BILL NUMBER: SB 693 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 27, 2016
AMENDED IN ASSEMBLY APRIL 18, 2016
INTRODUCED BY Senator Hueso
(Principal coauthor: Assembly Member Ridley-Thomas)
FEBRUARY 27, 2015
An act to amend Sections 17250.25 and 17407.5 of the Education
Code, to amend Section 25536.7 of the Health and Safety Code,
and to amend Sections 10191, 20119.1, 20119.3,
and 20155.4 20155.4, and 22164 of, to
repeal Section 20155.2 of, and to add Chapter 2.9 (commencing with
Section 2600) to Part 1 of Division 2 of, the Public Contract Code,
relating to employment.
LEGISLATIVE COUNSEL'S DIGEST
SB 693, as amended, Hueso. Public contracts: skilled and trained
workforce.
Existing law establishes specific instances where a public entity
is required to obtain an enforceable commitment that a bidder,
contractor, or other entity will use a skilled and trained workforce
to complete a contract or project.
This bill would establish provisions to be generally applicable
when a public entity is required by statute or regulation to obtain
an enforceable commitment that a bidder, contractor, or other entity
will use a skilled and trained workforce to complete a contract or
project. The bill would also authorize a public entity to require
that a bidder, contractor, or other entity use a skilled and trained
workforce to complete a contract or project.
Existing law relating to school facilities provides for the lease
of property and prohibits the governing board of a school district
from entering into specific lease agreements for the construction of
buildings for the use of the school district with any entity unless
the entity provides to the governing board an enforceable commitment
that the entity and its subcontractors at every tier will use a
skilled and trained workforce to perform all work on the project or
contract that falls within an apprenticeable occupation in the
building and construction trades.
Existing law relating to school facilities, operative July 1,
2016, and until January 1, 2025, also authorizes a school district,
with the approval of the governing board of the school district, to
procure design-build contracts for certain public works projects, as
provided, and prohibits a design-build entity from being prequalified
or shortlisted unless the entity provides a similar enforceable
commitment to the school district with respect to the use of a
skilled and trained workforce.
Existing law relating to the Department of General Services and
the Department of Corrections and Rehabilitation authorizes the
Director of General Services and the Secretary of the Department of
Corrections and Rehabilitation to procure design-build contracts for
certain public works projects, as provided, and prohibits a
design-build entity from being prequalified or shortlisted unless the
entity provides a similar enforceable commitment to the departments
with respect to the use of a skilled and trained workforce.
Existing law relating to local agencies authorizes a local agency
to procure design-build contracts for certain public works projects,
as provided, and prohibits a design-build entity from being
prequalified or shortlisted unless the entity provides a similar
enforceable commitment to a local agency with respect to the use of a
skilled and trained workforce.
Existing law, until January 1, 2021, establishes a pilot program
to authorize the Los Angeles Unified School District to use a best
value procurement method for bid evaluation and selection for certain
public projects (LAUSD pilot program). The LAUSD pilot program
precludes the prequalification or shortlisting of a best value entity
unless the entity provides a similar enforceable commitment to the
governing board of the district with respect to the use of a skilled
and trained workforce.
Existing law establishes a pilot program to allow the Counties of
Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano,
and Yuba to select a bidder on the basis of best value, as defined,
for specific construction projects (pilot program for counties). The
pilot program for counties precludes the prequalification or
shortlisting of a best value contractor unless the contractor
provides a similar enforceable commitment to the county with respect
to the use of a skilled and trained workforce.
This bill would revise those provisions specifically applicable to
school facilities, the Department of General Services, the
Department of Corrections and Rehabilitation, and local agency
design-build projects, the LAUSD pilot program, and the pilot
program for counties to require, instead, an enforceable commitment
for the use of a skilled and trained workforce in accordance with the
above-described generally applicable provisions for the use of a
skilled and trained workforce, unless there is a prescribed project
labor agreement.
The bill, except as specified, would not apply to contracts
advertised for bid or awarded before January 1, 2016.
2017.
The California Constitution requires local agencies, for the
purpose of ensuring public access to the meetings of public bodies
and the writings of public officials and agencies, to comply with a
statutory enactment that amends or enacts laws relating to public
records or open meetings and contains findings demonstrating that the
enactment furthers the constitutional requirements relating to this
purpose.
This bill would make legislative findings to that effect.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17250.25 of the Education Code, as added by
Section 2 of Chapter 752 of the Statutes of 2015, is amended to read:
17250.25. The procurement process for design-build projects shall
progress as follows:
(a) (1) The school district shall prepare a set of documents
setting forth the scope and estimated price of the project. The
documents may include, but are not limited to, the size, type, and
desired design character of the project, performance specifications
covering the quality of materials, equipment, workmanship,
preliminary plans or building layouts, or any other information
deemed necessary to describe adequately the school district's needs.
The performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
California.
(2) The documents shall not include a design-build-operate
contract for a project. The documents, however, may include
operations during a training or transition period, but shall not
include long-term operations for a project.
(b) The school district shall prepare and issue a request for
qualifications in order to prequalify, or develop a short-list of,
the design-build entities whose proposals shall be evaluated for
final selection. The request for qualifications shall include, but is
not limited to, all of the following elements:
(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the school district to evaluate proposals, the procedure for final
selection of the design-build entity, and any other information
deemed necessary by the school district to inform interested parties
of the contracting opportunity.
(2) Significant factors that the school district reasonably
expects to consider in evaluating qualifications, including technical
design and construction expertise, acceptable safety record, and all
other nonprice-related factors.
(3) A standard template request for statements of qualifications
prepared by the school district. In preparing the standard template,
the school district may consult with the construction industry, the
building trades and surety industry, and other school districts
interested in using the authorization provided by this chapter. The
template shall require the following information:
(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time of
statement of qualification submission who will perform work on the
project.
(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete, projects of similar size, scope, or
complexity, and that the proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
ensures that the design-build entity has the capacity to complete the
project.
(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
(D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(E) Information concerning workers' compensation experience
history and a worker safety program.
(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing to
form the organization.
(G) An acceptable safety record. A proposer's safety record shall
be deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category, or if the
proposer is a party to an alternative dispute resolution system, as
provided for in Section 3201.5 of the Labor Code.
(4) (A) The information required under this subdivision shall be
certified under penalty of perjury by the design-build entity and its
general partners or joint venture members.
(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(c) (1) A design-build entity shall not be prequalified or
shortlisted unless the entity provides an enforceable commitment to
the school district that the entity and its subcontractors at every
tier will use a skilled and trained workforce to perform all work on
the project or contract that falls within an apprenticeable
occupation in the building and construction trades, in accordance
with Chapter 2.9 (commencing with Section 2600) of Part 1 of Division
2 of the Public Contract Code.
(2) This subdivision shall not apply if either:
any of the following requirements are met:
(A) The school district has entered into a project labor agreement
that will bind all contractors and subcontractors performing work on
the project or contract to use a skilled and trained workforce,
and the entity agrees to be bound by that project labor
agreement.
(B) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
school district prior to January 1, 2017.
(B)
(C) The entity has entered into a project labor
agreement that will bind the entity and all its subcontractors at
every tier performing the project or contract.
contract to use a skilled and trained workforce.
(3) For purposes of this subdivision, "project labor agreement"
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500 of the Public Contract Code.
(d) Based on the documents prepared as described in subdivision
(a), the school district shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the school district. The
request for proposals shall include, but need not be limited to, the
following elements:
(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the school district to evaluate proposals, whether
the contract will be awarded on the basis of low bid or best value,
and any other information deemed necessary by the school district to
inform interested parties of the contracting opportunity.
(2) Significant factors that the school district reasonably
expects to consider in evaluating proposals, including, but not
limited to, cost or price and all nonprice-related factors.
(3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
(4) Where a best value selection method is used, the school
district may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which
case the school district shall so specify in the request for
proposals and shall publish separately or incorporate into the
request for proposals applicable procedures to be observed by the
school district to ensure that any discussions or negotiations are
conducted in good faith.
(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.
(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however, shall
be weighted as deemed appropriate by the school district:
(A) Price, unless a stipulated sum is specified.
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 or more years.
(2) Pursuant to subdivision (d), the school district may hold
discussions or negotiations with responsive proposers using the
process articulated in the school district's request for proposals.
(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided, provided
that no more than three proposers are required to be ranked.
(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the school
district to have offered the best value to the public.
(5) Notwithstanding any other provision of law, upon issuance of a
contract award, the school district shall publicly announce its
award, identifying the design-build entity to which the award is
made, along with a statement regarding the basis of the award.
(6) The statement regarding the school district's contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.
SEC. 2. Section 17407.5 of the Education Code is amended to read:
17407.5. (a) The governing board of a school district shall not
enter into an agreement pursuant to Section 17406 or 17407 with any
entity unless the entity provides to the governing board of the
school district an enforceable commitment that the entity and its
subcontractors at every tier will use a skilled and trained workforce
to perform all work on the project or contract that falls within an
apprenticeable occupation in the building and construction trades, in
accordance with Chapter 2.9 (commencing with Section 2600) of Part 1
of Division 2 of the Public Contract Code.
(b) Subdivision (a) shall not apply if either:
any of the following requirements are met:
(1) The governing board of the school district has entered into a
project labor agreement that will bind all contractors and
subcontractors performing work on the project or contract to use
a skilled and trained workforce and the entity agrees to be
bound by that project labor agreement.
(2) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
school district prior to January 1, 2017.
(2)
(3) The entity has entered into a project labor
agreement that will bind the entity and all its subcontractors at
every tier performing the project or contract.
contract to use a skilled and trained workforce.
(c) For purposes of this section, "project labor agreement" has
the same meaning as in paragraph (1) of subdivision (b) of Section
2500 of the Public Contract Code.
SEC. 3. Section 25536.7 of the Health
and Safety Code is amended to read:
25536.7. (a) (1) An owner or operator of a stationary source that
is engaged in activities described in Code 324110 or 325110 of the
North American Industry Classification System (NAICS), as that code
read on January 1, 2014, and with one or more covered processes that
is required to prepare and submit an RMP pursuant to this article,
when contracting for the performance of construction, alteration,
demolition, installation, repair, or maintenance work at the
stationary source, shall require that its contractors and any
subcontractors use a skilled and trained workforce to perform all
onsite work within an apprenticeable occupation in the building and
construction trades. This section shall not apply to oil and gas
extraction operations.
(2) The Chief of the Division of Apprenticeship Standards of the
Department of Industrial Relations may approve a curriculum of
in-person classroom and laboratory instruction for approved advanced
safety training for workers at high hazard facilities. That safety
training may be provided by an apprenticeship program approved by the
chief or by instruction provided by the Chancellor of the California
Community Colleges. The chief shall approve a curriculum in
accordance with this paragraph by January 1, 2016, and shall
periodically revise the curriculum to reflect current best practices.
Upon receipt of certification from the apprenticeship program or
community college, the chief shall issue a certificate to a worker
who completes the approved curriculum.
(3) For purposes of paragraph (2) of subdivision (b) of Section
3075 of the Labor Code, a stationary source covered by this section
shall be considered in determining whether existing apprenticeship
programs do not have the capacity, or have neglected or refused, to
dispatch sufficient apprentices to qualified employers who are
willing to abide by the applicable apprenticeship standards.
(4) This section shall not apply to contracts awarded before
January 1, 2014, unless the contract is extended or renewed after
that date.
(5) (A) This section shall not apply to the employees of the owner
or operator of the stationary source or prevent the owner or
operator of the stationary source from using its own employees to
perform any work that has not been assigned to contractors while the
employees of the contractor are present and working.
(B) An apprenticeship program approved by the chief may enroll,
with advanced standing, applicants with relevant prior work
experience at a stationary source that is subject to this section, in
accordance with the approved apprenticeship standards of the
program.
(6) The criteria of subparagraph (A) of paragraph (9)
(10) of subdivision (b), subparagraph (C) of
paragraph (9) (10) of subdivision (b),
and subparagraph (B) of paragraph (10) (11)
of subdivision (b) shall not apply to either of the following:
(A) To the extent that the contractor has requested qualified
workers from the local hiring halls that dispatch workers in the
apprenticeable occupation and, due to workforce shortages, the
contractor is unable to obtain sufficient qualified workers within 48
hours of the request, Saturdays, Sundays, and holidays excepted.
This section shall not prevent contractors from obtaining workers
from any source.
(B) To the extent that compliance is impracticable because an
emergency requires immediate action to prevent harm to public health
or safety or to the environment, but the criteria shall apply as soon
as the emergency is over or it becomes practicable for contractors
to obtain a qualified workforce.
(7) The requirement specified in paragraph (1) for a skilled and
trained workforce, as defined in paragraph (10)
(11) of subdivision (b), shall apply to each individual
contractor's and subcontractor's onsite workforce.
(8) This section does not make the construction, alteration,
demolition, installation, repair, or maintenance work at a stationary
source that is subject to this section a public work, within the
meaning of Chapter 1 (commencing with Section 1720) of Part 7 of
Division 2 of the Labor Code. This section does not preclude the
use of an alternative workweek schedule adopted pursuant to Section
511 or 514 of the Labor Code.
(b) As used in this section:
(1) "Apprenticeable occupation" means an occupation for which the
chief has approved an apprenticeship program pursuant to Section 3075
of the Labor Code.
(2) "Approved advanced safety training for workers at high hazard
facilities" means a curriculum approved by the chief pursuant to
paragraph (2) of subdivision (a).
(3) "Building and construction trades" has the same meaning as in
Section 3075.5 of the Labor Code.
(4) "Chief" means the Chief of the Division of the Apprenticeship
Standards of the Department of Industrial Relations.
(5) "Construction," "alteration," "demolition," "installation,"
"repair," and "maintenance" have the same meanings as in Sections
1720 and 1771 of the Labor Code.
(6) "Graduate of an apprenticeship program" means either of the
following:
(A) An individual that has been issued a certificate of completion
under the authority of the California Apprenticeship Council for
completing an apprenticeship program approved by the chief pursuant
to Section 3075 of the Labor Code.
(B) An individual that has completed an apprenticeship program
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor.
(6)
(7) "Onsite work" shall not include catalyst handling
and loading, chemical cleaning, or inspection and testing that was
not within the scope of a prevailing wage determination issued by the
Director of Industrial Relations as of January 1, 2013.
(7)
(8) "Prevailing hourly wage rate" means the general
prevailing rate of per diem wages, as determined by the Director of
Industrial Relations pursuant to Sections 1773 and 1773.9 of the
Labor Code, but does not include shift differentials, travel and
subsistence, or holiday pay. Notwithstanding subdivision (c) of
Section 1773.1 of the Labor Code, the requirement that employer
payments not reduce the obligation to pay the hourly straight time or
overtime wages found to be prevailing shall not apply if otherwise
provided in a bona fide collective bargaining agreement covering the
worker.
(8)
(9) "Registered apprentice" means an apprentice
registered in an apprenticeship program approved by the chief
pursuant to Section 3075 of the Labor Code who is performing work
covered by the standards of that apprenticeship program and receiving
the supervision required by the standards of that apprenticeship
program.
(9)
(10) "Skilled journeyperson" means a worker who meets
all of the following criteria:
(A) The worker either graduated from an apprenticeship program for
the applicable occupation that was approved by the chief, or has at
least as many hours of on-the-job experience in the applicable
occupation that would be required to graduate from an apprenticeship
program for the applicable occupation that is approved by the chief.
(B) The worker is being paid at least a rate equivalent to the
prevailing hourly wage rate for a journeyperson in the applicable
occupation and geographic area.
(C) The worker has completed within the prior two calendar years
at least 20 hours of approved advanced safety training for workers at
high hazard facilities. This requirement applies only to work
performed on or after January 1, 2018.
(10)
(11) "Skilled and trained workforce" means a workforce
that meets both of the following criteria:
(A) All the workers are either registered apprentices or skilled
journeypersons.
(B) (i) As of January 1, 2014, at least 30 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
occupation.
(ii) As of January 1, 2015, at least 45 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
occupation.
(iii) As of January 1, 2016, at least 60 percent of the skilled
journeypersons are graduates of an apprenticeship program for the
applicable occupation that was either approved by the chief
pursuant to Section 3075 of the Labor Code or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
occupation.
SEC. 3. SEC. 4. Chapter 2.9
(commencing with Section 2600) is added to Part 1 of Division 2 of
the Public Contract Code, to read:
CHAPTER 2.9. SKILLED AND TRAINED WORKFORCE REQUIREMENTS
2600. (a) This chapter applies when a public entity is required
by statute or regulation to obtain an enforceable commitment that a
bidder, contractor, or other entity will use a skilled and trained
workforce to complete a contract or project.
(b) A public entity may require a bidder, contractor, or other
entity to use a skilled and trained workforce to complete a contract
or project regardless of whether the public entity is required to do
so by a statute or regulation.
2601. For purposes of this chapter:
(a) "Apprenticeable occupation" means an occupation for which the
Chief of the Division of Apprenticeship Standards of the Department
of Industrial Relations had approved an apprenticeship program
pursuant to Section 3075 of the Labor Code before January 1, 2014.
(b) "Chief" means the Chief of the Division of Apprenticeship
Standards of the Department of Industrial Relations.
(c) "Graduate of an apprenticeship program" means either of the
following:
(1) An individual that has been issued a certificate of completion
under the authority of the California Apprenticeship Council for
completing an apprenticeship program approved by the chief pursuant
to Section 3075 of the Labor Code.
(2) An individual that has completed an apprenticeship program
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor.
(c)
(d) "Skilled and trained workforce" means a workforce
that meets all of the following conditions:
(1) All the workers performing work in an apprenticeable
occupation in the building and construction trades are either skilled
journeypersons or apprentices registered in an apprenticeship
program approved by the chief.
(2) (A) For work performed on or after January 1, 2017, at least
30 percent of the skilled journeypersons employed to perform work on
the contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable occupation that was either
approved by the chief pursuant to Section 3075 of the Labor Code or
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor. occupation.
(B) For work performed on or after January 1, 2018, at least 40
percent of the skilled journeypersons employed to perform work on the
contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable occupation that was either
approved by the chief pursuant to Section 3075 of the Labor Code or
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor. occupation.
(C) For work performed on or after January 1, 2019, at least 50
percent of the skilled journeypersons employed to perform work on the
contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable occupation that was either
approved by the chief pursuant to Section 3075 of the Labor Code or
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor. occupation.
(D) For work performed on or after January 1, 2020, at least 60
percent of the skilled journeypersons employed to perform work on the
contract or project by every contractor and each of its
subcontractors at every tier are graduates of an apprenticeship
program for the applicable occupation that was either
approved by the chief pursuant to Section 3075 of the Labor Code or
located outside California and approved for federal purposes pursuant
to the apprenticeship regulations adopted by the federal Secretary
of Labor. occupation.
(3) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief before January 1, 1995, up to
one-half of the graduation percentage requirements of paragraph (2)
may be satisfied by skilled journeypersons who commenced working in
the apprenticeable occupation before the chief's approval of an
apprenticeship program for that occupation in the county in which the
project is located.
(4) The apprenticeship graduation percentage requirements of
paragraph (2) are satisfied if, in a particular calendar month,
either of the following is true:
(A) At least the required percentage of the skilled journeypersons
employed by the contractor or subcontractor to perform work on the
contract or project meet the graduation percentage requirement.
(B) For the hours of work performed by skilled journeypersons
employed by the contractor or subcontractor on the contract or
project, the percentage of hours performed by skilled journeypersons
who met the graduation requirement is at least equal to the required
graduation percentage.
(5) The contractor or subcontractor need not meet the
apprenticeship graduation requirements of paragraph (2) if, during
the calendar month, the contractor or subcontractor employs skilled
journeypersons to perform fewer than 10 hours of work on the contract
or project.
(6) A subcontractor need not meet the apprenticeship graduation
requirements of paragraph (2) if both of the following requirements
are met:
(A) The subcontractor was not a listed subcontractor under Section
4104 or a substitute for a listed subcontractor.
(B) The subcontract does not exceed one-half of 1 percent of
the price of the prime contract.
(d)
(e) "Skilled journeyperson" means a worker who either:
(1) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
(2) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is approved
by the chief.
2602. (a) When a contractor, bidder, or other entity is required
to provide an enforceable commitment that a skilled and trained
workforce will be used to complete a contract or project, the
commitment shall be made in an enforceable agreement with the public
entity or other awarding body that provides both of the following:
(1) The contractor, bidder, or other entity, and its contractors
and subcontractors at every tier, will comply with this chapter.
(2) The contractor, bidder, or other entity will provide to the
public entity or other awarding body, on a monthly basis while the
project or contract is being performed, a report demonstrating
compliance with this chapter.
(b) If the contractor, bidder, or other entity fails to provide
the monthly report required by this section, or provides a report
that is incomplete, the public agency or other awarding body shall
withhold further payments until a complete report is provided.
(c) If a monthly report does not demonstrate compliance with this
chapter, the public agency or other awarding body shall withhold
further payments until the contractor, bidder, or other entity
provides a plan to achieve substantial compliance with this chapter,
with respect to the relevant apprenticeable occupation, prior to
completion of the contract or project.
(d) A monthly report provided to the public agency or other
awarding body shall be a public record under the California Public
Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7
of Title 1 of the Government Code) and shall be open to public
inspection.
SEC. 5. Section 10191 of the Public
Contract Code is amended to read:
10191. The procurement process for the design-build projects
shall progress as follows:
(a) (1) The director shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents may
include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary plans
or building layouts, or any other information deemed necessary to
describe adequately the department's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
(2) The documents shall not include a design-build-operate
contract for any project. The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project.
(b) The director shall prepare and issue a request for
qualifications in order to prequalify or short-list the design-build
entities whose proposals shall be evaluated for final selection. The
request for qualifications shall include, but need not be limited to,
the following elements:
(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the department to evaluate proposals, the procedure for final
selection of the design-build entity, and any other information
deemed necessary by the director to inform interested parties of the
contracting opportunity.
(2) Significant factors that the department reasonably expects to
consider in evaluating qualifications, including technical design and
construction expertise, and all other nonprice-related factors.
(3) A standard template request for statements of qualifications
prepared by the department. In preparing the standard template, the
department may consult with the construction industry, the building
trades and surety industry, and other agencies interested in using
the authorization provided by this article. The template shall
require the following information:
(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time of
statement of qualification submission who will perform work on the
project.
(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
ensures that the design-build entity has the capacity to complete the
project.
(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
(D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(E) Information concerning workers' compensation experience
history and a worker safety program.
(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing to
form the organization.
(G) An acceptable safety record. A proposer's safety record shall
be deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
proposer is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(4) (A) The information required under this subdivision shall be
certified under penalty of perjury by the design-build entity and its
general partners or joint venture members.
(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(c) (1) A design-build entity shall not be
prequalified or shortlisted unless the entity provides an enforceable
commitment to the director that the entity and its subcontractors at
every tier will use a skilled and trained workforce to perform all
work on the project or contract that falls within an apprenticeable
occupation in the building and construction trades.
trades, in accordance with Chapter 2.9 (commencing
with Section 2600) of Part 1 .
(1) For purposes of this subdivision:
(A) "Apprenticeable occupation" means an occupation for which the
chief had approved an apprenticeship program pursuant to Section 3075
of the Labor Code prior to January 1, 2014.
(B) "Skilled and trained workforce" means a workforce that meets
all of the following conditions:
(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by the
Chief of the Division of Apprenticeship Standards.
(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journeypersons employed to perform work on the contract or project
by the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(II) As of January 1, 2017, at least 30 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(III) As of January 1, 2018, at least 40 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(IV) As of January 1, 2019, at least 50 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(V) As of January 1, 2020, at least 60 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(iii) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief prior to January 1, 1995, up
to one-half of the graduation percentage requirements of clause (ii)
may be satisfied by skilled journeypersons who commenced working in
the apprenticeable occupation prior to the chief's approval of an
apprenticeship program for that occupation in the county in which the
project is located.
(C) "Skilled journeyperson" means a worker who either:
(i) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is approved
by the chief.
(2) An entity's commitment that a skilled and trained workforce
will be used to perform the project or contract may be established by
any of the following:
(A) The entity's agreement with the director that the entity and
its subcontractors at every tier will comply with the requirements of
this subdivision and that the entity will provide the director with
evidence, on a monthly basis while the project or contract is being
performed, that the entity and its subcontractors are complying with
the requirements of this subdivision.
(B) If the director has entered into a project labor agreement
that will bind all contractors and subcontractors performing work on
the project or contract and that includes the requirements of this
subdivision, the entity's agreement that it will become a party to
that project labor agreement.
(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and that
will bind the entity and all its subcontractors at every tier
performing the project or contract.
(2) This subdivision shall not apply if any of the following
requirements are met:
(A) The department has entered into a project labor agreement that
will bind all contractors and subcontractors performing work on the
project or contract to use a skilled and trained workforce, and the
entity agrees to be bound by that project labor agreement.
(B) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
department prior to January 1, 2017.
(C) The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or contract to use a skilled and trained
workforce.
(3) For purposes of this subdivision, "project labor agreement"
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.
(d) Based on the documents prepared as described in subdivision
(a), the director shall prepare a request for proposals that invites
prequalified or short-listed entities to submit competitive sealed
proposals in the manner prescribed by the department. The request for
proposals shall include, but need not be limited to, the following
elements:
(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the department to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the department to inform
interested parties of the contracting opportunity.
(2) Significant factors that the department reasonably expects to
consider in evaluating proposals, including, but not limited to, cost
or price and all nonprice-related factors.
(3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
(4) Where a best value selection method is used, the department
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which case
the department shall so specify in the request for proposals and
shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the department to
ensure that any discussions or negotiations are conducted in good
faith.
(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.
(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however, shall
be weighted as deemed appropriate by the department:
(A) Price, unless a stipulated sum is specified.
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 or more years.
(2) Pursuant to subdivision (d), the department may hold
discussions or negotiations with responsive proposers using the
process articulated in the department's request for proposals.
(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided, provided
that no more than three proposers are required to be ranked.
(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the director to
have offered the best value to the public.
(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the director shall publicly announce
its award, identifying the design-build entity to which the award is
made, along with a statement regarding the basis of the award.
(6) The statement regarding the director's contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.
SEC. 4. SEC. 6. Section 20119.1 of
the Public Contract Code is amended to read:
20119.1. As used in this article:
(a) "Best value" means a procurement process whereby the selected
bidder may be selected on the basis of objective criteria for
evaluating the qualifications of bidders with the resulting selection
representing the best combination of price and qualifications.
(b) "Best value contract" means a competitively bid contract
entered into pursuant to this article.
(c) "Best value contractor" means a properly licensed person,
firm, or corporation that submits a bid for and is awarded a best
value contract.
(d) "Best value score" means the resulting score when the school
district divides the bidder's price by the bidder's qualification
score.
(e) "Demonstrated management competency" means the experience,
competency, capability, and capacity of the proposed management
staffing to complete projects of similar size, scope, or complexity.
(f) "Financial condition" means the financial resources needed to
perform the contract. The criteria used to evaluate a bidder's
financial condition shall include, at a minimum, capacity to obtain
all required payment bonds and required insurance.
(g) "Governing board" or "governing board of the school district"
means the governing board of the Los Angeles Unified School District.
(h) "Labor compliance" means the ability to comply with, and past
conformance with, contract and statutory requirements for the payment
of wages and qualifications of the workforce. The criteria used to
evaluate a bidder's labor compliance shall include, at a minimum, the
bidder's ability to comply with the apprenticeship requirements of
the California Apprenticeship Council and the Department of
Industrial Relations, its past conformance with such requirements,
and its past conformance with requirements to pay prevailing wages on
public works projects.
(i) "Project" has the same meaning as "public project" as defined
in subdivision (c) of Section 22002.
(j) "Qualifications" means financial condition, relevant
experience, demonstrated management competency, labor compliance, the
safety record of the bidder, and, to the extent relevant, the
preceding qualifications as they pertain to all subcontractors
proposed to be used by the bidder for designated portions of the
work.
(k) "Relevant experience" means the experience, competency,
capability, and capacity to complete projects of similar size, scope,
or complexity.
(l) "Safety record" shall be deemed "acceptable" if a contractor's
experience modification rate for the most recent three-year period
is an average of 1.00 or less, and its average total recordable
injury or illness rate and average lost work rate for the most recent
three-year period do not exceed the applicable statistical standards
for its business category or if the bidder is a party to an
alternative dispute resolution system as provided for in Section
3201.5 of the Labor Code.
(m) "School district" means the Los Angeles Unified School
District.
SEC. 5. SEC . 7. Section
20119.3 of the Public Contract Code is amended to read:
20119.3. The governing board of the school district shall proceed
in accordance with the following when awarding best value contracts
under this article:
(a) The school district shall prepare a solicitation for bids and
give notice pursuant to Section 20112.
(b) (1) The school district shall establish a procedure to
prequalify bidders as required by this code. Information submitted by
the bidder as part of the evaluation process shall not be open to
public inspection to the extent that information is exempt from
disclosure under the California Public Records Act (Chapter 3.5
(commencing with Section 6250) of Division 7 of Title 1 of the
Government Code).
(2) A best value entity shall not be prequalified or shortlisted
unless the entity provides an enforceable commitment to the governing
board that the entity and its subcontractors at every tier will use
a skilled and trained workforce to perform all work on the project or
contract that falls within an apprenticeable occupation in the
building and construction trades, in accordance with Chapter 2.9
(commencing with Section 2600) of Part 1.
(3) Paragraph (2) shall not apply if either:
any of the follow requirements are met:
(A) The school district has entered into a project labor agreement
that will bind all contractors and subcontractors performing work on
the project or contract to use a skilled and trained workforce,
and the entity agrees to be bound by that project labor
agreement.
(B) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
school district prior to January 1, 2017.
(B)
(C) The entity has entered into a project labor
agreement that will bind the entity and all its subcontractors at
every tier performing the project or contract.
contract to use a skilled and trained workforce.
(4) For purposes of this subdivision, "project labor agreement"
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.
(c) Each solicitation for bids shall do all of the following:
(1) Invite prequalified bidders to submit sealed bids in the
manner prescribed by this article.
(2) Include a section identifying and describing the following:
(A) Criteria that the school district will consider in evaluating
the qualifications of the bidders.
(B) The methodology and rating or weighting system that will be
used by the school district in evaluating bids.
(C) The relative importance or weight assigned to the criteria for
evaluating the qualifications of bidders identified in the request
for bids.
(d) Final evaluation of the bidders shall be done in a manner that
prevents the identity of the bidders and the cost or price
information from being revealed in evaluating the qualifications of
the bidders prior to completion of qualification scoring.
SEC. 6. SEC. 8. Section 20155.2 of
the Public Contract Code is repealed.
SEC. 7. SEC. 9. Section 20155.4 of
the Public Contract Code is amended to read:
20155.4. (a) A best value contractor shall not be prequalified or
shortlisted unless the contractor provides an enforceable commitment
to the county that the contractor and its subcontractors at every
tier will use a skilled and trained workforce to perform all work on
the project or contract that falls within an apprenticeable
occupation in the building and construction trades, in accordance
with Chapter 2.9 (commencing with Section 2600) of Part 1.
(b) This section shall not apply if either:
any of the following requirements are met:
(1) The county has entered into a project labor agreement that
will bind all contractors and subcontractors performing work on the
project or contract to use a skilled and trained workforce,
and the contractor agrees to be bound by that project labor
agreement.
(2) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
county prior to January 1, 2017.
(2)
(3) The contractor has entered into a project labor
agreement that will bind the contractor and all its subcontractors at
every tier performing the project or contract.
contract to use a skilled and trained workforce.
(c) For purposes of this section, "project labor agreement" has
the same meaning as in paragraph (1) of subdivision (b) of Section
2500.
SEC. 10. Section 22164 of the Public
Contract Code is amended to read:
22164. The procurement process for the design-build projects
shall progress as follows:
(a) (1) The local agency shall prepare a set of documents setting
forth the scope and estimated price of the project. The documents may
include, but need not be limited to, the size, type, and desired
design character of the project, performance specifications covering
the quality of materials, equipment, workmanship, preliminary plans
or building layouts, or any other information deemed necessary to
describe adequately the local agency's needs. The performance
specifications and any plans shall be prepared by a design
professional who is duly licensed and registered in California.
(2) The documents shall not include a design-build-operate
contract for any project. The documents, however, may include
operations during a training or transition period but shall not
include long-term operations for any project.
(b) The local agency shall prepare and issue a request for
qualifications in order to prequalify or short-list the design-build
entities whose proposals shall be evaluated for final selection. The
request for qualifications shall include, but need not be limited to,
the following elements:
(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the local agency to evaluate proposals, the procedure for final
selection of the design-build entity, and any other information
deemed necessary by the local agency to inform interested parties of
the contracting opportunity.
(2) Significant factors that the local agency reasonably expects
to consider in evaluating qualifications, including technical design
and construction expertise, acceptable safety record, and all other
nonprice-related factors.
(3) A standard template request for statements of qualifications
prepared by the local agency. In preparing the standard template, the
local agency may consult with the construction industry, the
building trades and surety industry, and other local agencies
interested in using the authorization provided by this article. The
template shall require the following information:
(A) If the design-build entity is a privately held corporation,
limited liability company, partnership, or joint venture, a listing
of all of the shareholders, partners, or members known at the time of
statement of qualification submission who will perform work on the
project.
(B) Evidence that the members of the design-build team have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
ensures that the design-build entity has the capacity to complete the
project.
(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
(D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(E) Information concerning workers' compensation experience
history and a worker safety program.
(F) If the proposed design-build entity is a corporation, limited
liability company, partnership, joint venture, or other legal entity,
a copy of the organizational documents or agreement committing to
form the organization.
(G) An acceptable safety record. A proposer's safety record shall
be deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
proposer is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(4) (A) The information required under this subdivision shall be
certified under penalty of perjury by the design-build entity and its
general partners or joint venture members.
(B) Information required under this subdivision that is not
otherwise a public record under the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code) shall not be open to public inspection.
(c) (1) A design-build entity shall not be
prequalified or shortlisted unless the entity provides an enforceable
commitment to the local agency that the entity and its
subcontractors at every tier will use a skilled and trained workforce
to perform all work on the project or contract that falls within an
apprenticeable occupation in the building and construction
trades. trades, in accordance with Chapter 2.9
(commencing with Section 2600) of Part 1.
(1) For purposes of this subdivision:
(A) "Apprenticeable occupation" means an occupation for which the
chief had approved an apprenticeship program pursuant to Section 3075
of the Labor Code prior to January 1, 2014.
(B) "Skilled and trained workforce" means a workforce that meets
all of the following conditions:
(i) All the workers are either skilled journeypersons or
apprentices registered in an apprenticeship program approved by the
Chief of the Division of Apprenticeship Standards.
(ii) (I) As of January 1, 2016, at least 20 percent of the skilled
journeypersons employed to perform work on the contract or project
by the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(II) As of January 1, 2017, at least 30 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(III) As of January 1, 2018, at least 40 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(IV) As of January 1, 2019, at least 50 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(V) As of January 1, 2020, at least 60 percent of the skilled
journeypersons employed to perform work on the contract or project by
the entity and each of its subcontractors at every tier are
graduates of an apprenticeship program for the applicable occupation
that was either approved by the Chief of the Division of
Apprenticeship Standards pursuant to Section 3075 of the Labor Code
or located outside California and approved for federal purposes
pursuant to the apprenticeship regulations adopted by the federal
Secretary of Labor.
(iii) For an apprenticeable occupation in which no apprenticeship
program had been approved by the chief prior to January 1, 1995, up
to one-half of the graduation percentage requirements of clause (ii)
may be satisfied by skilled journeypersons who commenced working in
the apprenticeable occupation prior to the chief's approval of an
apprenticeship program for that occupation in the county in which the
project is located.
(C) "Skilled journeyperson" means a worker who either:
(i) Graduated from an apprenticeship program for the applicable
occupation that was approved by the chief or located outside
California and approved for federal purposes pursuant to the
apprenticeship regulations adopted by the federal Secretary of Labor.
(ii) Has at least as many hours of on-the-job experience in the
applicable occupation as would be required to graduate from an
apprenticeship program for the applicable occupation that is approved
by the chief.
(2) An entity's commitment that a skilled and trained workforce
will be used to perform the project or contract may be established by
any of the following:
(A) The entity's agreement with the local agency that the entity
and its subcontractors at every tier will comply with the
requirements of this subdivision and that the entity will provide the
local agency with evidence, on a monthly basis while the project or
contract is being performed, that the entity and its subcontractors
are complying with the requirements of this subdivision.
(B) If the local agency has entered into a project labor agreement
that will bind all contractors and subcontractors performing work on
the project or contract and that includes the requirements of this
subdivision, the entity's agreement that it will become a party to
that project labor agreement.
(C) Evidence that the entity has entered into a project labor
agreement that includes the requirements of this subdivision and that
will bind the entity and all its subcontractors at every tier
performing the project or contract.
(2) This subdivision shall not apply if any of the following
requirements are met:
(A) The local agency has entered into a project labor agreement
that will bind all contractors and subcontractors performing work on
the project or contract to use a skilled and trained workforce, and
the entity agrees to be bound by that project labor agreement.
(B) The project or contract is being performed under the extension
or renewal of a project labor agreement that was entered into by the
local agency prior to January 1, 2017.
(C) The entity has entered into a project labor agreement that
will bind the entity and all its subcontractors at every tier
performing the project or contract to use a skilled and trained
workforce.
(3) For purposes of this subdivision, "project labor agreement"
has the same meaning as in paragraph (1) of subdivision (b) of
Section 2500.
(d) Based on the documents prepared as described in subdivision
(a), the local agency shall prepare a request for proposals that
invites prequalified or short-listed entities to submit competitive
sealed proposals in the manner prescribed by the local agency. The
request for proposals shall include, but need not be limited to, the
following elements:
(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the local agency to evaluate proposals, whether the
contract will be awarded on the basis of low bid or best value, and
any other information deemed necessary by the local agency to inform
interested parties of the contracting opportunity.
(2) Significant factors that the local agency reasonably expects
to consider in evaluating proposals, including, but not limited to,
cost or price and all nonprice-related factors.
(3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
(4) Where a best value selection method is used, the local agency
may reserve the right to request proposal revisions and hold
discussions and negotiations with responsive proposers, in which case
the local agency shall so specify in the request for proposals and
shall publish separately or incorporate into the request for
proposals applicable procedures to be observed by the local agency to
ensure that any discussions or negotiations are conducted in good
faith.
(e) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities, and
awards shall be made to the design-build entity that is the lowest
responsible bidder.
(f) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. The following minimum factors, however, shall
be weighted as deemed appropriate by the local agency:
(A) Price, unless a stipulated sum is specified.
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 or more years.
(2) Pursuant to subdivision (d), the local agency may hold
discussions or negotiations with responsive proposers using the
process articulated in the local agency's request for proposals.
(3) When the evaluation is complete, the responsive proposers
shall be ranked based on a determination of value provided, provided
that no more than three proposers are required to be ranked.
(4) The award of the contract shall be made to the responsible
design-build entity whose proposal is determined by the local agency
to have offered the best value to the public.
(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the local agency shall publicly
announce its award, identifying the design-build entity to which the
award is made, along with a statement regarding the basis of the
award.
(6) The statement regarding the local agency's contract award,
described in paragraph (5), and the contract file shall provide
sufficient information to satisfy an external audit.
SEC. 8. SEC. 11. (a) The amendments
made by this act shall not apply to contracts that were advertised
for bid or awarded before January 1, 2017.
(b) For contracts advertised for bid or awarded before January 1,
2017, for which an entity or contractor provided an enforceable
commitment to a school district or county regarding the use of a
skilled and trained workforce, pursuant to Section 17250.25 or
17407.5 of the Education Code or Section 20119.3 or 20155.4 of the
Public Contract Code, the school district or county may grant a
request by the entity or contractor that made the enforceable
commitment to comply instead with this act.
SEC. 9. SEC. 12. The Legislature
finds and declares that Section 3 of this act, which adds Chapter 2.9
(commencing with Section 2600) to Part 1 of Division 2 of the Public
Contract Code, furthers, within the meaning of paragraph (7) of
subdivision (b) of Section 3 of Article I of the California
Constitution, the purposes of that constitutional section as it
relates to the right of public access to the meetings of local public
bodies or the writings of local public officials and local agencies.
Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article
I of the California Constitution, the Legislature makes the
following findings:
Because this act expressly subjects local public entities to the
California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code)
for monthly reports to the awarding body on compliance with skilled
and trained workforce requirements for public contracts, the act
furthers the purpose of Section 3 of Article I of the California
Constitution.