Bill Text: CA AB2448 | 2009-2010 | Regular Session | Amended

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

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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-Amended.html

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BILL NUMBER: AB 2448	AMENDED
	BILL TEXT

	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, as amended, 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. 
   If the purchase of supplies and materials by a district 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, this 
    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 a specified
report to the Legislative Analyst on or before January 1, 2015, and
would require the Legislative Analyst to report to the Legislature on
or before April 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 amounts as specified.
   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 amounts, as
specified.
   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 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  , effectiveness, and innovation 
 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  general  
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 in the award and
performance of contracts does not occur  pursuant to subdivision
(e) of Section 12751.3 of the Public Utilities Code  .
   (h) 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 a report to the Legislative Analyst on or before January 1,
2015. The district shall include in the report a summary of the costs
and benefits of best value acquisition compared to traditional low
bid procurement practices. The report shall also include statistics
showing the number of contracts awarded to small businesses,
minority-owned business, and new businesses and the number of years
each contract awardee has been in the business. The report shall also
include an analysis of the effects of best value procurement
practices on these businesses, the nature of any disputes arising
from the use of best value procurement practices, and the status of
those disputes. On or before April 1, 2015, the Legislative Analyst
shall report to the Legislature on the use of "best value at lowest
cost acquisition" procurement practices used by community college
districts. The report may include recommendations for modifying the
provisions of this section and extending the operation of this
section beyond January 1, 2016.
   (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 changes or
alterations of the contract does not exceed the greater of either:
   (a) The amount specified in Section 20651 or 20655, whichever is
applicable to the original contract.
   (b) Ten percent of the original contract price. 
   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,  such   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 
the change or alteration   one or more changes or
alterations  without the formality of securing bids, if the cost
 so agreed upon   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  ; or   .

   (b) Ten percent of the original contract price.