BILL NUMBER: SB 376	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 6, 2015

INTRODUCED BY   Senator Lara

                        FEBRUARY 24, 2015

    An act to amend Section 10290.1 of the Public Contract
Code, relating to public contracts.   An act to amend
Section 10507.7 of, and to add Section 10507.6 to, the Public
Contract Code, relating to public contracts. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 376, as amended, Lara.  Contracting by state agencies.
  Public contracts: University of California.  

   Existing provisions of the California Constitution provide that
the University of California constitutes a public trust and require
the university to be administered by the Regents of the University of
California (regents), a corporation in the form of a board, with
full powers of organization and government, subject to legislative
control only for specified purposes, including such competitive
bidding procedures as may be applicable to the university by statute
for the letting of construction contracts, sales of real property,
and purchasing of materials, goods, and services. Existing law
requires the regents, except as provided, to let all contracts
involving an expenditure of more than $100,000 annually for goods and
materials or services, excepting personal or professional services,
to the lowest responsible bidder meeting certain specifications, or
to reject all bids. Existing law, until January 1, 2018, also
authorizes the bid evaluation and selection for these contracts to be
determined by the best value.  
   This bill would require a bidder, to qualify as a lowest
responsible bidder or best value awardee, to certify in writing to
the University of California (UC) that the bid includes a total
employee compensation package that is valued on a per-employee basis
at a level sufficient that it does not materially undercut the
average per-employee value of total compensation for UC employees who
perform comparable work at the relevant campus, medical center, or
laboratory at which the bidder proposes to perform the work. The bill
would require the UC to include in its request for proposals a
calculation of the average per-employee value of total compensation
for UC employees who perform comparable work at the relevant
location, as prescribed. The bill, with respect to contracts for
services, would remove personal services from the lowest responsible
bidder requirement exemption and would require contracts for services
involving an expenditure exceeding $100,000 annually to include any
renewals or extensions of the contract that will also result in an
expenditure exceeding $100,000 annually.  
   Existing law authorizes state agencies, in exercising their
delegation of contracting authority from the Department of General
Services, to contract for specified items or services with suppliers
who have multiple award schedules with the General Services
Administration of the United States, as provided.  
   This bill would make nonsubstantive changes to that provision.

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


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    The Legislature finds and declares the
following:  
   (a) It is a matter of statewide concern that responsible
competitive bidding at the University of California not undercut the
wages and benefits provided by the University of California for
comparable work, given that a significant percentage of University of
California employees already are eligible for public benefits and
any material decrease in the compensation of employees performing
such work would result in materially increased General Fund costs for
the provision of benefits.  
   (b) It is a matter of statewide concern that the University of
California not repeat past instances in which public resources have
been squandered via contracting out to for-profit private contractors
that charge significant administrative overhead. 
   SEC. 2.    Section 10507.6 is added to the  
Public Contract Code   , to read:  
   10507.6.  For the purposes of this article, to qualify as a lowest
responsible bidder or best value awardee, a bidder shall certify the
following in writing to the University of California:
   (a) That the bid includes a total employee compensation package,
including fringe benefits, that is valued on a per-employee basis at
a level sufficient that it does not materially undercut the average
per-employee value of total compensation, including fringe benefits,
for employees of the University of California who perform comparable
work at the relevant campus, medical center, or laboratory at which
the bidder proposes to perform the work.
   (b) The University of California shall implement this paragraph by
including in its request for proposals a calculation of the average
per-employee value of total compensation, including fringe benefits,
for employees of the University of California who perform comparable
work at the relevant campus, medical center, or laboratory, and that
calculation shall use all known cost escalators to project the future
rate of growth of average per-employee total compensation costs.

   SEC. 3.    Section 10507.7 of the   Public
Contract Code   is amended to read: 
   10507.7.   (a)    Except as provided for in this
article, the Regents of the University of California shall let all
contracts involving an expenditure of more than one hundred thousand
dollars ($100,000) annually for goods and materials to be sold to the
University of California to the lowest responsible bidder meeting
specifications, or else reject all bids. Contracts for services to be
performed, other than  personal or  professional
services, involving an expenditure of one hundred thousand dollars
($100,000) or more annually shall be made or entered into with the
lowest responsible bidder meeting specifications, or else all bids
shall be rejected. If the regents deem it to be for the best interest
of the university, the  regents may,   regents,
 on the refusal or failure of the successful bidder for
materials, goods, or services to execute a tendered contract, 
may  award it to the second lowest responsible bidder meeting
specifications. If the second lowest responsible bidder fails or
refuses to execute the contract, the regents may likewise award it to
the third lowest responsible bidder meeting specifications. 
   (b) For the purposes of this section, contracts for services
involving an expenditure of one hundred thousand dollars ($100,000)
or more annually shall include any renewal or extension of an
existing contract, if the renewal or extension involves an
expenditure of one hundred thousand dollars ($100,000) or more
annually.  
  SECTION 1.    Section 10290.1 of the Public
Contract Code is amended to read:
   10290.1.  (a) Notwithstanding any other provision of law, in
exercising its delegation of contracting authority from the
department, a state agency may contract for goods, information
technology, or services with suppliers who have multiple award
schedules with the General Services Administration of the United
States if the supplier is willing to extend those terms, conditions,
and prices. The department may also develop multiple award schedules
or agreements for use by state agencies in the same manner.
   (b) The department shall determine the delegation contracting
authority for agencies wishing to contract with suppliers who have
multiple award schedules. The department shall seek input from both
customer departments and agencies and private sector suppliers.