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.begin insert Existing law also authorizes the formation of special districts, including the Marin Healthcare District and the San Diego Unified Port District.end insert
This bill would repeal those authorizations, and enact provisions that would authorize, until January 1, 2025, 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, until January 1, 2025, 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 Generalbegin delete Hospital.end deletebegin insert Hospital, and would authorize the San Diego Unified Port District to use the design-build procurement process for the construction of a building or buildings and improvements directly related to the construction of a building or buildings that exceed $1,000,000.end insert 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
Healthcarebegin delete District.end deletebegin insert District and for the San Diego Unified Port District.end insert
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
P3 1statutory language by adopting authority of general application to
2identified agencies and repealing superseded sections.
Section 14661 of the Government Code is repealed.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
6amended to read:
(a) Notwithstanding Section 32132 or any other law,
8upon approval by the board of directors of the Sonoma Valley
9Health Care District or the Marin Healthcare District, as applicable,
10the design-build procedure described in Chapter 4 (commencing
11with Section 22160) of Part 3 of Division 2 of the Public Contract
12Code may be used to assign contracts for the construction of a
13building or improvements directly related to construction of a
14hospital or health facility building at the Sonoma Valley Hospital
15or the Marin General Hospital.
16(b) For purposes of this section,begin insert except
where the context
17otherwise requires,end insert all references in Chapter 4 (commencing with
18Section 22160) of Part 3 of Division 2 of the Public Contract Code
19to “local agency” shall mean the Sonoma Valley Health Care
20District and the Marin Healthcare District.
21(c) A hospital building project utilizing the design-build process
22authorized by subdivision (a) shall be reviewed and inspected in
23accordance with the standards and requirements of the Alfred E.
24Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
25(commencing with Section 129675) of Part 7 of Division 107).
26(d) This section shall remain in effect only until January 1, 2025,
27and as of that date is repealed.
Section 32132.5 is added to the Health and Safety
29Code, to read:
(a) Notwithstanding Section 32132 or any other
31provision of law, upon approval by the board of directors of the
32Sonoma Valley Health Care District, the design-build procedure
33described inbegin delete Section 20133end deletebegin insert Chapter 4 (commencing with Section
3422160) of Part 3 of Division 2end insert of the Public Contract Code may
35be used to assign contracts for the construction of a building or
36improvements directly related to construction of a hospital or health
37facility building at the Sonoma Valley Hospital.
38(b) For purposes of this section, all references inbegin delete Section 20133end delete
39begin insert Chapter 4 (commencing with Section 22160) of Part 3 of Division
402end insert of the Public Contract Code to “county” andbegin delete “board of begin insert “local agency”end insert shall mean the Sonoma Valley Health
P4 1supervisors”end delete
2Care District and its board of directors.
3(c) A hospital building project utilizing the design-build process
4authorized by subdivision (a) shall
be reviewed and inspected in
5accordance with the standards and requirements of the Alfred E.
6Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
7(commencing with Section 129675) of Part 7 of Division 107).
8(d) This section shall become operative January 1, 2025.
Article 6 (commencing with Section 10187) is added
10to Chapter 1 of Part 2 of Division 2 of the Public Contract Code,
11to read:
12
(a) The Legislature finds and declares that the
16design-build method of project delivery, using a best value
17procurement methodology, has been authorized for various
18agencies that have reported benefits from such projects including
19reduced project costs, expedited project completion, and design
20features that are not achievable through the traditional
21design-bid-build method.
22(b) It is the intent of the Legislature that the following occur:
23(1) This article provides general authorization for certain state
24agencies to use design-build for projects, excluding projects on
25the state highway system.
26(2) This article shall not be deemed to provide a preference for
27the design-build method over other procurement methodologies.
For purposes of this article, the following definitions
29begin insert and the definitions in subdivision (a) of Section 13332.19 of the
30Government Code shallend insert apply:
31(a) “Best value” means a value determined by evaluation of
32objective criteriabegin delete relatedend deletebegin insert that may include, but not be limited,end insert to
33price, features, functions, life-cycle costs, experience, and past
34performance. A best value determination may involve the selection
35of the lowest cost proposal
meeting the interests of the department
36and meeting the objectives of the project, selection of the best
37proposal for a stipulated sum established by the procuring agency,
38or a tradeoff between price and other specified factors.
39(b) “Construction subcontract” means each subcontract awarded
40by the design-build entity to a subcontractor that will perform work
P5 1or labor or render service to the design-build entity in or about the
2construction of the work or improvement, or a subcontractor
3licensed by the State of California that, under subcontract to the
4design-build entity, specially fabricates and installs a portion of
5the work or improvement according to detailed drawings contained
6in the plans and specifications produced by the design-build team.
7(c) “Department” means the
Department of General Services
8and the Department of Corrections and Rehabilitation.
9(d) “Design-build” means a project delivery process in which
10both the design and construction of a project are procured from a
11single entity.
12(e) “Design-build entity” means a corporation, limited liability
13company, partnership, joint venture, or other legal entity that is
14able to provide appropriately licensed contracting, architectural,
15and engineering services as needed pursuant to a design-build
16
contract.
17(f) “Design-build team” means the design-build entity itself and
18the individuals and other entities identified by the design-build
19entity as members of its team. Members shall include the general
20contractor and, if utilized in the design of the project, all electrical,
21mechanical, and plumbing contractors.
22(g) “Director” means, with respect to procurements undertaken
23by the Department of General Services, the Director of General
24Services or, with respect to procurements undertaken by the
25Department of Corrections and Rehabilitation, the secretary of that
26department.
(a) Notwithstanding any other law, the director,
28following notification to the State Public Works Board, may
29procure design-build contracts for public works projects in excess
30of one million dollars ($1,000,000), awarding the contract using
31either the low bid or best value, provided that this article shall not
32apply to any projects on the state highway system.
33(b) The director shall develop guidelines for a standard
34organizational conflict-of-interest policy, consistent with applicable
35law, regarding the ability of a person or entity, that performs
36services for the department relating to the solicitation of a
37design-build project, to submit a proposal as a design-build
entity,
38or to join a design-build team. This conflict-of-interest policy shall
39apply to each department entering into design-build contracts
40authorized under this article.
The director shall notify the State Public Works Board
2regarding the method to be used for selecting the design-build
3entity, prior to advertising the design-build project.
The procurement process for the design-build projects
5shall progress as follows:
6(a) (1) The director shall prepare a set of documents setting
7forth the scope and estimated price of the project. The documents
8may include, but need not be limited to, the size, type, and desired
9design character of the project, performance specifications covering
10the quality of materials, equipment, workmanship, preliminary
11plans or building layouts, or any other information deemed
12necessary to describe adequately the department’s needs. The
13performance specifications and any plans shall be prepared by a
14design professional who is duly licensed and registered in
15California.
16(2) The documents shall not include a design-build-operate
17contract for any project. The documents, however, may include
18operations during a training or transition period but shall not
19include long-term operations for any project.
20(b) begin deleteBased on the documents prepared under subdivision (a), the end delete
21begin insertThe end insertdirector 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
28used by the department to evaluate proposals, the procedure for
29final selection of the design-build entity, and any other information
30deemed necessary by the director to inform interested parties of
31the contracting opportunity.
32(2) Significant factors that the department reasonably expects
33to consider in evaluating qualifications, including technical design
34and construction expertise, and all other nonprice-related factors.
35(3) A standard template request for statements of qualifications
36prepared by the department. In preparing the standard template,
37the department may consult with the construction industry, the
38building trades and surety
industry, and other agencies interested
39in using the authorization provided by this article. The template
40shall require the following information:
P7 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
11design 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
24
liability 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
P8 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
5director 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
11
the 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
19begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
20
contract or project by the entity and each of its subcontractors at
21every tier are graduates of an apprenticeship program for the
22applicable occupation that was either approved by the Chief of the
23Division of Apprenticeship Standards pursuant to Section 3075 of
24the Labor Code or located outside California and approved for
25federal purposes pursuant to the apprenticeship regulations adopted
26by the federal Secretary of Labor.
27(II) As of January 1, 2017, at least 30 percent of the skilled
28begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
29contract or project by the entity and each of its subcontractors at
30every tier are graduates of an apprenticeship
program for the
31applicable occupation that was either approved by the Chief of the
32Division of Apprenticeship Standards pursuant to Section 3075 of
33the Labor Code or located outside California and approved for
34federal purposes pursuant to the apprenticeship regulations adopted
35by the federal Secretary of Labor.
36(III) As of January 1, 2018, at least 40 percent of the skilled
37begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
38contract or project by the entity and each of its subcontractors at
39every tier are graduates of an apprenticeship program for the
40applicable occupation that was either approved by the Chief of the
P9 1Division of Apprenticeship
Standards pursuant to Section 3075 of
2the Labor Code or located outside California and approved for
3federal purposes pursuant to the apprenticeship regulations adopted
4by the federal Secretary of Labor.
5(IV) As of January 1, 2019, at least 50 percent of the skilled
6begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
7contract or project by the entity and each of its subcontractors at
8every tier are graduates of an apprenticeship program for the
9applicable occupation that was either approved by the Chief of the
10Division of Apprenticeship Standards pursuant to Section 3075 of
11the Labor Code or located outside California and approved for
12federal purposes
pursuant to the apprenticeship regulations adopted
13by the federal Secretary of Labor.
14(V) As of January 1, 2020, at least 60 percent of the skilled
15begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
16contract or project by the entity and each of its subcontractors at
17every tier are graduates of an apprenticeship program for the
18applicable occupation that was either approved by the Chief of the
19Division of Apprenticeship Standards pursuant to Section 3075 of
20the Labor Code or located outside California and approved for
21federal purposes pursuant to the apprenticeship regulations adopted
22by the federal Secretary of Labor.
23(iii) For an apprenticeable occupation in which no apprenticeship
24
program had been approved by the chief prior to January 1, 1995,
25up to one-half of the graduation percentagebegin delete requirement in begin insert requirementsend insert of clause (ii) may be satisfied by skilled
26subclause (I)end delete
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) “Skilledbegin delete journey person”end deletebegin insert journeyperson”end insert means a worker
32who either:
33(i) Graduated from an apprenticeship program for the applicable
34occupation that was approved by the chief or located outside
35California and approved for federal purposes pursuant to the
36apprenticeship regulations adopted by the federal Secretary of
37Labor.
38(ii) Has at least as many hours of on-the-job experience in the
39applicable occupation as would be required to graduate from an
P10 1apprenticeship program for the applicable occupation that is
2
approved by the chief.
3(2) An entity’s commitment that a skilled and trained workforce
4will be used to perform the project or contract may be established
5by any of the following:
6(A) The entity’s agreement with the director that the entity and
7its subcontractors at every tier will comply with the requirements
8of this subdivision and that the entity will provide the director with
9evidence, on a monthly basis while the project or contract is being
10performed, that the entity and its subcontractors are complying
11with the requirements of this subdivision.
12(B) If the director has entered into a project labor agreement
13that will bind all contractors and subcontractors performing work
14on the project or
contract and that includes the requirements of
15this subdivision, the entity’s agreement that it will become a party
16to that project labor agreement.
17(C) Evidence that the entity has entered into a project labor
18agreement that includes the requirements of this subdivision and
19that will bind the entity and all its subcontractors at every tier
20performing the project or contract.
21(d) Based on the documents prepared as described in subdivision
22(a), the director shall prepare a request for proposals that invites
23prequalified or short-listed entities to submit competitive sealed
24proposals in the manner prescribed by the department. The request
25for proposals shall include, but need not be limited to, the following
26elements:
27(1) Identification of the basic scope and needs of the project or
28contract, the estimated cost of the project, the methodology that
29will be used by the department to evaluate proposals, whether the
30contract will be awarded on the basis of low bid or best value, and
31any other information deemed necessary by the department to
32inform interested parties of the contracting opportunity.
33(2) Significant factors that the department reasonably expects
34to consider in evaluating proposals, including, but not limited to,
35cost or price and all nonprice-related factors.
36(3) The relative importance or the weight assigned to each of
37the factors identified in the request for proposals.
38(4) Where a best value selection method is used,
the department
39may reserve the right to request proposal revisions and hold
40discussions and negotiations with responsive proposers, in which
P11 1case the department shall so specify in the request for proposals
2and shall publish separately or incorporate into the request for
3proposals applicable procedures to be observed by the department
4to ensure that any discussions or negotiations are conducted in
5good faith.
6(e) For those projects utilizing low bid as the final selection
7method, the competitive bidding process shall result in lump-sum
8bids by the prequalified or short-listed design-build entities, and
9awards shall be made to the design-build entity that is the lowest
10responsible bidder.
11(f) For those projects utilizing best value as a selection method,
12the design-build
competition shall progress as follows:
13(1) Competitive proposals shall be evaluated by using only the
14criteria and selection procedures specifically identified in the
15request for proposals. The following minimum factors, however,
16shall be weighted as deemed appropriate by the department:
17(A) Price, unless a stipulated sum is specified.
18(B) Technical design and construction expertise.
19(C) Life-cycle costs over 15 or more years.
20(2) Pursuant to subdivision (d), the department may hold
21discussions or negotiations with responsive proposers using the
22process articulated in the department’s request for proposals.
23(3) When the evaluation is complete, the responsive proposers
24shall be ranked based on a determination of value provided,
25provided that no more than three proposers are required to be
26ranked.
27(4) The award of the contract shall be made to the responsible
28design-build entity whose proposal is determined by the director
29to have offered the best value to the public.
30(5) Notwithstanding any other provision of this code, upon
31issuance of a contract award, the director shall publicly announce
32its award, identifying the design-build entity to which the award
33is made, along with a statement regarding the basis of the award.
34(6) The statement regarding the director’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 director, and issued by a California admitted surety.
P12 1The amount of the payment bond shall not be less than the amount
2of 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 department shall develop a standard form of payment
6and performance bond for its design-build projects.
(a) The department, 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 department,
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 department elects to award a project pursuant
31to this article, retention proceeds withheld by the department from
32the design-build entity shall not exceed 5 percent if a performance
33and payment bond, issued by an admitted surety insurer, is required
34in 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 department and the design-build entity. If the
40design-build entity provides written notice to any subcontractor
P13 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 department 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 article shall remain in effect only until January 1,
112025, 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
14repealed.
Section 20193 of the Public Contract Code is repealed.
begin insertSection 20209.14 of the end insertbegin insertPublic Contract Codeend insertbegin insert is
17amended to read:end insert
begin insert(a)end insertbegin insert end insertThis article shall remain in effect only until
19January 1,begin delete 2015,end deletebegin insert 2017,end insert and as of that date is repealed.
20(b) This article shall only apply to transit operators that begin
21a project solicitation before January 1, 2015. A transit operator
22that begins a project solicitation on or after January 1, 2015, is
23subject to Chapter 4 (commencing with Section 22610).
Section 20301.5 of the Public Contract Code is
26repealed.
Article 22 (commencing with Section 20360) of
29Chapter 1 of Part 3 of Division 2 of the Public Contract Code is
30repealed.
Section 20688.6 of the Public Contract Code is
33repealed.
Chapter 4 (commencing with Section 22160) is added
36to Part 3 of Division 2 of the Public Contract Code, to 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 chapter provides general authorization for local agencies
12to use design-build for projects, excluding projects on the state
13highway system.
14(2) This chapter shall not be deemed to provide a preference
15for the design-build method over other procurement methodologies.
For purposes of this chapter, the following definitions
17apply:
18(a) “Best value” means a value determined by evaluation of
19objective criteriabegin delete relatedend deletebegin insert that may include, but not be limitedend insert to
20price, features, functions, life-cycle costs, experience, and past
21performance. A best value determination may involve the selection
22of the lowest cost proposal meeting the interests of the local agency
23and meeting the objectives of the project, selection of the best
24proposal for a stipulated sum established by the procuring
agency,
25or a tradeoff between price and 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) “Design-build” means a project delivery process in which
35both the design and construction of a project are procured from a
36single entity.
37(d) “Design-build entity” means a corporation, limited liability
38company, partnership, joint venture, or other legal entity that is
39able to provide appropriately licensed contracting, architectural,
P15 1and engineering services as needed pursuant to a design-build
2contract.
3(e) “Design-build team” means the design-build entity itself
4and the individuals and other entities identified by the design-build
5entity as members of its team. Members shall include the general
6contractor and, if utilized in the design of the project, all electrical,
7mechanical, and plumbing contractors.
8(f) “Local agency” means the following:
9(1) A city, county, or city and county.
10(2) A special district that operates wastewater facilities, solid
11waste management facilities, water recycling facilities, or fire
12
protection facilities.
13(3) Any transit district, included transit district, municipal
14operator, included municipal operator, any consolidated agency,
15as described in Section 132353.1 of the Public Utilities Code, any
16joint powers authority formed to provide transit service, any county
17transportation commission created pursuant to Section 130050 of
18the Public Utilities Code, or any other local or regional agency,
19responsible for the construction of transit projects.
20(g) (1) For a local agency defined in paragraph (1) of
21subdivision (f), “project” means the construction of a building or
22buildings and improvements directly related to the construction
23of a building or buildings, county sanitation wastewater treatment
24facilities, and parkbegin insert
andend insert
recreational facilities, but does not include
25the construction of other infrastructure, including, but not limited
26to, streets and highways, public rail transit, or water resources
27facilities and infrastructure. For a local agency defined in paragraph
28(1) of subdivision (f) that operates wastewater facilities, solid waste
29management facilities, or water recycling facilities, “project” also
30means the construction of regional and local wastewater treatment
31facilities, regional and local solid waste facilities, or regional and
32local water recycling facilities.
33(2) For a local agency defined in paragraph (2) of subdivision
34(f), “project” means the construction of regional and local
35wastewater treatment facilities, regional and local solid waste
36facilities, regional and local water recycling facilities, or fire
37protection
facilities.
38(3) For a local agency defined in paragraph (3) of subdivision
39(f), “project” means a transit capitalbegin delete project, but does not include begin insert project
40state highway construction or local street and road projects.end delete
P16 1that begins a project solicitation on or after January 1, 2015. A
2“project,” as defined by this paragraph, that begins the solicitation
3process before January 1, 2015, is subject to Article 6.8
4(commencing with Section 20209.5) of Chapter 1. “Project,” as
5defined by this paragraph, does not include state highway
6construction or local street and road projects.end insert
(a) Except as provided in subdivision (b), and
8notwithstanding any other law, a local agency, with approval of
9its governing body, may procure design-build contracts for public
10works projects in excess of one million dollars ($1,000,000),
11awarding the contract either the low bid or the best value, provided
12that this article shall not apply to any projects on the state highway
13system.
14(b) begin deleteFor end deletebegin insertWhen a local agency described in paragraph (3) of
15subdivision (f) of Section 22161 awards a contract for end insertthe
16
acquisition and installation of technology applications or
17surveillance equipment designed to enhance safety, disaster
18preparedness, and homeland security efforts, there shall be no cost
19threshold andbegin delete the local agency described in paragraph (3) of
20subdivision (f) of
Section 22161 may award the contractend delete
21contract may be awardedend insert to the lowest responsible bidder or by
22using the best value method.
23(c) The local agency shall develop guidelines for a standard
24organizational conflict-of-interest policy, consistent with applicable
25law, regarding the ability of a person or entity, that performs
26services for the local agency relating to the solicitation of a
27design-build project, to submit a proposal as a design-build entity,
28or to join a design-build team. This conflict-of-interest policy shall
29apply to each local agency entering into design-build contracts
30authorized under this chapter.
The procurement process for the design-build projects
32shall progress as follows:
33(a) (1) The local agency 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 local agency’s needs. The
40performance specifications and any plans shall be prepared by a
P17 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) begin deleteBased on the documents prepared under subdivision (a), the end delete
8begin insertThe end insertlocal agency shall prepare and issue a request for qualifications
9in order to prequalify or short-list the design-build entities whose
10proposals shall be evaluated for final selection. The request for
11qualifications shall include, but need not be limited to, the
12following elements:
13(1) Identification of the basic scope and needs of the project or
14contract, the expected cost range, the methodology that will be
15used by the local agency to evaluate proposals, the procedure for
16final selection of the design-build entity, and any other information
17deemed necessary by the local agency to inform interested parties
18of the contracting opportunity.
19(2) Significant factors that the local agency reasonably expects
20to consider in evaluating qualifications, including technical design
21and construction expertise, acceptable safety record, and all other
22nonprice-related factors.
23(3) A standard template request for statements of qualifications
24prepared by the local agency. In preparing the standard template,
25the local agency may consult with the construction industry,
the
26building trades and surety industry, and other local agencies
27interested in using the authorization provided by this article. The
28template shall require the following information:
29(A) If the design-build entity is a privately held corporation,
30limited liability company, partnership, or joint venture, a listing
31of all of the shareholders, partners, or members known at the time
32of statement of qualification submission who will perform work
33on the project.
34(B) Evidence that the members of the design-build team have
35completed, or demonstrated the experience, competency, capability,
36and capacity to complete projects of similar size, scope, or
37complexity, and that proposed key personnel have sufficient
38experience and training to competently manage and complete the
39
design and construction of the project, and a financial statement
P18 1that ensures that the design-build entity has the capacity to
2complete the project.
3(C) The licenses, registration, and credentials required to design
4and construct the project, including, but not limited to, information
5on the revocation or suspension of any license, credential, or
6registration.
7(D) Evidence that establishes that the design-build entity has
8the capacity to obtain all required payment and performance
9bonding, liability insurance, and errors and omissions insurance.
10(E) Information concerning workers’ compensation experience
11history and a worker safety program.
12(F) If the proposed design-build entity is a corporation, limited
13liability company, partnership, joint venture, or other legal entity,
14a copy of the organizational documents or agreement committing
15to form the organization.
16(G) An acceptable safety record. A proposer’s safety record
17shall be deemed acceptable if its experience modification rate for
18the most recent three-year period is an average of 1.00 or less, and
19its average total recordable injury or illness rate and average lost
20work rate for the most recent three-year period does not exceed
21the applicable statistical standards for its business category or if
22the proposer is a party to an alternative dispute resolution system
23as provided for in Section 3201.5 of the Labor Code.
24(4) (A) The
information required under this subdivision shall
25be certified under penalty of perjury by the design-build entity and
26its general partners or joint venture members.
27(B) Information required under this subdivision that is not
28otherwise a public record under the California Public Records Act
29(Chapter 3.5 (commencing with Section 6250) of Division 7 of
30Title 1 of the Government Code) shall not be open to public
31inspection.
32(c) A design-build entity shall not be prequalified or shortlisted
33unless the entity provides an enforceable commitment to the local
34agency that the entity and its subcontractors at every tier will use
35a skilled and trained workforce to perform all work on the project
36or contract that falls within an apprenticeable occupation in the
37building and construction
trades.
38(1) For purposes of this subdivision:
P19 1(A) “Apprenticeable occupation” means an occupation for which
2the chief had approved an apprenticeship program pursuant to
3Section 3075 of the Labor Code prior to January 1, 2014.
4(B) “Skilled and trained workforce” means a workforce that
5meets all of the following conditions:
6(i) All the workers are either skilled journeypersons or
7apprentices registered in an apprenticeship program approved by
8the Chief of the Division of Apprenticeship Standards.
9(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
10begin delete journey personsend deletebegin insert
journeypersonsend insert
employed to perform work on the
11contract or project by the entity and each of its subcontractors at
12every tier are graduates of an apprenticeship program for the
13applicable occupation that was either approved by the Chief of the
14Division of Apprenticeship Standards pursuant to Section 3075 of
15the Labor Code or located outside California and approved for
16federal purposes pursuant to the apprenticeship regulations adopted
17by the federal Secretary of Labor.
18(II) As of January 1, 2017, at least 30 percent of the skilled
19begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
20contract or project by the entity and each of its subcontractors at
21every
tier are graduates of an apprenticeship program for the
22applicable occupation that was either approved by the Chief of the
23Division of Apprenticeship Standards pursuant to Section 3075 of
24the Labor Code or located outside California and approved for
25federal purposes pursuant to the apprenticeship regulations adopted
26by the federal Secretary of Labor.
27(III) As of January 1, 2018, at least 40 percent of the skilled
28begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
29contract or project by the entity and each of its subcontractors at
30every tier are graduates of an apprenticeship program for the
31applicable occupation that was either approved by the Chief of
the
32Division of Apprenticeship Standards pursuant to Section 3075 of
33the Labor Code or located outside California and approved for
34federal purposes pursuant to the apprenticeship regulations adopted
35by the federal Secretary of Labor.
36(IV) As of January 1, 2019, at least 50 percent of the skilled
37begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
38contract or project by the entity and each of its subcontractors at
39every tier are graduates of an apprenticeship program for the
40applicable occupation that was either approved by the Chief of the
P20 1Division of Apprenticeship Standards pursuant to Section 3075 of
2the Labor Code or located outside California and
approved for
3federal purposes pursuant to the apprenticeship regulations adopted
4by the federal Secretary of Labor.
5(V) As of January 1, 2020, at least 60 percent of the skilled
6begin delete journey personsend deletebegin insert journeypersonsend insert employed to perform work on the
7contract or project by the entity and each of its subcontractors at
8every tier are graduates of an apprenticeship program for the
9applicable occupation that was either approved by the Chief of the
10Division of Apprenticeship Standards pursuant to Section 3075 of
11the Labor Code or located outside California and approved for
12federal purposes pursuant to the apprenticeship regulations adopted
13by the federal Secretary of Labor.
14(iii) For an apprenticeable occupation in which no apprenticeship
15program had been approved by the chief prior to January 1, 1995,
16up to one-half of the graduation percentagebegin delete requirement in begin insert requirementsend insert of clause (ii) may be satisfied by skilled
17subclause (I)end delete
18journeypersons who commenced working in the apprenticeable
19occupation prior to the chief’s approval of an apprenticeship
20program for that occupation in the county in which the project is
21located.
22(C) “Skilledbegin delete journey person”end deletebegin insert
journeyperson”end insert means a worker
23who either:
24(i) Graduated from an apprenticeship program for the applicable
25occupation that was approved by the chief or located outside
26California and approved for federal purposes pursuant to the
27apprenticeship regulations adopted by the federal Secretary of
28Labor.
29(ii) Has at least as many hours of on-the-job experience in the
30applicable occupation as would be required to graduate from an
31apprenticeship program for the applicable occupation that is
32approved by the chief.
33(2) An entity’s commitment that a skilled and trained workforce
34will be used to perform the project or contract may be established
35by any of the following:
36(A) The entity’s agreement with the local agency that the entity
37and its subcontractors at every tier will comply with the
38requirements of this subdivision and that the entity will provide
39the local agency with evidence, on a monthly basis while the
40project or contract is being performed, that the entity and its
P21 1subcontractors are complying with the requirements of this
2subdivision.
3(B) If the local agency has entered into a project labor agreement
4that will bind all contractors and subcontractors performing work
5on the project or contract and that includes the requirements of
6this subdivision, the entity’s agreement that it will become a party
7to that project labor agreement.
8(C) Evidence that the entity has entered into a
project labor
9agreement that includes the requirements of this subdivision and
10that will bind the entity and all its subcontractors at every tier
11performing the project or contract.
12(d) Based on the documents prepared as described in subdivision
13(a), the local agency shall prepare a request for proposals that
14invites prequalified or short-listed entities to submit competitive
15sealed proposals in the manner prescribed by the local agency.
16The request for proposals shall include, but need not be limited
17to, the following elements:
18(1) Identification of the basic scope and needs of the project or
19contract, the estimated cost of the project, the methodology that
20will be used by the local agency to evaluate proposals, whether
21the contract will be awarded on the basis of low bid or
best value,
22and any other information deemed necessary by the local agency
23to inform interested parties of the contracting opportunity.
24(2) Significant factors that the local agency reasonably expects
25to consider in evaluating proposals, including, but not limited to,
26cost or price and all nonprice-related factors.
27(3) The relative importance or the weight assigned to each of
28the factors identified in the request for proposals.
29(4) Where a best value selection method is used, the local agency
30may reserve the right to request proposal revisions and hold
31discussions and negotiations with responsive proposers, in which
32case the local agency shall so specify in the request for proposals
33and shall publish separately or
incorporate into the request for
34proposals applicable procedures to be observed by the local agency
35to ensure that any discussions or negotiations are conducted in
36good faith.
37(e) For those projects utilizing low bid as the final selection
38method, the competitive bidding process shall result in lump-sum
39bids by the prequalified or short-listed design-build entities, and
P22 1awards shall be made to the design-build entity that is the lowest
2responsible bidder.
3(f) For those projects utilizing best value as a selection method,
4the design-build competition shall progress as follows:
5(1) Competitive proposals shall be evaluated by using only the
6criteria and selection procedures specifically identified in the
7request for
proposals. The following minimum factors, however,
8shall be weighted as deemed appropriate by the local agency:
9(A) Price, unless a stipulated sum is specified.
10(B) Technical design and construction expertise.
11(C) Life-cycle costs over 15 or more years.
12(2) Pursuant to subdivision (d), the local agency may hold
13discussions or negotiations with responsive proposers using the
14process articulated in the local agency’s request for proposals.
15(3) When the evaluation is complete, the responsive proposers
16shall be ranked based on a determination of value provided,
17provided that no more than three proposers are
required to be
18ranked.
19(4) The award of the contract shall be made to the responsible
20design-build entity whose proposal is determined by the local
21agency to have offered the best value to the public.
22(5) Notwithstanding any other provision of this code, upon
23issuance of a contract award, the local agency shall publicly
24announce its award, identifying the design-build entity to which
25the award is made, along with a statement regarding the basis of
26the award.
27(6) The statement regarding the local agency’s contract award,
28described in paragraph (5), and the contract file shall provide
29sufficient information to satisfy an external audit.
(a) The design-build entity shall provide payment and
31performance bonds for the project in the form and in the amount
32required by the local agency, and issued by a California admitted
33surety. The amount of the payment bond shall not be less than the
34amount of the performance bond.
35(b) The design-build contract shall require errors and omissions
36insurance coverage for the design elements of the project.
37(c) The local agency shall develop a standard form of payment
38and performance bond for its design-build projects.
(a) The local agency, in each design-build request for
40proposals, may identify specific types of subcontractors that must
P23 1be included in the design-build entity statement of qualifications
2and proposal. All construction subcontractors that are identified
3in the proposal shall be afforded all the protections of Chapter 4
4(commencing with Section 4100) of Part 1.
5(b) Following award of the design-build contract, the
6design-build entity shall proceed as follows in awarding
7construction subcontracts with a value exceeding one-half of 1
8percent of the contract price allocable to construction work:
9(1) Provide
public notice of availability of work to be
10subcontracted in accordance with the publication requirements
11applicable to the competitive bidding process of the local agency,
12including a fixed date and time on which qualifications statements,
13bids, or proposals will be due.
14(2) Establish reasonable qualification criteria and standards.
15(3) Award the subcontract either on a best value basis or to the
16lowest responsible bidder. The process may include prequalification
17or short-listing. The foregoing process does not apply to
18construction subcontractors listed in the original proposal.
19Subcontractors awarded construction subcontracts under this
20subdivision shall be afforded all the protections of Chapter 4
21(commencing with Section 4100) of Part 1.
(a) If the local agency elects to award a project pursuant
23to this article, retention proceeds withheld by the local agency
24from the design-build entity shall not exceed 5 percent if a
25performance and payment bond, issued by an admitted surety
26insurer, is required in the solicitation of bids.
27(b) In a contract between the design-build entity and a
28subcontractor, and in a contract between a subcontractor and any
29subcontractor thereunder, the percentage of the retention proceeds
30withheld may not exceed the percentage specified in the contract
31between the local agency and the design-build entity. If the
32design-build entity provides written notice to any subcontractor
33that
is not a member of the design-build entity, prior to or at the
34time the bid is requested, that a bond may be required and the
35subcontractor subsequently is unable or refuses to furnish a bond
36to the design-build entity, then the design-build entity may withhold
37retention proceeds in excess of the percentage specified in the
38contract between the local agency and the design-build entity from
39any payment made by the design-build entity to the subcontractor.
Nothing in this article affects, expands, alters, or limits
2any rights or remedies otherwise available at law.
This chapter shall remain in effect only until January
41, 2025, and as of that date is repealed.
begin insertSection 37.2 is added to the end insertbegin insertSan Diego Unified Port
6District Actend insertbegin insert (Chapter 67 of the First Extraordinary Session of the
7Statutes of 1962), to read:end insert
(a) Notwithstanding subdivision (a) of Section 37
9of this act or any other law, the district, with approval of the board
10of commissioners, may procure design-build contracts for the
11construction of a building or buildings and improvements directly
12related to the construction of a building or buildings that exceed
13one million dollars ($1,000,000) using the design-build
14procurement process described in Chapter 4 (commencing with
15Section 22160) of Part 3 of Division 2 of the Public Contract Code.
16(b) For the purposes of this section, except where the context
17otherwise requires, all references in Chapter 4 (commencing with
18Section 22160) of Part 3 of Division 2 of the Public Contract Code
19to “local agency” shall mean the San Diego Unified Port
District.
begin insertSection 6 of Chapter 2 of the Second Extraordinary
21Session of theend insertbegin insert Statutes of 2009, is repealed.end insert
(a) Notwithstanding any other provision of law, the
23peer review committee established pursuant to subdivision (d) of
24Section 6803 of the Public Contract Code shall continue to operate
25until it has fulfilled the reporting requirements of this section.
26(b) The committee shall conduct an evaluation of all
27transportation projects using the design-build method of
28construction procurement authorized under Chapter 6.5
29(commencing with Section 6800) of Part 1 of Division 2 of the
30Public Contract Code.
31(c) The evaluation pursuant to subdivision (b) shall examine
32the procurement method, comparing those projects using low bid
33and best value, and
shall consider whether the projects were on
34time and on budget. The evaluation shall also compare the
35design-build projects to similar transportation projects that used
36the design-bid-build method of construction procurement.
37(d) (1) The California Transportation Commission shall submit
38a midterm report of its findings to the Legislature no later than
39June 30, 2012.
P25 1(2) The California Transportation Commission shall submit a
2final report of its findings to the Legislature no later than June 30,
32015.
begin insert(a)end insertbegin insert end insertDue to the unique circumstances of the Marin
6Healthcare District, the Legislature hereby finds and declares that
7a general statute cannot be made applicable within the meaning
8of Section 16 of Article IV of the California Constitution.
9Therefore, the special legislation contained in Section 4 of this act
10is applicable only to the Marin Healthcare District.
11(b) Due to the unique circumstances of, and the potential costs
12faced by, the San Diego Unified Port District, the Legislature
13hereby finds and declares that a general statute cannot be made
14applicable within the meaning of Section 16 of Article IV of the
15California Constitution. Therefore, the special legislation contained
16in Section 15 of this act is applicable only to the San Diego Unified
17Port District.
No reimbursement is required by this act pursuant to
20Section 6 of Article XIII B of the California Constitution because
21the only costs that may be incurred by a local agency or school
22district will be incurred because this act creates a new crime or
23infraction, eliminates a crime or infraction, or changes the penalty
24for a crime or infraction, within the meaning of Section 17556 of
25the Government Code, or changes the definition of a crime within
26the meaning of Section 6 of Article XIII B of the California
27Constitution.
O
91