AB 2030: Transportation districts: contracts.
- Session Year: 2015-2016
- House: Assembly
- Latest Version Date: 2016-08-19
(1)Existing law requires contracts of the San Francisco Bay Area Rapid Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.
This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of the contract exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would also require, with respect to district contracts for the construction of facilities and works, a minimum of 3 quotations for those contracts between $5,000 and $10,000.
(2)Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.
This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000.
(1)Existing law requires contracts of the San Francisco Bay Area Rapid Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.
This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of the contract exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would also require, with respect to district contracts for the construction of facilities and works, a minimum of 3 quotations for those contracts between $5,000 and $10,000.
(2)Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.
This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000.
(1)Existing law requires contracts of the San Francisco Bay Area Rapid Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.
This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of the contract exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would also require, with respect to district contracts for the construction of facilities and works, a minimum of 3 quotations for those contracts between $5,000 and $10,000.
(2)Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.
This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000. The bill would require that the $5,000 threshold be adjusted to reflect changes in the Consumer Price Index.
(1)Existing law requires contracts of the San Francisco Bay Area Rapid Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.
This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of the contracts contract exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would also impose those bidding requirements require, with respect to district contracts for the construction of facilities or equipment if the amount of the contract exceeds $100,000 and would require and works, a minimum of 3 quotations for those contracts between $5,000 and $100,000. $10,000.
(2)Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.
This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000. The bill would require that the $5,000 threshold to be adjusted to reflect changes in the Consumer Price Index.
Existing law requires the district, if the contract is for the construction of transit works or transit facilities, to let the contract to the lowest responsible bidder, except as provided, if the amount of the contract exceeds $10,000.
The bill would instead impose that bidding requirement if the amount of the contract exceeds $100,000 and would require that $100,000 threshold to be adjusted to reflect changes in the Consumer Price Index.
(1)Existing law requires contracts of the San Francisco Bay Area Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000. Existing law requires the district, if the contract is for the construction of facilities and works, to let the contract to the lowest responsible bidder if the amount of the contract exceeds $10,000 and to obtain a minimum of 3 quotations for those contracts between $2,500 and $10,000.
This bill would instead impose those bidding requirements with respect to district contracts for the purchase of supplies, equipment, and materials if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $150,000. The bill would also impose those bidding requirements with respect to district contracts for the construction of facilities or equipment if the amount of the contract exceeds $100,000 and would require a minimum of 3 quotations for those contracts between $5,000 and $100,000.
(2)Existing law requires contracts of the San Mateo County Transit District for the purchase of supplies, equipment, and materials to be let to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000 and requires the district, to the extent practicable, to obtain a minimum of 3 quotations for those contracts between $2,500 and $100,000.
This bill would instead impose those bidding requirements if the amount of the contracts exceeds $150,000 and would require a minimum of 3 quotations for contracts between $5,000 and $150,000. The bill would require that $5,000 threshold to be adjusted to reflect changes in the Consumer Price Index.
Existing law requires the district, if the contract is for the construction of transit works or transit facilities, to let the contract to the lowest responsible bidder, except as provided, if the amount of the contract exceeds $10,000.
The bill would instead impose that bidding requirement if the amount of the contract exceeds $100,000 and would require that $100,000 threshold to be adjusted to reflect changes in the Consumer Price Index.
(a)The purchase of all supplies, equipment, and materials when the expenditure required exceeds one hundred fifty thousand dollars ($150,000) shall be by contract let to the lowest responsible bidder or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to requirements described in the solicitation documents. The construction of facilities and works when the expenditure required exceeds ten thousand dollars ($10,000) shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published at least once in a newspaper of general circulation. This publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise in its discretion.
(b)Whenever the expected procurement required exceeds five thousand dollars ($5,000) and, in the case of the construction of facilities and works, does not exceed ten thousand dollars ($10,000) or, in the case of the purchase of supplies, equipment, or materials, does not exceed one hundred fifty thousand dollars ($150,000), the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared.
(c)Where the expenditure required by the bid price is less than one hundred thousand dollars ($100,000), the general manager may act for the board. When acting pursuant to this subdivision, the general manager shall, in each instance, promptly notify the board of the action taken.
SEC. 2.Section 103222 of the Public Utilities Code is amended to read:103222.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall be by contract let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)Notice requesting bids required by this section shall be published at least once in a newspaper of general circulation and on the districts procurement Internet Web site. These publications shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise at its discretion.
(d)This section applies solely to the procurement of supplies, equipment, and materials, and shall not apply to construction contracts.
(a)The purchase of all supplies, equipment, and materials when the expenditure required exceeds one hundred fifty thousand dollars ($150,000) shall be by contract let to the lowest responsible bidder or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to requirements described in the solicitation documents. The construction of facilities and works when the expenditure required exceeds ten thousand dollars ($10,000) shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published at least once in a newspaper of general circulation. This publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise in its discretion.
(b)Whenever the expected procurement required exceeds five thousand dollars ($5,000) and, in the case of the construction of facilities and works, does not exceed ten thousand dollars ($10,000) or, in the case of the purchase of supplies, equipment, or materials, does not exceed one hundred fifty thousand dollars ($150,000), the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared.
(c)Where the expenditure required by the bid price is less than one hundred thousand dollars ($100,000), the general manager may act for the board. When acting pursuant to this subdivision, the general manager shall, in each instance, promptly notify the board of the action taken.
SEC. 2.Section 103222 of the Public Utilities Code is amended to read:103222.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall be by contract let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)Notice requesting bids required by this section shall be published at least once in a newspaper of general circulation and on the districts procurement Internet Web site. These publications shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise at its discretion.
(d)This section applies solely to the procurement of supplies, equipment, and materials, and shall not apply to construction contracts.
(a)The purchase of all supplies, equipment, and materials when the expenditure required exceeds one hundred fifty thousand dollars ($150,000) shall be by contract let to the lowest responsible bidder or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to requirements described in the solicitation documents. The construction of facilities and works when the expenditure required exceeds ten thousand dollars ($10,000) shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published at least once in a newspaper of general circulation. This publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise in its discretion.
(b)Whenever the expected procurement required exceeds five thousand dollars ($5,000) and, in the case of the construction of facilities and works, does not exceed ten thousand dollars ($10,000) or, in the case of the purchase of supplies, equipment, or materials, does not exceed one hundred fifty thousand dollars ($150,000), the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared.
(c)Where the expenditure required by the bid price is less than one hundred thousand dollars ($100,000), the general manager may act for the board. When acting pursuant to this subdivision, the general manager shall, in each instance, promptly notify the board of the action taken.
SEC. 2.Section 103222 of the Public Utilities Code is amended to read:103222.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall be by contract let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)Notice requesting bids required by this section shall be published at least once in a newspaper of general circulation and on the districts procurement Internet Web site. These publications shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise at its discretion.
(d)This section applies solely to the procurement of supplies, equipment, and materials, and shall not apply to construction contracts.
(e)The five-thousand-dollar ($5,000) amount specified in subdivision (b) shall be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index, and shall be adjusted each January 1 thereafter to reflect the annual percentage change in the California Consumer Price Index.
(a)The purchase of all supplies, equipment, and materials when the expenditure required exceeds one hundred fifty thousand dollars ($150,000) shall be by contract let to the lowest responsible bidder or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to requirements described in the solicitation documents. The construction of facilities and works when the expenditure required exceeds one hundred ten thousand dollars ($100,000) ($10,000) shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published at least once in a newspaper of general circulation. This publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise in its discretion.
(b)Whenever the expected procurement required exceeds five thousand dollars ($5,000) and, in the case of the construction of facilities and works, does not exceed one hundred ten thousand dollars ($100,000) ($10,000) or, in the case of the purchase of supplies, equipment, or materials, does not exceed one hundred fifty thousand dollars ($150,000), the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared.
(c)Where the expenditure required by the bid price is less than one hundred thousand dollars ($100,000), the general manager may act for the board. When acting pursuant to this subdivision, the general manager shall, in each instance, promptly notify the board of the action taken.
SEC. 2.Section 20331 of the Public Contract Code is amended to read:20331.(a)Contracts for the construction of transit works or transit facilities in excess of one hundred thousand dollars ($100,000) shall be awarded to the lowest responsible bidder after competitive bidding, except in emergency declared by the vote of seven members of the board. In the case of an emergency, if notice for bids to let contracts will not be given, the board shall comply with Chapter 2.5 (commencing with Section 22050).
(b)The amount specified in subdivision (a) shall be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index, and shall be adjusted each January 1 thereafter to reflect the annual percentage change in the California Consumer Price Index.
SEC. 3.SEC. 2.Section 103222 of the Public Utilities Code is amended to read:103222.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($150,000), shall be by contract let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds five thousand dollars ($5,000), but does not exceed one hundred fifty thousand dollars ($150,000).
(c)Notice requesting bids required by the this section shall be published at least once in a newspaper of general circulation and on the districts procurement Internet Web site, which publication site. These publications shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise at its discretion.
(d)This section applies solely to the procurement of supplies, equipment, and materials, and shall not apply to construction contracts.
(e)The five-thousand-dollar ($5,000) amount specified in subdivision (a) (b) shall be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index, and shall be adjusted each January 1 thereafter to reflect the annual percentage change in the California Consumer Price Index.
(a)The purchase of all supplies, equipment, and materials when the expenditure required exceeds one hundred fifty thousand dollars ($100,000) ($150,000) shall be by contract let to the lowest responsible bidder or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to requirements described in the solicitation documents. The construction of facilities and works when the expenditure required exceeds ten one hundred thousand dollars ($10,000) ($100,000) shall be by contract let to the lowest responsible bidder. Notice requesting bids shall be published at least once in a newspaper of general circulation. This publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise in its discretion.
(b)Whenever the expected procurement required exceeds two thousand five hundred five thousand dollars ($2,500) ($5,000) and, in the case of the construction of facilities and works, does not exceed ten one hundred thousand dollars ($10,000) ($100,000) or, in the case of the purchase of supplies, equipment, or materials, does not exceed one hundred fifty thousand dollars ($100,000), ($150,000), the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared.
(c)Where the expenditure required by the bid price is less than one hundred thousand dollars ($100,000), the general manager may act for the board. When acting pursuant to this subdivision, the general manager shall, in each instance, promptly notify the board of the action taken.
SEC. 2.Section 20331 of the Public Contract Code is amended to read:20331.(a)Contracts for the construction of transit works or transit facilities in excess of ten one hundred thousand dollars ($10,000) ($100,000) shall be awarded to the lowest responsible bidder after competitive bidding, except in emergency declared by the vote of seven members of the board. In the case of an emergency, if notice for bids to let contracts will not be given, the board shall comply with Chapter 2.5 (commencing with Section 22050).
(b)The amount specified in subdivision (a) shall be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index, and shall be adjusted each January 1 thereafter to reflect the annual percentage change in the California Consumer Price Index.
SEC. 3.Section 103222 of the Public Utilities Code is amended to read:103222.(a)The purchase of all supplies, equipment, and materials, when the expenditure required exceeds one hundred fifty thousand dollars ($100,000), ($150,000), shall be, by contract, be by contract let to the lowest responsible bidder, or, in the districts discretion, to the responsible bidder who submitted a proposal that provides the best value to the district on the basis of the factors identified in the solicitation. Best value means the overall combination of quality, price, and other elements of a proposal that, when considered together, provide the greatest overall benefit in response to the requirements described in the solicitation documents.
(b)To the extent practicable, the district shall obtain a minimum of three quotations, either written or oral, that permit prices and terms to be compared whenever the expected expenditure required for the purchase of supplies, equipment, or materials exceeds two thousand five hundred five thousand dollars ($2,500), ($5,000), but does not exceed one hundred fifty thousand dollars ($100,000). ($150,000).
(c)Notice requesting bids required by the section shall be published at least once in a newspaper of general circulation and on the districts procurement Internet Web site, which publication shall be made at least 10 days before the bids are received. The board may reject any and all bids and readvertise at its discretion.
(d)This section applies solely to the procurement of supplies, equipment, and materials, and shall not apply to construction contracts.
(e)The five-thousand-dollar ($5,000) amount specified in subdivision (a) shall be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index, and shall be adjusted each January 1 thereafter to reflect the annual percentage change in the California Consumer Price Index.
|
Date
|
Status
|
|---|---|
| Jun 1, 2016 | From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on T. & H. |
| Aug 19, 2016 | Chaptered by Secretary of State - Chapter 143, Statutes of 2016. |
| Aug 19, 2016 | Approved by the Governor. |
| Aug 10, 2016 | Enrolled and presented to the Governor at 3 p.m. |
| Aug 4, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 1. Page 5698.). |
| Aug 4, 2016 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Jun 30, 2016 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0. Page 4648.). |
| Jun 30, 2016 | Read third time. Passed. Ordered to the Assembly. |
| Jun 30, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 30 pursuant to Assembly Rule 77. |
| Jun 30, 2016 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after July 29 pursuant to Assembly Rule 77. |
| Jun 23, 2016 | Read second time. Ordered to Consent Calendar. |
| Jun 22, 2016 | From committee: Do pass. To Consent Calendar. (Ayes 11. Noes 0.) (June 21). |
| Feb 16, 2016 | Read first time. To print. |
| May 19, 2016 | Referred to Com. on T. & H. |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 1.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 1. Page 4780.) |
| May 12, 2016 | Read third time. Passed. Ordered to the Senate. |
| May 12, 2016 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 9, 2016 | Read second time. Ordered to third reading. |
| May 5, 2016 | From committee: Do pass. (Ayes 8. Noes 0.) (May 4). |
| Apr 27, 2016 | Re-referred to Com. on L. GOV. |
| Apr 26, 2016 | From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. |
| Mar 17, 2016 | Referred to Com. on L. GOV. |
| Feb 17, 2016 | From printer. May be heard in committee March 18. |
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Date
|
Description
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Location
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Votes
|
|
|---|---|---|---|---|
| Aug 4, 2016 | AB 2030 MULLIN Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Jun 30, 2016 | Consent Calendar 2nd AB2030 Mullin | Senate Floor |
Passed |
|
| Jun 21, 2016 | Do pass and be ordered to the Consent Calendar | Senate Standing Committee on Transportation and Housing |
Passed |
|
| May 12, 2016 | AB 2030 MULLIN Assembly Third Reading | Assembly Floor |
Passed |
|
| May 4, 2016 | Do pass. | Assembly Standing Committee on Local Government |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| CalTrain | ** Support | Aug 4, 2016 |
| San Francisco Bay Area Rapid Transit District | ** Support | Aug 4, 2016 |
| San Mateo County Transit District | ** Support | Aug 4, 2016 |
| San Mateo County Transportation Authority | ** Support | Aug 4, 2016 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 2030
Author:(Mullin)
As Amended Ver:June 1, 2016
Majority vote
ASSEMBLY: | 73-1 | (May 12, 2016) | SENATE: | 37-0 | (June 30, 2016) |
Original Committee Reference: L. GOV.
SUMMARY: Changes specified bidding requirements for the San Francisco Bay Area Rapid Transit District and the San Mateo County Transit District.
The Senate amendments remove a provision that required an annual inflationary adjustment to the bid threshold this bill raises for the San Mateo County Transit District (SamTrans).
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes several changes to the procurement requirements for the San Francisco Bay Area Rapid Transit District (BART) and SamTrans. For both BART and SamTrans, this bill increases the formal bid threshold from $100,000 to $150,000 above which both agencies must award contracts for the purchase of supplies, equipment and materials to the lowest bidder or the bidder that provides the best value.
For BART, this bill also increases the minimum dollar amount, from $2,500 to $5,000, above which BART must obtain three quotes for construction of facilities and works for the purchase of supplies, equipment or materials. It also increases the maximum amount allowed under this relaxed procurement method for the purchase of supplies, equipment or materials, from $100,000 to $150,000.
For SamTrans, this bill increases the minimum dollar amount, from $2,500 to $5,000, above which SamTrans must obtain three quotes for the purchase of supplies, equipment or materials, and increases the maximum amount allowed under this procurement method from $100,000 to $150,000 (there is no construction component in this provision for SamTrans).
This bill is sponsored by the author.
- Author's Statement. According to the author, "This bill adjusts SamTrans' and BART's procurement thresholds as follows: a) Raises the limit under which the agencies can purchase supplies, equipment and materials via the 'best value' process from $100,000 to $150,000; and b) Increases the small purchase threshold from $2,500 to $5,000, allowing the agencies additional flexibility to meet their purchasing needs more quickly, particularly for locally-funded purchases… AB 2030 increases (these) purchasing thresholds… to allow relatively low-cost procurements to be processed in a more efficient and expeditious manner while still complying with Federal Transit Administration (FTA) requirements."
- Background. Current law requires both BART and SamTrans to issue contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller contracts. For construction of facilities and works that is expected to cost between $2,500 and $10,000, and for the purchase of supplies, equipment or materials that is expected to cost between $2,500 and $100,000, BART must obtain at least three quotes that permit prices and terms to be compared. SamTrans must follow the same rules when purchasing supplies, equipment or materials.
According to the author, "Effective approximately one year ago, the federal government raised the 'Simplified Acquisition Threshold' to allow federal grantees like BART and SamTrans to make purchases using federal grant funds via informal procurement methods for services, supplies, and other property of up to $150,000, with even less stringent requirements for 'micro-purchases' of under $3,000."
The Simplified Acquisition Threshold (SAT) is set by the federal government for its Simplified Acquisition Procedures (SAP), which are designed to help federal agencies meet their small business procurement targets. SAPs employ streamlined contracting procedures for contracts valued between $2,500 and $150,000, such as allowing quotations (including oral quotations) instead of requiring full-blown bids, requiring less stringent reporting, and setting simpler rules for subcontracting. Federal acquisition thresholds are adjusted every five years and published in the Federal Register. The latest adjustment in 2015 raised the micro-purchase threshold to $3,500. The SAT ceiling remained the same at $150,000.
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0003527
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
CONSENT
Bill No: AB 2030
:
SENATE TRANS. & HOUSING COMMITTEE: 11-0, 6/21/16
AYES: Beall, Cannella, Allen, Bates, Gaines, Galgiani, Leyva, McGuire, Mendoza, Roth, Wieckowski
ASSEMBLY FLOOR: 73-1, 5/12/16 (Consent) - See last page for vote
San Mateo County Transit District
San Mateo County Transportation Authority
DIGEST: This bill changes certain bidding requirements for the San Francisco Bay Area Rapid Transit District (BART) and the San Mateo County Transit District (SamTrans), as specified.
Existing law:
- Requires BART and SamTrans to let contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
- Requires BART to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $10,000 for the construction of facilities and works or does not exceed $100,000 for supplies, equipment, or materials.
- Requires SamTrans to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $100,000 for supplies, equipment, or materials.
This bill:
- Increases the bid threshold, from $100,000 to $150,000, above which BART and SamTrans must award contracts for supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined.
- Increases, from $100,000 to $150,000, the maximum procurement amount for supplies, equipment, or materials under which BART and SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for construction and for supplies, equipment, or materials, above which BART must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for supplies, equipment, or materials above which SamTrans must obtain at least three quotations that permit prices and terms to be compared.
Comments
- Purpose. According to the author, “This bill adjusts SamTrans and BART’s procurement thresholds as follows:
- Raises the limit under which the agencies can purchase supplies, equipment, and materials via the ‘best value’ process from $100,000 to $150,000
- Increases the small- purchase threshold from $2,500 to $5,000, allowing the agencies additional flexibility to meet their purchasing needs more quickly, particularly for locally funded purchase
AB 2030 increases (these) purchasing threshold, to allow relatively low-cost procurements to be processed in a more efficient and expeditious manner while still complying with Federal Transit Administration (FTA) requirements.”
- What are existing practices? Current law requires both BART and SamTrans to issue contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller contracts. For construction of facilities and works that is expected to cost between $2,500 and $10,000, and for the purchase of supplies, equipment, or materials that is expected to cost between $2,500 and $100,000, BART must obtain at least three quotes that permit prices and terms to be compared. SamTrans must follow the same procurement rules when purchasing supplies, equipment, or materials.
- Federal regulations. The Simplified Acquisition Threshold (SAT) is set by the federal government for its Simplified Acquisition Procedures (SAP), which are designed to help federal agencies meet their small-business procurement targets. SAPs employ streamlined contracting procedures for contracts valued between $2,500 and $150,000, such as allowing quotations (including oral quotations) instead of requiring full-blown bids, requiring less stringent reporting, and setting simpler rules for subcontracting. Federal acquisition thresholds are adjusted every five years and published in the Federal Register. The latest adjustment in 2015 raised the micro-purchase threshold to $3,500. The SAT ceiling remained the same at $150,000.
- Rising costs: This bill proposes to raise the micro-purchase threshold to $5,000, which is $1,500 above the micro-purchase threshold specified in federal regulations. Proponents argue that with the rising cost of various supplies and materials, the $3,500 threshold would still require transit agencies to obtain at least three bids for routine purchases such as printing/mailing orders (up to $4,700), ergonomic workstations ($4,700), or a remanufactured transmission ($3,700). Raising the micro-purchase threshold to $5,000 will provide BART and SAMTRANS with the flexibility to purchase routine items without having to obtain additional bids and also create a buffer as costs for materials and supplies continue to rise.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Caltrain (co- source)
San Mateo County Transit District (co-source)
San Mateo County Transportation Authority (co- source)
San Francisco Bay Area Rapid Transit District
OPPOSITION: (Verified 6/23/16)
None received
ASSEMBLY FLOOR: 73-1, 5/12/16
AYES: Achadjian, Alejo, Arambula, Atkins, Baker, Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley, Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier, Eduardo Garcia, Gatto, Gipson, Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger Hernández, Holden, Irwin, Jones, Kim, Lackey, Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
NOES: Travis Allen
NO VOTE RECORDED: Burke, Beth Gaines, Gallagher, Cristina Garcia, Jones-Sawyer, McCarty
6/24/16 14:33:43
**** END ****
SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
Senator Jim Beall, Chair
2015 - 2016 Regular
Bill No: AB 2030 Hearing Date: 6/21/16
Author: | Mullin | ||
Version: | 6/1/2016 | ||
Urgency: | No | Fiscal: | No |
Consultant: | Manny Leon | ||
SUBJECT: Transportation districts: contracts
DIGEST: This bill changes certain bidding requirements for the San Francisco Bay Area Rapid Transit District (BART) and the San Mateo County Transit District (SamTrans), as specified.
ANALYSIS:
Existing law:
- Requires BART and SamTrans to let contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
- Requires BART to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $10,000 for the construction of facilities and works or does not exceed $100,000 for supplies, equipment, or materials.
- Requires SamTrans to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $100,000 for supplies, equipment, or materials.
This bill:
- Increases the bid threshold, from $100,000 to $150,000, above which BART and SamTrans must award contracts for supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined.
- Increases, from $100,000 to $150,000, the maximum procurement amount for supplies, equipment, or materials under which BART and SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for construction and for supplies, equipment, or materials, above which BART must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for supplies, equipment, or materials above which SamTrans must obtain at least three quotations that permit prices and terms to be compared.
COMMENTS:
- Purpose. According to the author, "This bill adjusts SamTrans and BART’s procurement thresholds as follows:
- Raises the limit under which the agencies can purchase supplies, equipment, and materials via the 'best value' process from $100,000 to $150,000
- Increases the small purchase threshold from $2,500 to $5,000, allowing the agencies additional flexibility to meet their purchasing needs more quickly, particularly for locally funded purchase. AB 2030 increases (these) purchasing threshold, to allow relatively low-cost procurements to be processed in a more efficient and expeditious manner while still complying with Federal Transit Administration (FTA) requirements."
- What are existing practices? Current law requires both BART and SamTrans to issue contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller contracts. For construction of facilities and works that is expected to cost between $2,500 and $10,000, and for the purchase of supplies, equipment, or materials that is expected to cost between $2,500 and $100,000, BART must obtain at least three quotes that permit prices and terms to be compared. SamTrans must follow the same procurement rules when purchasing supplies, equipment, or materials.
- Federal regulations: The Simplified Acquisition Threshold (SAT) is set by the federal government for its Simplified Acquisition Procedures (SAP), which are designed to help federal agencies meet their small-business procurement targets. SAPs employ streamlined contracting procedures for contracts valued between $2,500 and $150,000, such as allowing quotations (including oral quotations) instead of requiring full-blown bids, requiring less stringent reporting, and setting simpler rules for subcontracting. Federal acquisition thresholds are adjusted every five years and published in the Federal Register. The latest adjustment in 2015 raised the micro-purchase threshold to $3,500. The SAT ceiling remained the same at $150,000.
- Rising costs: This bill proposes to raise the micro-purchase threshold to $5,000, which is $1,500 above the micro-purchase threshold specified in federal regulations. Proponents argue that with the rising cost of various supplies and materials, the $3,500 threshold would still require transit agencies to obtain at least three bids for routine purchases such as printing/mailing orders (up to $4,700), ergonomic workstations ($4,700), or a remanufactured transmission ($3,700). Raising the micro-purchase threshold to $5,000 will provide BART and SAMTRANS with the flexibility to purchase routine items without having to obtain additional bids and also create a buffer as costs for materials and supplies continue to rise.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Assembly Votes:
Floor: 73-1
L. Gov: 8-0
POSITIONS: (Communicated to the committee before noon on Wednesday,
June 15, 2016.)
SUPPORT:
Caltrain (co-sponsor)
San Mateo County Transit District (co-sponsor)
San Mateo County Transportation Authority (co-sponsor)
San Francisco Bay Area Transit District
OPPOSITION:
None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 2030
Author:(Mullin)
As Amended Ver:April 26, 2016
Majority vote
Committee | Votes | Ayes | Noes |
Local Government | 8-0 | Eggman, Waldron, Mullin, Bonilla, Chiu, Cooley, Gordon, Linder |
SUMMARY: Changes specified bidding requirements for the San Francisco Bay Area Rapid Transit District and the San Mateo County Transit District. Specifically, this bill:
- Increases the bid threshold, from $100,000 to $150,000, above which the San Francisco Bay Area Rapid Transit District (BART) and the San Mateo County Transit District (SamTrans) must award contracts for supplies, equipment and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined.
- Increases, from $100,000 to $150,000, the maximum procurement amount for supplies, equipment or materials under which BART and SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for construction and for supplies, equipment or materials above which BART must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for supplies, equipment or materials above which SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Requires the $5,000 amount for SamTrans, specified in 4) above, to be adjusted on January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index (California CPI), and further requires that amount to be adjusted each January 1 thereafter to reflect the annual percentage change in the California CPI.
EXISTING LAW:
- Requires BART and SamTrans to let contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
- Requires BART to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $10,000 for the construction of facilities and works or does not exceed $100,000 for supplies, equipment, or materials.
- Requires SamTrans to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $100,000 for supplies, equipment, or materials.
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes several changes to the procurement requirements for BART and SamTrans. For both BART and SamTrans, this bill increases the formal bid threshold from $100,000 to $150,000 above which both agencies must award contracts for the purchase of supplies, equipment and materials to the lowest bidder or the bidder that provides the best value.
For BART, this bill also increases the minimum dollar amount, from $2,500 to $5,000, above which BART must obtain three quotes for construction of facilities and works for the purchase of supplies, equipment or materials. It also increases the maximum amount allowed under this relaxed procurement method for the purchase of supplies, equipment or materials, from $100,000 to $150,000.
For SamTrans, this bill increases the minimum dollar amount, from $2,500 to $5,000, above which SamTrans must obtain three quotes for the purchase of supplies, equipment or materials, and increases the maximum amount allowed under this procurement method from $100,000 to $150,000 (there is no construction component in this provision for SamTrans). The bill also requires the $5,000 minimum for SamTrans to be adjusted for inflation using the California CPI. This adjustment must be made on January 1, 2018, to reflect the change since January 1, 2016, and annually thereafter to reflect the annual change in the California CPI.
This bill is sponsored by the author.
- Author's Statement. According to the author, "This bill adjusts SamTrans' and BART's procurement thresholds as follows: a) Raises the limit under which the agencies can purchase supplies, equipment and materials via the 'best value' process from $100,000 to $150,000; and b) Increases the small purchase threshold from $2,500 to $5,000, allowing the agencies additional flexibility to meet their purchasing needs more quickly, particularly for locally-funded purchases… AB 2030 increases (these) purchasing thresholds… to allow relatively low-cost procurements to be processed in a more efficient and expeditious manner while still complying with Federal Transit Administration (FTA) requirements."
- Background. Current law requires both BART and SamTrans to issue contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller contracts. For construction of facilities and works that is expected to cost between $2,500 and $10,000, and for the purchase of supplies, equipment or materials that is expected to cost between $2,500 and $100,000, BART must obtain at least three quotes that permit prices and terms to be compared. SamTrans must follow the same rules when purchasing supplies, equipment or materials.
According to the author, "Effective approximately one year ago, the federal government raised the 'Simplified Acquisition Threshold' to allow federal grantees like BART and SamTrans to make purchases using federal grant funds via informal procurement methods for services, supplies, and other property of up to $150,000, with even less stringent requirements for 'micro-purchases' of under $3,000."
The Simplified Acquisition Threshold (SAT) is set by the federal government for its Simplified Acquisition Procedures (SAP), which are designed to help federal agencies meet their small business procurement targets. SAPs employ streamlined contracting procedures for contracts valued between $2,500 and $150,000, such as allowing quotations (including oral quotations) instead of requiring full-blown bids, requiring less stringent reporting, and setting simpler rules for subcontracting. Federal acquisition thresholds are adjusted every five years and published in the Federal Register. The latest adjustment in 2015 raised the micro-purchase threshold to $3,500. The SAT ceiling remained the same at $150,000.
- Policy Considerations. The Legislature may wish to consider the following:
- Conformity to Federal Limits. The author has pointed to the SAT as justification for changing the procurement limits in this bill. The minimum SAT for "micro purchases" is $3,500. This bill adjusts a similar minimum for BART and SamTrans to $5,000. The Legislature may wish to consider whether the stated intent of this bill – to conform to the federal SAT – has been accomplished with the bill's proposed increase to $5,000.
- Legislative Oversight. This bill requires an automatic adjustment for inflation of the increased $5,000 minimum dollar amount above which SamTrans must obtain at least three quotes when contracting for supplies, equipment or materials. This would effectively eliminate legislative oversight of this authority. The Legislature may wish to consider whether the Legislature should relinquish this oversight function.
- Arguments in Support. None on file.
- Arguments in Opposition. None on file.
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958 FN: 0002896
Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Susan Talamantes Eggman, Chair
ABPCA Bill Id:AB 2030 (
Author:Mullin) – As Amended Ver:April 26, 2016
SUBJECT: Transportation districts: contracts.
SUMMARY: Changes specified bidding requirements for the San Francisco Bay Area Rapid Transit District and the San Mateo County Transit District. Specifically, this bill:
- Increases the bid threshold, from $100,000 to $150,000, above which the San Francisco Bay Area Rapid Transit District (BART) and the San Mateo County Transit District (SamTrans) must award contracts for supplies, equipment and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined.
- Increases, from $100,000 to $150,000, the maximum procurement amount for supplies, equipment or materials under which BART and SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Increases, from $2,000 to $5,000, the minimum procurement amount for construction and
for supplies, equipment or materials above which BART must obtain at least three quotations that permit prices and terms to be compared. - Increases, from $2,000 to $5,000, the minimum procurement amount for supplies, equipment or materials above which SamTrans must obtain at least three quotations that permit prices and terms to be compared.
- Requires the $5,000 amount for SamTrans, specified in 4), above, to be adjusted on
January 1, 2018, to reflect the percentage change since January 1, 2016, in the California Consumer Price Index (California CPI), and further requires that amount to be adjusted each January 1 thereafter to reflect the annual percentage change in the California CPI.
EXISTING LAW:
- Requires BART and SamTrans to let contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
- Requires BART to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $10,000 for the construction of facilities and works or does not exceed $100,000 for supplies, equipment, or materials.
- Requires SamTrans to obtain at least three quotations that permit prices and terms to be compared whenever the expected procurement required exceeds $2,500 and does not exceed $100,000 for supplies, equipment, or materials.
FISCAL EFFECT: None
COMMENTS:
- Bill Summary. This bill makes several changes to the procurement requirements for BART and SamTrans. For both BART and SamTrans, this bill increases the formal bid threshold from $100,000 to $150,000 above which both agencies must award contracts for the purchase of supplies, equipment and materials to the lowest bidder or the bidder that provides the best value.
For BART, this bill also increases the minimum dollar amount, from $2,500 to $5,000, above which BART must obtain three quotes for construction of facilities and works for the purchase of supplies, equipment or materials. It also increases the maximum amount allowed under this relaxed procurement method for the purchase of supplies, equipment or materials, from $100,000 to $150,000.
For SamTrans, this bill increases the minimum dollar amount, from $2,500 to $5,000, above which SamTrans must obtain three quotes for the purchase of supplies, equipment or materials, and increases the maximum amount allowed under this procurement method from $100,000 to $150,000 (there is no construction component in this provision for SamTrans). The bill also requires the $5,000 minimum for SamTrans to be adjusted for inflation using the California CPI. This adjustment must be made on January 1, 2018, to reflect the change since January 1, 2016, and annually thereafter to reflect the annual change in the California CPI.
This bill is sponsored by the author.
- Author's Statement. According to the author, "This bill adjusts SamTrans’ and BART’s procurement thresholds as follows: 1) Raises the limit under which the agencies can purchase supplies, equipment and materials via the 'best value' process from $100,000 to $150,000; and 2) Increases the small purchase threshold from $2,500 to $5,000, allowing the agencies additional flexibility to meet their purchasing needs more quickly, particularly for locally-funded purchases…AB 2030 increases (these) purchasing thresholds…to allow relatively low-cost procurements to be processed in a more efficient and expeditious manner while still complying with Federal Transit Administration (FTA) requirements."
- Background. Current law requires both BART and SamTrans to issue contracts for the purchase of supplies, equipment, and materials to the lowest responsible bidder or to the bidder who submits a proposal that provides best value, as defined, if the amount of the contract exceeds $100,000.
A less formal procurement method is allowed for smaller contracts. For construction of facilities and works that is expected to cost between $2,500 and $10,000, and for the purchase of supplies, equipment or materials that is expected to cost between $2,500 and $100,000, BART must obtain at least three quotes that permit prices and terms to be compared. SamTrans must follow the same rules when purchasing supplies, equipment or materials.
According to the author, "Effective approximately one year ago, the federal government raised the 'Simplified Acquisition Threshold' to allow federal grantees like BART and SamTrans to make purchases using federal grant funds via informal procurement methods for services, supplies, and other property of up to $150,000, with even less stringent requirements for 'micro-purchases' of under $3,000."
The Simplified Acquisition Threshold (SAT) is set by the federal government for its Simplified Acquisition Procedures (SAP), which are designed to help federal agencies meet their small business procurement targets. SAPs employ streamlined contracting procedures for contracts valued between $2,500 and $150,000, such as allowing quotations (including oral quotations) instead of requiring full-blown bids, requiring less stringent reporting, and setting simpler rules for subcontracting. Federal acquisition thresholds are adjusted every five years and published in the Federal Register. The latest adjustment in 2015 raised the micro-purchase threshold to $3,500. The SAT ceiling remained the same at $150,000.
- Policy Considerations. The Committee may wish to consider the following:
- Conformity to Federal Limits. The author has pointed to the SAT as justification for changing the procurement limits in this bill. The minimum SAT for "micro purchases" is $3,500. This bill adjusts a similar minimum for BART and SamTrans to $5,000. The Committee may wish to consider whether the stated intent of this bill – to conform to the federal SAT – has been accomplished with the bill's proposed increase to $5,000.
- Legislative Oversight. This bill requires an automatic adjustment for inflation of the increased $5,000 minimum dollar amount above which SamTrans must obtain at least three quotes when contracting for supplies, equipment or materials. This would effectively eliminate legislative oversight of this authority. The Committee may wish to consider whether the Legislature should relinquish this oversight function.
- Arguments in Support. None on file.
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Angela Mapp / L. GOV. / (916) 319-3958
Discussed in Hearing
51SEC
Assembly Floor
1MIN
Assembly Floor
9MIN
Assembly Standing Committee on Local Government
Bill Author
Bill Co-Author(s):
