HomeMy WebLinkAboutAB 1064 - Public Contracts CITY OF PALM DESERT
COMMUNITY SERVICES DEPARTMENT
STAFF REPORT
REQUEST: CONSIDERATION OF LEGISLATIVE REVIEW COMMITTEE ACTION
ON AB 1064 (GARRICK) AT ITS MEETING OF MARCH 24, 2009.
DATE: April 9, 2009
CONTENTS: AB1064 Language
RECOMMENDATION:
By Minute Motion, concur with the action taken by the Legislative Review Committee at its
meeting of March 24, 2009, and direct staff to direct a letter of opposition for the Mayor's
signature with regard to AB 1064 (Garrick) relative to public contracts.
BACKGROUND:
Existing law requires public entities to comply with certain procedures in soliciting, evaluating
and/or awarding contracts for the erection,construction,alteration, repair or improvement of any
public structure, building, road or other public improvement. If passed, AB 1064 would require
cities to establish labor compliance programs;therefore, imposing an unfunded state mandate.
Establishment of such a program would increase staffing needs to administer at a time when it is
not feasible to increase staffing levels. The cost of implementing this program would not be
reimbursed.
Therefore the Legislative Review Committee recommends that the City Council oppose AB 1064
and direct staff to prepare a letter stating that position to appropriate legislators and committees
for the Mayor's signature.
�
PATRICIA SCULLY, CFEE PAUL GIBSON
SENIOR MANAGEMENT A LYST DIRECTOR OF FINANCE/CITY TREASURER
���.��
HEILA R. I L N J . WOHLMUTH
ACM/COMMUNITY SE ICES IT MANAGER
CITY CDUNCILACTION
APPROVED ✓______._nFNiF,D
RECEIVED OTHrK
MEETING DATE - -
AYES: 5U 5 �
NOES:.�CpQ,�
AI3SENT: "/ �
AI3STAIN:�C�/�P_
VERIFIFD I3Y;
Ori�;ina! on Fi1e with City Cler s Of'tice
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In bill text the following has special meaning
underline denotes added text
2009 CA A 1064
AUTHOR: Garrick
VERSION: Introduced
VERSION DATE: 02/27/2009
ASSEMBLY BILL No. 1064
INTRODUCED BY Assembly Member Garrick
FEBRUARY 27, 2009
An act to amend Sections 17250.30 and 81704 of the Education Code, and to amend Sections 20133,
20175.2, and 20209.7 of the Public Contract Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 1064, as introduced, Garrick. Design-build contracts: labor compliance program: exemptions.
Existing law requires public entities to comply with certain procedures in soliciting and evaluating
bids and awarding contracts for the erection, construction, alteration, repair, or improvement of any
public structure, building, road, or other public improvement. Existing law authorizes school district
governing boards, the governing boards of specified community college districts and community college
facility construction projects, certain cities, certain counties, and transit operators, to enter into design-
build contracts, as specified. Existing law requires awarding bodies entering into design-build contracts
under these provisions to establish and enforce a labor compliance program or to contract with a 3rd
party to operate a labor compliance program, and exempts from this requirement projects where the
awarding body or the design-build entity has entered into a collective bargaining agreement that binds
all of the contractors performing work on the project.
This bill would delete the exemption for those projects from the requirement that the entity establish
and enforce a labor compliance program or contract with a 3rd party to operate a labor compliance
program.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17250.30 of the Education Code is amended to read:
17250.30. (a) Any design-build entity that is selected to design and build a project pursuant to this
chapter shall possess or obtain sufficient bonding to cover the contract amount for nondesign services,
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and errors and omissions insurance coverage sufficient to cover all design and architectural services
provided in the contract. This chapter does not prohibit a general or engineering contractor from being
designated the lead entity on a design-build entity for the purposes of purchasing necessary bonding to
cover the activities of the design-build entity.
(b)Any payment or performance bond written for the purposes of this chapter shall use a bond form
developed by the Department of General Services pursuant to subdivision(g) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote uniformity of bond forms to be used
on school district design-build projects throughout the state.
(c) (1) All subcontracts that were not listed by the design-build entity in accordance with Section
17250.25 shall be awarded by the design-build entity.
(2) The design-build entity shall do all of the following:
(A)Provide public notice of the availability of work to be subcontracted.
(B)Provide a fixed date and time on which the subcontracted work will be awarded.
(3) Subcontractors bidding on contracts pursuant to this subdivision shall be afforded the protections
contained in Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract
Code.
(4) (A) If the school district elects to award a project pursuant to this section, retention proceeds
withheld by the school district from the design-build entity shall not exceed 5 percent if a performance
and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
(B) In a contract between the design-build entity and a subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall
not exceed the percenta.ge specified in the contract between the school district and the design-build
entity. If the design-build entity provides written notice to anq-a subcontractor who is not a member of
the design-build entity,prior to or at the time the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the
design-build entity may withhold retention proceeds in excess of the percentage specified in the contract
between the school district and the design-build entity from any payment made by the design-build
entity to the subcontractor.
(5) In accordance with the provisions of applicable state law, the design-build entity may be permitted
to substitute securities in lieu of the withholding from progress payments. Substitutions shall be made in
accordance with Section 22300 of the Public Contract Code.
(d) The school district shall establish and enforce a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code or shall contract with a third party to operate
a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code.
1�J�
SEC. 2. Section 81704 of the Education Code is amended to read:
81704. (a) Any design-build entity that is selected to design and build a project pursuant to this
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chapter shall possess or obtain sufficient bonding to cover the contract amount for nondesign services,
and errors and omission insurance coverage sufficient to cover all design and architectural services
provided in the contract. This chapter does not prohibit a general or engineering contractor from being
designated the lead entity on a design-build entity for the purposes of purchasing necessary bonding to
cover the activities of the design-build entity.
(b) Any payment or performance bond written for the purposes of this chapter shall use a bond form
developed by the Department of General Services pursuant to subdivision(i) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote uniformity of bond forms to be used
on community college district design-build projects throughout the state.
(c) (1)All subcontracts that were not listed by the design-build entity in accordance with Section
81703 shall be awarded by the design-build entity in accordance with the design-build process set forth
by the community college district in the design-build package.
(2) The design-build entity shall do all of the following:
(A) Provide public notice of the availability of work to be subcontracted.
(B) Provide a fixed date and time on which the subcontracted work will be awarded.
(3) Subcontractors bidding on contracts pursuant to this subdivision shall be afforded the protections
contained in Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract
Code.
(4) (A) If the community college district elects to award a project pursuant to this section, retention
proceeds withheld by the community college district from the design-build entity shall not exceed 5
percent if a performance and payment bond, issued by an admitted surety insurer, is required in the
solicitation of bids.
(B) In a contract between the design-build entity and a subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld ma��
shall not exceed the percentage specified in the contract between the community college district and the
design-build entity. If the design-build entity provides written notice to an�-a subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is requested,that a bond may be
required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build
entity, then the design-build entity may withhold retention proceeds in excess of the percentage
specified in the contract between the community college district and the design-build entity from any
payment made by the design-build entity to the subcontractor.
(5) In accordance with the provisions of applicable state law, the design-build entity may be permitted
to substitute securities in lieu of the withholding from progress payments. Substitutions shall be made in
accordance with Section 22300 of the Public Contract Code.
(d) The community college district shall establish and enforce a labor compliance program containing
the requirements outlined in Section 1771.5 of the Labor Code or shall contract with a third party to
operate a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor
Code.
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SEC. 3. Section 20133 of the Public Contract Code is amended to read:
20133. (a) A county, with approval of the board of supervisors, may utilize an alternative procedure
for bidding on construction projects in the county in excess of two million five hundred thousand dollars
($2,500,000) and may award the project using either the lowest responsible bidder or by best value.
(b) (1) It is the intent of the Legislature to enable counties to utilize design-build for buildings and
county sanitation wastewater treatment facilities. It is not the intent of the Legislature to authorize this
procedure for other infrastructure, including, but not limited to, streets and highways,public rail transit,
or water resources facilities and infrastructures.
(2) The Legislature also finds and declares that utilizing a design-build contract requires a clear
understanding of the roles and responsibilities of each participant in the design-build process.
(3) If the board of supervisors elects to proceed under this section, the board of supervisors shall
establish and enforce for. design-build projects a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code, or it shall contract with a third pariy to operate a labor
compliance program containing the requirements outlined in Section 1771.5 of the Labor Code. �ris
�1��
(c) As used in this section:
(1) "Best value" means a value determined by objective criteria related to price, features, functions,
and life-cycle costs.
(2) "Design-build" means a procurement process in which both the design and construction of a
project are procured from a single entity.
(3) "Design-build entity" means a partnership, corporation, or other legal entity that is able to provide
appropriately licensed contracting, architectural, and engineering services as needed pursuant to a
design-build contract.
(4) "Project" means the construction of a building and improvements directly related to the
construction of a building, and county sanitation wastewater treatment facilities, but does not include the
construction of other infrastructure, including, but not limited to, streets and highways,public rail
transit, or water resources facilities and infrastructure.
(d) Design-build projects shall progress in a four-step process, as follows:
(1) (A) The county shall prepare a set of documents setting forth the scope of the project. The
documents may include, but are not limited to, the size,type, and desired design character of the public
improvement, performance specifications covering the quality of materials, equipment, and
workmanship,preliminary plans or building layouts, or any other information deemed necessary to
describe adequately the county's needs. The performance specifications and any plans shall be prepared
by a design professional who is duly licensed and registered in California.
(B)Any architect or engineer retained by the county to assist in the development of the project
specific documents shall not be eligible to participate in the preparation of a bid with any design-build
entity for that project.
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(2) (A) Based on the documents prepared in paragraph(1), the county shall prepare a request for
proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed
by the county. The request for proposals shall include, but is not limited to, the following elements:
(i)Identification of the basic scope and needs of the project or contract, the expected cost range, and
other information deemed necessary by the county to inform interested parties of the contracting
opportunity, to include the methodology that will be used by the county to evaluate proposals and
specifically if the contract will be awarded to the lowest responsible bidder.
(ii) Significant factors that the county reasonably expects to consider in evaluating proposals,
including cost or price and all nonprice related factors.
(iii) The relative importance of weight assigned to each of the factors identified in the request for
proposals.
(B) With respect to clause (iii) of subparagraph(A), if a nonweighted system is used,the agency shall
specifically disclose whether all evaluation factors other than cost or price when combined are:
(i) Significantly more important than cost or price.
(ii)Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C)If the county chooses to reserve the right to hold discussions or negotiations with responsive
bidders, it shall so specify in the request for proposal and shall publish separately or incorporate into the
request for proposal applicable rules and procedures to be observed by the county to ensure that any
discussions or negotiations are conducted in good faith.
(3) (A) The county shall establish a procedure to prequalify design-build entities using a standard
questionnaire developed by the county. In preparing the questionnaire, the county shall consult with the
construction industry, including representatives of the building trades and surety industry. This
questionnaire shall require information including, but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited partnership, or other association, a listing of all
of the partners, general partners, or association members known at the time of bid submission who will
participate in the design-build contract, including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have completed, or demonstrated the
experience, competency, capability, and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient experience and training to competently
manage and complete the design and construction of the project, as well as a financial statement that
assures the county that the design-build entity has the capacity to complete the project.
(iii) The licenses, registration, and credentials required to design and construct the project, including
information on the revocation or suspension of any license, credential, or registration.
(iv)Evidence that establishes that the design-build entity has the capacity to obtain all required
payment and performance bonding, liability insurance, and errors and omissions insurance.
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(v) Any prior serious or willful violation of the California Occupational Safety and Health Act of
1973, contained in Part 1 (commencing with Section 6300) of Division 5 of the Labor Code, or the
federal Occupational Safety and Health Act of 1970 (P.L. 91-596), settled against any member of the
design-build entity, and information concerning workers' compensation experience history and worker
safety program.
(vi) Information concerning any debarment, disqualification, or removal from a federal, state, or local
government public works project. Any instance in which an entity, its owners, officers, or managing
employees submitted a bid on a public works project and were found to be nonresponsive, or were found
by an awarding body not to be a responsible bidder.
(vii)Any instance in which the entity, or its owners, officers, or managing employees, defaulted on a
construction contract.
(viii) Any violations of the Contractors' State License Law(Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code), excluding alleged violations of federal or
state law including the payment of wages, benefits, apprenticeship requirements, or personal income tax
withholding, or of Federal Insurance Contributions Act(FICA; 26 U.S.C. Sec. 3101 et seq.)withholding
requirements settled against any member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any member of the design-build entity,
including information concerning any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes, or lawsuits between the tract Code,
relating to public contracts. }PA ,asintroduced, ik. Deinbid nres or complilinepogram: emptos. xisting
coply th anpoeues oliciting evaluating bids and , or r mprovemeto ny isig law horizsshooldistrit erning
s,the verning ads o eifiedcommuity ge cts ad mmunity legefcility cntutionpoets, n ties,tancute,transit
aos to r t gn-build racts, a iied. tn la res dn oisetring einbid tact underteepoiin stablish and
forealbrcmlance ramo ontract iha3dpryt prt lbor ram, deempt om this requieet ets re awarding bd
thedesinbidentit ntr into agiigagreementtat binds rmn ork the ject. This t e emptio thoeprojects o
requiremnt the ntity establish enforce m or contract with a 3rd party to operate a labor compliance
program. /}Vote: orit.Aporiaton: o scal committee: yes. State-mandated local program: no.
SECTION 1. Section 17250.30 of the Education Code is amended to read:
17250.30. (a) Any design-build entity that is selected to design and build a project pursuant to this
chapter shall possess or obtain sufficient bonding to cover the contract amount for nondesign services,
and errors and omissions insurance coverage sufficient to cover all design and architectural services
provided in the contract. This chapter does not prohibit a general or engineering contractor from being
designated the lead entity on a design-build entity for the purposes of purchasing necessary bonding to
cover the activities of the design-build entity.
(b) Any payment or performance bond written for the purposes of this chapter shall use a bond form
developed by the Department of General Services pursuant to subdivision(g) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote uniformity of bond forms to be used
on school district design-build projects throughout the state.
(c) (1)All subcontracts that were not listed by the design-build entity in accordance with Section
17250.25 shall be awarded by the design-build entity.
(2) The design-build entity shall do all of the following:
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State Net Bill Text Page 7 of 22
(A) Provide public notice of the availability of work to be subcontracted.
(B) Provide a fixed date and time on which the subcontracted work will be awarded.
(3) Subcontractors bidding on contracts pursuant to this subdivision shall be afforded the protections
contained in Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract
Code.
(4) (A) If the school district elects to award a project pursuant to this section, retention proceeds
withheld by the school district from the design-build entity shall not exceed 5 percent if a performance
and payment bond, issued by an admitted surety insurer, is required in the solicitation of bids.
(B) In a contract between the design-build entity and a subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld shall
not exceed the percentage specified in the contract between the school district and the design-build
entity. If the design-build entity provides written notice to an�-a subcontractor who is not a member of
the design-build entiiy,prior to or at the time the bid is requested, that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity, then the
design-build entity may withhold retention proceeds in excess of the percentage specified in the contract
between the school district and the design-build entity from any payment made by the design-build
entity to the subcontractor.
(5)In accordance with the provisions of applicable state law, the design-build entity may be permitted
to substitute securities in lieu of the withholding from progress payments. Substitutions shall be made in
accordance with Section 22300 of the Public Contract Code.
(d) The school district shall establish and enforce a labor compliance program containing the
requirements outlined in Section 1771.5 of the Labor Code or shall contract with a third party to operate
a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor Code.
��
SEC. 2. Section 81704 of the Education Code is amended to read:
81704. (a) Any design-build entity that is selected to design and build a project pursuant to this
chapter shall possess or obtain sufficient bonding to cover the contract amount for nondesign services,
and errors and omission insurance coverage sufficient to cover all design and architectural services
provided in the contract. This chapter does not prohibit a general or engineering contractor from being
designated the lead entity on a design-build entity for the purposes of purchasing necessary bonding to
cover the activities of the design-build entity.
(b) Any payment or performance bond written for the purposes of this chapter shall use a bond form
developed by the Department of General Services pursuant to subdivision (i) of Section 14661 of the
Government Code. The purpose of this subdivision is to promote uniformity of bond forms to be used
on community college district design-build projects throughout the state.
(c) (1)All subcontracts that were not listed by the design-build entity in accordance with Section
81703 shall be awarded by the design-build entity in accordance with the design-build process set forth
by the community college district in the design-build package.
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(2) The design-build entity shall do all of the following:
(A)Provide public notice of the availability of work to be subcontracted.
(B) Provide a fixed date and time on which the subcontracted work will be awarded.
(3) Subcontractors bidding on contracts pursuant to this subdivision shall be afforded the protections
contained in Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract
Code.
(4) (A) If the community college district elects to award a project pursuant to this section,retention
proceeds withheld by the community college district from the design-build entity shall not exceed 5
percent if a performance and payment bond, issued by an admitted surety insurer, is required in the
solicitation of bids.
(B) In a contract between the design-build entity and a subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder, the percentage of the retention proceeds withheld ma�
shall not exceed the percentage specified in the contract between the community college district and the
design-build entity. If the design-build entity provides written notice to anq-a subcontractor who is not a
member of the design-build entity, prior to or at the time the bid is requested, that a bond may be
required and the subcontractor subsequently is unable or refuses to furnish a bond to the design-build
entity, then the design-build entity may withhold retention proceeds in excess of the percentage
specified in the contract between the community college district and the design-build entity from any
payment made by the design-build entity to the subcontractor.
(5) In accordance with the provisions of applicable state law,the design-build entity may be permitted
to substitute securities in lieu of the withholding from progress payments. Substitutions shall be made in
accordance with Section 22300 of the Public Contract Code.
(d) The community college district shall establish and enforce a labor compliance program containing
the requirements outlined in Section 1771.5 of the Labor Code or shall contract with a third party to
operate a labor compliance program containing the requirements outlined in Section 1771.5 of the Labor
Code.
SEC. 3. Section 20133 of the Public Contract Code is amended to read:
20133. (a) A county, with approval of the board of supervisors, may utilize an alternative procedure
for bidding on construction projects in the county in excess of two million five hundred thousand dollars
($2,500,000) and may award the project using either the lowest responsible bidder or by best value.
(b) (1) It is the intent of the Legislature to enable counties to utilize design-build for buildings and
county sanitation wastewater treatment facilities. It is not the intent of the Legislature to authorize this
procedure for other infrastructure, including, but not limited to, streets and highways, public rail transit,
or water resources facilities and infrastructures.
(2) The Legislature also finds and declares that utilizing a design-build contract requires a clear
understanding of the roles and responsibilities of each participant in the design-build process.
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(3) If the board of supervisors elects to proceed under this section, the board of supervisors shall
establish and enforce for design-build projects a labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code, or it shall contract with a third party to operate a labor
compliance program containing the requirements outlined in Section 1771.5 of the Labor Code. �ris
t�re��rejeetg
(c) As used in this section:
(1) "Best value" means a value determined by objective criteria related to price, features, functions,
and life-cycle costs.
(2) "Design-build" means a procurement process in which both the design and construction of a
project are procured from a single entity.
(3) "Design-build entity" means a partnership, corporation, or other legal entity that is able to provide
appropriately licensed contracting, architectural, and engineering services as needed pursuant to a
design-build contract.
(4) "Project" means the construction of a building and improvements directly related to the
construction of a building, and county sanitation wastewater treatment facilities, but does not include the
construction of other infrastructure, including, but not limited to, streets and highways, public rail
transit, or water resources facilities and infrastructure.
(d) Design-build projects shall progress in a four-step process, as follows:
(1) (A) The county shall prepare a set of documents setting forth the scope of the project. The
documents may include, but are not limited to, the size, type, and desired design chaxacter of the public
improvement, performance specifications covering the quality of materials, equipment, and
workmanship,preliminary plans or building layouts, or any other information deemed necessary to
describe adequately the county's needs. The performance specifications and any plans shall be prepared
by a design professional who is duly licensed and registered in California.
(B)Any architect or engineer retained by the county to assist in the development of the project
specific documents shall not be eligible to participate in the preparation of a bid with any design-build
entity for that project.
(2) (A)Based on the documents prepared in paragraph(1), the county shall prepare a request for
proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed
by the county. The request for proposals shall include, but is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or contract, the expected cost range, and
other information deemed necessary by the county to inform interested parties of the contracting
opportunity, to include the methodology that will be used by the county to evaluate proposals and
specifically if the contract will be awarded to the lowest responsible bidder.
(ii) Significant factors that the county reasonably expects to consider in evaluating proposals,
including cost or price and all nonprice related factors.
(iii) The relative importance of weight assigned to each of the factors identified in the request for
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;Net Bill Text Page 10 of 22
proposals.
(B) With respect to clause (iii) of subparagraph(A), if a nonweighted system is used,the agency shall
specifically disclose whether all evaluation factors other than cost or price when combined are:
(i) Significantly more important than cost or price.
(ii)Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C)If the couniy chooses to reserve the right to hold discussions or negotiations with responsive
bidders, it shall so specify in the request for proposal and shall publish separately or incorporate into the
request for proposal applicable rules and procedures to be observed by the county to ensure that any
discussions or negotiations are conducted in good faith.
(3) (A) The county shall establish a procedure to prequalify design-build entities using a standard
questionnaire developed by the counTy. In preparing the questionnaire, the county shall consult with the
construction industry, including representatives of the building trades and surety industry. This
questionnaire shall require information including,but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited partnership, or other association, a listing of all
of the partners, general partners, or association members known at the time of bid submission who will
participate in the design-build contract, including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have completed, or demonstrated the
experience, competency, capability, and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient experience and training to competently
manage and complete the design and construction of the project, as well as a financial statement that
assures the county that the design-build entity has the capacity to complete the project.
(iii) The licenses, registration, and credentials required to design and construct the project, including
information on the revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has the capacity to obtain all required
payment and performance bonding, liability insurance, and errors and omissions insurance.
(v)Any prior serious or willful violation of the California Occupational Safety and Health Act of
1973, contained in Part 1 (commencing with Section 6300) of Division 5 of the Labor Code, or the
federal Occupational Safety and Health Act of 1970 (P.L. 91-596), settled against any member of the
design-build entity, and information concerning workers' compensation experience history and worker
safety program.
(vi)Information concerning any debarment, disqualification, or removal from a federal, state, or local
government public works project. Any instance in which an entity, its owners, officers, or managing
employees submitted a bid on a public works project and were found to be nonresponsive, or were found
by an awarding body not to be a responsible bidder.
(vii) Any instance in which the entity, or its owners, officers, or managing employees, defaulted on a
construction contract.
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(viii) Any violations of the Contractors' State License Law(Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code), excluding alleged violations of federal or
state law including the payment of wages, benefits, apprenticeship requirements, or personal income t�
withholding, or of Federal Insurance Contributions Act(FICA; 26 U.S.C. Sec. 3101 et seq.) withholding
requirements settled against any member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any member of the design-build entity,
including information concerning any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a
public works project and any member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim, settlement, or judgment exceeds fifty
thousand dollars ($50,000). Information shall also be provided concerning any work completed by a
surety during this period.
(xi)In the case of a partnership or other association, that is not a legal entity, a copy of the agreement
creating the partnership or association and specifying that all partners or association members agree to
be fully liable for the performance under the design-build contract.
(B) The information required pursuant to this subdivision shall be verified under oath by the entity
and its members in the manner in which civil pleadings in civil actions are verified. Information that is
not a public record pursuant to the California Public Records Act(Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code) shall not be open to public inspection.
(4) The county shall establish a procedure for final selection of the design-build entity. Selection shall
be based on either of the following criteria:
(A) A competitive bidding process resulting in lump-sum bids by the prequalified design-build
entities. Awards shall be made to the lowest responsible bidder.
(B) A county may use a design-build competition based upon best value and other criteria set forth in
paragraph(2). The design-build competition shall include the following elements:
(i) Competitive proposals shall be evaluated by using only the criteria and selection procedures
specifically identified in the request for proposal. However, the following minimum factors shall each
represent at least 10 percent of the total weight of consideration given to all criteria factors: price,
technical design, and construction expertise, life cycle costs over 15 years or more, skilled labor force
availability, and acceptable safety record.
(ii) Once the evaluation is complete, the top three responsive bidders shall be ranked sequentially
from the most advantageous to the least.
(iii) The award of the contract shall be made to the responsible bidder whose proposal is determined,
in writing,to be the most advantageous.
(iv)Notwithstanding any provision of this code, upon issuance of a contract award, the county shall
publicly announce its award, identifying the contractor to whom the award is made, along with a written
decision supporting its contract award and stating the basis of the award. The notice of award shall also
include the county's second and third ranked design-build entities.
(v)For t�e-purposes of this paragraph, "skilled labor force availability" shall be determined by the
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existence of an agreement with a registered apprenticeship program, approved by the California
Apprenticeship Council, which has graduated apprentices in each of the preceding five years. This
graduation requirement shall not apply to programs providing apprenticeship training for any craft that
has been deemed by the Department of Labor and the Department of Industrial Relations to be an
apprenticeable craft in the five years prior to enactment of this act.
(vi) For ti�purposes of this paragraph, a bidder's "safety record" shall be deemed "acceptable" if their
experience modification rate for the most recent three-year period is an average of 1.00 or less, and their
average total recordable injury/illness rate and average lost work rate for the most recent three-year
period does not exceed the applicable statistical standards for its business category or if the bidder is a
party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
(e) (1)Any design-build entity that is selected to design and build a project pursuant to this section
shall possess or obtain sufficient bonding to cover the contract amount for nondesign services, and
errors and omission insurance coverage sufficient to cover all design and architectural services provided
in the contract. This section does not prohibit a general or engineering contractor from being designated
the lead entity on a design-build entity for the purposes of purchasing necessary bonding to cover the
activities of the design-build entity.
(2)Any payment or performance bond written for the purposes of this section shall be written using a
bond form developed by the county.
(�All subcontractors that were not listed by the design-build entity in accordance with clause (i) of
subparagraph (A) of paragraph(3) of subdivision(d) shall be awarded by the design-build entity in
accordance with the design-build process set forth by the county in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The design-build entity shall do both of the
following:
(1) Provide public notice of the availability of work to be subcontracted in accordance with the
publication requirements applicable to the competitive bidding process of the county.
(2)Provide a fixed date and time on which the subcontracted work will be awarded in accordance
with the procedure established pursuant to this section.
(g) The minimum performance criteria and design standards established pursuant to paragraph(1) of
subdivision(d) shall be adhered to by the design-build entity. Any deviations from those standards may
only be allowed by written consent of the county.
(h) The county may retain the services of a design professional or construction project manager, or
both,throughout the course of the project in order to ensure compliance with this section.
(i) Contracts awarded pursuant to this section shall be valid until the project is completed.
(j)Nothing in this section is intended to affect, expand, alter, or limit any rights or remedies otherwise
available at law.
(k) (1) If the county elects to award a project pursuant to this section, retention proceeds withheld by
the county from the design-build entity sha11 not exceed 5 percent if a performance and payment bond,
issued by an admitted surety insurer, is required in the solicitation of bids.
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(2)In a contract between the design-build entity and the subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder,the percentage of the retention proceeds withheld ma�
shall not exceed the percentage specified in the contract between the county and the design-build entity.
If the design-build entity provides written notice to any subcontractor who is not a member of the
design-build entity,prior to or at the time the bid is requested,that a bond may be required and the
subcontractor subsequently is unable or refuses to furnish a bond to the design-build entity,then the
design-build entity may withhold retention proceeds in excess of the percentage specified in the contract
between the county and the design-build entity from any payment made by the design-build entity to the
subcontractor.
() Each county that elects to proceed under this section and uses the design-build method on a public
works project shall submit to the Legislative Analyst's Office before December 1, 2009, a report
containing a description of each public works project procured through the design-build process and
completed after November 1, 2004, and before November 1, 2009. The report shall include, but shall not
be limited to, all of the following information:
(1) The type of project.
(2) The gross square footage of the project.
(3) The design-build entity that was awarded the project.
(4) The estimated and actual length of time to complete the project.
(5) The estimated and actual project costs.
(6)A description of any written protests concerning any aspect of the solicitation, bid,proposal, or
award of the design-build project, including the resolution of the protests.
(7)An assessment of the prequalification process and criteria.
(8)An assessment of the effect of retaining 5-percent retention on the project.
(9)A description of the Labor Force Compliance Program and an assessment of the project impact,
where required.
(10)A description of the method used to award the contract. If best value was the method, the report
shall describe the factors used to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
(11)An assessment of the project impact of"skilled labor force availability."
(12)An assessment of the design-build dollar limits on county projects. This assessment shall include
. projects where the county wanted to use design-build and was precluded by the dollar limitation. This
assessment shall also include projects where the best value method was not used due to dollar
limitations.
(13)An assessment of the most appropriate uses for the design-build approach.
(m)Any county that elects to not use the authority granted by this section may submit a report to the
Legislative Analyst's Office explaining why the county elected to not use the design-build method.
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(n) On or before January 1, 2010,the Legislative Analyst shall report to the Legislature on the use of
the design-build method by counties pursuant to this section, including the information listed in
subdivision(). The report may include recommendations for modifying or extending this section.
(o) Except as provided in this section, nothing in this act shall be construed to affect the application of
any other law.
(p) This section shall remain in effect only until January 1, 2011, and as of that date is repealed,
unless a later enacted statute, that is enacted before January 1, 201 l, deletes or extends that date.
SEC. 4. Section 20175.2 of the Public Contract Code is amended to read:
20175.2. (a) (1) A city, with approval of the appropriate city council, may utilize an alternative
procedure for bidding on building construction projects in the city in excess of one million dollars
($1,000,000), except as provided in subdivision(p).
(2) Cities may award the project using either the lowest responsible bidder or by best value.
(b) (1) It is the intent of the Legislature to enable cities to utilize cost-effective options for building
and modernizing public facilities. The Legislature also recognizes the national trend, including
authorization in California,to allow public entities to utilize design-build contracts as a project delivery
method. It is not the intent of the Legislature to authorize this procedure for transportation facilities,
including, but not limited to, roads and bridges.
(2) The Legislature also finds and declares that utilizing a design-build contract requires a clear
understanding of the roles and responsibilities of each participant in the design-build process. The
Legislature also finds that the cost-effective benefits to cities are achieved by shifting the liability and
risk for cost containment and project completion to the design-build entity.
(3) It is the intent of the Legislature to provide an alternative and optional procedure for bidding and
building construction projects for cities.
(4) The design-build approach may be used, but is not limited to use, when it is anticipated that it will:
reduce project cost, expedite project completion, or provide design features not achievable through the
design-bid-build method.
(5)If a city council elects to proceed under this section,the city council shall establish and enforce,
for design-build projects, a labor compliance program containing the requirements outlined in Section
1771.5 of the Labor Code, or it shall contract with a third party to operate a labor compliance program
containing the requirements outlined in Section 1771.5 of the Labor Code.
(c) As used in this section:
(1) "Best value" means a value determined by objectives relative to price, features, functions, and life-
cycle costs.
(2) "Design-build" means a procurement process in which both the design and construction of a
project are procured from a single entity.
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(3) "Design-build entity" means a partnership, corporation, or other legal entity that is able to provide
appropriately licensed contracting, architectural, and engineering services, as needed,pursuant to a
design-build contract.
(4) "Project" means the construction of a building and improvements directly related to the
construction of a building, but does not include streets and highways,public rail transit, or water
resource facilities and infrastructure.
(d) Design-build projects shall progress in a four-step process, as follows:
(1) (A) The city shall prepare a set of documents setting forth the scope of the project. The documents
may include, but are not limited to, the size, type, and desired design character of the buildings and site,
performance specifications covering the quality of materials, equipment, and workmanship,preliminary
plans or building layouts, or any other information deemed necessary to describe adequately the city's
needs. The performance specifications and any plans shall be prepared by a design professional who is
duly licensed and registered in California.
(B)Any architect or engineer retained by the city to assist in the development of the project-specific
documents shall not be eligible to participate in the preparation of a bid with any design-build entity for
that project.
(2) (A) Based on the documents prepared in paragraph(1), the city shall prepare a request for
proposals that invites interested parties to submit competitive sealed proposals in the manner prescribed
by the city. The request for proposals shall include, but is not limited to, the following elements:
(i) Identification of the basic scope and needs of the project or contract, the expected cost range, and
other information deemed necessary by the city to inform interested parties of the contracting
opportunity, to include the methodology that will be used by the city to evaluate proposals, and
specifically if the contract will be awarded to the lowest responsible bidder.
(ii) Significant factors which the city reasonably expects to consider in evaluating proposals,
including cost or price and all nonprice related factors.
(iii) The relative importance of weight assigned to each of the factors identified in the request for
proposals.
(B) With respect to clause (iii) of subparagraph(A), if a nonweighted system is used, the agency shall
specifically disclose whether all evaluation factors, other than cost or price, when combined are:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(C) If the city chooses to reserve the right to hold discussions or negotiations with responsive bidders,
it shall so specify in the request for proposal and shall publish separately, or incorporate into the request
for proposal, applicable rules and procedures to be observed by the city to ensure that any discussions or
negotiations are conducted in good faith.
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(3) (A) The city shall establish a procedure to prequalify design-build entities using a standard
questionnaire developed by the city. In preparing the questionnaire,the city shall consult with the
construction industry, including representatives of the building trades and surety industry. This
questionnaire shall require information including, but not limited to, all of the following:
(i) If the design-build entity is a partnership, limited partnership, or other association, a listing of all
of the partners, general partners, or association members known at the time of bid submission who will
participate in the design-build contract, including, but not limited to, mechanical subcontractors.
(ii) Evidence that the members of the design-build entity have completed, or demonstrated the
experience, competency, capability, and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient experience and training to competently
manage and complete the design and construction of the project, as well as a financial statement that
assures the city that the design-build entity has the capacity to complete the project.
(iii) The licenses, registration, and credentials required to design and construct the project, including
information on the revocation or suspension of any license, credential, or registration.
(iv) Evidence that establishes that the design-build entity has the capacity to obtain all required
payment and performance bonding, liability insurance, and errors and omissions insurance.
(v)Any prior serious or willful violation of the California Occupational Safety and Health Act of
1973, contained in Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (Public Law 91-596) settled against any member of
the design-build entity, and information concerning workers' compensation experience history and
worker safety program.
(vi)Information concerning any debarment, disqualification, or removal from a federal, state, or local
government public works project. Any instance where an entity, its owners, officers, or managing
employees submitted a bid on a public works project and were found to be nonresponsive, or were found
by an awarding body not to be a responsible bidder.
(vii) Any instance where the entity, its owners, officers, or managing employees defaulted on a
construction contract.
(viii) Any violations of the Contractors' State License Law(Chapter 9 (commencing with Section
7000) of Division 3 of the Business and Professions Code), excluding alleged violations of federal or
state law including the payment of wages, benefits, apprenticeship requirements, or personal income tax
withholding, or of Federal Insurance Contribution Act(FICA) withholding requirements settled against
any member of the design-build entity.
(ix) Information concerning the bankruptcy or receivership of any member of the design-build entity,
including information concerning any work completed by a surety.
(x) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a
public works project and any member of the design-build entity during the five years preceding
submission of a bid pursuant to this section, in which the claim, settlement, or judgment exceeds fifty
thousand dollars ($50,000). Information shall also be provided concerning any work completed by a
surety during this period.
(xi)In the case of a partnership or other association that is not a legal entity, a copy of the agreement
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creating the partnership or association and specifying that all partners or association members agree to
be fully liable for the performance under the design-build contract.
(B) The information required pursuant to this subdivision shall be verified under oath by the entity
and its members in the manner in which civil pleadings in civil actions are verified. Information that is
not a public record pursuant to the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code) shall not be open to public inspection.
(4) The city shall establish a procedure for final selection of the design-build entity. Selection shall be
based on either of the following criteria:
(A) A competitive bidding process resulting in lump-sum bids by the prequalified design-build
entities. Awards shall be made to the lowest responsible bidder.
(B) The city may use a design-build competition based upon best value and other criteria set forth in
paragraph(2) of subdivision(d). The design-build competition shall include the following elements:
(i) Competitive proposals shall be evaluated by using only the criteria and selection procedures
specifically identified in the request for proposal. However, the following minimum factors shall each
represent at least 10 percent of the total weight of consideration given to all criteria factors: price,
technical design and construction expertise, life-cycle costs over 15 years or more, skilled labor force
availability, and acceptable safety record. Each of these factors shall be weighted equally.
(ii) Once the evaluation is complete, the top three responsive bidders shall be ranked sequentially
from the most advantageous to the least.
(iii) The award of the contract shall be made to the responsible bidder whose proposal is determined,
in writing,to be the most advantageous.
(iv)Notwithstanding any provision of this code, upon issuance of a contract award, the city shall
publicly announce its award, identifying the contractor to whom the award is made, along with a written
decision supporting its contract award and stating the basis of the award. The notice of award shall also
include the city's second and third ranked design-build entities. (v) For t�purposes of this paxagraph,
"skilled labor force availability" shall be determined by the existence of an agreement with a registered
apprenticeship program, approved by the California Apprenticeship Council, which has graduated
apprentices in each of the preceding five years. This graduation requirement shall not apply to programs
providing apprenticeship training for any craft that has been deemed by the Department of Labor and the
Department of Industrial Relations to be an apprenticeable craft in the five years prior to enactment of
this act.
(vi) For��te-purposes of this paragraph, a bidder's "safety record" shall be deemed "acceptable" if their
experience modification rate for the most recent three-year period is an average of 1.00 or less, and their
average total recordable injury/illness rate and average lost work rate for the most recent three-year
period does not exceed the applicable statistical standards for its business category, or if the bidder is a
party to an alternative dispute resolution system, as provided for in Section 3201.5 of the Labor Code.
(e) (1)Any design-build entity that is selected to design and build a project pursuant to this section
shall possess or obtain sufficient bonding to cover the contract amount for nondesign services and errors
and omissions insurance coverage sufficient to cover all design and architectural services provided in the
contract. This section does not prohibit a general or engineering contractor from being designated the
lead entity on a design-build entity for the purposes of purchasing necessary bonding to cover the
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activities of the design-build entity.
(2)Any payment or performance bond written for the purposes of this section shall be written using a
bond form developed by the city.
(�All subcontractors that were not listed by the design-build entity in accordance with clause (i) of
subparagraph(A) of paragraph(3) of subdivision(d) shall be awarded by the design-build entity in
accordance with the design-build process set forth by the city in the design-build package. All
subcontractors bidding on contracts pursuant to this section shall be afforded the protections contained
in Chapter 4 (commencing with Section 4100) of Part 1. The design-build entity shall do both of the
following:
(1) Provide public notice of the availability of work to be subcontracted in accordance with the
publication requirements applicable to the competitive bidding process of the city.
(2) Provide a fixed date and time on which the subcontracted work will be awarded in accordance
with the procedure established pursuant to this section.
(g)The minimum perfortnance criteria and design standards established pursuant to paragraph(1) of
subdivision(d) shall be adhered to by the design-build entity. Any deviations from those standards may
only be allowed by written consent of the city.
(h) The city may retain the services of a design professional or construction project manager, or both,
throughout the course of the project in order to ensure compliance with this section.
(i) Contracts awarded pursuant to this section shall be valid until the project is completed.
(j)Nothing in this section is intended to affect, expand, alter, or limit any rights or remedies otherwise
available at law.
(k) (1) If the city elects to award a project pursuant to this section, retention proceeds withheld by the
city from the design-build entity shall not exceed 5 percent if a performance and payment bond, issued
by an admitted surety insurer, is required in the solicitation of bids.
(2) In a contract between the design-build entity and the subcontractor, and in a contract between a
subcontractor and any subcontractor thereunder,the percentage of the retention proceeds withheld may
not exceed the percentage specified in the contract between the city and the design-build entity. If the
design-build entity provides written notice to any subcontractor who is not a member of the design-build
entity, prior to or at the time the bid is requested, that a bond may be required and the subcontractor
subsequently is unable or refuses to furnish a bond to the design-build entity, then the design-build
entity may withhold retention proceeds in excess of the percentage specified in the contract between the
city and the design-build entity from any payment made by the design-build entity to the subcontractor.
(1)Each city that elects to proceed under this section and uses the design-build method on a public
works project shall submit to the Legislative Analyst's Office before December 1, 2014, a report
containing a description of each public works project procured through the design-build process that is
completed after January 1, 2011, and before November 1, 2014. The report shall include, but shall not be
limited to, all of the following information:
(1) The type of project.
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(2) The gross square footage of the project.
(3) The design-build entity that was awarded the project.
(4) The estimated and actual project costs.
(5)A description of any written protests concerning any aspect of the solicitation, bid,proposal, or
award of the design-build project, including the resolution of the protests.
(6) An assessment of the prequalification process and criteria.
(7)An assessment of the effect of retaining 5 percent retention on the project.
(8)A description of the Labor Force Compliance Program and an assessment of the project impact,
where required.
(9)A description of the method used to award the contract. If the best value method was used,the
report shall describe the factors used to evaluate the bid, including the weighting of each factor and an
assessment of the effectiveness of the methodology.
(10) An assessment of the project impact of"skilled labor force availability."
(11) An assessment of the most appropriate uses for the design-build approach.
(m)Any city that elects not to use the authority granted by this section may submit a report to the
Legislative Analyst's Office explaining why the city elected not to use the design-build method.
(n) On or before January 1, 2015, the Legislative Analyst's Office shall report to the Legislature on
the use of the design-build method by cities pursuant to this section, including the information listed in
subdivision(1). The report may include recommendations for modifying or extending this section.
(o) Except as provided in this section, nothing in this act shall be construed to affect the application of
any other law.
(p) Before January 1, 2011,the project limitation of one million dollars ($1,000,000), as set forth in
subdivision(a), shall not apply to any city in the Counties of Solano and Yolo, or to the Cities of
Stanton and Victorville.
(q) 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. 5. Section 20209.7 of the Public Contract Code is amended to read:
20209.7. Design-build projects shall progress in a three-step process, as follows:
(a) The transit operator shall prepare a set of documents setting forth the scope of the project. The
documents shall include, but are not limited to,the size, type, and desired design character of the
buildings,transit facilities, and site, performance specifications covering the quality of materials,
equipment, and workmanship,preliminary plans or building layouts, or any other information deemed
necessary to describe adequately the transit operator's needs. The performance specifications and any
plans shall be prepared by a design professional duly licensed or registered in California.
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(b)Any architectural or engineering firm or individual retained by the transit operator to assist in the
development criteria or preparation of the request for proposal (RFP) is not eligible to participate in the
competition for the design-build entity.
(c) If the transit operator does not already have a labor compliance program, as defined in Section
1771.5 of the Labor Code, the transit operator shall establish and enforce a labor compliance program
for the design-build contract containing the requirements outlined in Section 1771.5 of the Labor Code
or shall contract with a third pariy to operate this labor compliance program containing the requirements
outlined in Section 1771.5 of the Labor Code. This requirement applies only to the design-build contract
�
(d) (1) Each RFP shall identify the basic scope and needs of the project or contract,the expected cost
range, and other information deemed necessary by the contracting agency to inform interested parties of
the contracting opportunity.
(2)Each RFP shall invite interested parties to submit competitive sealed proposals in the manner
prescribed by the contracting agency.
(3)Each RFP shall include a section identifying and describing:
(A)All significant factors that the agency reasonably expects to consider in evaluating proposals,
including cost or price and all nonprice-related factors.
(B)The methodology and rating or weighting process that will be used by the agency in evaluating
competitive proposals and specifically whether proposals will be rated according to numeric or
qualitative values.
(C)The relative importance or weight assigned to each of the factors identified in the RFP. If a
nonweighted system is used, the agency shall specifically disclose whether all evaluation factors other
than cost or price, when combined, are any of the following:
(i) Significantly more important than cost or price.
(ii) Approximately equal in importance to cost or price.
(iii) Significantly less important than cost or price.
(D)If the contracting agency wishes to reserve the right to hold discussions or negotiations with
offerors, it shall specify the same in the RFP and shall publish separately or incorporate into the RFP
applicable rules and procedures to be observed by the agency to ensure that any discussions or
negotiations are conducted in a fair and impartial manner.
(e) (1) The transit operator shall establish a procedure to prequalify design-build entities using a
standard questionnaire developed by the Director of Industrial Relations. The standardized questionnaire
may not require prospective bidders to disclose any violations of Chapter 1 (commencing with Section
1720) of Part 7 of Division 2 of the Labor Code committed prior to January l, 1998, if the violation was
based on a subcontractor's failure to comply with these provisions and the bidder had no knowledge of
the subcontractor' s violations and the bidder complied with the conditions set forth in subdivision(b) of
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Section 1775 of the Labor Code. In preparing the questionnaire, the director shall consult with the
construction industry, building trades, transit operators, and other affected parties. This questionnaire
shall require information relevant to the architecture or engineering firm that will be the lead on the
design-build project. The questionnaire shall include, but is not limited to, all of the following:
(A)A listing of all the contractors that are part of the design-build entity.
(B) Evidence that the members of the design-build entity have completed, or demonstrated the
experience, competency, capability, and capacity to complete, projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient experience and training to competently
manage and complete the design and construction of the project.
(C) The licenses, registrations, and credentials required to design and construct the project, including
information on the revocation or suspension of any license, credential, or registration.
(D)Evidence that establishes that the design-build entity has the capacity to obtain all required
payment and performance bonding, liability insurance, and errors and omissions insurance, as well as a
financial statement that assures the transit operator that the design-build entity has the capacity to
complete the project.
(E)Any prior serious or willful violation of the California Occupational Safety and Health Act of
1973, contained in Part 1 (commencing with Section 6300) of Division 5 of the Labor Code or the
federal Occupational Safety and Health Act of 1970 (P.L. 91-596), settled against any member of the
design-build entity, and information concerning a contractor member's workers' compensation
experience history and worker safety program.
(F) Information concerning any debarment, disqualification, or removal from a federal, state, or local
government public works project. Any instance where an entity, its owners, officers, or managing
employees submitted a bid on a public works project and were found by an awarding body not to be a
responsible bidder.
(G)Any instance where the entity, its owner, officers, or managing employees defaulted on a
construction contract.
(H) Any violations of the Contractors' State License Law(Chapter 9 (commencing with Section 7000)
of Division 3 of the Business and Professions Code), excluding alleged violations of federal or state law,
including the payment of wages, benefits, apprenticeship requirements, or personal income t�
withholding, or of Federal Insurance Contribution Act(FICA) withholding requirements settled against
any member of the design-build entity.
(I) Information concerning the bankruptcy or receivership of any member of the entity, and
information concerning all legal claims, disputes, or lawsuits arising from any construction project of
any member of the entity during the past three years, including information concerning any work
completed by a surety.
(J) If the design-build entity is a partnership, limited partnership, or other association, a listing of all
of the partners, general partners, or association members who will participate as subcontractors in the
design-build contract.
(K) Information concerning all settled adverse claims, disputes, or lawsuits between the owner of a
public works project and any member of the design-build entity during the five-year period immediately
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State Net Bill Text Page 22 of 22
preceding submission of a bid pursuant to this section, in which the claim, settlement, or judgment
exceeds fifty thousand dollaxs ($50,000). Information shall also be provided concerning any work
completed by a surety during this period.
(L)In the case of a partnership or other association that is not a legal entity, a copy of the agreement
creating the partnership or association and specifying that all partners or association members agree to
be liable for full performance under the design-build contract.
(2) The information required pursuant to this subdivision shall be verified under oath by the entity and
its members in the manner in which civil pleadings in civil actions are verified. Information that is not a
public record pursuant to the California Public Records Act(Chapter 3.5 (commencing with Section
6250) of Division 7 of Title 1 of the Government Code) shall not be open to public inspection.
(fl The transit operator shall establish a procedure for final selection of the design-build entity.
Selection shall be subject to the following conditions:
(1)In no case shall the transit operator award a contract to a design-build entity pursuant to this article
for a capital maintenance or capacity-enhancing rail project unless that project exceeds twenty-five
million dollars ($25,000,000) in cost.
(2)For nonrail transit projects that exceed two million five hundred thousand dollars ($2,500,000),
the transit operator may award the project to the lowest responsible bidder or by using the best value
method.
(3) For the acquisition and installation of technology applications or surveillance equipment designed
to enhance safety, disaster preparedness, and homeland security efforts, there shall be no cost threshold
and the transit operator may award the contract to the lowest responsible bidder or by using the best
value method.
(g) Except as provided in this section, nothing in this act shall be construed to affect the application of
any other law.
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