SB 376, as amended, Lara. 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
begin delete more thanend delete $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
begin delete awardee,end delete 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 begin delete services, would removeend delete personal services from the lowest responsible bidder begin delete requirement exemption andend delete would require contracts for services involving an expenditure begin delete exceedingend delete $100,000 annually to include any renewals or extensions of the contract that begin delete will alsoend delete result in an expenditure begin delete exceedingend delete $100,000 annually.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
The Legislature finds and declares the following:
2(a) It is a matter of statewide concern that responsible
3competitive bidding at the University of California not undercut
4the wages and benefits provided by the University of California
5for comparable work, given that a significant percentage of
6University of California employees already are eligible for public
7benefits and any material decrease in the compensation of
8employees performing such work would result in materially
9increased General Fund costs for the provision of benefits.
10(b) It is a matter of statewide concern that the University
11California not repeat past instances in which public resources have
12been squandered via contracting out to for-profit private contractors
13that charge significant administrative overhead.
Section 10507.6 is added to the Public Contract Code,
For the purposes of this article, to qualify as a
17lowest responsible bidder or best value
begin delete awardee,end delete
a bidder shall certify begin delete the followingend delete in
5writing to the University of
begin deleteCalifornia:end delete
begin delete(a)end delete begin delete end delete begin deleteThat end deletethe bid includes a total employee
7compensation package, including fringe benefits, that is valued on
8a per-employee basis at a level sufficient that it does not materially
9undercut the average per-employee value of total compensation,
10including fringe benefits, for employees of the University of
11California who perform comparable work at the relevant campus,
12medical center, or laboratory at which the bidder proposes to
13perform the work.
14(b) The University of California shall implement this
begin delete paragraphend delete
15 by including in its request for proposals a calculation of
16the average per-employee value of total compensation, including
17fringe benefits, for employees of the University of California who
18perform comparable work at the relevant campus, medical center,
19or laboratory, and that calculation shall use all known cost
20escalators to project the future rate of growth of average
21per-employee total compensation costs.
Section 10507.7 of the Public Contract Code is
32amended to read:
(a) Except as provided for in this article, the Regents
34of the University of California shall let all contracts involving an
35expenditure of more than one hundred thousand dollars ($100,000)
36annually for goods and materials to be sold to the University of
37California to the lowest responsible bidder meeting specifications,
38or else reject all bids. Contracts for services to be performed, other
39than professional services, involving an expenditure of one hundred
40thousand dollars ($100,000) or more annually shall be made or
P4 1entered into with the lowest responsible bidder meeting
2specifications, or else all bids shall be rejected. If the regents deem
3it to be for the best interest of the university, the regents, on the
4refusal or failure of the successful bidder for materials, goods, or
5services to execute a tendered contract, may award it to the second
6lowest responsible bidder meeting specifications. If the second
7lowest responsible bidder fails or refuses to execute the contract,
8the regents may likewise award it to the third lowest responsible
9bidder meeting specifications.
10(b) For the purposes of this section, contracts for services
11involving an expenditure of one hundred thousand dollars
12($100,000) or more annually shall include any renewal or extension
13of an existing contract, if the renewal or extension involves an
14expenditure of one hundred thousand dollars ($100,000) or more