BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1341|
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THIRD READING
Bill No: SB 1341
Author: Price (D)
Amended: 5/11/10
Vote: 21
SENATE TRANSPORTATION & HOUSING COMMITTEE : 7-1, 5/4/10
AYES: Lowenthal, Huff, DeSaulnier, Harman, Kehoe, Pavley,
Simitian
NOES: Ashburn
NO VOTE RECORDED: Oropeza
SUBJECT : Los Angeles County Metropolitan Transportation
Authority:
contracting practices
SOURCE : Author
DIGEST : This bill enacts provisions applicable to the
Los Angeles County Metropolitan Transportation Authority
relative to preferences in contracting for small business
enterprises, as defined.
ANALYSIS : In 1996, California voters approved
Proposition 209, which amended the California Constitution
to preclude granting preferences on the basis of race, sex,
color, ethnicity, or national origin in the operation of
public employment, public education, or public contracting.
The provision does not apply to federal contracting
requirements. In response to Proposition 209, the Los
Angeles County Metropolitan Transportation Authority
CONTINUED
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(METRO) adopted a local ordinance that provides a
preference to small businesses and is not inconsistent with
the provisions of Proposition 209. This bill endeavors to
codify the small business preference requirements.
Existing law governing METRO procurement:
1. Requires that construction contracts in excess of
$25,000 be awarded to the lowest responsible bidder.
2. Requires that contracts involving the purchase of
supplies, equipment, and materials in excess of $100,000
be awarded to the lowest responsible bidder or to the
bidder that provides "best value" to METRO. To award
contracts on the basis of best value METRO must include
in the solicitation for a bid the evaluation criteria
that will be used to determine best value.
3. Defines value as the "overall combination of quality,
price, and other elements of a proposal that, when
considered together, provide the greatest overall
benefit in response to requirements described in the
solicitation documents."
This bill:
1. Adds to existing law the requirement that successful
bids for construction contracts and bids for supplies,
equipment, and materials must be "responsive" to the
terms of the bid solicitation documents as well as low
cost. This condition is also added to best value
procurements.
2. Authorizes METRO to grant a small business preference on
contracts with a value in excess of $100,000 for the
construction component of a design-build team, the
procurement of goods, or the delivery of services a five
percent bidding preference to the lowest responsive and
responsible bidder or best value proposer, if the firm
is a small businesses and a prime contractor.
3. Establishes for the lowest responsive and responsible
bidder or best value proposer a subcontracting
participation goal for small businesses of five percent
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on contracts with a value in excess of $100,000 and
financed with nonfederal funds.
4. Requires bidders and proposers to make a good faith
effort to secure the services of small business
enterprises and establishes procedures to demonstrate a
good faith effort, including requiring attendance at
pre-bid conferences, identification of services and
skills available to small business subcontractors,
advertising for services and in trade publications,
assisting potential subcontractors in obtaining bonds
and insurance, and other related conditions.
5. Defines a small business enterprise as meeting the
definitions of the United States Small Business
Administration appropriate to the type of work.
Comments
Purpose of the bill . The purpose of this bill is to create
a process to establish a small business participation goal
of five percent for construction projects, services, and
the acquisition of supplies funded with local, state, or
other nonfederal sources of revenue. Under the terms of
the California Constitution business participation goals
associated with public contracting cannot be race or gender
based. This bill meets that test.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/4/10) (Unable to reverify)
Los Angeles County Chapter of the American Council of
Engineering Companies of California
ACE Fence Company
AGS Architects
Aviva Spectrum
CK Management
Integrated Engineering Management
Langford and Carmichael
Lenax Construction Services
PJS&P Associates
R-T Welding and Fabrication
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Selbert Perkins Design
Ultra Systems
Wincal Technology
JJA:mw 5/12/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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