BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1971|
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THIRD READING
Bill No: AB 1971
Author: Bocanegra (D)
Amended: 7/2/14 in Senate
Vote: 21
SENATE EDUCATION COMMITTEE : 4-1, 6/25/14
AYES: Liu, Correa, Hancock, Monning
NOES: Wyland
NO VOTE RECORDED: Block, Huff
SENATE APPROPRIATIONS COMMITTEE : 5-2, 8/4/14
AYES: De Le�n, Hill, Lara, Padilla, Steinberg
NOES: Walters, Gaines
ASSEMBLY FLOOR : 55-17, 5/23/14 - See last page for vote
SUBJECT : Best Value procurement Pilot Program
SOURCE : Author
DIGEST : This bill, until January 1, 2020, establishes a pilot
program to authorize the Los Angeles Unified School District
(LAUSD) to use a best value procurement method for public
projects that exceed $1 million, and requires submission of
specified reports on the use of this procurement method.
ANALYSIS :
Existing law:
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1.Requires the governing board of a school district, to
competitively bid, and award to the lowest responsible bidder,
any contract for a public project (as defined) involving an
expenditure of $15,000 or more.
2.Authorizes, until January 1, a pilot program at the University
of California (UC) to award construction contracts on a "best
value" basis, rather than just to the lowest bid.
3.Defines "best value," for purposes of the UC, as a procurement
process whereby the lowest responsible bidder may be selected
on the basis of objective criteria with the resulting
selection representing the best combination of price and
qualifications.
This bill:
1.Establishes a pilot program, until January 1, 2020, to
authorize the LAUSD to use a best value procurement method for
projects over $1 million.
2.Authorizes the Governing Board of the LAUSD, until January 1,
2017, to use best value procurement, pursuant to policies
adopted and published by the local governing board, for
awarding construction contracts.
3.Outlines the definitions, policies, and procedures to be
followed by school districts consistent with existing law
provisions applicable to best value contracting by the UC.
4.Requires that:
A. Specified "skilled and trained workforce" requirements
are met.
B. Specified proceeds retention and surety bond conditions
are met.
C. Subcontracting fair practices are followed.
D. Factors such as relevant experience, skilled and trained
workforce and acceptable safety record meet specified
weighting requirements in the scoring of each bid,
specifically assigns preference points to small businesses,
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and prohibits the assignment of more than 50% of the total
weight or consideration given to a bid to be based upon
price.
1.Establishes reporting requirements related to the authority to
the use best value under the bill's provisions. More
specifically it:
A. Requires the Governing Board of the LAUSD to use best
value to submit an interim report and a final report,
conducted by an independent third party, containing
specified information on the use of best value to the
Legislative Analyst's Office (LAO) by July 1, 2017, and
January 1, 2019, respectively.
B. Requires the LAO to submit an interim report and a final
report, on the use of best value, as specified, to the
appropriate policy and fiscal committees of the Legislature
by January 1, 2018, and July 1, 2019, respectively, to
evaluate whether the best value procurement method should
be continued, expanded, or prohibited.
1.Clarifies that the best value procurement method is optional
and that the bill's provisions are not intended to inhibit the
Governing Board of the LAUSD from letting a contract on the
basis of lowest responsible bidder.
2.Sunsets the provisions of the bill on January 1, 2020.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, this bill will
not result in any direct state costs, but could put pressure on
state bond funds, to the extent local choices affect them.
LAUSD: Unknown, but potentially significant immediate and
long-term costs and/or savings to the extent that (1) the
district elects to use a best value procurement method, and
(2) that the method, which is intended to save LAUSD money,
actually does save money. This bill is permissive, and would
also allow LAUSD to continue to choose the lowest responsible
bidder.
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Legislative Analyst's Office (LAO): Minor and absorbable
costs for the LAO to complete an interim and final report on
LAUSD's use of best value procurement.
SUPPORT : (Unable to verify at time of writing)
California Association of School Business Officials
Los Angeles Unified School District
OPPOSITION : (Unable to verify at time of writing)
Air Conditioning Trade Association
Associated Builders and Contractors - San Diego Chapter
Plumbing-Hearing-Cooling Contractors Association of California
Western Electrical Contractors Association
ASSEMBLY FLOOR : 55-17, 5/23/14
AYES: Alejo, Ammiano, Bloom, Bocanegra, Bonta, Bradford, Brown,
Buchanan, Ian Calderon, Campos, Chau, Ch�vez, Chesbro, Cooley,
Dababneh, Daly, Dickinson, Fong, Fox, Frazier, Garcia, Gatto,
Gomez, Gonzalez, Gordon, Gorell, Gray, Hall, Holden,
Jones-Sawyer, Levine, Lowenthal, Medina, Mullin, Muratsuchi,
Nazarian, Olsen, Pan, Perea, John A. P�rez, Quirk,
Quirk-Silva, Rendon, Ridley-Thomas, Rodriguez, Salas, Skinner,
Stone, Ting, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
NOES: Achadjian, Allen, Bigelow, Conway, Dahle, Donnelly, Beth
Gaines, Grove, Hagman, Jones, Logue, Maienschein, Mansoor,
Melendez, Patterson, Wagner, Waldron
NO VOTE RECORDED: Bonilla, Eggman, Harkey, Roger Hern�ndez,
Linder, Nestande, V. Manuel P�rez, Vacancy
PQ:e 8/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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