BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 1431
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|Author: |Gomez |
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|Version: |April 30, 2015 Hearing |
| |Date: June 17, 2015 |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Kathleen Chavira |
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Subject: Local Agency Public Construction Act: job order
contracting
SUMMARY
This bill expands an existing authority to use job order
contracting by the Los Angeles Unified School District (LAUSD)
to apply to all school districts until January 1, 2022.
BACKGROUND
Existing law authorizes the LAUSD to utilize a job order
contracting process, as specified, until December 1, 2020.
Existing law also requires the LAUSD to report as specified, if
it opts to use this authority. An interim report to specified
committees of the Legislature and to the Office of Public School
Construction, prepared by an independent third party, is
required by January 30, 2017. A final report is due on December
31, 2019. Existing law also declares the Legislature' intent
that a moratorium be placed on the enactment of legislation
authorizing school districts to use job order contracting until
receipt of the required reports. (Public Contract Code §
20919-20919.15)
ANALYSIS
This bill establishes the authority of all school districts to
utilize the job order contracting process subject to specified
requirements which are substantively similar to those
established under current law for the LAUSD. It:
AB 1431 (Gomez) Page 2
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1)Authorizes school districts, other than the LAUSD, to utilize Job
Order Contractor (JOC) pursuant to the bill's provisions only
if it has entered into a Project Labor Agreement, or
agreements, that apply to all public works projects in excess
of $25,000 through at least December 31, 2021, regardless of
the contracting procedure.
2)Outlines requirements to be met by a district to use the JOC
process, including, preparation of an execution plan for all
potentially eligible modernization projects, the creation of a
catalog of construction tasks, unit prices, and technical
specifications, bid procedures, bidder requirements, and the
information to be provided by bidders.
3)Requires a school district to establish a prequalification
procedure for job order contractors, as specified.
4)Establishes restrictions on the amount and terms of job order
contracts.
5)Requires that all Job Order Contractor (JOC) work comply with
specified Public Contract law relative to the use of
subcontractors, authorizes the termination of a contract, or
the declaration that a contractor is ineligible to bid, for
violations of these provisions, and makes additional provision
for the use of subcontractors, including public notice
requirements and bidding procedures, based upon the dollar
amount of the work to be performed.
6)Requires the JOC to set forth the parties responsible for
ensuring compliance with specified labor law, establishes
requirements regarding the payment of prevailing wages, and
requires the district to designate one individual to monitor
and inspect labor compliance violations at the request of the
designated labor representative.
7)Requires specified notice by a school district to the Labor
Commission of any JOC contractors or subcontractors who
violate the bill's provisions regarding the use of
subcontractors and prohibits the awarding of a JOC or job
order to the offending contractors or subcontractors during
the effective period of debarment.
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8)Establishes requirements for the employment of apprentices on
JOCs including the submission of specified information to an
applicable apprenticeship program, work ratios, payment of
prevailing rate of per diem wages, and the hiring of
apprentices from specified sources, and provides for civil
penalties and precludes the awarding of jobs under the JOC for
contractors who knowingly violate these provisions.
9)Requires that a school district adopting JOC prepare an
independent estimate, as specified, for each individual job
order, and provides for managerial and public review of all
related documents in order to prevent fraud, waste and abuse.
10)Establishes payment resolution processes to be followed by
contractors, including the convening of a payment resolution
committee, as specified.
11)Requires, if a school district adopts the JOC process, that it
submit a report to specified committees of the Legislature and
to the Office of Public School Construction, prepared by an
independent third party and paid for by the district, by
December 31, 2019, on all work completed under each JOC by
June 30, 2019.
12)Sunsets the bill's provisions on January 1, 2022.
STAFF COMMENTS
1)Need for the bill. According to the author, the Los Angeles
Unified School District (LAUSD) JOC pilot program has proven
cost effective and efficient, in large part because of the
required Project Labor Agreement which ensures access to a
skilled workforce. This bill proposes extension of JOC to all
districts based upon the LAUSD model (developed
collaboratively with the Los Angeles Building Trades Council),
which the author opines has resulted in improvements which
have benefitted LAUSD, local taxpayers, contractors, and
workers.
2)Job order contracting. JOC is a contracting procedure that allows
for the awarding of contracts based on prices for specific
construction tasks rather than bids for a specific project. A
catalog or book identifies all work that could be performed
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(typically maintenance or modernization projects) and the unit
prices for each of those tasks. The tasks are based on
accepted industry standards and prices include the cost of
materials, labor, and equipment for performing the work, but
exclude overhead and profit. A contractor, who has been
prequalified, rather than bid a total price for the project,
will bid an adjustment factor, which reflects specified costs,
to the pre-set unit prices. The unit price, multiplied by the
adjustment factor equals the price the contractor is willing
to accept for completion of those tasks. Selection of the
contractors is based on the lowest responsible bidder. When
the school district has a project that requires the tasks for
which a contractor is prequalified, the school district will
issue a job order to the contractor.
Job Order Contractor (JOC) is intended to reduce costs and
accelerate completion of smaller projects; it is not generally
viewed as an appropriate method of contracting for large,
complex construction projects that require extensive or
innovative design or are likely to encounter changes and
revisions during constructions.
3)History of statute. The authority for JOC was first extended to
the Los Angeles Unified School District (LAUSD) on a pilot
basis by AB 14 (Horton, Chapter 885, Statutes of 2003). AB 14
established a 2007 sunset date for the pilot program and
required an interim report on the use of JOC by June 30, 2005
with a final report due by December 1, 2007. Due to the short
time frame, there was an absence of meaningful information in
the first report. AB 2362 (Horton, Chapter 570, Statutes of
2006) was enacted to extend the period for the JOC projects to
December 1, 2012 and require a report on its use by December
1, 2011 (see staff comment #4). AB 2580 (Furutani, Chapter
825, Statutes of 2012) extended the existing authorization to
2020 and established additional reporting dates in 2017 for
interim reporting, and 2019 for final reporting.
4)LAUSD Experience. In its November 2011 report, the LAUSD reports
that, since
the inception of JOC in 2005, the District has executed 138
master contracts with 44 different contracting firms. As of
November 1, 2011, the District had issued JOC "master"
contracts valued at up to $791 million, with total contract
receipts ranging from $200,000 to $10 million per contractor.
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For job orders completed through November 1, 2011, the LAUSD
reports that actual project costs were reduced by an average
of 9.26% as compared to the estimates and the procurement
time. The LAUSD reports that the procurement time savings
varied among projects, but overall, JOC produced significant
time savings and provided the district with a valuable
procurement tool.
5)One size fits all? This bill outlines a detailed and
prescriptive process which must be followed if a district
chooses to use JOC. The model outlined in this bill is based
upon the detailed elements of a pilot program utilized by the
LAUSD, the largest school district in the state with the
resources to uniquely implement an extensive and complex
school construction program. Although the use of JOC is
optional, and the bill's provisions would only be applicable
to those districts that determine that it offers a cost saving
alternative, it is unclear whether districts other than the
LAUSD will be able to meet the requirements outlined in this
bill. Accordingly the author has proposed amendments to
ensure greater flexibility for less resourced districts to
comply with the requirements necessary to implement Job Order
Contractor (JOC) if they so choose. Accordingly, staff
recommends the bill be amended per the attached mock-up.
6)Are the pilot program and reporting requirements still necessary?
If enacted, this bill would result in two distinct
authorities for JOC; one for all districts and one for the Los
Angeles Unified School District (LAUSD). Should the
provisions of existing law authorizing the pilot program for
the LAUSD be deleted and this bill amended to include LAUSD?
Additionally, this bill requires districts that use the JOC
authority to report in a manner similar to the requirements
established for the LAUSD pilot program. Arguably the LAUSD
pilot and the district's 2011 report have provided the
information necessary to evaluate whether to expand JOC
statewide. Are ongoing reporting requirements in section
20919.32 still necessary?
SUPPORT
Gordion Group
Small School Districts Association
State Building and Construction Trades Council
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OPPOSITION
Air Conditioning Trade Association
Associated Builders and Contractors - San Diego Chapter
Associated Builders and Contractors of California
Associated Builders and Contractors of California
Don Celillo Electric Co. Inc.
Plumbing-Heating-Cooling Contractors Association of California
TSV Painting
Western Electrical Contractors Association
-- END --
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AMENDED IN ASSEMBLY APRIL 30, 2015
AMENDED IN ASSEMBLY MARCH 26, 2015
AB 1431
SECTION 1.
Article 60.4 (commencing with Section 20919.20) is added to
Chapter 1 of Part 3 of Division 2 of the Public Contract Code,
to read:
Article 60.4. Job Order Contracting for School Districts
20919.20.
The Legislature finds and declares all of the following:
(a) It is the intent of the Legislature, in enacting this
article, to demonstrate an alternative and optional procedure
for bidding of public works projects that is applicable only to
school districts other than the Los Angeles Unified School
District. The Legislature has previously authorized the use of
this alternative and optional procedure in Article 60.3
(commencing with Section 20219) only for the Los Angeles Unified
School District, which is using the procedure in conjunction
with its project stabilization agreement.
(b) Districts should be able to utilize cost-effective options
for the delivery of public works projects, in accordance with
the national trend, which include authorizations in California,
to allow public entities to utilize job order contracts as a
project delivery method.
(c) The benefits of a job order contract project delivery system
include accelerated completion of the projects, cost savings,
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and reduction of construction contracting complexity for the
unified school district.
(d) The job order contracting approach should be used for the
purposes of reducing project cost and expediting project
completion.
(e) The Legislature is uncertain of the benefits and advantages
of job order contracting for California school districts and
therefore looks forward to the reports required by Section
20919.32 in order to fully and competently assess any further
exemptions to the school contracting process.
(f) The availability of job order contracting as a project
delivery method will not preclude the use of traditional methods
of project delivery if a traditional method results in higher
cost savings.
(g) It is the intent of the Legislature that job order contracts
be competitively bid and awarded to the bidder s providing the
most qualified responsive bid s . It is further the intent of the
Legislature that school districts use the job order contract
process pursuant to this article only if the school district has
entered into a project labor agreement that meets the
requirements of Section 2500 for all its public works projects.
20919.21.
As used in this chapter:
(a) "Adjustment factor" means the job order contractor's
competitively bid adjustment to the school district's prices as
published in the catalog of construction tasks unit price
catalog .
(b ) "Catalog of construction tasks" "Unit price catalog" means a
book containing specific construction tasks and the unit prices
to install or demolish that construction. The listed tasks shall
be based on generally accepted industry standards and
information, where available, for various items of work to be
performed by the job order contractor. The prices shall include
the cost of materials, labor, and equipment for performing the
items of work. The prices shall not include overhead and profit.
All unit prices shall be developed using local prevailing wages.
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(c) "Indefinite quantity" means one or more of the construction
tasks listed in the catalog of construction tasks unit price
catalog.
(d) "Job order" means a firm, fixed priced, lump-sum order
issued by the school district to a job order contractor for a
definite project scope of work as compiled from the catalog of
construction tasks unit price catalog to be performed pursuant
to a job order contract. No single job order may exceed one
million dollars ($1,000,000) in value.
(e) "Job order contract" means a contract, awarded to the a most
qualified bidder as described in paragraph (1) of subdivision
(b) of Section 20919.24, between the school district and a
licensed, bonded, and general liability insured contractor in
which the contractor agrees to a fixed period, fixed unit price,
and indefinite quantity contract that provides for the use of
job orders for public works or maintenance projects.
(f) "Job order contract technical specifications" means a book,
published by the school district, detailing the technical
specifications with regard to quality of materials and
workmanship to be used by the job order contractor in
accomplishing the tasks listed in the catalog of construction
tasks unit price catalog.
(g) "Job order contractor" means a licensed, bonded, and general
liability insured contractor awarded a job order contract.
(h) "Offer to perform work" means the job order contractor's
proposal for a specific job order.
(i) "Plans and specifications" means the catalog of construction
tasks unit price catalog and the job order contract technical
specifications. The scope of work to be performed with a job
order contract is potentially, but not necessarily, all the
tasks published in the catalog of construction tasks unit price
catalog.
(j) "Project" means the specific requirements and work to be
accomplished by the job order contractor in connection with an
individual job order.
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(k) "Project labor agreement" means an agreement that meets the
requirements of Section 2500.
(l) "Project scope of work" means the document and related
drawings, specifications, and writings referenced therein which
together set forth the specific requirements and work to be
accomplished by the job order contractor in connection with an
individual job order.
(m) "Proposal" means the job order contractor prepared document
quoting those construction tasks listed in the catalog of
construction tasks unit price catalog that the job order
contractor requires to complete the project scope of work,
together with the appropriate quantities of each task. The
pricing of each task shall be accomplished by multiplying the
construction task unit price by the proposed quantity and the
contractor's competitively bid adjustment factor. The proposal
shall also contain a schedule for the completion of a specific
project scope of work as requested by the school district. The
proposal may also contain approved drawings, work schedule,
permits, or other documentation as the school district may
require for a specific job order.
(n) "Public works" has the same meaning as in Chapter 1
(commencing with Section 1720) of Part 7 of Division 2 of the
Labor Code.
(o) "Public works project" has the same meaning as "public
project," as defined in Section 22002.
(p) "Subcontractor" means any person, firm, or corporation,
other than the employees of the job order contractor, who is
bonded and general liability insured and who contracts to
furnish labor, or labor and materials, at the worksite or in
connection with a job order, whether directly or indirectly on
behalf of the job order contractor.
(q) "School district" means any school district other than the
Los Angeles Unified School District.
20919.22.
Nothing in this article or in this code shall prohibit the
school district from utilizing job order contracting, as an
alternative to any contracting procedures that the school
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district is otherwise authorized or required by law to use.
20919.23.
(a) The school district may utilize job order contracting
pursuant to this article only if the school district has entered
into a project labor agreement or agreements that will apply to
all public works in excess of twenty-five thousand dollars
($25,000) undertaken by the school district through at least
December 31, 2021, regardless of what contracting procedure is
used to award that work.
(b) The school district shall prepare an execution plan for all
modernization projects that may be eligible for job order
contracting pursuant to this article. The school district shall
select from that plan a sufficient number of projects to be
initiated as job order contracts during each calendar year and
shall determine for each selected project that job order
contracting will reduce the total cost of that project. Job
order contracting shall not be used if the school district finds
that it will increase the total cost of the project.
20919.24.
Bidding for job order contracts shall progress as follows:
(a) (1) The school district shall prepare a set of documents for
each job order contract s . The documents shall include a catalog
of construction tasks unit price catalog and preestablished unit
prices, job order contract technical specifications, and any
other information deemed necessary to describe adequately the
school district's needs.
(2) Any architect, engineer, or consultant retained by the
school district to assist in the development of the job order
contract documents shall not be eligible to participate in the
preparation of a bid with any job order contractor.
(b) Based on the documents prepared under subdivision (a), the
school district shall prepare a request for bid that invites
prequalified job order contractors to submit competitive sealed
bids in the manner prescribed by the school district.
(1) (A) The prequalified job order contractors, as determined by
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the school district, shall bid one or more adjustment factors to
the unit prices listed in the catalog of construction tasks unit
price catalog based on the job order contract technical
specifications. Awards shall be made to the prequalified bidder s
that the school district determines to be the most qualified
based upon preestablished criteria made by the school district.
The prequalified bidder s must be in compliance with the school
district's project labor agreement.
(B) Compliance shall constitute no more than three major
violations on any school district projects within the last three
years. If a contractor has more than three violations within a
three-year period of time, the school district shall seek
administrative review of the violations. Violations will
include, but are not limited to, the following:
(i) Failure to register core workers with the appropriate
building trade union.
(ii) Failure to assign apprentices in accordance with Section
1777.5 of the Labor Code.
(iii) Failure to comply with subdivision (c) of Section
20919.25.
(iv) Incorrect assignment of work in accordance with the school
district's project labor agreement.
(2) The school district may award multiple job order contracts
through a request for bid. Each j Job order contract s shall be
awarded to the most qualified prequalified bidder s described in
paragraph (1) subdivision (b).
(3) The request for bids may encourage the participation of
local construction firms and the use of local subcontractors.
(c) (1) The school district shall establish a procedure to
prequalify job order contractors using a standard questionnaire
that includes, at a minimum, the issues covered by the
standardized questionnaire and model guidelines for rating
bidders developed by the Department of Industrial Relations
pursuant to subdivision (a) of Section 20101. This questionnaire
shall require information including, but not limited to, all of
the following:
AB 1431 (Gomez) Page 13
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(A) If the job order contractor is a partnership, limited
partnership, or other association, a listing of all of the
partners or association members known at the time of bid
submission who will participate in the job order contract.
(B) Evidence that the members of the job order contractor have
the capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage the construction
of the project, as well as a financial statement that assures
the school district that the job order contractor has the
capacity to complete the project.
(C) The licenses, registration, and credentials required to
perform construction, including, but not limited to, information
on the revocation or suspension of any license, credential, or
registration.
(D) Evidence that establishes that the job order contractor has
the capacity to obtain all required payment and performance
bonding and liability insurance.
(E) Information concerning workers' compensation experience
history, worker safety programs, and apprenticeship programs.
(i) An acceptable safety record as determined by the school
district. In its determination, the school district shall
consider, but is not required to find, a contractor's safety
record as acceptable if its experience modification rate for the
most recent three-year period is an average of 1.00 or less, and
its average total recordable injury/illness rate and average
lost work rate for the most recent three-year period do not
exceed the applicable statistical standards for its business
category or if the contractor is a party to an alternative
dispute resolution system as provided for in Section 3201.5 of
the Labor Code.
(ii) Skilled labor force availability as determined by the
existence of an agreement with a registered apprenticeship
program, approved by the California Apprenticeship Council that
has graduated apprentices in each of the preceding five years.
This graduation training for any craft that was first deemed by
the Department of Labor and the Department of Industrial
Relations to be an apprenticeable craft within the five years
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prior to the effective date of this article.
(F) A full disclosure regarding all of the following that are
applicable:
(i) Any serious or willful violation of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code or the federal
Occupational Safety and Health Act of 1970 (Public Law 91-596),
settled against any member of the job order contractor.
(ii) Any debarment, disqualification, or removal from a federal,
state, or local government public works project.
(iii) Any instance where the job order contractor, or its
owners, officers, or managing employees submitted a bid on a
public works project and were found to be nonresponsive, or were
found by an awarding body not to be a responsible bidder.
(iv) Any instance where the job order contractor, or its owners,
officers, or managing employees defaulted on a construction
contract.
(v) Any violations of the Contractors' State License Law
(Chapter 9 (commencing with Section 7000) of Division 3 of the
Business and Professions Code), excluding alleged violations of
federal or state law regarding the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding,
or of Federal Insurance Contribution Act (FICA) withholding
requirements settled against any member of the job order
contractor.
(vi) Any bankruptcy or receivership of any member of the job
order contractor, including, but not limited to, information
concerning any work completed by a surety.
(vii) Any settled adverse claims, disputes, or lawsuits between
the owner of a public works project and any member of the job
order contractor during the five years preceding submission of a
bid under this article, in which the claim, settlement, or
judgment exceeds fifty thousand dollars ($50,000). Information
shall also be provided concerning any work completed by a surety
during this period.
(G) In the case of a partnership or any association that is not
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a legal entity, a copy of the agreement creating the partnership
or association and specifying that all partners or association
members agree to be fully liable for the performance under the
job order contract.
(2) The information required under this subdivision shall be
verified under oath by the entity and its members in the manner
in which civil pleadings in civil actions are verified.
Information that is not a public record under the California
Public Records Act (Chapter 3.5 (commencing with Section 6250)
of Division 7 of Title 1 of the Government Code) shall not be
open to public inspection.
20919.25.
(a) The maximum total dollar amount that may be awarded under a
single job order contract shall not exceed five million dollars
($5,000,000) in the first term of the job order contract and, if
extended or renewed pursuant to subdivision (b), a maximum of
ten million dollars ($10,000,000) over the maximum subsequent
two terms of the job order contract. The monetary figures in
this subsection shall be adjusted annually to reflect the
percentage change in the California Consumer Price Index since
January 1, 2004 .
(b) Job order contracts may be executed for an initial contract
term of no more than 12 months, with the option of extending or
renewing the job order contract for two 12-month periods. The
term of the job order contract shall be for the contract term or
whenever the maximum value of the contract is achieved,
whichever is less. All extensions or renewals shall be priced as
provided in the request for bids. The extension or renewal shall
be mutually agreed to by the school district and the job order
contractor.
(c) The school district may issue job orders to the job order
contractor that has been awarded the job order contract. The job
order issued to the job order contractor shall not commence for
seven days from the time the job order was issued and the job
order contractor shall provide a minimum of seven days notice
for the addition of any subcontractor or substitution of any
subcontractor as described in subdivision (e) of Section
20919.26. The job order shall be based on a project scope of
work prepared by the school district as well as a proposal from
the job order contractor who is awarded the job order contract.
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No single job order may exceed one million dollars ($1,000,000)
adjusted annually to reflect the percentage change in the
California Consumer Price Index since January 1, 2004.
(d) It is unlawful to split or separate into smaller job orders
any project for the purpose of evading the cost limitation
provisions of this chapter.
(e) All work performed under the job order contract shall be
covered by a project labor agreement.
(f) Any change or alteration to a job order shall be in
compliance with Section 20118.4.
20919.26.
(a) All work bid under the job order contract shall comply with
Chapter 4 (commencing with Section 4100) of Part 1 and is
subject to all of the penalties and provisions set forth in that
chapter.
(b) For purposes of this article, if the primary job order
contractor chooses to use subcontractors, the primary job order
contractor is required to verify that the subcontractors possess
the appropriate licenses and credentials required to perform
construction.
(c) Notwithstanding subdivision (a), the primary job order
contractor may use subcontractors that are not listed at the
time the job order is issued if the work to be performed under
that job order is less than ten thousand dollars ($10,000).
(d) If the primary job order contractor chooses to use a
subcontractor that is not listed at the time of bid to perform
work on a job order, both all of the following apply:
(1) The primary job order contractor shall provide public notice
of the availability of work to be subcontracted by trade. The
public notice shall include the scope of work; the project
location; the name, address, and the telephone number of the
primary job order contractor; and the closing date, time, and
location for sealed bids to be submitted.
(2) The primary job order contractor shall take sealed bids from
the subcontractors solicited for the proposal. These bids shall
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be publicly opened at a prescribed time and place by the primary
job order contractor. After the bids are opened, the job order
contractor shall notify the school district which subcontractor
was selected.
(3) The notification shall include every subcontractor for all
tiers and must establish the authorized subcontractor list for
the job order. Work shall not commence prior to seven days
notice of the established subcontractor list and the subsequent
addition of any subcontractor to the job order.
(4) The notification shall identify the scope of the work to be
performed by each subcontractor to the job order, broken down by
craft. If a subcontractor performs multiple crafts, the job
order contractor shall identify the work of each craft to be
performed.
(e) If the primary job order contractor chooses to make a
substitution to the subcontractor list, the primary job order
contractor shall provide a minimum of seven days' notice to the
school district along with justification as to the need for the
substitution. The school district may request a hearing to
evaluate the substitution request, which shall be in accordance
with Chapter 4 (commencing with Section 4100) of Part 1.
(f) If the school district determines that there has been a
violation of Chapter 4 (commencing with Section 4100) of Part 1,
including bid shopping by the primary job order contractor, the
school district may terminate the job order or the contractor
may lose authorization to proceed with awarded work subject to
the school district's administrative due process review, if such
review is established pursuant to the school district's project
labor agreement. If the school district determines that a job
order contractor has violated any provision set forth in Chapter
4 (commencing with Section 4100) of Part 1, the school district
may declare the contractor ineligible for future job orders and
may result in a loss of prequalification status for a period of
time to be determined by the school district.
20919.27.
(a) A job order contract shall set forth in the general
conditions of the job order contract the party or parties
responsible for seeing that the provisions of Article 2
(commencing with Section 1770) of Chapter 1 of Part 7 of
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Division 2 of the Labor Code are complied with.
(b) For purposes of job order contracting, prevailing wages when
required to be paid shall apply to all work ordered under the
job order contract regardless of thresholds set forth in Section
1771.5 of the Labor Code.
(c) The job order contractor shall pay the prevailing wage in
effect at the time the job order is issued by the school
district and all increases as published by the Department of
Industrial Relations for the term of the job order contract,
including all overtime, holiday, and shift provisions published
by the Department of Industrial Relations.
(d) The school district shall designate one individual to act as
a monitor to inspect job sites for labor compliance violations
at the request of the designated labor representative in its
project labor agreement.
20919.28.
A willful violation of Section 20919.26 occurs when the job
order contractor or subcontractor knew or reasonably should have
known of his or her obligations under the public works law and
deliberately fails or refuses to comply with its provisions. The
school district using job order contracting shall publish and
distribute to the Labor Commissioner a list of all job order
contractors or subcontractors who violate this provision and the
school district shall not award a job order contract or any
future job orders under an existing job order contract to any
contractor or subcontractor who violates this provision during
the effective period of debarment of the contractor or
subcontractor.
20919.29.
For purposes of employment of apprentices on job order
contracts, when the individual job order involves more than
thirty thousand dollars ($30,000) or 20 working days, all
general contractors or subcontractors shall at all times be in
compliance with Section 1777.5 of the Labor Code and shall
comply with the following:
(a) Prior to commencing work on an individual job order, every
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contractor shall submit job order award information to an
applicable apprenticeship program that can supply apprentices to
the site of the job order. The information submitted shall
include an estimate of the journeyman hours to be performed
under the contract, the number of apprenticeships proposed to be
employed, and the approximate dates the apprentices would be
employed. A copy of this information shall also be submitted to
the awarding agency if requested by the awarding agency.
(b) The ratio of work performed by apprentices to journeymen
employed in a particular craft or trade on the job order may be
no higher than the ratio stipulated in the apprenticeship
standard under which the apprenticeship program operates where
the job order contractor agrees to be bound by those standards
but, except as otherwise provided in Section 1777.5 of the Labor
Code, in no case shall the ratio be less than one hour of
apprenticeship work for every five hours of journeyman work.
(c) Every apprentice employed under the job order contract shall
be paid the prevailing rate of per diem wages for apprentices in
the trade to which he or she is registered and shall be employed
only at the work of the craft or trade to which he or she is
registered.
(d) Every apprentice employed under the job order contract shall
be hired from the local joint labor management apprenticeship
committee that has jurisdiction in the geographic area of the
project.
20919.30.
A job order contractor or subcontractor that knowingly violates
the provisions involving employment of apprentices shall forfeit
as a civil penalty an amount not exceeding one hundred dollars
($100) for each full calendar day of noncompliance. The amount
of this penalty shall be based on consideration of whether the
violation was a good faith mistake due to inadvertence. A
contractor or subcontractor that knowingly commits a second or
subsequent violation of the provisions involving employment of
apprentices within a three-year period where the noncompliance
results in apprenticeship training not being provided as
required, shall forfeit as a civil penalty a sum of not more
than three hundred dollars ($300) for each full calendar day of
noncompliance and shall not be awarded any further job orders
under the job order contract and shall be precluded for a period
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of one year from bidding on any future job order contracts.
20919.31.
In order to prevent fraud, waste, and abuse, the school
district adopting job order contracting shall do all of the
following:
(a) Prepare for each individual job order developed under a job
order contract an independent school district estimate. The
estimate will be prepared prior to the receipt of the
contractor's offer to perform work and will be compared to the
contractor's proposed price to determine the reasonableness of
that price before issuance of any job order. The basis for any
adjustments to the school district estimate is to be documented.
In the event that the contractor's proposal for a given job
order is found to be unreasonable, not cost effective, or
undesirable, the school district is under no obligation to issue
the job order to the job order contractor, and may instead
utilize any other available procurement procedures.
(b) The school district shall not issue a job order until the
job order has been reviewed and approved by at least two levels
the appropriate level of management.
(c) Once a job order has been issued, all documents pertaining
to preparation and approval of the job order, including the
independent school district estimate, shall be available for
public review.
20919.32.
If the school district adopts the job order contracting
process, the school district shall submit to the Office of
Public School Construction in the Department of General
Services, the Senate Committee on Business, Professions and
Economic Development and Assembly Committee on Business,
Professions and Consumer Protection, the Senate and Assembly
Committees on Education, and the Joint Legislative Budget
Committee before December 31, 2019, a report containing a
description of each job order contract procured, and the work
under each contract completed on or before June 30, 2019. The
report shall be prepared by an independent third party and the
school district shall pay for the cost of the report. The report
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shall include, but not be limited to, all of the following
information:
(a) A listing of all projects completed under each job order
contract.
(b) The job order contractor that was awarded each contract.
(c) The estimated and actual project costs.
(d) The estimated procurement time savings.
(e) A description of any written protests concerning any aspect
of the solicitation, bid, proposal, or award of the job order
contract, including, but not limited to, the resolution of the
protests.
(f) An assessment of the prequalification process and criteria.
(g) A description of the labor force compliance program required
under Section 20919.24, and an assessment of the impact on a
project where compliance with that program is required.
(h) Recommendations regarding the most appropriate uses for the
job order contract process.
20919.33.
A school district that adopts the job order contracting process
shall adopt a payment resolution process which may include, but
not be limited to, the convening of a payment resolution
committee.
If, after 30 days from receipt of the invoice, a contract has
not been paid, the contractor shall contact the designated
school district employee to resolve payment. If the contact with
the school district's designee does not provide full payment
within three business days, the contractor may request a special
convening of the payment resolution committee.
(a) The payment resolution committee shall be composed of a
representative of the contractor, a representative from labor, a
representative designated by the director of facilities within
the school district, and a representative designated by the
director of facilities support services within the school
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district.
(b) After convening, the committee shall make its recommendation
of payment within three business days.
20919.34.
This article shall remain in effect only until January 1, 2022,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2022, deletes or extends that
date.
SEC. 2.
No reimbursement is required by this act pursuant to Section 6
of Article XIII B of the
California Constitution because the only costs that may be
incurred by a local agency or school district will be incurred
because this act creates a new crime or infraction, eliminates a
crime or infraction, or changes the penalty for a crime or
infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the
California Constitution.