BILL ANALYSIS
SENATE TRANSPORTATION & HOUSING COMMITTEE BILL NO: AB 116
SENATOR ALAN LOWENTHAL, CHAIRMAN AUTHOR: BeAll
VERSION: 4/21/09
Analysis by: Art Bauer FISCAL: yes
Hearing date: June 9, 2009
SUBJECT:
Procurement of supplies, equipment, and materials
DESCRIPTION:
This bill increases the minimum value for which the
Alameda-Contra Costa (AC) Transit District, Santa Clara Valley
Transit Authority (VTA), and the San Mateo County Transit
District (SAMTRANS) must award bids to the lowest responsible
bidder from $25,000 to $100,000.
This bill increases the minimum value for which the Golden Gate
Bridge, Highway and Transportation District (GGBHTD) must award
bids to the lowest responsible bidder from $20,000 to $100,000.
ANALYSIS:
Existing law:
1. Authorizes AC Transit to award contracts for supplies,
equipment, and materials valued at $25,000 or more to the
lowest responsible bidder.
2. Authorizes VTA to award contracts for supplies,
equipment, and materials valued at $25,000 or more to the
lowest responsible bidder after a competitive procurement.
3. Authorizes SAMTRANS to award contracts for supplies,
equipment, and materials valued at $25,000 or more to the
lowest responsible bidder after a competitive procurement,
except in an emergency declared by a vote of seven of the
nine governing board members.
4. Authorizes SAMTRANS' governing board to authorize the
AB 116 (BEALL) Page 2
general manager to act on its behalf if the value of the
contract is $50,000 or less.
5. Authorizes GGBHTD to award contracts for supplies,
equipment, and materials in excess of $20,000 to the lowest
responsible bidder, provided the announcement of the
bidding opportunity is published in a newspaper in at least
one of the six counties included in the district.
This bill :
1. Raises the threshold from $25,000 to $100,000 for
awarding contracts for supplies, equipment, and materials
to the lowest responsible bidder by a competitive
procurement process for AC Transit, VTA, and SAMTRANS.
2. Raises the threshold from $20,000 to $100,000 awarding
contracts for supplies, equipment, and materials to the
lowest responsible bidder by a competitive procurement
process by the GGBHTD.
3. Authorizes AC Transit, VTA, SAMTRANS, and GGBHTD to
award contracts with a value greater than $100,000 using
the "best value" procurement process, provided the
evaluation criteria are identified in the agencies'
solicitation for bids.
4. Defines "best value" for all four agencies as meaning
the "overall combination of quality, price, and other
elements of a proposal that, when considered together,
provide the greatest overall benefit in response to the
requirements described in the solicitation documents."
5. Requires AC Transit, VTA, SAMTRANS, and GGBHTD when
soliciting bids with a value of between $2,500 and $100,000
for purchasing supplies, equipment, and materials to obtain
three quotes either in writing or verbally that permit
prices and terms to be compared.
6. Requires the general manager of SAMTRANS, when requested
by the governing board, to notify the board when a contract
of $100,000 or less is awarded.
7. Requires SAMTRANS and GGBHTD to publish in a paper of
general circulation notice requesting bids at least ten
AB 116 (BEALL) Page 3
days prior submittal date. (AC Transit and VTA already have
this provision in existing law.)
8. Requires AC Transit, VTA, SAMTRANS, and the GGBHTD to
publish on each districts procurement website at least ten
days before bids are to be received a notice requesting
bids.
9. Prohibits the use of this procurement process for the
procurement of construction contracts.
COMMENTS:
1. Purpose . This bill endeavors to bring AC Transit, VTA,
SAMTRANS, and GGBHTD into conformity with contemporary
procurement practices. It is substantially similar to SB
1687 (Murray), Chapter 1687, Statutes of 2006, which
granted similar authorization to BART and to the Los
Angeles County Metropolitan Transportation Authority (MTA).
2. Competitive procurement required . It is important to
note that while this bill establishes a less structured
process for the procurement of goods of $100,000 or less in
value, the process is a competitive one for those contracts
between $2,500 and $100,000. This bill provides a uniform
procedure for procuring supplies, equipment, and material
in the four transit districts.
3. Victim of Governor's veto massacre . This bill is
identical to AB 117 (Beall) of 2008, which Governor
Schwarzenegger vetoed because the "historic delay in
passing the 2008-2009 State Budget has forced me to
prioritize the bills sent to my desk at the end of the
year's legislative session. Given the delay, I am only
signing bills that are the highest priority for California.
This bill does not meet that standard and I cannot sign it
at this time."
Assembly Votes:
Floor: 70-0
Appr: 16-0
Trans: 10-0
POSITIONS: (Communicated to the Committee before noon on
Wednesday,
AB 116 (BEALL) Page 4
June 3, 2009)
SUPPORT: SAMTRANS (co-sponsor)
Santa Clara Valley Transportation Authority
(co-sponsor)
AC Transit
Golden Gate Bridge, Highway and Transportation
District
OPPOSED: California Taxpayers Association