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 $100,000 or more 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 on contracts for specified services, 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 involving an expenditure of $100,000 or more, would not except personal services from the lowest responsible bidder requirement. The bill would require contracts for services involving an expenditure of $100,000 or more annually to include any renewals or extensions of the contract that would result in an expenditure of $100,000 or more annually.
This bill would exclude specified employees and public works from these provisions, as provided.
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 of
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,
(a) For the purposes of this article, to qualify as a
17lowest responsible bidder or best value awardee on any contract
P3 1for building maintenance, cleaning, or custodial services, call
2center services, dining services,
begin delete grounds services,
4laborer services, mailroom services,
begin delete parkingend delete or transportation services, security services, begin delete orend delete
6 patient care technical employee or nursing assistant services, a bidder shall certify
9in writing to the University of California that the bid includes a
10total employee compensation package, including fringe benefits,
11that is valued on a per-employee basis at a level sufficient that it
12does not materially undercut the average per-employee value of
13total compensation, including fringe benefits, for employees of
14the University of California who perform comparable work at the
15 relevant campus, medical center, or laboratory at which the bidder
16proposes to perform the work.
17(b) The University of California shall implement this section
18by including in its request for proposals a calculation of the average
19per-employee value of total compensation, including fringe
20benefits, for employees of the University of California who perform
21comparable work at the relevant campus, medical center, or
22laboratory, and that calculation shall use all known cost escalators
23to project the future rate of growth of average per-employee total
25The requirements of this section shall not apply to employees
26subject to Section 1191.5 of the Labor Code or Section 214(c) of
27Title 29 of the United States Code. Any employees covered by
28Section 1191.5 of the Labor Code or Section 214(c) of Title 29 of
29the United States Code shall be omitted from all calculations and
30certifications required by this article.
31(c) This section does not apply to any work subject to Chapter
321 (commencing with Section 1720) of Part 7 of Division 2 of the
Section 10507.7 of the Public Contract Code is
35amended to read:
(a) Except as provided for in this article, the Regents
37of the University of California shall let all contracts involving an
38expenditure of more than one hundred thousand dollars ($100,000)
39annually for goods and materials to be sold to the University of
40California to the lowest responsible bidder meeting specifications,
P4 1or else reject all bids. Contracts for services to be performed, other
2than professional services, involving an expenditure of one hundred
3thousand dollars ($100,000) or more annually shall be made or
4entered into with the lowest responsible bidder meeting
5specifications, or else all bids shall be rejected. If the regents deem
6it to be for the best interest of the university, the regents, on the
7refusal or failure of the successful bidder for materials, goods, or
8services to execute a tendered contract, may award it to the second
9lowest responsible bidder meeting specifications. If the second
10lowest responsible bidder fails or refuses to execute the contract,
11the regents may likewise award it to the third lowest responsible
12bidder meeting specifications.
13(b) For the purposes of this section, contracts for services
14involving an expenditure of one hundred thousand dollars
15($100,000) or more annually shall include any renewal or extension
16of an existing contract, if the renewal or extension involves an
17expenditure of one hundred thousand dollars ($100,000) or more