SB 959, as amended, Lara. University of California: contracts: bidding.
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
begin delete suchend delete 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 begin delete value.end delete
This bill, beginning January 1, 2018, would require a bidder, to qualify as a lowest responsible bidder or best value awardee on contracts for specified services, among other requirements, 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.
begin delete The bill would also require the bidder to
provide any applicable collective bargaining agreements and to notify the UC of any changes in the submitted bid information during the performance of the contract.end delete 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 would, for these purposes, 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.
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 become more
4transparent than it is at present, in order that illegal and abusive
5employment practices by contractors can be prevented and, if not
6prevented, then brought to light and eliminated, with all victims
7of wage theft made whole for their employers’ violations.
8(b) It is a matter of statewide concern that responsible
9competitive bidding at the University of California not undercut
10the wages and benefits provided by the University of California
11for comparable work, given that a significant percentage of
12 University of California employees already are eligible for public
13benefits and any material decrease in the compensation of
P3 1employees performing such work would result in materially
2increased General Fund costs for the provision of benefits.
3(c) It is a matter of statewide concern that the University of
4California not repeat past instances in which public resources have
5been squandered via contracting out to for-profit private contractors
6that charge significant administrative overhead.
7(d) In amending the Public Contract Code to promote
8responsible contracting at the University of California, it is
9important to delay the amendments’ effective date until January
101, 2018, in order to afford adequate preparatory time to the
11university and to contractors intending to bid on university
12contracts, as well as to lessen the cost of the amendments’
13requirements by delaying their effect until after the university’s
14$15 per hour minimum wage for contracted employees is fully in
Section 10507.6 is added to the Public Contract Code,
(a) For the purposes of this article, to qualify as a
19lowest responsible bidder or best value awardee on any contract
20for building maintenance, cleaning or custodial services, call center
21services, dining and food services, gardening, grounds keeping
22and plant nursery services, laborer services, mail room services,
23parking, shuttle bus, or transportation services, security services,
24storekeeper services, truck driving services, patient care technical
25employee services, patient billing services, medical transcribing
26services, patient escort services, or nursing assistant services a
27bidder shall satisfy the requirements set forth in this section.
28(b) (1) A bidder shall certify in writing to the University of
29California that the bid includes a total employee compensation
30package, including fringe benefits, that is valued on a per-employee
31basis at a level sufficient that it does not undercut by more than 5
32percent the average per-employee value of total compensation,
33including fringe benefits, for employees of the University of
34California who perform comparable work at the relevant campus,
35medical center, or laboratory at which the bidder proposes to
36perform the work.
37(2) The University of California shall implement this section
38by including in its request for proposals a calculation of the average
39per-employee value of total compensation, including fringe
40benefits, for employees of the University of California who perform
P4 1comparable work at the relevant campus, medical center, or
2laboratory, and that calculation shall use all known cost escalators
3to project the future rate of growth of average per-employee total
5(c) A bidder shall certify in writing to the University of
6California that, within the prior five years, the bidder has not been
7found liable for any violation of Section 484 of the Penal Code,
8Sections 200 through 558, inclusive, 1197.5, or 2810.5 of the Labor
9Code, or any wage order issued by the Industrial Welfare
10Commission, in any amount totaling more than twenty thousand
11dollars ($20,000) or 0.3 percent of the bidder’s most recent annual
12gross revenue, whichever is less.
13(d) A bidder shall provide all of the following to the University
14of California, at the same time that it submits its bid:
15(1) A spreadsheet showing, for each position and employee to
16be supplied to the university or to perform work at any university
17location, all applicable compensation and benefits to be offered,
18including, but not limited to, base wage rates or salaries, leave
19accrual rates, shift differentials, premium rates, bonus structures,
20rates or systems, retirement contributions and programs, and
21medical benefit programs and plans, including, but not limited to,
22applicable deductibles, employee copayments, and employer and
23employee shares of premiums for each tier and level of coverage
25(2) An organizational chart showing the bidder’s supervisory
26structure for the work to be performed.
27(3) Any collective bargaining
agreements, where applicable,
28and all employee handbooks or other policies to be applicable to
29employees performing contracted work for the University of
31(e) A successful bidder shall, after it commences performing
32work for the University of California, do the following:
33(1) Notify the university of any changes to the information
34provided in subdivisions (b), (c), and (d). That notification shall
35be provided within 30 days of the change and shall fully specify
36all information that has changed and the reasons for that change.
37(2) Provide the university with a copy of all notices provided
38to employees pursuant to Section 2810.5 of the Labor Code before
39those employees begin working at a University of California
40campus, laboratory, or medical center.
P5 1(f)end delete
2 All records provided by a bidder or contractor to the
3university pursuant to this section shall be disclosed to any member
4of the public making a request to the university under Section 6253
5of the Government Code, provided that (1) the university shall
6redact those portions of such records containing confidential
7information within the meaning of subdivision (c) of Section 6254
8of the Government Code, and (2) the university, in responding to
9any request made during the course of a bid process that is not yet
10complete, shall delay until after the bid process is complete before
11disclosing any records containing materials submitted by a bidder.
13 The requirements of this section shall not apply to employees
14covered by Section 1191.5 of the Labor Code or subdivision (c)
15of Section 214 of Title 29 of the United States Code. Any
16employees covered by Section 1191.5 of the Labor Code or
17subdivision (c) of Section 214 of Title 29 of the United States Code
18shall be omitted from any and all certifications and disclosures
19required by this article.
21 This section does not apply to any work subject to Chapter
221 (commencing with Section 1720) of Part 7 of Division 2 of the
25 This section shall become operative January 1, 2018.
Section 10507.7 of the Public Contract Code is
27amended to read:
(a) Except as provided for in this article, the Regents
29of the University of California shall let all contracts involving an
30expenditure of more than one hundred thousand dollars ($100,000)
31annually for goods and materials to be sold to the University of
32California to the lowest responsible bidder meeting specifications,
33or else reject all bids. Contracts for services to be performed, other
34than personal or professional services, involving an expenditure
35of one hundred thousand dollars ($100,000) or more annually shall
36be made or entered into with the lowest responsible bidder meeting
37specifications, or else all bids shall be rejected. If the regents deem
38it to be for the best interest of the university, the regents may, on
39the refusal or failure of the successful bidder for materials, goods,
40or services to execute a tendered contract, award it to the second
P6 1lowest responsible bidder meeting specifications. If the second
2lowest responsible bidder fails or refuses to execute the contract,
3the regents may likewise award it to the third lowest responsible
4bidder meeting specifications.
5(b) This section shall remain in effect only until January 1, 2018,
6and as of that date is repealed, unless a later enacted statute, that
7is enacted before, deletes or extends that date.
Section 10507.7 is added to the Public Contract Code,
(a) Except as provided for in this article, the Regents
11of the University of California shall let all contracts involving an
12expenditure of more than one hundred thousand dollars ($100,000)
13annually for goods and materials to be sold to the University of
14California to the lowest responsible bidder meeting specifications,
15or else reject all bids. Contracts for services to be performed, other
16than personal or professional services, involving an expenditure
17of one hundred thousand dollars ($100,000) or more annually shall
18be made or entered into with the lowest responsible bidder meeting
19specifications, or else all bids shall be rejected. If the regents deem
20it to be for the best interest of the university, the regents may, on
21the refusal or failure of the successful bidder for materials, goods,
22or services to execute a tendered contract, award it to the second
23lowest responsible bidder meeting specifications. If the second
24lowest responsible bidder fails or refuses to execute the contract,
25the regents may likewise award it to the third lowest responsible
26bidder meeting specifications.
27(b) For the purposes of this section, contracts for services
28involving an expenditure of one hundred thousand dollars
29($100,000) or more annually shall include any renewal or extension
30of an existing contract if the renewal or extension involves an
31expenditure of one hundred thousand dollars ($100,000) or more
33(c) This section shall become operative on January 1, 2018.