BILL ANALYSIS
AB 116
Page 1
ASSEMBLY THIRD READING
AB 116 (Beall)
As Amended April 21, 2009
Majority vote
LOCAL GOVERNMENT 7-0 APPROPRIATIONS 16-0
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|Ayes:|Caballero, Knight, |Ayes:|De Leon, Nielsen, |
| |Arambula, Davis, Duvall, | |Ammiano, |
| |Krekorian, Skinner | |Charles Calderon, |
| | | |Krekorian, Duvall, |
| | | |Fuentes, Monning, Harkey, |
| | | |Miller, John A. Perez, |
| | | |Price, Skinner, Solorio, |
| | | |Audra Strickland, |
| | | |Torlakson |
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SUMMARY : Revises the procurement requirements for the purchase
of supplies, equipment, and materials by the Santa Clara Valley
Transportation Authority (SCVTA), the Alameda-Contra Costa
Transit District (AC Transit), the San Mateo County Transit
District (SAMTRANS), and the Golden Gate Bridge, Highway and
Transportation District (GG District). Specifically,
this bill :
1)Increases, from $25,000 to $100,000, the expenditure threshold
that requires SCVTA, AC Transit, and SAMTRANS to contract for
purchasing supplies, equipment, or materials.
2)Authorizes, at the discretion of SCVTA, AC Transit, SAMTRANS,
or GG District, to let a contract to either the lowest bidder
or the responsible bidder who submitted a proposal that
provides "best value," defined as the overall combination of
quality, prices, and other elements of a proposal that, when
considered together, provide the greatest overall benefit in
response to the bid solicitation documents.
3)Requires SCVTA, AC Transit, SAMTRANS, and GG District to
obtain a minimum of three quotations, either written or oral,
that permit price comparison for contracts with a value of
$2,500 to $100,000 to the extent practicable.
AB 116
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4)Increases, from $50,000 to $100,000, the contract amount the
general manager of SAMTRANS can approve on behalf of the
SAMTRANS board and requires notification to the SAMTRANS
board, as specified.
5)Specifies the revised procurement requirements do not apply to
construction contracts.
EXISTING LAW :
1)Requires for SCVTA, AC Transit, and SAMTRANS, that the
purchase of all supplies, equipment, and materials, when the
expenditure required exceeds $25,000, be by contract let to
the lowest responsible bidder.
2)Specifies that when the expenditure exceeds $10,000 for the
construction of facilities and works, AC Transit shall enter
into contract let to the lowest responsible bidder.
3)States that SAMTRANS's contracts for the purchase of supplies,
equipment, and materials in excess of $25,000 shall be awarded
to the lowest responsible bidder after competitive bidding,
except in an emergency declared by the vote of seven members
of the SAMTRANS board.
4)Provides that when the contract is for less than $50,000, the
SAMTRANS board may authorize the general manager to act for
the SAMTRANS board.
5)States that all contracts in excess of $20,000 for equipment,
supplies, or materials entered into by the GG District must be
awarded to the lowest responsible bidder.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, there is no state effect. Potential savings to local
transit districts to the extent that more flexible contracting
rules allows them to acquire products at a lower overall cost.
COMMENTS : This bill affords similar procurement options to
SCVTA, AC Transit, SAMTRANS, and the GG District as those that
were provided to the Bay Area Rapid Transit District (BART) and
the Los Angeles Metropolitan Transportation Authority (LAMTA)
with the passage of SB 1687 (Murray), Chapter 814, Statutes of
2006, and for the San Diego Metropolitan Transit System with the
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passage of SB 959 (Kehoe), Chapter 557, Statutes of 2005.
For contracts with a value of less than $100,000, this bill
would not authorize sole source procurement of supplies,
equipment, and materials. The bill does establish a less
formal, but still competitive, process for the procurement of
relatively small contracts. This process would result in
moderate cost savings due to decreased advertising,
reprographics, and staff costs for these smaller contracts.
AB 117 (Beall) from 2008 contained similar provisions. However,
Governor Schwarzenegger vetoed the bill using his blanket veto
message.
Analysis Prepared by : Jennifer R. Klein / L. GOV. / (916)
319-3958
FN: 0000501