BILL ANALYSIS �
SB 1068
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Date of Hearing: June 25, 2012
ASSEMBLY COMMITTEE ON TRANSPORTATION
Bonnie Lowenthal, Chair
SB 1068 (Rubio) - As Amended: May 17, 2012
SENATE VOTE : 39-0
SUBJECT : Golden Empire Transit District and Sacramento Regional
Transit District: procurement
SUMMARY : Sets procurement thresholds for the transit districts
at levels consistent with federal procurement guidelines.
Specifically, this bill :
1)Authorizes the Golden Empire Transit District (GET) and the
Sacramento Regional Transit District (Sac RT) to award
contracts for the purchase of supplies equipment, and
materials over $100,000 to the lowest responsible bidder or to
the bidder that, at the district's discretion, submitted a
proposal representing the "best value."
2)Requires Sac RT, to the extent practicable, to obtain a
minimum of three quotations for contracts for supplies,
equipment, and materials valued at between $3,000 and
$100,000.
EXISTING LAW:
1)Creates GET in the City of Bakersfield and adjacent
unincorporated areas of Kern County and sets forth provisions
governing its procurement activities, including:
a) For purchases of supplies, equipment, and materials and
for construction contracts over $10,000, GET must conduct
formal procurement processes and award contracts based on
lowest responsible bidder; and,
b) For procurements over $1,000, the district must obtain a
minimum of three quotations, either written or verbal.
2)Creates Sac RT in Sacramento and sets forth provisions
governing its procurement activities, including the
requirement that for a contract over $40,000 for the purchase
of supplies, equipment, or materials, the district must
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conduct a formal procurement process and must award the
contract to the lowest responsible bidder.
FISCAL EFFECT : According to Senate Appropriations Committee,
potential for increased procurement costs to the extent
contracts are not awarded to the lowest responsible bidder. Any
increased costs would likely be offset by longer term savings to
the extent that other factors considered in a best value
procurement result in a greater overall benefit.
COMMENTS : The Federal Transit Administration's "Best Practices
Procurement Manual" encourages transit operators, to the extent
permitted under state law, to use a less formal procurement
method for small purchases (under $100,000) for which it would
otherwise "cost more to conduct formal competition than the
value expected to be yielded by the formal competition."
According to the author, the current thresholds placed on the
districts' procurement practices are inefficient for conducting
daily business, they increase costs, and they lengthen the
procurement lead time for minor procurements. Furthermore, the
author contends the allowing the districts to use "best value"
protocols will provide opportunities to evaluate other criteria
(such as warranties) in evaluating contract bids.
This bill is consistent with a number of bills over the past few
years that have been passed by the Legislature and signed by the
Governor to update (i.e., raise) various transit districts'
procurement thresholds.
REGISTERED SUPPORT / OPPOSITION :
Support
Golden Empire Transit District (co-sponsor)
Sacramento Regional Transit District (co-sponsor)
Opposition
None on file
Analysis Prepared by : Janet Dawson / TRANS. / (916) 319-2093
SB 1068
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