Bill Text: CA AB2722 | 2013-2014 | Regular Session | Introduced
Bill Title: Los Angeles County Metropolitan Transportation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-04-21 - In committee: Hearing postponed by committee. [AB2722 Detail]
Download: California-2013-AB2722-Introduced.html
BILL NUMBER: AB 2722 INTRODUCED
BILL TEXT
INTRODUCED BY Assembly Member Ridley-Thomas
FEBRUARY 21, 2014
An act to amend Section 130232 of the Public Utilities Code,
relating to transportation.
LEGISLATIVE COUNSEL'S DIGEST
AB 2722, as introduced, Ridley-Thomas. Los Angeles County
Metropolitan Transportation Authority: contracting.
Existing law creates the Los Angeles County Metropolitan
Transportation Authority (LACMTA), with various powers and duties
with respect to transportation planning, programming, construction,
and operations.
Existing law authorizes LACMTA to provide for a small business
preference of 5% of the lowest responsible bidder meeting
specifications, with respect to contracts in construction, the
construction component of a design-build team, the procurement of
goods, or the delivery of services. Existing law also authorizes
LACMTA to establish a subcontracting participation goal for small
businesses on contracts financed with nonfederal funds and to grant a
preference of 5% to the lowest responsible bidders that meet that
goal. These small business contract preference provisions do not
apply to contracts for professional services involving private
architectural, landscape architectural, engineering, land surveying,
or construction management.
This bill would delete the restrictions, thereby authorizing
LACMTA to expand small business contract preference provisions to
these professional services contracts. The bill would provide similar
preferences with respect to disabled veteran business enterprises,
as defined. The bill would allow the preferences to be in an amount
of up to 10% of the lowest responsible bidder. The bill would
authorize LACMTA to establish a mandatory subcontracting
participation goal for small business or disabled veteran business
enterprises on contracts financed with nonfederal funds and to set
additional guidelines for local preference purposes. The bill would
authorize LACMTA to award certain contracts of specified values to
small business or disabled veteran business enterprises if LACMTA
obtains price quotations from 2 or more of those business, or to
small businesses or disabled veteran business enterprises that are
the lowest responsible bidder or best value proposer among those
businesses, as specified.
The bill would also authorize LACMTA, in general, to award annual
contracts that do not exceed $3,000,000 for repair or repetitive
work to be done according to unit prices.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 130232 of the Public Utilities Code is amended
to read:
130232. (a) Except as provided in subdivision (f), purchase of
all supplies, equipment, and materials, and the construction of all
facilities and works, when the expenditure required exceeds
twenty-five thousand dollars ($25,000), shall be by contract let to
the lowest responsible bidder. Notice requesting bids shall be
published at least once in a newspaper of general circulation. The
publication shall be made at least 10 days before the date for the
receipt of the bids. The commission, at its discretion, may reject
any and all bids and readvertise.
(b) Except as provided for in subdivision (f), whenever the
expected expenditure required exceeds one thousand dollars ($1,000),
but not twenty-five thousand dollars ($25,000), the commission shall
obtain a minimum of three quotations, either written or oral, that
permit prices and terms to be compared.
(c) Where the expenditure required by the bid price is less than
fifty thousand dollars ($50,000), the executive director may act for
the commission.
(d) All bids for construction work submitted pursuant to this
section shall be presented under sealed cover and shall be
accompanied by one of the following forms of bidder's security:
(1) Cash.
(2) A cashier's check made payable to the commission.
(3) A certified check made payable to the commission.
(4) A bidder's bond executed by an admitted surety insurer, made
payable to the commission.
(e) Upon an award to the lowest bidder, the security of an
unsuccessful bidder shall be returned in a reasonable period of time,
but in no event shall that security be held by the commission beyond
60 days from the date that the award was made.
(f) The following provisions apply only to the Los Angeles County
Metropolitan Transportation Authority:
(1) The contract shall be let to the lowest responsible bidder or,
in the authority's discretion, to the person who submitted a
proposal that provides the best value to the commission on the basis
of the factors identified in the solicitation when the purchase price
of all supplies, equipment, and materials exceeds one hundred fifty
thousand dollars ($150,000). "Best value" means 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. The
contract shall be let to the lowest responsible bidder when the
purchase price of the construction of all facilities exceeds
twenty-five thousand dollars ($25,000).
(2) The authority shall obtain a minimum of three quotations,
either written or oral, that permit prices and terms to be compared
whenever the expected expenditure required exceeds three thousand
dollars ($3,000), but not one hundred fifty thousand dollars
($150,000).
(3) The authority may purchase supplies, equipment, and materials
from a public auction sale, including public auctions held via the
Internet, using the procedures established for all other participants
in the public auction.
(4) The authority may participate in a procurement agreement
involving other public entities that is identified by a procuring
public entity or entities as a cooperative procuring agreement from
which other public entities may make purchases or enter into
contracts, and the authority may procure, and enter into contracts
for, items purchased pursuant to that procurement agreement,
notwithstanding that the authority may not be the procuring public
entity, provided the procurement agreement is awarded or entered into
by either of the following:
(A) One or more public entities or an organization of public
entities, which may include the authority.
(B) A federal, state, or local public entity.
(5) (A) Notwithstanding any other provision of law requiring the
authority to award contracts to the lowest responsible bidder, the
authority may , except as to contracts for professional
services involving private architectural, landscape architectural,
engineering, environmental, land surveying, or construction
management as defined in Sections 4525 and 4529.10 of the Government
Code, do any of the following in facilitating contract
awards to small businesses business or
disabled veteran business enterprises :
(i) Provide for a small business or disabled veteran business
enterprise preference in construction, the construction
component of a design-build team, the procurement of goods, or the
delivery of services. The preference to a small business or a
disabled veteran business enterprise shall be 5
up to 10 percent of the lowest responsible
bidder meeting specifications that provide for small business or
disabled veteran business enterprise participation.
(ii) Establish a subcontracting participation goal for small
businesses business or disabled veteran
business enterprises on contracts financed with nonfederal
funds and grant a preference of 5 up to 10
percent to the lowest responsible bidders who meet the goal.
(iii) Establish a mandatory subcontracting participation goal for
small business or disabled veteran business enterprises on contracts
financed with nonfederal funds.
(iii)
(iv) Require bidders to make a good faith effort, in
accordance with the criteria established pursuant to subparagraph
(B), prior to the time bids are opened, to comply with the goals and
requirements established by the authority relating to participation
in the contract by small businesses business
or disabled veteran enterprises .
(v) Award a contract for the acquisition of supplies, equipment,
materials, or construction that has an estimated value of more than
three thousand dollars ($3,000), but not more than two hundred fifty
thousand dollars ($250,000), to a small business or disabled veteran
business enterprise, as long as the authority obtains price
quotations from two or more small business or certified disabled
veteran business enterprises.
(vi) Award a contract for the acquisition of supplies, equipment,
or materials that has an estimated value of more than two hundred
fifty thousand dollars ($250,000), but not more than two million
dollars ($2,000,000) to the lowest responsible small business or
disabled veteran business enterprise bidder or, in the authority's
discretion, to the small business or disabled veteran business
enterprise that submitted a proposal that provides the best value to
the authority on the basis of the factors identified in the
solicitation.
(vii) Award a contract for construction that has an estimated
value of more than two hundred fifty thousand dollars ($250,000), but
not more than five million dollars ($5,000,000), to the lowest
responsible small business or disabled veteran business enterprise
bidder.
(viii) Set additional guidelines for local preference purposes.
(B) The following shall apply to bidders under this paragraph:
(i) The bidder attended any presolicitation or prebid meetings
that were scheduled by the authority to inform all bidders of the
small business or disabled veteran business enterprise
program requirements for the project for which the contract will be
awarded. The authority may waive this requirement if it determines
that the bidder is informed as to those program requirements.
(ii) The bidder identified and selected specific items of the
project for which the contract will be awarded to be performed by
small business or disabled veteran business enterprises to
provide an opportunity for participation by those enterprises.
(iii) The bidder advertised, not less than 10 calendar days before
the date the bids are opened, in one or more daily or weekly
newspapers, trade association publications or trade-oriented
publications, trade journals, or other media, specified by the
authority for small business or disabled veteran business
enterprises that are interested in participating in the project. This
clause applies only if the authority gave public notice of the
project not less than 15 calendar days prior to the date the bids are
opened.
(iv) The bidder provided written notice of his or her interest in
bidding on the contract to the number of small business or
disabled veteran business enterprises required to be notified
by the project specifications not less than 10 calendar days prior to
the opening of bids. The authority shall make available to the
bidder not less than 15 calendar days prior to the date the bids are
opened a list or a source of lists of enterprises which are certified
by the authority as small business or disabled veteran business
enterprises.
(v) The bidder followed up initial solicitations of interest by
contacting the enterprises to determine with certainty whether the
enterprises were interested in performing specific items of the
project.
(vi) The bidder provided interested small business or
disabled veteran business enterprises with information about
the plans, specifications, and requirements for the selected
subcontracting or material supply work.
(vii) The bidder requested assistance from small business
community organizations; small business contractor groups; local,
state, or small business assistance offices; or other organizations
that provide assistance in the recruitment and placement of small
business or disabled veteran business enterprises, if any
are available.
(viii) The bidder negotiated in good faith with the small business
or disabled veteran business enterprises, and did not
unjustifiably reject as unsatisfactory bids prepared by any small
business enterprises, as determined by the authority.
(ix) Where applicable, the bidder advised and made efforts to
assist interested small business or disabled veteran business
enterprises in obtaining bonds, lines of credit, or insurance
required by the authority or contractor.
(x) The bidder's efforts to obtain small business or disabled
veteran business enterprise participation could reasonably be
expected by the authority to produce a level of participation
sufficient to meet the goals and requirements of the authority.
(C) "Small business enterprise" as used in this paragraph
, means a business enterprise that is classified as a
small business under United States Small Business Administration
rules and meets the current small business enterprise size standards
found in Part 121 of Title 13 of the Code of Federal Regulations
appropriate to the type of work the enterprise seeks to perform. The
authority may establish limitations regarding the average annual
gross receipts of a small business over the previous three fiscal
years and establish limitations regarding the personal net worth of
the owner of the small business, exclusive of the value of the owner'
s personal residence.
(D) "Disabled veteran business enterprise" as used in this
paragraph means an enterprise that has been certified as meeting the
qualifications established by subdivision (b) of Section 999 of the
Military and Veterans Code.
(6) (A) Notwithstanding any other law, the authority may award
annual contracts that do not exceed three million dollars
($3,000,000) for repair or other repetitive work, or renovation or
modification, to be done according to unit prices. The contracts
shall be awarded to the lowest responsible bidder, and shall be based
primarily on plans and specifications for typical work. No annual
contracts may be awarded under these provisions if the total cost of
the contract exceeds five hundred thousand dollars ($500,000).
(B) For purposes of this paragraph, "unit price" means the amount
paid for a single unit of an item of work, and "typical work" means a
work description applicable universally or applicable to a large
number of individual projects, as distinguished from work
specifically described with respect to an individual project.
