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 authorizebegin insert, until January 1, 2025,end insert 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 authorizebegin insert, until January 1, 2025,end insert 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 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4identified agencies and repealing superseded sections.
Section 14661 of the Government Code is repealed.
Section 14661.1 of the Government Code is repealed.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
P3 1hospital or health facility building at the Sonoma Valley Hospital
2or the Marin General Hospital.
3(b) For purposes of this section, all references in Chapter 4
4(commencing with Section 22160) of Part 3 of Division 2
of the
5Public Contract Code to “local agency” shall mean the Sonoma
6Valley Health Care District and the Marin Healthcare District.
7(c) A hospital building project utilizing the design-build process
8authorized by subdivision (a) shall be reviewed and inspected in
9accordance with the standards and requirements of the Alfred E.
10Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
11(commencing with Section 129675) of Part 7 of Division 107).
12(d) This section shall remain in effect only until January 1, 2025,
13and as of that date is repealed.
begin insertSection 32132.5 is added to the end insertbegin insertHealth and Safety
15Codeend insertbegin insert, to read:end insert
(a) Notwithstanding Section 32132 or any other
17provision of law, upon approval by the board of directors of the
18Sonoma Valley Health Care District, the design-build procedure
19described in Section 20133 of the Public Contract Code may be
20used to assign contracts for the construction of a building or
21improvements directly related to construction of a hospital or
22health facility building at the Sonoma Valley Hospital.
23(b) For purposes of this section, all references in Section 20133
24of the Public Contract Code to “county” and “board of
25supervisors” shall mean the Sonoma Valley Health Care District
26and its board of directors.
27(c) A hospital building project utilizing the design-build process
28authorized by subdivision (a) shall be reviewed and inspected in
29accordance with the standards and requirements of the Alfred E.
30Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
31(commencing with Section 129675) of Part 7 of Division 107).
32(d) This section shall become operative January 1, 2025.
Article 6 (commencing with Section 10187) is added
35to Chapter 1 of Part 2 of Division 2 of the Public Contract Code,
36to read:
(a) The Legislature finds and declares that the
4design-build method of project delivery, using a best value
5procurement methodology, has been authorized for various
6agencies that have reported benefits from such projects including
7reduced project costs, expedited project completion, and design
8features that are not achievable through the traditional
9design-bid-build method.
10(b) It is the intent of the Legislature that the following occur:
11(1) This article provides general authorization for certain state
12agencies to use design-build for projects, excluding projects on
13the state highway system.
14(2) This article shall not be deemed to provide a preference for
15the design-build method over other procurement methodologies.
For purposes of this article, the following definitions
17apply:
18(a) “Best value” means a value determined by evaluation of
19objective criteria related to price, features, functions, life-cycle
20costs, experience, and past performance. A best value determination
21may
involve the selection of the lowest cost proposal meeting the
22interests of the department and meeting the objectives of the
23project, selection of the best proposal for a stipulated sum
24established by the procuring agency, or a tradeoff between price
25and other specified factors.
26(b) “Construction subcontract” means each subcontract awarded
27by the design-build entity to a subcontractor that will perform work
28or labor or render service to the design-build entity in or about the
29construction of the work or improvement, or a subcontractor
30licensed by the State of California that, under subcontract to the
31design-build entity, specially fabricates and installs a portion of
32the work or improvement according to detailed drawings contained
33in the plans and specifications produced by the design-build team.
34(c) “Department” means the Department of General Services
35and the Department of Corrections and Rehabilitation.
36(d) “Design-build” means a project delivery process in which
37both the design and construction of a project are procured from a
38single entity.
39(e) “Design-build entity” means a corporation, limited liability
40company, partnership, joint venture, or other legal entity that is
P5 1able to provide appropriately licensed contracting, architectural,
2and engineering services as needed pursuant to a design-build
3
contract.
4(f) “Design-build team” means the design-build entity itself and
5the individuals and other entities identified by the design-build
6entity as members of its team. Members shall include the general
7contractor and, if utilized in the design of the project, all electrical,
8mechanical, and plumbing contractors.
9(g) “Director” means, with respect to procurements undertaken
10by the Department of General Services, the Director of General
11Services or, with respect to procurements undertaken by the
12Department of Corrections and Rehabilitation, the secretary of that
13department.
(a) Notwithstanding any other law, the director,
15following notification to the State Public Works Board, may
16procure design-build contracts for public works projects in excess
17of one million dollars ($1,000,000), awarding the contract using
18either the low bid or best value, provided that this article shall not
19apply to any projects on the state highway system.
20(b) The director shall develop guidelines for a standard
21organizational conflict-of-interest policy, consistent with applicable
22law, regarding the ability of a person or entity, that performs
23services for the department relating to the solicitation of a
24design-build project, to submit a proposal as a
design-build entity,
25or to join a design-build team. This conflict-of-interest policy shall
26apply to each department entering into design-build contracts
27authorized under this article.
The director shall notify the State Public Works Board
29regarding the method to be used for selecting the design-build
30entity, prior to advertising the design-build project.
The procurement process for the design-build projects
32shall progress as follows:
33(a) (1) The director shall prepare a set of documents setting
34forth the scope and estimated price of the project. The documents
35may include, but need not be limited to, the size, type, and desired
36design character of the project, performance specifications covering
37the quality of materials, equipment, workmanship, preliminary
38plans or building layouts, or any other information deemed
39necessary to describe adequately the department’s needs. The
40performance specifications and any plans shall be prepared by a
P6 1design professional who is duly licensed and registered in
2California.
3(2) The documents shall not include a design-build-operate
4contract for any project. The documents, however, may include
5operations during a training or transition period but shall not
6include long-term operations for any project.
7(b) Based on the documents prepared under subdivision (a), the
8director shall prepare and issue a request for qualifications in order
9to prequalify or short-list the design-build entities whose proposals
10shall be evaluated for final selection. The request for qualifications
11shall include, but need not be limited to, the following elements:
12(1) Identification of the basic scope and needs of the project or
13contract, the expected cost range, the methodology that will be
14used by the department to
evaluate proposals, the procedure for
15final selection of the design-build entity, and any other information
16deemed necessary by the director to inform interested parties of
17the contracting opportunity.
18(2) Significant factors that the department reasonably expects
19to consider in evaluating qualifications, including technical design
20and construction expertise, and all other nonprice-related factors.
21(3) A standard template request for statements of qualifications
22prepared by the department. In preparing the standard template,
23the department may consult with the construction industry, the
24building trades and surety industry, and other agencies interested
25in using the authorization provided by this article. The template
26shall require the following information:
27(A) If the design-build entity is a privately held corporation,
28limited liability company, partnership, or joint venture, a listing
29of all of the shareholders, partners, or members known at the time
30of statement of qualification submission who will perform work
31on the project.
32(B) Evidence that the members of the design-build team have
33completed, or demonstrated the experience, competency, capability,
34and capacity to complete projects of similar size, scope, or
35complexity, and that proposed key personnel have sufficient
36experience and training to competently manage and complete the
37design and construction of the project, and a financial statement
38that ensures that the design-build entity has the capacity to
39complete the project.
P7 1(C) The licenses, registration, and credentials required to design
2and construct the project, including, but not limited to, information
3on the revocation or suspension of any license, credential, or
4registration.
5(D) Evidence that establishes that the design-build entity has
6the capacity to obtain all required payment and performance
7bonding, liability insurance, and errors and omissions insurance.
8(E) Information concerning workers’ compensation experience
9history and a worker safety program.
10(F) If the proposed design-build entity is a corporation, limited
11liability company, partnership, joint venture, or other legal entity,
12a copy of the organizational documents or agreement committing
13to form the
organization.
14(G) An acceptable safety record. A proposer’s safety record
15shall be deemed acceptable if its experience modification rate for
16the most recent three-year period is an average of 1.00 or less, and
17its average total recordable injury or illness rate and average lost
18work rate for the most recent three-year period does not exceed
19the applicable statistical standards for its business category or if
20the proposer is a party to an alternative dispute resolution system
21as provided for in Section 3201.5 of the Labor Code.
22(4) (A) The information required under this subdivision shall
23be certified under penalty of perjury by the design-build entity and
24its general partners or joint venture members.
25(B) Information required under this subdivision that is not
26otherwise a public record under the California Public Records Act
27(Chapter 3.5 (commencing with Section 6250) of Division 7 of
28Title 1 of the Government Code) shall not be open to public
29inspection.
30(c) A design-build entity shall not be prequalified or shortlisted
31unless the entity provides an enforceable commitment to the
32director that the entity and its subcontractors at every tier will use
33a skilled and trained workforce to perform all work on the project
34or contract that falls within an apprenticeable occupation in the
35building and construction trades.
36(1) For purposes of this subdivision:
37(A) “Apprenticeable occupation” means an occupation for which
38
the chief had approved an apprenticeship program pursuant to
39Section 3075 of the Labor Code prior to January 1, 2014.
P8 1(B) “Skilled and trained workforce” means a workforce that
2meets all of the following conditions:
3(i) All the workers are either skilled journeypersons or
4apprentices registered in an apprenticeship program approved by
5the Chief of the Division of Apprenticeship Standards.
6(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
7journey persons employed to perform work on the contract or
8project by the entity and each of its subcontractors at every tier
9are graduates of an apprenticeship program for the applicable
10occupation that was either approved by the Chief of the Division
11of
Apprenticeship Standards pursuant to Section 3075 of the Labor
12Code or located outside California and approved for federal
13purposes pursuant to the apprenticeship regulations adopted by
14the federal Secretary of Labor.
15(II) As of January 1, 2017, at least 30 percent of the skilled
16journey persons employed to perform work on the contract or
17project by the entity and each of its subcontractors at every tier
18are graduates of an apprenticeship program for the applicable
19occupation that was either approved by the Chief of the Division
20of Apprenticeship Standards pursuant to Section 3075 of the Labor
21Code or located outside California and approved for federal
22purposes pursuant to the apprenticeship regulations adopted by
23the federal Secretary of Labor.
24(III) As of January 1, 2018, at least
40 percent of the skilled
25journey persons employed to perform work on the contract or
26project by the entity and each of its subcontractors at every tier
27are graduates of an apprenticeship program for the applicable
28occupation that was either approved by the Chief of the Division
29of Apprenticeship Standards pursuant to Section 3075 of the Labor
30Code or located outside California and approved for federal
31purposes pursuant to the apprenticeship regulations adopted by
32the federal Secretary of Labor.
33(IV) As of January 1, 2019, at least 50 percent of the skilled
34journey persons employed to perform work on the contract or
35project by the entity and each of its subcontractors at every tier
36are graduates of an apprenticeship program for the applicable
37occupation that was either approved by the Chief of the Division
38of Apprenticeship Standards
pursuant to Section 3075 of the Labor
39Code or located outside California and approved for federal
P9 1purposes pursuant to the apprenticeship regulations adopted by
2the federal Secretary of Labor.
3(V) As of January 1, 2020, at least 60 percent of the skilled
4journey persons employed to perform work on the contract or
5project by the entity and each of its subcontractors at every tier
6are graduates of an apprenticeship program for the applicable
7occupation that was either approved by the Chief of the Division
8of Apprenticeship Standards pursuant to Section 3075 of the Labor
9Code or located outside California and approved for federal
10purposes pursuant to the apprenticeship regulations adopted by
11the federal Secretary of Labor.
12(iii) For an apprenticeable occupation in which no apprenticeship
13
program had been approved by the chief prior to January 1, 1995,
14up to one-half of the graduation percentage requirement in
15subclause (I) of clause (ii) may be satisfied by skilled
16journeypersons who commenced working in the apprenticeable
17occupation prior to the chief’s approval of an apprenticeship
18program for that occupation in the county in which the project is
19located.
20(C) “Skilled journey person” means a worker who either:
21(i) Graduated from an apprenticeship program for the applicable
22occupation that was approved by the chief or located outside
23California and approved for federal purposes pursuant to the
24apprenticeship regulations adopted by the federal Secretary of
25Labor.
26(ii) Has at least as many hours of
on-the-job experience in the
27applicable occupation as would be required to graduate from an
28apprenticeship program for the applicable occupation that is
29
approved by the chief.
30(2) An entity’s commitment that a skilled and trained workforce
31will be used to perform the project or contract may be established
32by any of the following:
33(A) The entity’s agreement with the director that the entity and
34its subcontractors at every tier will comply with the requirements
35of this subdivision and that the entity will provide the director with
36evidence, on a monthly basis while the project or contract is being
37performed, that the entity and its subcontractors are complying
38with the requirements of this subdivision.
39(B) If the director has entered into a project labor agreement
40that will bind all contractors and subcontractors performing work
P10 1on the project or
contract and that includes the requirements of
2this subdivision, the entity’s agreement that it will become a party
3to that project labor agreement.
4(C) Evidence that the entity has entered into a project labor
5agreement that includes the requirements of this subdivision and
6that will bind the entity and all its subcontractors at every tier
7performing the project or contract.
8(d) Based on the documents prepared as described in subdivision
9(a), the director shall prepare a request for proposals that invites
10prequalified or short-listed entities to submit competitive sealed
11proposals in the manner prescribed by the department. The request
12for proposals shall include, but need not be limited to, the following
13elements:
14(1) Identification of the basic scope and needs of the project or
15contract, the estimated cost of the project, the methodology that
16will be used by the department to evaluate proposals, whether the
17contract will be awarded on the basis of low bid or best value, and
18any other information deemed necessary by the department to
19inform interested parties of the contracting opportunity.
20(2) Significant factors that the department reasonably expects
21to consider in evaluating proposals, including, but not limited to,
22cost or price and all nonprice-related factors.
23(3) The relative importance or the weight assigned to each of
24the factors identified in the request for proposals.
25(4) Where a best value selection method is used, the
department
26may reserve the right to request proposal revisions and hold
27discussions and negotiations with responsive proposers, in which
28case the department shall so specify in the request for proposals
29and shall publish separately or incorporate into the request for
30proposals applicable procedures to be observed by the department
31to ensure that any discussions or negotiations are conducted in
32good faith.
33(e) For those projects utilizing low bid as the final selection
34method, the competitive bidding process shall result in lump-sum
35bids by the prequalified or short-listed design-build entities, and
36awards shall be made to the design-build entity that is the lowest
37responsible bidder.
38(f) For those projects utilizing best value as a selection method,
39the design-build
competition shall progress as follows:
P11 1(1) Competitive proposals shall be evaluated by using only the
2criteria and selection procedures specifically identified in the
3request for proposals. The following minimum factors, however,
4shall be weighted as deemed appropriate by the department:
5(A) Price, unless a stipulated sum is specified.
6(B) Technical design and construction expertise.
7(C) Life-cycle costs over 15 or more years.
8(2) Pursuant to subdivision (d), the department may hold
9discussions or negotiations with responsive proposers using the
10process articulated in the department’s request for
proposals.
11(3) When the evaluation is complete, the responsive proposers
12shall be ranked based on a determination of value provided,
13provided that no more than three proposers are required to be
14ranked.
15(4) The award of the contract shall be made to the responsible
16design-build entity whose proposal is determined by the director
17to have offered the best value to the public.
18(5) Notwithstanding any other provision of this code, upon
19issuance of a contract award, the director shall publicly announce
20its award, identifying the design-build entity to which the award
21is made, along with a statement regarding the basis of the award.
22(6) The statement regarding
the director’s contract award,
23described in paragraph (5), and the contract file shall provide
24sufficient information to satisfy an external audit.
(a) The design-build entity shall provide payment and
26performance bonds for the project in the form and in the amount
27required by the director, and issued by a California admitted surety.
28The amount of the payment bond shall not be less than the amount
29of the performance bond.
30(b) The design-build contract shall require errors and omissions
31insurance coverage for the design elements of the project.
32(c) The department shall develop a standard form of payment
33and performance bond for its design-build projects.
(a) The department, in each design-build request for
35proposals, may identify specific types of subcontractors that must
36be included in the design-build entity statement of qualifications
37and proposal. All construction subcontractors that are identified
38in the proposal shall be afforded all the protections of Chapter 4
39(commencing with Section 4100) of Part 1.
P12 1(b) Following award of the design-build contract, the
2design-build entity shall proceed as follows in awarding
3construction subcontracts with a value exceeding one-half of 1
4percent of the contract price allocable to construction work:
5(1) Provide
public notice of availability of work to be
6subcontracted in accordance with the publication requirements
7applicable to the competitive bidding process of the department,
8including a fixed date and time on which qualifications statements,
9bids, or proposals will be due.
10(2) Establish reasonable qualification criteria and standards.
11(3) Award the subcontract either on a best value basis or to the
12lowest responsible bidder. The process may include prequalification
13or short-listing. The foregoing process does not apply to
14construction subcontractors listed in the original proposal.
15Subcontractors awarded construction subcontracts under this
16subdivision shall be afforded all the protections of Chapter 4
17(commencing with Section 4100) of Part 1.
(a) If the department elects to award a project pursuant
19to this article, retention proceeds withheld by the department from
20the design-build entity shall not exceed 5 percent if a performance
21and payment bond, issued by an admitted surety insurer, is required
22in the solicitation of bids.
23(b) In a contract between the design-build entity and a
24subcontractor, and in a contract between a subcontractor and any
25subcontractor thereunder, the percentage of the retention proceeds
26withheld may not exceed the percentage specified in the contract
27between the department and the design-build entity. If the
28design-build entity provides written notice to any subcontractor
29that
is not a member of the design-build entity, prior to or at the
30time the bid is requested, that a bond may be required and the
31subcontractor subsequently is unable or refuses to furnish a bond
32to the design-build entity, then the design-build entity may withhold
33retention proceeds in excess of the percentage specified in the
34contract between the department and the design-build entity from
35any payment made by the design-build entity to the subcontractor.
Nothing in this article affects, expands, alters, or limits
37any rights or remedies otherwise available at law.
This article shall remain in effect only until January 1,
392025, and as of that date is repealed.
Section 20133 of the Public Contract Code is repealed.
Section 20175.2 of the Public Contract Code is
5repealed.
Section 20193 of the Public Contract Code is repealed.
Section 20301.5 of the Public Contract Code is
10repealed.
Article 22 (commencing with Section 20360) of
13Chapter 1 of Part 3 of Division 2 of the Public Contract Code is
14repealed.
Section 20688.6 of the Public Contract Code is
17repealed.
Chapter 4 (commencing with Section 22160) is added
20to Part 3 of Division 2 of the Public Contract Code, to read:
21
(a) The Legislature finds and declares that the
25design-build method of project delivery, using a best value
26procurement methodology, has been authorized for various
27agencies that have reported benefits from such projects including
28reduced project costs, expedited project completion, and design
29features that are not achievable through the traditional
30design-bid-build method.
31(b) It is the intent of the Legislature that the following occur:
32(1) This chapter provides general authorization for local agencies
33to use design-build for projects, excluding projects on the state
34highway system.
35(2) This chapter shall not be deemed to provide a preference
36for the design-build method over other procurement methodologies.
For purposes of this chapter, the following definitions
38apply:
39(a) “Best value” means a value determined by evaluation of
40objective criteria related to price, features, functions, life-cycle
P14 1costs, experience, and past performance. A best value determination
2may involve the selection of the lowest cost proposal meeting the
3interests of the local agency and meeting the objectives of the
4project, selection of the best proposal for a stipulated sum
5established by the procuring agency, or a tradeoff between price
6and other specified factors.
7(b) “Construction subcontract” means each subcontract awarded
8by the
design-build entity to a subcontractor that will perform work
9or labor or render service to the design-build entity in or about the
10construction of the work or improvement, or a subcontractor
11licensed by the State of California that, under subcontract to the
12design-build entity, specially fabricates and installs a portion of
13the work or improvement according to detailed drawings contained
14in the plans and specifications produced by the design-build team.
15(c) “Design-build” means a project delivery process in which
16both the design and construction of a project are procured from a
17single entity.
18(d) “Design-build entity” means a corporation, limited liability
19company, partnership, joint venture, or other legal entity that is
20able to provide appropriately licensed contracting,
architectural,
21and engineering services as needed pursuant to a design-build
22contract.
23(e) “Design-build team” means the design-build entity itself
24and the individuals and other entities identified by the design-build
25entity as members of its team. Members shall include the general
26contractor and, if utilized in the design of the project, all electrical,
27mechanical, and plumbing contractors.
28(f) “Local agency” means the following:
29(1) A city, county, or city and county.
30(2) A special district that operates wastewater facilities, solid
31waste management facilities, water recycling facilities, or fire
32
protection facilities.
33(3) Any transit district, included transit district, municipal
34operator, included municipal operator, any consolidated agency,
35as described in Section 132353.1 of the Public Utilities Code, any
36joint powers authority formed to provide transit service, any county
37transportation commission created pursuant to Section 130050 of
38the Public Utilities Code, or any other local or regional agency,
39responsible for the construction of transit projects.
P15 1(g) (1) For a local agency defined in paragraph (1) of
2subdivision (f), “project” means the construction of a building or
3buildings and improvements directly related to the construction
4of a building or buildings, county sanitation wastewater treatment
5facilities, and park recreational
facilities, but does not include the
6construction of other infrastructure, including, but not limited to,
7streets and highways, public rail transit, or water resources facilities
8and infrastructure. For a local agency defined in paragraph (1) of
9subdivision (f) that operates wastewater facilities, solid waste
10management facilities, or water recycling facilities, “project” also
11means the construction of regional and local wastewater treatment
12facilities, regional and local solid waste facilities, or regional and
13local water recycling facilities.
14(2) For a local agency defined in paragraph (2) of subdivision
15(f), “project” means the construction of regional and local
16wastewater treatment facilities, regional and local solid waste
17facilities, regional and local water recycling facilities, or fire
18protection facilities.
19(3) For a local agency defined in paragraph (3) of subdivision
20(f), “project” means a transit capital project, but does not include
21state highway construction or local street and road projects.
(a) Except as provided in subdivision (b), and
23notwithstanding any other law, a local agency, with approval of
24its governing body, may procure design-build contracts for public
25works projects in excess of one million dollars ($1,000,000),
26awarding the contract either the low bid or the best value, provided
27that this article shall not apply to any projects on the state highway
28system.
29(b) For the acquisition and installation of technology applications
30or surveillance equipment designed to enhance safety, disaster
31preparedness, and homeland security efforts, there shall be no cost
32threshold and the local agency described in paragraph (3) of
33subdivision (f) of
Section 22161 may award the contract to the
34lowest responsible bidder or by using the best value method.
35(c) The local agency shall develop guidelines for a standard
36organizational conflict-of-interest policy, consistent with applicable
37law, regarding the ability of a person or entity, that performs
38services for the local agency relating to the solicitation of a
39design-build project, to submit a proposal as a design-build entity,
40or to join a design-build team. This conflict-of-interest policy shall
P16 1apply to each local agency entering into design-build contracts
2authorized under thisbegin delete article.end deletebegin insert chapter.end insert
The procurement process for the design-build projects
4shall progress as follows:
5(a) (1) The local agency shall prepare a set of documents setting
6forth the scope and estimated price of the project. The documents
7may include, but need not be limited to, the size, type, and desired
8design character of the project, performance specifications covering
9the quality of materials, equipment, workmanship, preliminary
10plans or building layouts, or any other information deemed
11necessary to describe adequately the local agency’s needs. The
12performance specifications and any plans shall be prepared by a
13design professional who is duly licensed and registered in
14California.
15(2) The documents shall not include a design-build-operate
16contract for any project. The documents, however, may include
17operations during a training or transition period but shall not
18include long-term operations for any project.
19(b) Based on the documents prepared under subdivision (a), the
20local agency shall prepare and issue a request for qualifications in
21order to prequalify or short-list the design-build entities whose
22proposals shall be evaluated for final selection. The request for
23qualifications shall include, but need not be limited to, the
24following elements:
25(1) Identification of the basic scope and needs of the project or
26contract, the expected cost range, the methodology that will be
27used by the local
agency to evaluate proposals, the procedure for
28final selection of the design-build entity, and any other information
29deemed necessary by the local agency to inform interested parties
30of the contracting opportunity.
31(2) Significant factors that the local agency reasonably expects
32to consider in evaluating qualifications, including technical design
33and construction
expertise, acceptable safety record, and all other
34nonprice-related factors.
35(3) A standard template request for statements of qualifications
36prepared by the local agency. In preparing the standard template,
37the local agency may consult with the construction industry, the
38building trades and surety industry, and other local agencies
39interested in using the authorization provided by this article. The
40template shall require the following information:
P17 1(A) If the design-build entity is a privately held corporation,
2limited liability company, partnership, or joint venture, a listing
3of all of the shareholders, partners, or members known at the time
4of statement of qualification submission who will perform work
5on the project.
6(B) Evidence that the members of the design-build team have
7completed, or demonstrated the experience, competency, capability,
8and capacity to complete projects of similar size, scope, or
9complexity, and that proposed key personnel have sufficient
10experience and training to competently manage and complete the
11
design and construction of the project, and a financial statement
12that ensures that the design-build entity has the capacity to
13complete the project.
14(C) The licenses, registration, and credentials required to design
15and construct the project, including, but not limited to, information
16on the revocation or suspension of any license, credential, or
17registration.
18(D) Evidence that establishes that the design-build entity has
19the capacity to obtain all required payment and performance
20bonding, liability insurance, and errors and omissions insurance.
21(E) Information concerning workers’ compensation experience
22history and a worker safety program.
23(F) If the proposed design-build entity is a corporation, limited
24liability company, partnership, joint venture, or other legal entity,
25a copy of the organizational documents or agreement committing
26to form the organization.
27(G) An acceptable safety record. A proposer’s safety record
28shall be deemed acceptable if its experience modification rate for
29the most recent three-year period is an average of 1.00 or less, and
30its average total recordable injury or illness rate and average lost
31work rate for the most recent three-year period does not exceed
32the applicable statistical standards for its business category or if
33the proposer is a party to an alternative dispute resolution system
34as provided for in Section 3201.5 of the Labor Code.
35(4) (A) The
information required under this subdivision shall
36be certified under penalty of perjury by the design-build entity and
37its general partners or joint venture members.
38(B) Information required under this subdivision that is not
39otherwise a public record under the California Public Records Act
40(Chapter 3.5 (commencing with Section 6250) of Division 7 of
P18 1Title 1 of the Government Code) shall not be open to public
2inspection.
3(c) A design-build entity shall not be prequalified or shortlisted
4unless the entity provides an enforceable commitment to the local
5agency that the entity and its subcontractors at every tier will use
6a skilled and trained workforce to perform all work on the project
7or contract that falls within an apprenticeable occupation in the
8building and construction
trades.
9(1) For purposes of this subdivision:
10(A) “Apprenticeable occupation” means an occupation for which
11the chief had approved an apprenticeship program pursuant to
12Section 3075 of the Labor Code prior to January 1, 2014.
13(B) “Skilled and trained workforce” means a workforce that
14meets all of the following conditions:
15(i) All the workers are either skilled journeypersons or
16apprentices registered in an apprenticeship program approved by
17the Chief of the Division of Apprenticeship Standards.
18(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
19journey persons
employed to perform work on the contract or
20project by the entity and each of its subcontractors at every tier
21are graduates of an apprenticeship program for the applicable
22occupation that was either approved by the Chief of the Division
23of Apprenticeship Standards pursuant to Section 3075 of the Labor
24Code or located outside California and approved for federal
25purposes pursuant to the apprenticeship regulations adopted by
26the federal Secretary of Labor.
27(II) As of January 1, 2017, at least 30 percent of the skilled
28journey persons employed to perform work on the contract or
29project by the entity and each of its subcontractors at every tier
30are graduates of an apprenticeship program for the applicable
31occupation that was either approved by the Chief of the Division
32of Apprenticeship Standards pursuant to Section 3075 of the Labor
33Code or
located outside California and approved for federal
34purposes pursuant to the apprenticeship regulations adopted by
35the federal Secretary of Labor.
36(III) As of January 1, 2018, at least 40 percent of the skilled
37journey persons employed to perform work on the contract or
38project by the entity and each of its subcontractors at every tier
39are graduates of an apprenticeship program for the applicable
40occupation that was either approved by the Chief of the Division
P19 1of Apprenticeship Standards pursuant to Section 3075 of the Labor
2Code or located outside California and approved for federal
3purposes pursuant to the apprenticeship regulations adopted by
4the federal Secretary of Labor.
5(IV) As of January 1, 2019, at least 50 percent of the skilled
6journey persons employed to perform work
on the contract or
7project by the entity and each of its subcontractors at every tier
8are graduates of an apprenticeship program for the applicable
9occupation that was either approved by the Chief of the Division
10of Apprenticeship Standards pursuant to Section 3075 of the Labor
11Code or located outside California and approved for federal
12purposes pursuant to the apprenticeship regulations adopted by
13the federal Secretary of Labor.
14(V) As of January 1, 2020, at least 60 percent of the skilled
15journey persons employed to perform work on the contract or
16project by the entity and each of its subcontractors at every tier
17are graduates of an apprenticeship program for the applicable
18occupation that was either approved by the Chief of the Division
19of Apprenticeship Standards pursuant to Section 3075 of the Labor
20Code or located outside
California and approved for federal
21purposes pursuant to the apprenticeship regulations adopted by
22the federal Secretary of Labor.
23(iii) For an apprenticeable occupation in which no apprenticeship
24program had been approved by the chief prior to January 1, 1995,
25up to one-half of the graduation percentage requirement in
26subclause (I) of clause (ii) may be satisfied by skilled
27journeypersons who commenced working in the apprenticeable
28occupation prior to the chief’s approval of an apprenticeship
29program for that occupation in the county in which the project is
30located.
31(C) “Skilled journey person” means a worker who either:
32(i) Graduated from an apprenticeship program for the applicable
33occupation that was approved by
the chief or located outside
34California and approved for federal purposes pursuant to the
35apprenticeship regulations adopted by the federal Secretary of
36Labor.
37(ii) Has at least as many hours of on-the-job experience in the
38applicable occupation as would be required to graduate from an
39apprenticeship program for the applicable occupation that is
40approved by the chief.
P20 1(2) An entity’s commitment that a skilled and trained workforce
2will be used to perform the project or contract may be established
3by any of the following:
4(A) The entity’s agreement with the local agency that the entity
5and its subcontractors at every tier will comply with the
6requirements of this subdivision and that the entity will provide
7the
local agency with evidence, on a monthly basis while the
8project or contract is being performed, that the entity and its
9subcontractors are complying with the requirements of this
10subdivision.
11(B) If the local agency has entered into a project labor agreement
12that will bind all contractors and subcontractors performing work
13on the project or contract and that includes the requirements of
14this subdivision, the entity’s agreement that it will become a party
15to that project labor agreement.
16(C) Evidence that the entity has entered into a project labor
17agreement that includes the requirements of this subdivision and
18that will bind the entity and all its subcontractors at every tier
19performing the project or contract.
20(d) Based on the documents prepared as described in subdivision
21(a), the local agency shall prepare a request for proposals that
22invites prequalified or short-listed entities to submit competitive
23sealed proposals in the manner prescribed by the local agency.
24The request for proposals shall include, but need not be limited
25to, the following elements:
26(1) Identification of the basic scope and needs of the project or
27contract, the estimated cost of the project, the methodology that
28will be used by the local agency to evaluate proposals, whether
29the contract will be awarded on the basis of low bid or best value,
30and any other information deemed necessary by the local agency
31to inform interested parties of the contracting opportunity.
32(2) Significant factors that the local
agency reasonably expects
33to consider in evaluating proposals, including, but not limited to,
34cost or price and all nonprice-related factors.
35(3) The relative importance or the weight assigned to each of
36the factors identified in the request for proposals.
37(4) Where a best value selection method is used, the local agency
38may reserve the right to request proposal revisions and hold
39discussions and negotiations with responsive proposers, in which
40case the local agency shall so specify in the request for proposals
P21 1and shall publish separately or incorporate into the request for
2proposals applicable procedures to be observed by the local agency
3to ensure that any discussions or negotiations are conducted in
4good faith.
5(e) For those projects utilizing low bid as the final selection
6method, the competitive bidding process shall result in lump-sum
7bids by the prequalified or short-listed design-build entities, and
8awards shall be made to the design-build entity that is the lowest
9responsible bidder.
10(f) For those projects utilizing best value as a selection method,
11the design-build competition shall progress as follows:
12(1) Competitive proposals shall be evaluated by using only the
13criteria and selection procedures specifically identified in the
14request for proposals. The following minimum factors, however,
15shall be weighted as deemed appropriate by the local agency:
16(A) Price, unless a stipulated sum is specified.
17(B) Technical design and construction expertise.
18(C) Life-cycle costs over 15 or more years.
19(2) Pursuant to subdivision (d), the local agency may hold
20discussions or negotiations with responsive proposers using the
21process articulated in the local agency’s request for proposals.
22(3) When the evaluation is complete, the responsive proposers
23shall be ranked based on a determination of value provided,
24provided that no more than three proposers are required to be
25ranked.
26(4) The award of the contract shall be made to the responsible
27design-build entity whose proposal is determined by the local
28agency to
have offered the best value to the public.
29(5) Notwithstanding any other provision of this code, upon
30issuance of a contract award, the local agency shall publicly
31announce its award, identifying the design-build entity to which
32the award is made, along with a statement regarding the basis of
33the award.
34(6) The statement regarding the local agency’s contract award,
35described in paragraph (5), and the contract file shall provide
36sufficient information to satisfy an external audit.
(a) The design-build entity shall provide payment and
38performance bonds for the project in the form and in the amount
39required by the local agency, and issued by a California admitted
P22 1surety. The amount of the payment bond shall not be less than the
2amount of the performance bond.
3(b) The design-build contract shall require errors and omissions
4insurance coverage for the design elements of the project.
5(c) The local agency shall develop a standard form of payment
6and performance bond for its design-build projects.
(a) The local agency, in each design-build request for
8proposals, may identify specific types of subcontractors that must
9be included in the design-build entity statement of qualifications
10and proposal. All construction subcontractors that are identified
11in the proposal shall be afforded all the protections of Chapter 4
12(commencing with Section 4100) of Part 1.
13(b) Following award of the design-build contract, the
14design-build entity shall proceed as follows in awarding
15construction subcontracts with a value exceeding one-half of 1
16percent of the contract price allocable to construction work:
17(1) Provide
public notice of availability of work to be
18subcontracted in accordance with the publication requirements
19applicable to the competitive bidding process of the local agency,
20including a fixed date and time on which qualifications statements,
21bids, or proposals will be due.
22(2) Establish reasonable qualification criteria and standards.
23(3) Award the subcontract either on a best value basis or to the
24lowest responsible bidder. The process may include prequalification
25or short-listing. The foregoing process does not apply to
26construction subcontractors listed in the original proposal.
27Subcontractors awarded construction subcontracts under this
28subdivision shall be afforded all the protections of Chapter 4
29(commencing with Section 4100) of Part 1.
(a) If the local agency elects to award a project pursuant
31to this article, retention proceeds withheld by the local agency
32from the design-build entity shall not exceed 5 percent if a
33performance and payment bond, issued by an admitted surety
34insurer, is required in the solicitation of bids.
35(b) In a contract between the design-build entity and a
36subcontractor, and in a contract between a subcontractor and any
37subcontractor thereunder, the percentage of the retention proceeds
38withheld may not exceed the percentage specified in the contract
39between the local agency and the design-build entity. If the
40design-build entity provides written notice to any subcontractor
P23 1that
is not a member of the design-build entity, prior to or at the
2time the bid is requested, that a bond may be required and the
3subcontractor subsequently is unable or refuses to furnish a bond
4to the design-build entity, then the design-build entity may withhold
5retention proceeds in excess of the percentage specified in the
6contract between the local agency and the design-build entity from
7any payment made by the design-build entity to the subcontractor.
Nothing in this article affects, expands, alters, or limits
9any rights or remedies otherwise available at law.
This chapter shall remain in effect only until January
111, 2025, and as of that date is repealed.
Due to the unique circumstances of the Marin
14Healthcare District, the Legislature hereby finds and declares that
15a general statute cannot be made applicable within the meaning
16of Section 16 of Article IV of the California Constitution.
17Therefore, the special legislation contained in Section 4 of this act
18is applicable only to the Marin Healthcare District.
No reimbursement is required by this act pursuant to
21Section 6 of Article XIII B of the California Constitution because
22the only costs that may be incurred by a local agency or school
23district will be incurred because this act creates a new crime or
24infraction, eliminates a crime or infraction, or changes the penalty
25for a crime or infraction, within the meaning of Section 17556 of
26the Government Code, or changes the definition of a crime within
27the meaning of Section 6 of Article XIII B of the California
28Constitution.
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