California Legislature—2015–16 Regular Session

Assembly BillNo. 2690


Introduced by Assembly Member Ridley-Thomas

February 19, 2016


An act to amend Section 130232 of the Public Utilities Code, relating to transportation.

LEGISLATIVE COUNSEL’S DIGEST

AB 2690, as introduced, Ridley-Thomas. Los Angeles County Metropolitan Transportation Authority: contracting.

Existing law creates the Los Angeles County Metropolitan Transportation Authority (LACMTA), with various powers and duties with respect to transportation planning, programming, construction, and operations.

Existing law authorizes LACMTA to provide for a small business preference of 5% of the lowest responsible bidder meeting specifications, with respect to contracts in construction, the construction component of a design-build team, the procurement of goods, or the delivery of services. Existing law also authorizes LACMTA to establish a subcontracting participation goal for small businesses on certain contracts financed with nonfederal funds and to grant a preference of 5% to the lowest responsible bidders that meet that goal.

This bill would also authorize LACMTA to establish disabled veteran business enterprise participation goals, and would define “disabled veteran business enterprise” for these purposes.

Existing law imposes various requirements on bidders relative to contracts involving small business enterprise goals.

This bill would delete those requirements and instead authorize LACMTA to require bidders to comply with small business enterprise and disabled veteran business enterprise goals and requirements established by LACMTA relative to contracts financed with nonfederal funds. The bill would also authorize LACMTA to award contracts under certain circumstances to small business enterprises with respect to work that is set aside for competition among certified small business enterprises.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 130232 of the Public Utilities Code is
2amended to read:

3

130232.  

(a) Except as provided in subdivision (f), purchase
4of all supplies, equipment, and materials, and the construction of
5all facilities and works, when the expenditure required exceeds
6twenty-five thousand dollars ($25,000), shall be by contract let to
7the lowest responsible bidder. Notice requesting bids shall be
8published at least once in a newspaper of general circulation. The
9publication shall be made at least 10 days before the date for the
10receipt of the bids. The commission, at its discretion, may reject
11any and all bids and readvertise.

12(b) Except as provided for in subdivision (f), whenever the
13expected expenditure required exceeds one thousand dollars
14($1,000), but not twenty-five thousand dollars ($25,000), the
15commission shall obtain a minimum of three quotations, either
16written or oral, that permit prices and terms to be compared.

17(c) Where the expenditure required by the bid price is less than
18fifty thousand dollars ($50,000), the executive director may act
19for the commission.

20(d) All bids for construction work submitted pursuant to this
21section shall be presented under sealed cover and shall be
22accompanied by one of the following forms of bidder’s security:

23(1) Cash.

24(2) A cashier’s check made payable to the commission.

25(3) A certified check made payable to the commission.

26(4) A bidder’s bond executed by an admitted surety insurer,
27made payable to the commission.

28(e) Upon an award to the lowest bidder, the security of an
29unsuccessful bidder shall be returned in a reasonable period of
P3    1time, but in no event shall that security be held by the commission
2beyond 60 days from the date that the award was made.

3(f) The following provisions apply only to the Los Angeles
4County Metropolitan Transportation Authority:

5(1) The contract shall be let to the lowest responsible bidder or,
6in the authority’s discretion, to the person who submitted a proposal
7that provides the best value to the commission on the basis of the
8factors identified in the solicitation when the purchase price of all
9supplies, equipment, and materials exceeds one hundred fifty
10thousand dollars ($150,000). “Best value” means the overall
11combination of quality, price, and other elements of a proposal
12that, when considered together, provide the greatest overall benefit
13in response to requirements described in the solicitation documents.
14The contract shall be let to the lowest responsible bidder when the
15purchase price of the construction of all facilities exceeds
16twenty-five thousand dollars ($25,000).

17(2) The authority shall obtain a minimum of three quotations,
18either written or oral, that permit prices and terms to be compared
19whenever the expected expenditure required exceeds three thousand
20dollars ($3,000), but not one hundred fifty thousand dollars
21($150,000).

22(3) The authority may purchase supplies, equipment, and
23materials from a public auction sale, including public auctions
24held via the Internet, using the procedures established for all other
25participants in the public auction.

26(4) The authority may participate in a procurement agreement
27involving other public entities that is identified by a procuring
28public entity or entities as a cooperative procuring agreement from
29which other public entities may make purchases or enter into
30contracts, and the authority may procure, and enter into contracts
31for, items purchased pursuant to that procurement agreement,
32notwithstanding that the authority may not be the procuring public
33entity, provided the procurement agreement is awarded or entered
34into by either of the following:

35(A) One or more public entities or an organization of public
36entities, which may include the authority.

37(B) A federal, state, or local public entity.

38(5) (A) Notwithstanding any other provision of law requiring
39the authority to award contracts to the lowest responsible bidder,
40the authority may, except as to contracts for professional services
P4    1involving private architectural, landscape architectural, engineering,
2environmental, land surveying, or construction management as
3defined in Sections 4525 and 4529.10 of the Government Code,
4do any of the following in facilitating contract awardsbegin delete toend deletebegin insert withend insert small
5begin delete businesses:end deletebegin insert business enterprises and disabled veteran business
6enterprises:end insert

7(i) Provide for a small business preference in construction, the
8construction component of a design-build team, the procurement
9of goods, or the delivery of services. The preference to a small
10business shall be 5 percent of the lowest responsible bidder meeting
11specifications thatbegin delete provideend deletebegin insert providesend insert for small business participation.

12(ii) Establish a subcontracting participation goal for small
13begin delete businessesend deletebegin insert business enterprisesend insert on contracts financed with
14nonfederal funds and grant a preference of 5 percent to the lowest
15responsible bidders who meet the goal.

16(iii) Requirebegin delete bidders to make a good faith effort, in accordance
17with the criteria established pursuant to subparagraph (B),end delete
begin insert bidders,end insert
18 prior to the time bids are opened, to comply with thebegin insert small business
19enterprise and disabled veteran business enterpriseend insert
goals and
20requirements established by the authoritybegin delete relating to participation
21in the contract by small businesses.end delete
begin insert on contracts financed with
22nonfederal funds.end insert

begin delete

23(B) The following shall apply to bidders under this paragraph:

24(i) The bidder attended any presolicitation or prebid meetings
25that were scheduled by the authority to inform all bidders of the
26small business enterprise program requirements for the project for
27which the contract will be awarded. The authority may waive this
28requirement if it determines that the bidder is informed as to those
29program requirements.

30(ii) The bidder identified and selected specific items of the
31project for which the contract will be awarded to be performed by
32small business enterprises to provide an opportunity for
33participation by those enterprises.

34(iii) The bidder advertised, not less than 10 calendar days before
35the date the bids are opened, in one or more daily or weekly
36newspapers, trade association publications or trade-oriented
37publications, trade journals, or other media, specified by the
38authority for small business enterprises that are interested in
39participating in the project. This clause applies only if the authority
P5    1gave public notice of the project not less than 15 calendar days
2prior to the date the bids are opened.

3(iv) The bidder provided written notice of his or her interest in
4bidding on the contract to the number of small business enterprises
5required to be notified by the project specifications not less than
610 calendar days prior to the opening of bids. The authority shall
7make available to the bidder not less than 15 calendar days prior
8to the date the bids are opened a list or a source of lists of
9enterprises which are certified by the authority as small business
10enterprises.

11(v) The bidder followed up initial solicitations of interest by
12contacting the enterprises to determine with certainty whether the
13enterprises were interested in performing specific items of the
14project.

15(vi) The bidder provided interested small business enterprises
16with information about the plans, specifications, and requirements
17for the selected subcontracting or material supply work.

18(vii) The bidder requested assistance from small business
19community organizations; small business contractor groups; local,
20state, or small business assistance offices; or other organizations
21that provide assistance in the recruitment and placement of small
22business enterprises, if any are available.

23(viii) The bidder negotiated in good faith with the small business
24enterprises, and did not unjustifiably reject as unsatisfactory bids
25prepared by any small business enterprises, as determined by the
26authority.

27(ix) Where applicable, the bidder advised and made efforts to
28assist interested small business enterprises in obtaining bonds,
29lines of credit, or insurance required by the authority or contractor.

30(x) The bidder’s efforts to obtain small business enterprise
31participation could reasonably be expected by the authority to
32produce a level of participation sufficient to meet the goals and
33requirements of the authority.

end delete
begin insert

34(iv) In awarding contracts to the lowest responsible bidder,
35award the contract to the lowest responsible bidder meeting the
36small business enterprise and disabled veteran business enterprise
37goals.

end insert
begin insert

38(v) Set aside work for competition among certified small
39business enterprises and award a contract to the lowest responsible
40bidder whenever the expected expenditure required exceeds three
P6    1thousand dollars ($3,000) but is less than a threshold amount
2established by the authority, as long as price quotations are
3obtained by the authority from three or more certified small
4business enterprises.

end insert
begin insert

5(vi) Set aside work for competition among certified small
6business enterprises and award a contract to the lowest responsible
7bidder whenever the expected expenditure required exceeds the
8authority’s threshold amount in clause (v) but is less than five
9million dollars ($5,000,000), as long as price quotations are
10obtained by the authority from three or more certified small
11business enterprises.

end insert
begin insert

12(B) A small business enterprise recommended for a contract
13award through use of a set aside shall be performing a
14commercially useful function. A small business enterprise shall be
15presumed to be performing a commercially useful function if it
16performs and exercises responsibility of at least 30 percent of the
17total cost of the contract work with its own workforce.

end insert

18(C) “Small business enterprise” as used in this paragraph, means
19a business enterprise that is classified as a small business under
20United States Small Business Administration rules and meets the
21current small business enterprise size standards found in Part 121
22of Title 13 of the Code of Federal Regulations appropriate to the
23type of work the enterprise seeks to perform. The authority may
24establish limitations regarding the average annual gross receipts
25of a small business over the previous three fiscal years and establish
26limitations regarding the personal net worth of the owner of the
27small business, exclusive of the value of the owner’s personal
28residence.

begin insert

29(D) “Disabled veteran business enterprise” as used in this
30paragraph has the meaning as defined in Section 999 of the
31Military and Veterans Code.

end insert
begin insert

32(E) “Goal” as used in this paragraph means a numerically
33expressed objective that bidders are required to achieve.

end insert


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