BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 2030|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
|327-4478 | |
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CONSENT
Bill No: AB 2030
Author: Mullin (D), et al.
Amended: 6/1/16 in Senate
Vote: 21
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/21/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva,
McGuire, Mendoza, Roth, Wieckowski
ASSEMBLY FLOOR: 73-1, 5/12/16 (Consent) - See last page for
vote
SUBJECT: Transportation districts: contracts
SOURCE: Caltrain
San Mateo County Transit District
San Mateo County Transportation Authority
DIGEST: This bill changes certain bidding requirements for the
San Francisco Bay Area Rapid Transit District (BART) and the San
Mateo County Transit District (SamTrans), as specified.
ANALYSIS:
Existing law:
1)Requires BART and SamTrans to let contracts for the purchase
of supplies, equipment, and materials to the lowest
responsible bidder or to the bidder who submits a proposal
that provides best value, as defined, if the amount of the
contract exceeds $100,000.
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Page 2
2)Requires BART to obtain at least three quotations that permit
prices and terms to be compared whenever the expected
procurement required exceeds $2,500 and does not exceed
$10,000 for the construction of facilities and works or does
not exceed $100,000 for supplies, equipment, or materials.
3)Requires SamTrans to obtain at least three quotations that
permit prices and terms to be compared whenever the expected
procurement required exceeds $2,500 and does not exceed
$100,000 for supplies, equipment, or materials.
This bill:
1)Increases the bid threshold, from $100,000 to $150,000, above
which BART and SamTrans must award contracts for supplies,
equipment, and materials to the lowest responsible bidder or
to the bidder who submits a proposal that provides best value,
as defined.
2)Increases, from $100,000 to $150,000, the maximum procurement
amount for supplies, equipment, or materials under which BART
and SamTrans must obtain at least three quotations that permit
prices and terms to be compared.
3)Increases, from $2,000 to $5,000, the minimum procurement
amount for construction and for supplies, equipment, or
materials, above which BART must obtain at least three
quotations that permit prices and terms to be compared.
4)Increases, from $2,000 to $5,000, the minimum procurement
amount for supplies, equipment, or materials above which
SamTrans must obtain at least three quotations that permit
prices and terms to be compared.
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Page 3
Comments
1)Purpose. According to the author, "This bill adjusts SamTrans
and BART's procurement thresholds as follows:
a) Raises the limit under which the agencies can purchase
supplies, equipment, and materials via the 'best value'
process from $100,000 to $150,000
b) Increases the small- purchase threshold from $2,500 to
$5,000, allowing the agencies additional flexibility to
meet their purchasing needs more quickly, particularly for
locally funded purchase
AB 2030 increases (these) purchasing threshold, to allow
relatively low-cost procurements to be processed in a more
efficient and expeditious manner while still complying with
Federal Transit Administration (FTA) requirements."
1)What are existing practices? Current law requires both BART
and SamTrans to issue contracts for the purchase of supplies,
equipment, and materials to the lowest responsible bidder or
to the bidder who submits a proposal that provides best value,
as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller
contracts. For construction of facilities and works that is
expected to cost between $2,500 and $10,000, and for the
purchase of supplies, equipment, or materials that is expected
to cost between $2,500 and $100,000, BART must obtain at least
three quotes that permit prices and terms to be compared.
SamTrans must follow the same procurement rules when
purchasing supplies, equipment, or materials.
2)Federal regulations. The Simplified Acquisition Threshold
(SAT) is set by the federal government for its Simplified
Acquisition Procedures (SAP), which are designed to help
federal agencies meet their small-business procurement
targets. SAPs employ streamlined contracting procedures for
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contracts valued between $2,500 and $150,000, such as allowing
quotations (including oral quotations) instead of requiring
full-blown bids, requiring less stringent reporting, and
setting simpler rules for subcontracting. Federal acquisition
thresholds are adjusted every five years and published in the
Federal Register. The latest adjustment in 2015 raised the
micro-purchase threshold to $3,500. The SAT ceiling remained
the same at $150,000.
3)Rising costs: This bill proposes to raise the micro-purchase
threshold to $5,000, which is $1,500 above the micro-purchase
threshold specified in federal regulations. Proponents argue
that with the rising cost of various supplies and materials,
the $3,500 threshold would still require transit agencies to
obtain at least three bids for routine purchases such as
printing/mailing orders (up to $4,700), ergonomic workstations
($4,700), or a remanufactured transmission ($3,700). Raising
the micro-purchase threshold to $5,000 will provide BART and
SAMTRANS with the flexibility to purchase routine items
without having to obtain additional bids and also create a
buffer as costs for materials and supplies continue to rise.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:NoLocal: No
SUPPORT: (Verified6/23/16)
Caltrain (co- source)
San Mateo County Transit District (co-source)
San Mateo County Transportation Authority (co- source)
San Francisco Bay Area Rapid Transit District
OPPOSITION: (Verified6/23/16)
AB 2030
Page 5
None received
ASSEMBLY FLOOR: 73-1, 5/12/16
AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bigelow,
Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang,
Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle,
Daly, Dodd, Eggman, Frazier, Eduardo Garcia, Gatto, Gipson,
Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger
Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder,
Lopez, Low, Maienschein, Mathis, Mayes, Medina, Melendez,
Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson,
Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth,
Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk,
Williams, Wood, Rendon
NOES: Travis Allen
NO VOTE RECORDED: Burke, Beth Gaines, Gallagher, Cristina
Garcia, Jones-Sawyer, McCarty
Prepared by:Manny Leon / T. & H. / (916) 651-4121
6/24/16 14:33:43
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