Bill Text: CA SB1280 | 2011-2012 | Regular Session | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Public contracts: University of California and community

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2012-09-28 - Chaptered by Secretary of State. Chapter 708, Statutes of 2012. [SB1280 Detail]

Download: California-2011-SB1280-Enrolled.html

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BILL NUMBER: SB 1280	ENROLLED
	BILL TEXT

	PASSED THE SENATE  AUGUST 31, 2012
	PASSED THE ASSEMBLY  AUGUST 23, 2012
	AMENDED IN ASSEMBLY  AUGUST 13, 2012
	AMENDED IN ASSEMBLY  AUGUST 6, 2012
	AMENDED IN ASSEMBLY  JUNE 26, 2012
	AMENDED IN SENATE  MAY 2, 2012
	AMENDED IN SENATE  APRIL 18, 2012

INTRODUCED BY   Senator Pavley

                        FEBRUARY 23, 2012

   An act to add and repeal Sections 10507.8 and 20651.7 of the
Public Contract Code, relating to public contracts.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1280, Pavley. Public contracts: University of California and
community college districts: competitive bidding: best value.
   Existing law requires the Regents of the University of California,
except as provided, to let all contracts involving an expenditure of
more than $100,000 annually for goods and materials or services to
the lowest responsible bidder meeting certain specifications, or to
reject all bids. Existing law requires the governing board of any
community college district to let specified contracts involving an
expenditure of more than $50,000 to the lowest responsible bidder
meeting certain specifications, or else to reject all bids.
   This bill would provide that, before January 1, 2018, the bid
evaluation and selection for these contracts may be determined by the
best value for the University of California or community college
district, as specified.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 10507.8 is added to the Public Contract Code,
to read:
   10507.8.  (a) As provided for in this article, when the University
of California determines that it can expect long-term savings
through the use of life-cycle cost methodology, the use of more
sustainable goods and materials, and reduced administrative costs,
the lowest responsible bidder may be selected on the basis of the
best value to the university. In order to implement this method of
selection, the Regents of the University of California shall adopt
and publish policies and guidelines for evaluating bidders that
ensure that best value selections by the university are conducted in
a fair and impartial manner. These policies and guidelines shall
conform to the requirements of subdivisions (c) and (d) and shall be
applicable to the university when using best value as the bid
evaluation methodology.
   (b) For the purposes of this section, the following definitions
apply:
   (1) "Best value" means the most advantageous balance of price,
quality, service, performance, and other elements, as defined by the
university, achieved through methods in accordance with this section
and determined by objective performance criteria that may include
price, features, long-term functionality, life-cycle costs, overall
sustainability, and required services.
   (2) "Best value agreement" means an agreement entered into
pursuant to the provisions of this section.
   (3) "Best value awardee" means the lowest responsible bidder or
bidders that are awarded an agreement for goods, materials, or
services that was awarded through the use of best value for the bid
evaluation methodology.
   (4) "Best value criteria" means those criteria set forth in
subdivision (d).
   (5) "University" means all current campuses and locations of the
University of California, including the medical centers, the national
laboratories, and any future University of California campuses and
locations.
   (c) (1) The university shall consider all of the following when
adopting policies and guidelines pursuant to subdivision (a):
   (A) Price and service proposals that reduce the university's
overall operating costs.
   (B) Supply and material standards that support the university's
strategic sourcing initiatives.
   (C) A procedure for bid protest and resolution.
   (2) The university shall award a best value agreement as follows:
   (A) The university shall evaluate bidders based solely upon the
best value criteria set forth in the solicitation documents.
Solicitation for bids shall describe the best value criteria that the
university will consider in evaluating the bidders by overall
category and by specific attributes.
   (B) The university shall award the agreement to the lowest
responsible bidder or bidders whose bid or bids are determined by the
university to be the best value in terms of price, quality, service,
and performance, and that meet the university's requirements.
   (C) Bid participants that are not awarded a best value agreement
shall be notified in writing at the end of the agreement award
process.
   (d) For the purposes of this section, the university may take into
consideration any of the following best value criteria when awarding
a best value agreement for goods, materials, and services:
   (1) The total cost to the university of its use or consumption of
goods, materials, and services.
   (2) The operational cost or benefit incurred by the university as
a result of a contract award.
   (3) The added value to the university, as defined in the request
for proposal, of vendor-added services.
   (4) The quality and effectiveness of goods, materials, and
services.
   (5) The use of more sustainable goods and materials in the
manufacturing of the goods and materials and the packaging of these
products.
   (6) The reliability and timeliness of delivery and installation.
   (7) The terms and conditions of product warranties, maintenance,
and vendor guarantees.
   (8) The vendor's quality assurance, continuous improvement, and
business resumption programs and their benefit to the university.
   (9) The vendor's experience with the timely provision of goods,
materials, and services.
   (10) The consistency of quality and availability of the vendor's
proposed supplies, materials, and services with the university's
overall procurement program.
   (11) The economic benefits to the local community, including, but
not limited to, job creation or retention and the support of small
and local businesses.
   (e) The university shall ensure that all businesses have a fair
and equitable opportunity to compete for, and participate in, the
university best value bids and shall also ensure that discrimination
in the award and performance of the agreement does not occur on the
basis of gender, marital status, ancestry, medical condition, or any
characteristic listed or defined in Section 11135 of the Government
Code, or retaliation for having filed a discrimination complaint or
protest in the performance of university contractual obligations.
   (f) (1) On or before July 1, 2016, the University of California
shall provide the Legislative Analyst's Office with a list of the
policies and procedures adopted pursuant to subdivision (a). In
addition, the university shall also collect and provide the following
information to the Legislative Analyst's Office for each contract
involving an expenditure of more than one hundred thousand dollars
($100,000) for goods, materials, or services that was entered into on
or after the effective date of this section:
   (A) Whether the contract was awarded to the lowest responsible
bidder or using best value.
   (B) A description of the products, commodities, or services as
defined in the bid solicitation.
   (C) The names of the awardee or awardees of the agreement or
agreements.
   (D) The actual volume resulting from the agreements, or estimated
volume if the agreements are less than one year old, of all
purchases.
   (E) A description of any written bid protest or protests
concerning an aspect of the solicitation, bid, or award of the
agreement, including the resolution of the protest.
   (F) For each contract awarded using best value, the criteria used
to evaluate the bids, as well as a summary of the rationale for
awarding the contract.
   (G) For each contract awarded using best value, a summary of any
additional economic benefit other than the price of the contract,
including an explanation of whether those benefits were realized as
expected.
   (H) For each contract awarded using best value, the university
shall identify one or more comparable contracts awarded using the
traditional lowest responsible bidder method, including, but not
limited to, contracts awarded prior to the adoption of the best value
acquisition policies.
   (2) On or before February 1, 2017, the Legislative Analyst shall
report to the Legislature on the use of best value procurement by the
University of California. The Legislative Analyst shall use the
information provided by the university to report all of the
following:
   (A) An assessment of any benefits or disadvantages of best value
acquisition as compared to bids awarded to the lowest responsible
bidder.
   (B) An assessment of whether the use of best value procurement has
led to a difference in the number of disputes as compared to
contracts awarded using the traditional lowest responsible bidder
method.
   (C) An assessment of the policies adopted by the university
pursuant to subdivision (a), as well as an assessment of the
performance criteria used by the university to evaluate the bids and
the effectiveness of the methodology.
   (D) A comparison of the overall cost of contracts let under best
value acquisition pursuant to this section to similar contracts let
under traditional low bid procurement practices.
   (E) Recommendations as to whether the best value at lowest cost
acquisition procurement authority should be continued.
   (g) This section applies solely to the procurement of goods,
materials, or services and shall not apply to construction contracts.

   (h) This section shall remain in effect only until January 1,
2018, and as of that date is repealed.
   (i) Except as otherwise provided in this article, this article is
not intended to change in any manner any guideline, criteria,
procedure, or requirement of the Regents of the University of
California to let any contract for goods, materials, or services to
the lowest responsible bidder meeting certain specifications or to
reject all bids.
  SEC. 2.  Section 20651.7 is added to the Public Contract Code, to
read:
   20651.7.  (a) For the purposes of bid evaluation and selection
pursuant to subdivision (a) of Section 20651, when a community
college district determines that it can expect long-term savings
through the use of life-cycle cost methodology, the use of more
sustainable goods and materials, and reduced administrative costs,
the community college district may provide for the selection of the
lowest responsible bidder on the basis of best value pursuant to
policies and procedures adopted by the governing board in accordance
with this section.
   (b) For purposes of this section, "best value" means the most
advantageous balance of price, quality, service, performance, and
other elements, as defined by the governing board, achieved through
methods in accordance with this section and determined by objective
performance criteria that may include price, features, long-term
functionality, life-cycle costs, overall sustainability, and required
services.
   (c) A community college district shall consider all of the
following when adopting best value policies pursuant to subdivision
(a):
   (1) Price and service level proposals that reduce the district's
overall operating costs, including end-of-life expenditures and
impact.
   (2) Equipment, services, supplies, and materials standards that
support the community college district's strategic acquisition and
management program direction.
   (3) A procedure for protest and resolution.
   (d) A community college district may consider any of the following
factors if adopting policies and procedures pursuant to subdivision
(c):
   (1) The total cost to the community college district of its
purchase, use, and consumption of equipment, supplies, and materials.

   (2) The operational cost or benefit incurred by the community
college district as a result of a contract award.
   (3) The added value to the community college district, as defined
in the request for proposal, of vendor-added services.
   (4) The quality and effectiveness of equipment, supplies,
materials, and services.
   (5) The reliability of delivery and installation schedules.
   (6) The terms and conditions of product warranties and vendor
guarantees.
   (7) The financial stability of the vendor.
   (8) The vendor's quality assurance program.
   (9) The vendor's experience with the provisions of equipment,
supplies, materials, and services within the institutional
marketplace.
   (10) The consistency of the vendor's proposed equipment, supplies,
materials, and services with the district's overall supplies and
materials procurement program.
   (11) The economic benefits to the local community, including, but
not limited to, job creation and retention.
   (12) The environmental benefits to the local community.
   (e) A community college district awarding a contract under this
section shall award a contract to the lowest responsible bidder whose
proposal is determined, in writing by the community college
district, to be the best value to the community college district
based solely on the criteria set forth in the request for proposal.
   (f) The governing board of a community college district shall
issue a written notice of intent to award supporting its contract
award and stating in detail the basis of the award. The notice of the
intent to award and the contract file must be sufficient to satisfy
an external audit.
   (g) The governing board of a community college district shall
publicly announce its award, identifying the bidder to which the
award is made, the price proposal of the contractor awarded the
contract, and the overall combined rating on the request for proposal
evaluation factors. The announcement shall also include the ranking
of the contractor awarded the contract in relation to all other
responsive bidders and their respective price proposals and summary
of the rationale for the contract award.
   (h) The community college district shall ensure that all
businesses have a fair and equitable opportunity to compete for, and
participate in, district contracts and shall also ensure that
discrimination, as described in subdivision (e) of Section 12751.3 of
the Public Utilities Code, in the award and performance of contracts
does not occur.
   (i) (1) If a community college district elects to purchase
equipment, materials, supplies, and services by contract, let in
accordance with this section, the community college district shall
submit the following information to the Chancellor of the California
Community Colleges on or before January 1, 2016:
   (A) The community college district's policies adopted pursuant to
subdivision (a).
   (B) An annual list of district procurements for contracts with a
brief description of the contract, the winning bid, the cost, and if
the contract was done under best value acquisition policies.
   (C) For a contract awarded under the best value acquisition
policies, the bid announcement announcing the bidder to which the
award was made, including that bidder's scoring rating compared to
other bidders, the winning contractor's price proposal, the overall
combined rating on the request for proposal evaluation factors, a
description of the products, commodities, or services sought, and a
summary of the rationale for the contract award.
   (D) For each contract awarded using the best value acquisition
policies at least one bid award announcement for a comparably priced
contract using the traditional lowest responsible bidder process that
specifies the bidder to which the contract was awarded, and the
amount of the award, and the request for bid for that contract that
includes a description of the products, commodities, or services
sought for at least one comparably sized contract, to the best value
contract being let, awarded pursuant to the traditional lowest
responsible bidder process including contracts awarded by the
district in the three years prior to the adoption of best value
acquisition policies by the district.
   (E) For contracts awarded using best value, a summary of any
additional economic benefit other than the price of the contract
obtained, including an explanation of whether these benefits were
realized as expected.
   (F) The total number of bid protests or protests concerning an
aspect of the solicitation, bid, or award of the agreement since the
district adopted policies pursuant to subdivision (a) and the number
of those protests that occurred under best value.
   (G) A description of any written bid protest or protests
concerning an aspect of the solicitation, bid, or award of the
agreement including the resolution of the protest for any contract
submitted pursuant to this section.
   (2) The Legislative Analyst shall request the chancellor to
provide the information specified in paragraph (1) to the Legislative
Analyst on or before July 1, 2016. On or before February 1, 2017,
the Legislative Analyst shall report to the Legislature on the use of
competitive means for obtaining best value procurement by community
college districts. The Legislative Analyst shall use the information
provided by the chancellor to report all of the following:
   (A) A summary of the overall benefits of best value acquisition.
   (B) A comparison of the overall cost of contracts let under best
value acquisition pursuant to this section to similar contracts let
under traditional low bid procurement practices.
   (C) An assessment of any benefits or disadvantages of best value
procurement practices as compared to bids awarded to the lowest
responsible bidder.
   (D) An assessment of whether the use of best value procurement has
led to a difference in the number of disputes as compared to
contracts awarded using the traditional lowest responsible bidder
method.
   (E) An assessment of the policies adopted by the community college
districts pursuant to subdivision (a) as well as an assessment of
the overall performance criteria used to evaluate the bids and the
effectiveness of the methodology.
   (F) Recommendations as to whether the best value at lowest cost
acquisition procurement authority should be continued.
   (j) This section shall remain in effect only until January 1,
2018, and as of that date is repealed.