Bill Text: CA AB2448 | 2009-2010 | Regular Session | Enrolled
Bill Title: Public contracts: community college districts: purchases.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Vetoed) 2010-09-29 - Vetoed by Governor. [AB2448 Detail]
Download: California-2009-AB2448-Enrolled.html
BILL NUMBER: AB 2448 ENROLLED
BILL TEXT
PASSED THE SENATE AUGUST 19, 2010
PASSED THE ASSEMBLY AUGUST 24, 2010
AMENDED IN SENATE AUGUST 11, 2010
AMENDED IN SENATE AUGUST 2, 2010
AMENDED IN ASSEMBLY MAY 24, 2010
AMENDED IN ASSEMBLY MAY 6, 2010
INTRODUCED BY Assembly Member Furutani
FEBRUARY 19, 2010
An act to amend Section 20659 of, and to add and repeal Section
20651.7 of, the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2448, Furutani. Public contracts: community college districts:
purchases.
(1) Existing law requires the governing board of a community
college district, in accordance with certain requirements, to let any
contract involving an expenditure of more than $50,000 for purchases
of equipment, materials, supplies, repairs, and services, other than
construction services, to the lowest responsible bidder or to reject
all bids.
This bill would authorize the district, if the purchase of
supplies and materials exceeds $50,000 and the district determines
that it can expect, among other things, long-term savings through the
use of a life-cycle cost methodology, to provide for the purchase of
the supplies and materials by contract let in accordance with best
value at the lowest cost acquisition policies adopted by the district'
s board. The bill would require a district that elects to purchase
supplies and materials by contract let in accordance with those
policies to submit specified information to the Chancellor of the
California Community Colleges on or before January 1, 2013, and would
require the Legislative Analyst to request this information from the
chancellor. The bill would require the Legislative Analyst to report
to the Legislature on the use of this type of procurement by
community college districts on or before January 1, 2015.
This bill would require a district to ensure that all businesses
have a fair and equitable opportunity to compete for, and participate
in, district contracts awarded pursuant to its provisions and would
prohibit discrimination in the award and performance of those
contracts.
These provisions would be repealed on January 1, 2016, unless a
later enacted statute that is enacted before January 1, 2016, deletes
or extends that date.
(2) Existing law requires any change or alteration in certain
contracts with a community college district to be in writing, and
allows the governing board of the district to authorize the
contractor to proceed without securing bids if the cost does not
exceed specified amounts.
This bill would allow the governing board of the district to
authorize a contractor to proceed with multiple changes or
alterations without securing bids if the cost of all changes or
alterations to the original contract does not exceed specified
amounts.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 20651.7 is added to the Public Contract Code,
to read:
20651.7. (a) Notwithstanding Section 20651, when the expenditure
for the purchase of supplies and materials exceeds fifty thousand
dollars ($50,000) and the district determines that it can expect
long-term savings through the use of a life-cycle cost methodology,
the use of more sustainable materials and supplies, and reduced
administrative costs, the district may provide for the purchase of
the supplies and materials by contract let in accordance with best
value at the lowest cost acquisition policies adopted by the
governing board pursuant to this section.
(b) The best value at the lowest cost acquisition policies adopted
pursuant to subdivision (a) shall consider all of the following:
(1) Price and service level proposals that reduce the district's
overall operating costs.
(2) Supplies and materials standards that support the district's
strategic supplies and materials acquisition and management program
direction.
(3) A procedure for protest and resolution.
(4) A life cycle of no fewer than three years.
(c) For purposes of this section, "best value at the lowest cost
acquisition" means a competitive procurement process whereby the
award of a contract for supplies and materials may take into
consideration any of the following factors:
(1) The total cost to the district of its use or consumption of
supplies and materials.
(2) The operational cost or benefit incurred by the district as a
result of a contract award.
(3) The added value to the district, as defined in the request for
proposal, of vendor-added services.
(4) The quality and effectiveness of supplies, materials, and
services.
(5) The reliability of delivery or 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 provision of supplies,
materials, and services.
(10) The consistency of the vendor's proposed 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 or retention.
(d) The award of the contract shall be made to the responsible
proposer whose proposal is determined, in writing by the community
college district, to be the best value to the community college
district based on the criteria set forth in the request for proposal.
(e) The governing board of the 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
intent to award and the contract file must be sufficient to satisfy
an external audit.
(f) Notwithstanding any other provision of this code, in making a
contract award, the governing board of the community college district
shall publicly announce its award identifying the bidder to whom the
award is made, the winning contractor's price proposal, and the
overall combined rating on the request for proposal evaluation
factors. The announcement shall also include the agency's ranking in
relation to all other responsive proposers and their respective price
proposals and a summary of the rationale for the contract award.
(g) The 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.
(h) (1) If a district elects to purchase supplies and materials by
contract, let in accordance with best value acquisition policies
adopted by the board pursuant to this section, the district shall
submit the following information to the Chancellor of the California
Community Colleges on or before January 1, 2013:
(A) The total number of district procurements for contracts, and
the number that were done under best value acquisition policies.
(B) For any contracts awarded under the best value acquisition
policies, the bid announcement announcing the bidder to whom the
award was made, as required pursuant to subdivision (f), 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, and a summary of the
rationale for the contract award.
(C) For any comparably sized contracts awarded under the
traditional low bid method in the three years prior to the adoption
of best value acquisition policies, the bid award announcement
announcing to whom the contract was awarded and the amount of the
award.
(D) The nature of any disputes arising from the use of best value
procurement practices and the status of those disputes.
(E) The district's policies adopted pursuant to subdivision (a).
(F) A summary of any noncost value obtained through contracts let
under the best value acquisition policies.
(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, 2013. On or before January 1, 2015, the
Legislative Analyst shall report to the Legislature on the use of
best value at lowest cost acquisition procurement by community
college districts. The Legislative Analyst shall use the information
provided by the chancellor to report all of the following:
(A) A comparison of the overall cost of best value acquisition to
similar contracts let under traditional low bid procurement
practices.
(B) A comparison of the overall benefits of best value acquisition
to similar contracts let under traditional low bid procurement
practices.
(C) A summary of noncost value reported by the district.
(D) A general summary and evaluation of districts' policies
adopted pursuant to subdivision (a).
(E) Recommendations as to whether the best value at lowest cost
acquisition procurement authority should be continued.
(i) This section shall remain in effect only until January 1,
2016, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2016, deletes or extends
that date.
SEC. 2. Section 20659 of the Public Contract Code is amended to
read:
20659. If any change or alteration of a contract governed by the
provisions of this article is ordered by the governing board of the
community college district, the change or alteration shall be
specified in writing and the cost agreed upon between the governing
board and the contractor. The board may authorize the contractor to
proceed with performance of one or more changes or alterations
without the formality of securing bids, if the cost of all of the
changes or alterations does not exceed the greater of either of the
following:
(a) The amount specified in Section 20651 or 20655, whichever is
applicable to the original contract.
(b) Ten percent of the original contract price.
