SB 574: University of California: contracts: bidding.

Existing provisions of the California Constitution provide that the University of California constitutes a public trust and require the university to be administered by the Regents of the University of California (regents), a corporation in the form of a board, with full powers of organization and government, subject to legislative control only for specified purposes, including any competitive bidding procedures as may be applicable to the university by statute for the letting of construction contracts, sales of real property, and purchasing of materials, goods, and services. Existing law requires the regents, except as provided, to let all contracts involving an expenditure of $100,000 or more annually for goods and materials or services, excepting personal or professional services, to the lowest responsible bidder meeting certain specifications, or to reject all bids.

This bill, beginning January 1, 2019, would, for these purposes, require contracts for services involving an expenditure of $100,000 or more annually to include any amendments, renewals, or extensions of the contract that would result in an expenditure of $100,000 or more annually. The bill would prohibit amendment, renewal, or extension of an existing contract unless specified conditions are met.

The bill, beginning January 1, 2019, would, with certain exceptions, require a lowest responsible bidder or best value awardee on contracts for specified services to, among other requirements, certify in writing to the University of California (UC) that the bid includes, for all employees who work for more than 10 days at the university in any 12-month period under the contract, a total employee compensation package, including any fringe benefits and the compensation provided to employees of any of the bidders intermediaries or subcontractors, that is valued on a per-employee basis at a level sufficient that it does not materially undercut the average per-employee value of total compensation for UC employees who perform comparable work at the relevant campus, medical center, or laboratory at which the bidder proposes to perform the work. The bill would require any contractor providing specified services pursuant to one or more contracts totaling more than $100,000 annually, that has not already done so, to also provide this certification on or before January 1, 2022. The bill would make violation of this requirement subject to civil enforcement. The bill would require the UC to include in its request for proposals or other contract solicitations a calculation of the average per-employee value of total compensation for UC employees who perform comparable work at the relevant location, as prescribed.

The bill, beginning January 1, 2019, would require the bidder to provide written certification that it has not been found liable under specified criminal statutes or wage orders of the Industrial Welfare Commission, as specified.