Bill Text: CA SB1366 | 2021-2022 | Regular Session | Amended
Bill Title: Department of General Services: job order contracting procurement procedure: pilot.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-16 - Ordered to inactive file on request of Senator McGuire. [SB1366 Detail]
Download: California-2021-SB1366-Amended.html
|
Amended
IN
Senate
March 16, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1366
| Introduced by Senator McGuire |
February 18, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
SB 1366, as amended, McGuire.
Private employment. Department of General Services: job order contracting procurement procedure: pilot.
The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. Other existing law authorizes certain state and local agencies to engage in job order contracting, as prescribed.
This bill, until July 1, 2027, would amend the act to authorize the Department of General Services to engage in job order contracting, as prescribed, as an alternative procurement procedure for public works projects. The bill would require the department to establish prescribed procedures, standards, and requirements relating to the bidding for, and
award of, contracts. The bill would restrict such a contract to a maximum initial contract term of 24 months. The bill would impose a maximum contract amount of $10,000,000 in the first term of the contract. The bill would authorize the department to issue a single extension to each job order contract, up to an additional $5,000,000 and one additional 12-month period. The bill would require the department to submit to the Joint Legislative Budget Committee, on or before January 1, 2027, a report containing a description of the department’s utilization of job order contracting under the bill’s provisions through July 1, 2026, including prescribed information.
Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce, which requires, among other conditions, that all the workers performing work in an
apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or registered apprentices. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project, regardless of whether the public entity is required to do so by a statute or regulation.
This bill, with prescribed exceptions, would prohibit a contractor from being awarded a job order contract unless the contractor provides an enforceable commitment to the Director of General Services that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work for each job order that falls within an apprenticeable occupation in the building and construction trades, in accordance with existing law.
Existing law establishes the Department of Industrial Relations within the Labor and Workforce Development Agency. Existing law requires the department to foster, promote, and develop the welfare of the wage earners of California.
This bill would state the intent of the Legislature to enact legislation relating to labor and industrial relations.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Article 1.3 (commencing with Section 10113) is added to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, to read:Article 1.3. Job Order Contracting Procurement Procedure for the Department of General Services
10113.
As used in this article:(a) “Department” means the Department of General Services or a successor state agency.
(b) “Director” means the Director of General Services.
(c) “Job order contract” means a competitively bid contract between the department and a responsible contractor in which the contractor agrees to a fixed period, fixed-unit price, and indefinite quantity contract that provides for job orders for public works projects.
10113.1.
(a) Notwithstanding any other law, the department may use an alternative procurement procedure for public works contracts, as defined in Section 1101, as provided in this article.(b) The availability of job order contracting as a public works delivery method shall not preclude the use of other public works delivery methods.
(c) The department may solicit for job order contractors by region, by specific scopes of work, or both.
(d) Before issuing a request for bids, the department shall establish procedures and standards that address subcontracting requirements, the issuance of consolidated solicitations to
award multiple contracts or to award primary, secondary, and tertiary contracts, and the prequalification or shortlisting of prospective contractors.
(e) (1) The department shall prepare a request for bids that invites contractors to submit competitive sealed bids in the manner and with requirements as prescribed by the department.
(2) If the department contemplates awarding a single job order contract as a result of a solicitation, only the bids from submissions meeting the minimum standards and format requirements shall be further evaluated, and the contract shall be awarded to the lowest-cost responsible bidder.
(3) If there is a consolidated solicitation, the department shall include in the request for bids the specific process for evaluating, awarding, and utilizing job order contracts
awarded through the solicitation.
(f) Job order contracts may be executed for an initial contract term of no more than 24 months.
(g) The maximum total dollar amount that may be awarded under a single job order contract shall not exceed ten million dollars ($10,000,000) in the first term of the job order contract. The department may issue a single extension to each job order contract, up to an additional five million dollars ($5,000,000) and for one additional 12-month period.
(h) No single job order may exceed one million dollars ($1,000,000), not including change orders necessary to complete the scope of the original project.
(i) The authority granted to the department by this article shall not be deemed to waive any provision of the Labor Code that
would otherwise apply, including, but not limited to, prevailing wage rates determined by the Director of Industrial Relations.
(j) It is unlawful to split or separate job orders for the purpose of evading the cost limitation provisions of this section.
(k) (1) A contractor shall not be awarded a job order contract unless the contractor provides an enforceable commitment to the director that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work for each job order that falls within an apprenticeable occupation in the building and construction trades, in accordance with Chapter 2.9 (commencing with Section 2600) of Part 1.
(2) This subdivision shall not apply if any of the following requirements are met:
(A) The department has entered into a project labor agreement that will bind all contractors and subcontractors performing work on each job order to use a skilled and trained workforce, and the contractor agrees to be bound by that project labor agreement.
(B) The job order is being performed under the extension or renewal of a project labor agreement that was entered into by the department before January 1, 2023.
(C) The contractor has entered into a project labor agreement that will bind the contractor and all its subcontractors at every tier performing work for each job order to use a skilled and trained workforce.
(3) For purposes of this subdivision, “project labor agreement” has the same meaning as in paragraph (1) of subdivision (b) of Section
2500.
10113.2.
(a) The department shall submit to the Joint Legislative Budget Committee, on or before January 1, 2027, a report containing a description of the department’s utilization of job order contracting under this article through July 1, 2026. The report shall include, but shall not be limited to, all of the following information:(1) A description of each job order contract, including scope, term, contract maximum, and actual expenditures.
(2) The methodology used to solicit each contract.
(3) The methodology used to evaluate and award each contract.
(4) An evaluation as to the success of job order contracting compared to analogous projects executed as design-bid-build.
(b) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
10113.3.
This article shall remain in effect only until July 1, 2027, and as of that date is repealed.It is the intent of the Legislature to enact subsequent legislation relating to labor and industrial relations.
