BILL NUMBER: SB 1249	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ducheny

                        FEBRUARY 19, 2010

   An act to add Chapter 2.01 (commencing with Section 10490.10) to
Part 2 of Division 2 of the Public Contract Code, relating to state
contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 1249, as introduced, Ducheny. Contracting by state agencies:
best value competitive bid contracts.
   Existing law governs contracting between state agencies and
private contractors, sets forth requirements for the bidding,
awarding, and overseeing of contracts for construction projects, and
regulates the awarding of contracts for the purchase of goods and
services.
   This bill would require competitive bid contracts for construction
projects, including, but not limited to, projects of the California
State University, contracts for goods and services, and contracts for
information technology acquisition, to be awarded as best value
competitive bid contracts, as defined, taking into consideration,
when awarding the contract, the total direct and indirect economic
benefit to the state of the proposed contract, as prescribed. This
bill would authorize the Director of General Services to adopt
regulations to assist state agencies in implementing these
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Chapter 2.01 (commencing with Section 10490.10) is
added to Part 2 of Division 2 of the Public Contract Code,
immediately following Chapter 2 (commencing with Section 10290), to
read:
      CHAPTER 2.01.  BEST VALUE COMPETITIVE BID CONTRACTS


   10490.10.  (a) Notwithstanding any provision of law, commencing
the effective date of this chapter, every contract that would
otherwise be required to be awarded on a competitive basis pursuant
to Chapter 1 (commencing with Section 10100), Chapter 2 (commencing
with Section 10290), Chapter 2.5 (commencing with Section 10700), and
Chapter 3 (commencing with Section 12100), shall be awarded,
instead, as a best value competitive bid contract to the bid or
proposal that presents the best overall value to the state.
   (b) For purposes of this chapter "best value competitive bid
contract" means a contract that is awarded on a competitive process
that is not based merely on the lowest direct cost to the state under
the contract, but rather is awarded to the bidder that presents the
overall best value to the state after consideration of the total
direct and indirect economic benefit to the state under the contract,
including, but not limited to, all of the following:
   (1) The direct cost of the contract, including, but not limited
to, materials, goods, and services.
   (2) Indirect value to the state generated by the contract,
including, but not limited to, an analysis of the proposed contract
to determine all of the following:
   (A) (i) The total projected indirect revenue to the state
generated by the wages that the contractor and subcontractors, if
any, propose to pay their workers in performing under the contract.
   (ii) The total projected indirect revenue to California local
governments generated by the wages that the contractor and
subcontractors, if any, propose to pay their workers in performing
under the contract and the indirect revenue to the state generated
thereby.
   (B) (i) The total projected indirect revenue to the state
generated from the goods and materials that the contractor and
subcontractors, if any, propose to purchase or provide in performing
under the contract.
   (ii) The total projected indirect revenue to California local
governments generated by the goods and materials that the contractor
and subcontractors, if any, propose to purchase or deliver in
performing under the contract and the indirect revenue to the state
generated thereby.
   (iii) The indirect economic benefit to the state generated by the
economic activity related to the production of the goods and
materials to be purchased or delivered under the contract.
   (c) The Director of General Services shall adopt regulations that
shall take effect immediately and are exempt from the rulemaking
provisions of the Administrative Procedure Act to provide guidance to
state agencies on best methods and practices and a related matrix to
assist those agencies in determining the overall best value.
   (d) In determining the overall economic benefit to the state of a
proposed contract pursuant to this section, state agencies shall
consider, to the extent not prohibited under federal law, the
location where the wages are to be paid and the location where the
products or materials are to be manufactured or produced.