BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1068
                                                                  Page  1

          Date of Hearing:   August 8, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                     SB 1068 (Rubio) - As Amended:  May 17, 2012 

          Policy Committee:                              
          TransportationVote:11-0 (Consent)

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill sets procurement thresholds for specified transit 
          districts 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 either to the lowest responsible 
            bidder or to the bidder that, at the district's discretion, 
            submitted a proposal representing the "best value," as 
            defined.

          2)Requires the districts, to the extent practicable, to obtain a 
            minimum of three quotations for contracts for supplies, 
            equipment, and materials valued at between $2,500 (for GET) or 
            $3,000 (for Sac RT) and $100,000.  


           FISCAL EFFECT  

          Likely administrative costs savings to the GET and SacRT from 
          efficiencies provided by a streamlined procurement process.

           COMMENTS  

           Purpose  . 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 








                                                                  SB 1068
                                                                  Page  2

          value expected to be yielded by the formal competition."  

          According to the author, the current thresholds placed on the 
          districts' procurement practices increase costs and lengthen the 
          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 enacted in recent 
          years to update various transit districts' procurement 
          thresholds.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081