcontractor subsequently is unable or refuses to furnish a bond
38to the design-build entity, then the design-build entity may withhold
39retention proceeds in excess of the percentage specified in the
P19 1contract between the local agency and the design-build entity from
2any payment made by the design-build entity to the subcontractor.
Nothing in this article affects, expands, alters, or limits
4any rights or remedies otherwise available at law.
Due to the unique circumstances of the Marin
7Healthcare District, the Legislature hereby finds and declares that
8a general statute cannot be made applicable within the meaning
9of Section 16 of Article IV of the California Constitution.
10Therefore, the special legislation contained in Section 4 of this act
11is applicable only to the Marin Healthcare District.
No reimbursement is required by this act pursuant to
14Section 6 of Article XIII B of the California Constitution because
15the only costs that may be incurred by a local agency or school
16district will be incurred because this act creates a new crime or
17infraction, eliminates a crime or infraction, or changes the penalty
18for a crime or infraction, within the meaning of Section 17556 of
19the Government Code, or changes the definition of a crime within
20the meaning of Section 6 of Article XIII B of the California
21Constitution.
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