BILL ANALYSIS                                                                                                                                                                                                    






                         SENATE COMMITTEE ON EDUCATION
                              Gloria Romero, Chair
                           2009-2010 Regular Session
                                        

          BILL NO:       AB 2075
          AUTHOR:        Assembly Higher Education Committee
          AMENDED:       March 24, 2010
          FISCAL COMM:   Yes            HEARING DATE:  June 16, 2010
          URGENCY:       No             CONSULTANT:Kathleen Chavira

           SUBJECT  :  California State University Public Contracts 
          
           KEY POLICY ISSUE  

          Should the time-frame for submission of required  
          pre-qualification documents by contractors for purposes of  
          bidding on a California State University construction  
          contract be increased from 5 calendar days to 10 business  
          days?

          
           SUMMARY  

          This bill increases the time-frame for submission of  
          required pre-qualification documents for purposes of  
          bidding on a California State University (CSU) construction  
          contract from five calendar days, to ten business days  
          prior to a bid opening. 

           BACKGROUND  

          Current law establishes CSU contract law within the Public  
          Contract Code and outlines specific requirements for  
          projects involving the erection, construction, alteration,  
          painting, repair, or improvement of any state structure,  
          building,
          road, or other state improvement of any kind.   
          Additionally, CSU contract law outlines requirements for  
          "service contracts," defined as any contract for services  
          in connection with a project (other than a project  
          contract) including but not limited to, contracts for  
          architectural, engineering, planning, testing, general  
          studies, or feasibility services. (Government Code  
          10700-10710)





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          Among other things, current public contract law requires  
          the CSU to furnish to each bidder a standard proposal form,  
          which, when filled out and executed, may be submitted as  
          the bid for a project. Current law prohibits the furnishing  
          of such a form by the CSU unless the potential bidder has  
          submitted a questionnaire and financial statement for  
          prequalification at least five days prior to the date fixed  
          for publicly opening sealed bids.  In addition, a  
          contractor must have been prequalified for at least one day  
          prior to the opening bid date in order to submit a bid. (GC  
          10764)



           ANALYSIS
           
           This bill  changes the time-frame for submission of  
          prequalification forms for contractors bidding on CSU  
          construction projects from five calendar days, to ten  
          business days prior to bid opening. 

          STAFF COMMENTS  

           Need for the bill  . Under current law, contractors must  
          submit prequalification applications five calendar days  
          before the bid opening date and are prohibited from  
          submitting a bid unless they are prequalified at least one  
          day prior to the bid opening.  According to the CSU, many  
          campuses are finding it a challenge to meet the current law  
          requirements which result in only four calendar days to  
          process a prequalification application, potentially  
          jeopardizing a contractor's ability to bid for a public  
          works project within the CSU.  This bill increases the time  
          period for contractors to become prequalified to bid and  
          allows for greater assurance to a contractor that a  
          prequalification application will be processed before the  
          bid date. 

           SUPPORT  

          Associated General Contractors of California
          California State University

           OPPOSITION

           None received. 




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