Amended in Assembly June 23, 2016

Amended in Senate March 31, 2016

Senate Bill No. 1214

Introduced by Senator Allen

February 18, 2016

An act to amend Sections 10506.4 and 10506.5 of, to amend the heading of Article 1.5 (commencing with Section 10506.4) of Chapter 2.1 of Part 2 of Division 2 of, and to repeal Sections 10506.8 and 10506.9 of, the Public begin delete Contact end delete begin insert Contract end insert Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

SB 1214, as amended, Allen. University of California: Best Value Construction Contracting begin insert Pilot end insert Program.

(1) Existing law authorizes, through January 1, 2017, a pilot program for the Regents of the University of California to contract for certain types of projects on the university of the University of California based on the best value procedures, as specified. Existing law defines the term “university” to mean the campuses of the University of California, including the medical centers. The law requires, on or before January 1, 2016, the Regents of the University of California to report to specific committees of the Legislature regarding the pilot program, including, among other information, a description of the projects awarded using the best value procedures.

This bill would begin delete make end delete begin insert extend end insert the provisions of pilot program begin delete effective indefinitely end delete begin insert until January 1, 2018, end insert as the Best Value Construction Contracting begin insert Pilot end insert Program and would begin delete make conforming changes by repealing end delete begin insert repeal end insert the reporting begin delete requirement and references to a pilot program. end delete begin insert requirement. end insert This bill would modify the definition of the term “university” to mean all locations of the University of California.

(2) By extending the requirement that bidders verify specified information under oath, this bill would impose a state-mandated local program by expanding the scope of an existing crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

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

The people of the State of California do enact as follows:

SECTION 1.  

The heading of Article 1.5 (commencing with
Section 10506.4) of Chapter 2.1 of Part 2 of Division 2 of the Public Contract Code is amended to read:

 

Article 1.5.  Best Value Construction Contracting begin insert Pilot end insert Program

 

SEC. 2.  

Section 10506.4 of the Public Contract Code is
amended to read:

10506.4.  

(a) This article provides the Best Value Construction
Contracting begin insert Pilot end insert Program for the Regents of the University of
California for projects over one million dollars ($1,000,000).

(b) The Regents of the University of California shall let any
contract for a project pursuant to this article to the lowest
responsible bidder or else reject all bids.

(c) The lowest responsible bidder may be selected on the basis
of the best value to the university, as defined in Section 10506.5.
In order to implement this method of selection, the Regents of the
University of California shall adopt and publish procedures and
required guidelines for evaluating the qualifications of the bidders
that ensure that best value selections by the university are
conducted in a fair and impartial manner. These procedures and
guidelines shall conform to the requirements of Sections 10506.6
and 10506.7 and shall be mandatory for the university when using
best value selection.

(d) If one or more of the bids is substantially equal to the lowest
bid, and at least one of those bidders is a disadvantaged business
enterprise, a women business enterprise, or a disabled veteran
business enterprise, the regents may award the contract in
accordance with the policies and procedures adopted pursuant to
Section 10500.5.

(e) If the regents deem it to be for the best interest of the
university, the regents may, on the refusal or failure of the
successful bidder for a project to execute a tendered contract, award
it to the second lowest responsible bidder. If the second lowest
bidder fails or refuses to execute the contract, the regents may
likewise award it to the third lowest responsible bidder.

SEC. 3.  

Section 10506.5 of the Public Contract Code is
amended to read:

10506.5.  

For purposes of this article, the following definitions
apply:

(a) “Best value” means a procurement process whereby the
lowest responsible 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 contract entered into pursuant
to the provisions of this article.

(c) “Best value contractor” means a properly licensed person,
firm, or corporation that submits a bid for, or is awarded, a best
value contract.

(d) “Demonstrated management competency” means the
experience, competency, capability, and capacity of the proposed
management staffing to complete projects of similar size, scope,
or complexity.

(e) “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, performance bonds, and liability
insurance.

(f) “Labor compliance” means the ability to comply with, and
past performance 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, as 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.

(g) “Qualifications” means financial condition, relevant
experience, demonstrated management competency, labor
compliance, the safety record of the bidder, and, if required by the
bidding documents, some or all of the preceding qualifications as
they pertain to subcontractors proposed to be used by the bidder
for designated portions of the work.

(h) “Relevant experience” means the experience, competency,
capability, and capacity to complete projects of similar size, scope,
or complexity.

(i) “Safety record” means the prior history concerning the safe
performance of construction contracts. The criteria used to evaluate
a bidder’s safety record shall include, as a minimum, its experience
modification rate for the most recent three-year period, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period.

(j) “University” means all locations of the University of
California.

SEC. 4.  

Section 10506.8 of the Public Contract Code is
repealed.

begin delete

SEC. 5.  

Section 10506.9 of the Public Contract Code is
repealed.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 10506.9 of the end insert begin insert Public Contract Code end insert begin insert is
amended to read: end insert

10506.9.  

This article shall remain in effect only until January
1, begin delete 2017, end delete begin insert 2018, end insert and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, begin delete 2017, end delete begin insert 2018, end insert deletes or
extends that date.

SEC. 6.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.