BILL ANALYSIS Ó
SB 1214
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Date of Hearing: August 3, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
SB 1214
(Allen) - As Amended June 23, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
No
SUMMARY:
This bill extends by one year, until January 1, 2018, the sunset
on the University of California's (UC's) authority to use the
best value procurement method at all its campuses and medical
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centers.
FISCAL EFFECT:
Based on the results to date of UC's use of best value
procurement, the university could realize additional savings
significant savings in contract and contract administration
costs for the additional year that this authority is extended
under this bill.
COMMENTS:
1)Background. Best value procurement is an alternative to the
traditional design-bid-build method of public works
contracting. Under this program, UC prequalifies bidders, then
evaluates the bid and assigns a qualification score based upon
five factors, which include the bidder's financial condition,
relevant experience, demonstrated management competency, labor
compliance, and safety record. UC then divides each bidder's
price by its qualification score, and the lowest resulting
cost per quality point represents the best value bid.
SB 667 (Migden), Chapter 367, Statutes of 2006, established
the five-year Best Value Pilot Program at UC San Francisco. SB
835 (Wolk), Chapter 636, Statutes of 2011, extended the sunset
in SB 667 until January 1, 2017, and expanded the best value
pilot to encompass all UC campuses and medical centers. In a
December 2015 report on the pilot project, UC noted that,
since January 2012, it had awarded over 320 construction
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contracts totaling $4 billion. Forty of these contracts, or
13 percent, totaling $1.2 billion, utilized the best value
construction authority. UC reported that these contracts
provided numerous benefits, including decreases in bid
protests, disputes, change order requests and claims and
reduced administrative oversight and contract/project
management staff time.
2)Purpose. Prior to the most recent amendments, this bill would
have repealed the sunset on the best value program. In
response to concerns expressed by the State Building and
Construction Trades Council and the California Labor
Federation that UC's best value statute does not conform to
similar statutory authority provided to other public entities,
the bill now just provides a one-year sunset extension.
Analysis Prepared by:Chuck Nicol / APPR. / (916)
319-2081