Amended in Senate August 22, 2014

Amended in Assembly March 28, 2014

California Legislature—2013–14 Regular Session

Assembly Bill No. 1857

Introduced by Assembly Member Frazier

February 19, 2014

An act to add and repeal Section begin delete 140.2 of the Streets and Highways end delete begin insert 10326.2 of the Public Contract end insert Code, relating to begin delete transportation. end delete begin insert procurement. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 1857, as amended, Frazier. Department of begin delete Transportation end delete begin insert General Services end insert : vehicle and equipment procurement.

Existing law generally requires public contracts to be awarded by competitive bidding pursuant to procedures set forth in the Public Contract Code, subject to certain exceptions.

Until January 1, begin delete 2019, end delete begin insert 2021, end insert this bill would authorize the begin insert Department of General Services to purchase and equip heavy mobile fleet vehicles and special equipment for use by the end insert Department of Transportation begin delete to purchase and equip heavy mobile fleet vehicles and special equipment end delete by means of best value procurement, as defined, subject to an annual limitation of $20,000,000. begin insert The bill would establish requirements for bid evaluation and protest procedures. end insert The bill would require the Department of General Services to prepare begin delete an end delete begin insert a prescribed end insert evaluation with regard to this process, begin delete as specified. end delete begin insert to be posted on the Department of Transportation’s Internet Web site. end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 10326.2 is added to the end insert begin insert Public Contract
Code end insert begin insert , to read: end insert

begin insert

begin insert 10326.2. end insert   

(a)  As used in this section, “best value procurement”
means a contract award determined by objective criteria related
to price, features, functions, and life-cycle costs that may include
the following:

(1) Total cost of ownership, including warranty, under which
all repair costs are borne solely by the warranty provider, repair
costs, maintenance costs, fuel consumption, and salvage value.

(2) Product performance, productivity, and safety standards.

(3) The supplier’s ability to perform to the contract
requirements.

(4) Environmental benefits, including reduction of greenhouse
gas emissions, reduction of air pollutant emissions, or reduction
of toxic or hazardous materials.

(b) The department may purchase and equip heavy mobile fleet
vehicles and special equipment for use by the Department of
Transportation by means of best value procurement, using
specifications and criteria developed in consultation with the
Department of Transportation.

(c) In addition to disclosure of the minimum requirements for
qualification, the solicitation document shall specify what business
performance measures in addition to price shall be given a
weighted value. The department shall use a scoring method based
on those factors and price in determining the successful bid. Any
evaluation and scoring method shall ensure substantial weight is
given to the contract price. The solicitation document shall provide
for submission of sealed price information. Evaluation of all
criteria other than price shall be completed before the opening of
price information.

(d) Upon written request of any bidder who has submitted a
bid, notice of the proposed award shall be posted in a public place
in the offices of the department at least 24 hours before awarding
the contract or purchase order. If, before making an award, any
bidder who has submitted a bid files a protest with the department
against the awarding of the contract or purchase order on the
ground that his or her bid should have been selected in accordance
with the selection criteria in the solicitation document, the contract
or purchase order shall not be awarded until either the protest
has been withdrawn or the California Victim Compensation and
Government Claims Board has made a final decision as to the
action to be taken relative to the protest. Within 10 days after filing
a protest, the protesting bidder shall file with the California Victim
Compensation and Government Claims Board a full and complete
written statement specifying in detail the ground of the protest and
the facts in support thereof.

(e) The total value of vehicles and equipment purchased through
best value procurement pursuant to this section shall be limited
to twenty million dollars ($20,000,000) annually.

(f) On or before June 1, 2020, the Department of General
Services shall prepare an evaluation of the best value procurement
pilot authorized by this section, including a recommendation on
whether or not the process should be continued. The evaluation
shall be posted on the Department of Transportation’s Internet
Web site on or before June 30, 2020.

(g) This section shall remain in effect only until January 1, 2021,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2021, deletes or extends that date.

end insert

begin delete

SECTION 1.  

Section 140.2 is added to the Streets and
Highways Code, to read:

140.2.  

(a) Notwithstanding any other law, except Section
13332.09 of the Government Code, the department may purchase
and equip heavy mobile fleet vehicles and special equipment by
means of best value procurement. As used in this section, “best
value procurement” means a method of selecting a proposal based
on an evaluation of the following factors in addition to price:

(1) Total cost of ownership, including warranty, under which
all repair costs are borne solely by the warranty provider, repair
costs, maintenance costs, fuel consumption, and salvage value.

(2) Product performance, productivity, and safety standards.

(3) The supplier’s ability to perform to the contract requirements.

(4) Environmental benefits, including reduction of greenhouse
gas emissions, reduction of air pollutant emissions, or reduction
of toxic or hazardous materials.

(b) In addition to disclosure of the minimum requirements for
qualification, the solicitation document provided to a prospective
bidder shall specify that one or more of the factors described in
subdivision (a), as applicable to the bidder’s product, shall be given
a weighted value. The department shall then utilize a scoring
method based on those factors and price in determining the
successful bid.

(c) Best value procurements shall be limited to twenty million
dollars ($20,000,000) annually.

(d) On or before June 1, 2018, the Department of General
Services shall prepare an evaluation of the best value procurement
pilot authorized by this section, including a recommendation on
whether or not the process should be continued at the Department
of Transportation. The evaluation shall be posted on the
Department of Transportation’s Internet Web site on or before
June 30, 2018.

(e) This section shall remain in effect only until January 1, 2019,
and as of that date is repealed, unless a later enacted statute, that
is enacted before January 1, 2019, deletes or extends that date.

end delete