BILL ANALYSIS Ó
AB 2030
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CONCURRENCE IN SENATE AMENDMENTS
AB
2030 (Mullin)
As Amended June 1, 2016
Majority vote
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|ASSEMBLY: | 73-1 | (May 12, |SENATE: | 37-0 | (June 30, 2016) |
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Original Committee Reference: L. GOV.
SUMMARY: Changes specified bidding requirements for the San
Francisco Bay Area Rapid Transit District and the San Mateo
County Transit District.
The Senate amendments remove a provision that required an annual
inflationary adjustment to the bid threshold this bill raises
for the San Mateo County Transit District (SamTrans).
FISCAL EFFECT: None
COMMENTS:
AB 2030
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1)Bill Summary. This bill makes several changes to the
procurement requirements for the San Francisco Bay Area Rapid
Transit District (BART) and SamTrans. For both BART and
SamTrans, this bill increases the formal bid threshold from
$100,000 to $150,000 above which both agencies must award
contracts for the purchase of supplies, equipment and
materials to the lowest bidder or the bidder that provides the
best value.
For BART, this bill also increases the minimum dollar amount,
from $2,500 to $5,000, above which BART must obtain three
quotes for construction of facilities and works for the
purchase of supplies, equipment or materials. It also
increases the maximum amount allowed under this relaxed
procurement method for the purchase of supplies, equipment or
materials, from $100,000 to $150,000.
For SamTrans, this bill increases the minimum dollar amount,
from $2,500 to $5,000, above which SamTrans must obtain three
quotes for the purchase of supplies, equipment or materials,
and increases the maximum amount allowed under this
procurement method from $100,000 to $150,000 (there is no
construction component in this provision for SamTrans).
This bill is sponsored by the author.
2)Author's Statement. 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; and 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 purchases? AB
2030 increases (these) purchasing thresholds? 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."
AB 2030
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3)Background. 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 rules when purchasing supplies,
equipment or materials.
According to the author, "Effective approximately one year
ago, the federal government raised the 'Simplified Acquisition
Threshold' to allow federal grantees like BART and SamTrans to
make purchases using federal grant funds via informal
procurement methods for services, supplies, and other property
of up to $150,000, with even less stringent requirements for
'micro-purchases' of under $3,000."
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 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.
Analysis Prepared by:
Angela Mapp / L. GOV. / (916) 319-3958 FN:
AB 2030
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