Bill Text: CA SB762 | 2015-2016 | Regular Session | Amended

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

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Bill Title: Competitive bidding: best value: pilot program: design-build.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2015-10-08 - Chaptered by Secretary of State. Chapter 627, Statutes of 2015. [SB762 Detail]

Download: California-2015-SB762-Amended.html

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BILL NUMBER: SB 762	AMENDED
	BILL TEXT

	AMENDED IN SENATE  APRIL 15, 2015

INTRODUCED BY   Senator Wolk

                        FEBRUARY 27, 2015

   An act to add Article 3.7 (commencing with Section 20155) to
Chapter 1 of Part 3 of Division 2 of the Public Contract Code,
relating to public contracts.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 762, as amended, Wolk. Counties: competitive bidding: best
value: pilot program.
   The Local Agency Public Construction Act requires counties, among
others, to comply with specified procedures for contracting for
public works projects, including, the use of a competitive bidding
process and awarding contracts to the lowest responsible bidder.
Existing law provides that specified provisions of the act applicable
to public works contracts awarded by counties, as specified, do not
apply to certain contracts by the County of Napa and the County of
San Diego.
   This bill would establish a pilot program to allow counties to
select the lowest responsible bidder on the basis of best value, as
 defined. This   defined, for construction
projects in excess of $1,000,000. The  bill would require that
bidders verify specified information under oath, thereby imposing a
state-mandated local program by creating a new crime.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Article 3.7 (commencing with Section 20155) is added to
Chapter 1 of Part 3 of Division 2 of the Public Contract Code, to
read:

      Article 3.7.  Best Value Construction Contracting for Counties
Pilot Program


   20155.  (a) This article provides for a pilot program for counties
 when awarding construction contracts.   for
construction projects in excess of one million dollars ($1,000,000).

   (b) The board of supervisors of any county shall let any contract
for a  construction  project pursuant to this article to the
lowest responsible bidder or else reject all bids.
   (c) The lowest responsible bidder may be selected on the basis of
the best value to a county. In order to implement this method of
selection, the board of supervisors shall adopt and publish
procedures and required criteria that ensure that all selections are
conducted in a fair and impartial manner. These procedures shall
conform to Sections 20155.2 and 20155.3 and shall be mandatory for
counties who choose to participate in the pilot program.
   (d) If the board of supervisors deems it to be in the best
interest of the county, the board of  supervisors may,
  supervisors,  on the refusal or failure of the
successful bidder for a project to execute a tendered contract, 
may  award it to the second lowest responsible bidder. If the
second lowest responsible bidder fails or refuses to execute the
contract, the board of supervisors may likewise award it to the third
lowest responsible bidder.
   20155.1.  As used in this article:
   (a) "Best value" means 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.
   (b) "Best value contract" means a contract entered into pursuant
to this article.
   (c) "Best value contractor" means a properly licensed person,
firm, or corporation that submits a bid for, or is awarded, a best
value contract.
   (d) "Demonstrated management competency" means the experience,
competency, capability, and capacity of the proposed management
staffing to complete projects of similar size, scope, or complexity.
   (e) "Financial condition" means the financial resources needed to
perform the contract. The criteria used to evaluate a bidder's
financial condition shall include, at a minimum, capacity to obtain
all required payment bonds, performance bonds, and liability
insurance.
   (f) "Labor compliance" means the ability to comply with, and past
performance with, contract and statutory requirements for the payment
of wages and qualifications of the workforce. The criteria used to
evaluate a bidder's labor compliance shall include, as a minimum, the
bidder's ability to comply with the apprenticeship requirements of
the California Apprenticeship Council and the Department of
Industrial Relations, its past conformance with those requirements,
and its past conformance with requirements to pay prevailing wages on
public works projects.
   (g) "Qualifications" means the financial condition, relevant
experience, demonstrated management competency, labor compliance, the
safety record of the bidder, and, if required by the bidding
documents, some or all of the preceding qualifications as they
pertain to subcontractors proposed to be used by the bidder for
designated portions of the work.
   (h) "Relevant experience" means the experience, competency,
capability, and capacity to complete projects of similar size, scope,
or complexity.
   (i) "Safety record" means the prior history concerning the safe
performance of construction contracts. The criteria used to evaluate
a bidder's safety record shall include, at a minimum, its experience
modification rate for the most recent three-year period, and its
average total recordable injury or illness rate and average lost work
rate for the most recent three-year period.
   20155.2.  A county shall proceed in accordance with the following
when awarding best value contracts under this article:
   (a) A county shall prepare a solicitation for bids and give notice
pursuant to Section 20125.
   (b) A county shall establish a procedure to prequalify 
bidders.   bidders pursuant to Section 20101.  The
information required pursuant to this section shall be verified under
oath by the bidder in the manner in which civil pleadings in civil
actions are verified. Information submitted by the bidder as part of
the evaluation process shall not be open to public inspection to the
extent that information is exempt from disclosure under the
California Public Records Act (Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code).
   (c) Each solicitation for bids shall do all of the following:
   (1) Invite prequalified bidders to submit sealed bids in the
manner prescribed by this article.
   (2) Include a section identifying and describing the following:
   (A) Criteria that a county will consider in evaluating bids.
   (B) The methodology and rating or weighting system that will be
used by a county in evaluating bids.
   (C) The relative importance or weight assigned to the criteria
identified in the request for bids.
   (d) Final evaluation of the best value contractor shall be done in
a manner that prevents cost or price information from being revealed
to the committee evaluating the qualifications of the bidders prior
to completion and announcement of that committee's decision.
   20155.3.  Selection of the best value contractor shall be made as
follows:
   (a)  A   An evaluation committee appointed by
the  county shall evaluate the qualifications of the bidders
based solely upon the criteria set forth in the solicitation
documents, and shall assign a qualifications score to each bid. 
   (b) A county shall not award a contract for a construction project
pursuant to this article if a solicitation for bids for that
construction project results in the submission of fewer than three
responsive bids to the county for evaluation.  
   (b) 
    (c)  The award of the contract shall be made to the
bidder whose bid is determined by a county, in writing, to be the
best value to a county. To determine the best value contractor, the
county shall divide each bidder's price by its qualifications score.
The lowest resulting cost per quality point will represent the best
value bid. 
   (c) 
    (d)  A county shall issue a written decision of its
contract award. 
   (d) 
    (e)  Upon issuance of a contract award, a county shall
publicly announce its award identifying the best value contractor to
which the award is made, the project, the project price, and the
selected best value contractor's score based on the evaluation
criteria listed in the request for bids. The notice of award shall be
made public and include the score of the selected best value
contractor in relation to all other responsive bidders and their
respective prices. The contract file shall include documentation
sufficient to support the decision to award.
   20155.4.  (a)  On or before   Before 
January 1, 2020, the board of supervisors of a participating county
shall submit a report to the appropriate policy committees of the
Legislature and the Joint Legislative Budget Committee. The report
shall include, but is not limited to, the following information:
   (1) A description of the projects awarded using the best value
procedures.
   (2) The contract award amounts.
   (3) The best value contractors awarded the projects.
   (4) A description of any written protests concerning any aspect of
the solicitation, bid, or award of the best value contracts,
including the resolution of the protests.
   (5) A description of the prequalification process.
   (6) The criteria used to evaluate the bids, including the
weighting of the criteria and an assessment of the effectiveness of
the methodology.
   (7) If a project awarded under this article has been completed, an
assessment of the project performance, to include a summary of any
delays or cost increases.
   (b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
   (c) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
   20155.5.  Except as otherwise provided in this article, this
article is not intended to change in any manner any guideline,
criteria, procedure, or requirement of a county to let any contract
for a project to the lowest responsible bidder or else reject all
bids.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.