SB 146: Public resources: infrastructure: contracting.
- Session Year: 2023-2024
- House: Senate
- Latest Version Date: 2023-07-10
Current Status:
Passed
(2023-07-10: Chaptered by Secretary of State. Chapter 58, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
(1)Existing law authorizes the Secretary of Transportation to assume the responsibilities of the United States Secretary of Transportation under the federal National Environmental Policy Act of 1969 (NEPA) and other federal environmental laws for any railroad, public transportation, or multimodal project undertaken by state agencies, as specified. Existing law provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of these responsibilities. Existing law repeals these provisions on January 1, 2025.
This bill would extend the above authorization to December 31, 2033. The bill would additionally authorize the Secretary of Transportation, consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government and upon the request of a local or regional agency with the authority to implement transportation projects, to assume responsibilities under the NEPA and other federal environmental laws for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency. The bill would impose terms and conditions similar to those with respect to the above-described authority to assume those responsibilities for projects undertaken by state agencies, including providing consent for the jurisdiction of the federal courts, as provided. The bill would require the secretary to report to the transportation policy committees of the Legislature regarding the assumption of responsibilities under the NEPA requested by a local or regional agency by December 31, 2033. The bill would repeal these provisions on December 31, 2033.
(2)Existing law authorizes the Director of General Services to use the progressive design-build procurement process for the construction of up to 3 capital outlay projects, as jointly determined by the Department of General Services and the Department of Finance, and prescribes that process. Existing law defines progressive design-build as a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. Existing law, pursuant to the process, after selection of a design-build entity, authorizes the Department of General Services to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Existing law authorizes the department, upon agreement on a guaranteed maximum price, to amend the contract in its sole discretion, as specified. Existing law requires specified information to be verified under penalty of perjury.
This bill would authorize the Department of Water Resources and the Department of Transportation (departments) to use the progressive design-build procurement process for the construction of up to 8 public works projects per department for a project that is estimated to exceed $25,000,000 in total price, and would prescribe that process. The bill would require each design-build entity, as defined, to submit specified information in a statement of qualifications that is to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would prescribe the process for the departments to determine which design-build entity offers the best value to the public for the design-build project, as defined. The bill would require the selected design-build entity to provide payment and performance bonds and errors and omissions insurance coverage, as specified. The bill would, pursuant to the process, authorize the departments to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Upon agreement on a guaranteed maximum price, the bill would authorize the departments to amend a contract, as specified. The bill would also authorize the departments to solicit additional proposals if the departments and the design-build entity are unable to reach an agreement on a guaranteed maximum price. The bill would require the departments to submit, on or before January 1, 2034, to the Legislature a report containing specified information regarding the public works projects, commenced before January 1, 2033, that used the progressive design-build procurement process.
This bill would specify that the above provisions do not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
(3)Existing law requires the Department of Transportation to improve and maintain state highways.
The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. Other existing law authorizes certain state and local agencies to engage in job order contracting, as prescribed.
This bill, until December 31, 2033, would authorize the Department of Transportation to use job order contracting for certain transportation and public works projects, including, among others, those related to highway maintenance, installation of stormwater pollution control devices, and for facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990, as provided. The bill would require the department to establish a procedure to prequalify job order contractors and to prepare a set of documents for each job order contract, as provided. The bill would require the department to prepare a request for bids for job order contracts that invites job order contractors to submit sealed bids in the manner prescribed by the department. The bill would also authorize the department, notwithstanding those other procedures, to award job order contracts for contracts within a specified cost range after obtaining written bid submittals from 2 or more certified small businesses or from 2 or more disabled veteran business enterprises, as provided.
This bill would authorize job order contracts to be executed for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for 2 additional 12-month periods, as provided. The bill would require job order contractors to possess or obtain sufficient bonding and risk and liability insurance, as provided. The bill would require the department to publish, on or before July 1 of each year, until July 1, 2033, on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year, and to monitor job order contracts for compliance with federal and state labor laws.
This bill would repeal the above-described provisions relating to job order contracting on December 31, 2033.
(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(5)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law authorizes the Secretary of Transportation to assume the responsibilities of the United States Secretary of Transportation under the federal National Environmental Policy Act of 1969 (NEPA) and other federal environmental laws for any railroad, public transportation, or multimodal project undertaken by state agencies, as specified. Existing law provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of these responsibilities. Existing law repeals these provisions on January 1, 2025.
This bill would extend the above authorization to December 31, 2033. The bill would additionally authorize the Secretary of Transportation, consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government and upon the request of a local or regional agency with the authority to implement transportation projects, to assume responsibilities under the NEPA and other federal environmental laws for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency. The bill would impose terms and conditions similar to those with respect to the above-described authority to assume those responsibilities for projects undertaken by state agencies, including providing consent for the jurisdiction of the federal courts, as provided. The bill would require the secretary to report to the transportation policy committees of the Legislature regarding the assumption of responsibilities under the NEPA requested by a local or regional agency by December 31, 2033. The bill would repeal these provisions on December 31, 2033.
(2)Existing law authorizes the Director of General Services to use the progressive design-build procurement process for the construction of up to 3 capital outlay projects, as jointly determined by the Department of General Services and the Department of Finance, and prescribes that process. Existing law defines progressive design-build as a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. Existing law, pursuant to the process, after selection of a design-build entity, authorizes the Department of General Services to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Existing law authorizes the department, upon agreement on a guaranteed maximum price, to amend the contract in its sole discretion, as specified. Existing law requires specified information to be verified under penalty of perjury.
This bill would authorize the Department of Water Resources and the Department of Transportation (departments) to use the progressive design-build procurement process for the construction of up to 8 public works projects per department for a project that is estimated to exceed $25,000,000 in total price, and would prescribe that process. The bill would require each design-build entity, as defined, to submit specified information in a statement of qualifications that is to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would prescribe the process for the departments to determine which design-build entity offers the best value to the public for the design-build project, as defined. The bill would require the selected design-build entity to provide payment and performance bonds and errors and omissions insurance coverage, as specified. The bill would, pursuant to the process, authorize the departments to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Upon agreement on a guaranteed maximum price, the bill would authorize the departments to amend a contract, as specified. The bill would also authorize the departments to solicit additional proposals if the departments and the design-build entity are unable to reach an agreement on a guaranteed maximum price. The bill would require the departments to submit, on or before January 1, 2034, to the Legislature a report containing specified information regarding the public works projects, commenced before January 1, 2033, that used the progressive design-build procurement process.
This bill would specify that the above provisions do not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
(3)Existing law requires the Department of Transportation to improve and maintain state highways.
The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. Other existing law authorizes certain state and local agencies to engage in job order contracting, as prescribed.
This bill, until December 31, 2033, would authorize the Department of Transportation to use job order contracting for certain transportation and public works projects, including, among others, those related to highway maintenance, installation of stormwater pollution control devices, and for facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990, as provided. The bill would require the department to establish a procedure to prequalify job order contractors and to prepare a set of documents for each job order contract, as provided. The bill would require the department to prepare a request for bids for job order contracts that invites job order contractors to submit sealed bids in the manner prescribed by the department. The bill would also authorize the department, notwithstanding those other procedures, to award job order contracts for contracts within a specified cost range after obtaining written bid submittals from 2 or more certified small businesses or from 2 or more disabled veteran business enterprises, as provided.
This bill would authorize job order contracts to be executed for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for 2 additional 12-month periods, as provided. The bill would require job order contractors to possess or obtain sufficient bonding and risk and liability insurance, as provided. The bill would require the department to publish, on or before July 1 of each year, until July 1, 2033, on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year, and to monitor job order contracts for compliance with federal and state labor laws.
This bill would repeal the above-described provisions relating to job order contracting on December 31, 2033.
(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(5)This bill would declare that it is to take effect immediately as an urgency statute.
(1)Existing law authorizes the Secretary of Transportation to assume the responsibilities of the United States Secretary of Transportation under the federal National Environmental Policy Act of 1969 (NEPA) and other federal environmental laws for any railroad, public transportation, or multimodal project undertaken by state agencies, as specified. Existing law provides that the State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of these responsibilities. Existing law repeals these provisions on January 1, 2025.
This bill would extend the above authorization to December 31, 2033. The bill would additionally authorize the Secretary of Transportation, consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government and upon the request of a local or regional agency with the authority to implement transportation projects, to assume responsibilities under the NEPA and other federal environmental laws for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency. The bill would impose terms and conditions similar to those with respect to the above-described authority to assume those responsibilities for projects undertaken by state agencies, including providing consent for the jurisdiction of the federal courts, as provided. The bill would require the secretary to report to the transportation policy committees of the Legislature regarding the assumption of responsibilities under the NEPA requested by a local or regional agency by December 31, 2033. The bill would repeal these provisions on December 31, 2033.
(2)Existing law authorizes the Director of General Services to use the progressive design-build procurement process for the construction of up to 3 capital outlay projects, as jointly determined by the Department of General Services and the Department of Finance, and prescribes that process. Existing law defines progressive design-build as a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. Existing law, pursuant to the process, after selection of a design-build entity, authorizes the Department of General Services to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Existing law authorizes the department, upon agreement on a guaranteed maximum price, to amend the contract in its sole discretion, as specified. Existing law requires specified information to be verified under penalty of perjury.
This bill would authorize the Department of Water Resources and the Department of Transportation (departments) to use the progressive design-build procurement process for the construction of up to 8 public works projects per department for a project that is estimated to exceed $25,000,000 in total price, and would prescribe that process. The bill would require each design-build entity, as defined, to submit specified information in a statement of qualifications that is to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program.
This bill would prescribe the process for the departments to determine which design-build entity offers the best value to the public for the design-build project, as defined. The bill would require the selected design-build entity to provide payment and performance bonds and errors and omissions insurance coverage, as specified. The bill would, pursuant to the process, authorize the departments to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined. Upon agreement on a guaranteed maximum price, the bill would authorize the departments to amend a contract, as specified. The bill would also authorize the departments to solicit additional proposals if the departments and the design-build entity are unable to reach an agreement on a guaranteed maximum price. The bill would require the departments to submit, on or before January 1, 2034, to the Legislature a report containing specified information regarding the public works projects, commenced before January 1, 2033, that used the progressive design-build procurement process.
This bill would specify that the above provisions do not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
(3)Existing law requires the Department of Transportation to improve and maintain state highways.
The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. Other existing law authorizes certain state and local agencies to engage in job order contracting, as prescribed.
This bill, until December 31, 2033, would authorize the Department of Transportation to use job order contracting for certain transportation and public works projects, including, among others, those related to highway maintenance, installation of stormwater pollution control devices, and for facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990, as provided. The bill would require the department to establish a procedure to prequalify job order contractors and to prepare a set of documents for each job order contract, as provided. The bill would require the department to prepare a request for bids for job order contracts that invites job order contractors to submit sealed bids in the manner prescribed by the department. The bill would also authorize the department, notwithstanding those other procedures, to award job order contracts for contracts within a specified cost range after obtaining written bid submittals from 2 or more certified small businesses or from 2 or more disabled veteran business enterprises, as provided.
This bill would authorize job order contracts to be executed for an initial contract term of no more than 12 months, with the option of extending or renewing the job order contract for 2 additional 12-month periods, as provided. The bill would require job order contractors to possess or obtain sufficient bonding and risk and liability insurance, as provided. The bill would require the department to publish, on or before July 1 of each year, until July 1, 2033, on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year, and to monitor job order contracts for compliance with federal and state labor laws.
This bill would repeal the above-described provisions relating to job order contracting on December 31, 2033.
(4)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
(5)This bill would declare that it is to take effect immediately as an urgency statute.
This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
(a)The secretary, on behalf of the agency, and any department, office, or other unit within the agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, public transportation, or multimodal project.
(b) Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(c)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(d)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(e)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(f)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(g)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(h)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)This section shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 2.Section 13979.4 is added to the Government Code, to read:13979.4.(a)(1)Consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government, the secretary, upon the request of a local or regional agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency.
(2)For purposes of this section, local or regional agency includes, but is not limited to, a city, county, city and county, special district, or joint powers authority.
(b)The secretary shall report to the transportation policy committees of the Legislature regarding which local or regional agencies requested that the secretary assume the authority under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) by December 31, 2033.
(3)A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(d)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(e)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(f)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(g)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(h)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(i)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(j)This section shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 3.Article 6.7 (commencing with Section 10215) is added to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, to read:6.7.Progressive Design-Build Projects10215.For purposes of this article, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Department means any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a progressive design-build contract.
(e)Design-build project means a capital project using the progressive design-build construction procurement process described in this article.
(f)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors.
(g)Director means the director of any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting, or their designee.
(h)Guaranteed maximum price means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.
(i)Progressive design-build means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase.
(j)Qualifications-based selection means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award.
10215.1.(a)(1)Notwithstanding any other law, both of the following departments may procure progressive design-build contracts for public works projects for which the estimated price, as determined pursuant to subdivision (a) of Section 10215.2, exceeds twenty five million dollars ($25,000,000):
(A)The Department of Water Resources as established in Section 120 of the Water Code.
(B)The Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code.
(2)This subdivision does not authorize a design-build-operate contract for any project. A contract pursuant to this article may provide for operations during a training or transitional period, but shall not include long-term operations for any design-build project.
(3)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by the Department of Transportation consistent with Section 91.2 of the Streets and Highways Code.
(4)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the Department of Water Resources consistent with Section 148 of the Water Code.
(5)A department described in paragraph (1) shall be limited to utilizing progressive-design build contracts for no more than eight design-build projects.
(b)The director of each department identified in subdivision (a) shall develop guidelines for a standard departmental conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a progressive design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team.
(c)This article does not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
10215.2.The procurement process for progressive design-build projects shall progress as follows:
(a)The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the departments needs.
(b)The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements:
(1)Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.
(2)Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities responses and consider those costs in evaluating the statements of qualifications.
(3)The relative importance or the weight assigned to each of the factors identified in the request for qualifications.
(4)A request for a statement of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required:
(A)If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the design-build entitys shareholders, partners, or members who, at the time the statement of qualification is submitted, the design-build entity knows will perform work on the design-build project if the design-build entity is selected by the department.
(B)Evidence that the members of the design-build team have completed, or have 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 design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the design-build project.
(C)The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, 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.
(E)Information concerning workers compensation experience history and a worker safety program.
(F)If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.
(G)An acceptable safety record. A design-build entitys safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or 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 design-build entity is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
(H)A full disclosure regarding each of the following, if applicable:
(i)Any serious or willful violation of 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 or otherwise resolved against any member of the design-build team.
(ii)Any debarment, disqualification, or removal of any member of the design-build team or its owners, officers, or managing employees from a federal, state, or local government public works project.
(iii)Any instance in which a member of the design-build team, or 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.
(iv)Any instance in which any member of the design-build team, or its owners, officers, or managing employees, defaulted on a construction contract.
(v)Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, by a member of the design-build team or its owners, officers, or managing employees, including alleged violations of Federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or federal Insurance Contribution Act withholding requirements settled against any member of the design-build entity.
(vi)Any bankruptcy or receivership of any member of the design-build team, including, but not limited to, information concerning any work completed by a surety.
(vii)Any adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build team during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the design-build entity or any member of the design-build team. Information shall also be provided concerning any work completed by a surety during this five-year period.
(viii)Any adverse claims, disputes, or lawsuits between any member of the design-build team and any employee of that entity during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the entity.
(5)The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.
(c)(1)Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the departments request for qualifications.
(2)For each request for qualifications, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications before entering into negotiations for the contract or contracts to which the request for qualifications applies.
(3)If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with that entity concerning contract terms and award a contract for design and preconstruction services to that entity. Such contract shall provide for the subsequent negotiation of terms governing the construction phase of the design-build project. If the department is unable to negotiate a satisfactory contract with that entity for design and preconstruction services, the department may undertake negotiations with a separate qualified design-build entity that participated in the request for qualifications process.
(4)If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department.
(d)Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit.
10215.3.(a)The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the director, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.
(b)The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project.
(c)The department shall develop a standard form of payment and performance bond for its design-build projects.
10215.4.(a)After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.
(b)Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, upon agreement of the guaranteed maximum price for the design-build project, the department, at its sole and absolute discretion, may amend its contract with the design-build entity, or enter into a new contract, and direct the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or a new contract with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.
(c)If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. Any savings provided to the department shall revert to the fund from which the appropriation was made.
(d)If the department and the design-build entity do not reach an agreement on a guaranteed maximum price or the department otherwise elects not to have the design-build entity complete some or all of the remaining work, the department may solicit proposals to complete some or all of the remaining work from firms that submitted a statement of qualifications pursuant to subdivision (b) of Section 10215.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other entities to complete all or some of the remaining work, or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, any contract awarded shall be made on a best value basis.
10215.5.(a)The department, in each request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entitys statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
(b)Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:
(1)Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualification statements, bids, or proposals will be due.
(2)Establish reasonable qualification criteria and standards.
(3)Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.
(c)Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
10215.6.(a)Any department authorized by Section 10215.1 to utilize progressive design-build contracts pursuant to this article shall prepare and submit to the Legislature a report by January 1, 2034, that describes each design-build project awarded under this article that has begun construction by January 1, 2033.
(b)The report described in subdivision (a) shall include relevant data including, but not limited to, all of the following information:
(1)The cost of the design-build project.
(2)The current status or stage of the design-build project.
(3)If complete, the completion date of the design-build project.
(4)If incomplete, the estimated completion date of the design-build project.
(c)The report described in subdivision (a) shall also provide a comprehensive assessment on the effectiveness of the progressive design-build project delivery method relative to project cost and time savings.
(d) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
10215.7.This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law.
10215.8.This article shall remain in effect only until December 31, 2033, and as of that date is repealed. The repeal of this article shall not affect the contracts entered into by the department, or the departments authority to complete the design-build projects for which a design and preconstruction phase contract has been entered under this article, before December 31, 2033.
SEC. 4.Article 6.5 (commencing with Section 217) is added to Chapter 1 of Division 1 of the Streets and Highways Code, to read:6.5.Job Order Contracting217.As used in this article, the following definitions apply:
(a)Adjustment factor means the job order contractors competitively bid adjustment to the departments prices as published in the unit price catalog.
(b)Job order means a firm, fixed-priced, lump-sum order issued by the department to a job order contractor for a definite project scope or work as compiled from the unit price catalog to be performed pursuant to a job order contract.
(c)Job order means a contract, awarded pursuant to this section, between the department and a licensed, bonded, and general liability insured contractor in which the contractor agrees to a fixed-period, fixed-unit price, and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects.
(d)Project means the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(e)Unit price catalog means a book containing specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages.
217.1.(a)It is the intent of the Legislature to enable the use of job order contracting as an option for constructing transportation and public works projects when it is anticipated that the use of this method will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method. It is the intent of the Legislature that this contracting method will improve the efficiency and efficacy of contracted work and not supplant work completed by the departments field maintenance employees.
(b)(1)The department may use the procurement method outlined in this article for job order contracts.
(2)A job order contract of the department shall be competitively bid and awarded to the lowest bidder providing a qualified responsive bid.
(c)(1)The department may use job order contracting, consistent with this article, when undertaking the following projects:
(A)Highway maintenance or safety projects, including, but not limited to, bridge deck sealing, bridge and asphalt pavement overlays, concrete pavement slab work, repair and replacement of active transportation and complete streets facilities, joint seals, installation of new traffic safety devices, rumble strips, and traffic control devices, and other safety, bridge repair, or highway repair projects that are basic and repetitive.
(B)Traffic management and detection system installation, replacement, and repair.
(C)Tree removal.
(D)Clearing and grubbing.
(E)Culvert installation and repairs.
(F)Improvements to, removal of, and installation of facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990 (Public Law 101336).
(G)Facility repairs, including, but not limited to, building maintenance.
(H)Installation of stormwater pollution control devices.
(I)Safety barriers.
(2)No job order contract may be awarded for adding vehicular travel lanes.
(3)The department shall, when undertaking job order contracting for the projects specified in paragraph (1), establish a procedure to prequalify job order contractors for projects and shall prepare a set of documents for each job order contract. The documents shall include all of the following:
(A)A unit price catalog of construction tasks with preestablished unit prices.
(B)Job order contract specifications.
(C)Any other information deemed necessary to adequately describe the departments needs.
(4)Based on the documents prepared under paragraph (3), the department shall develop a system for evaluating job order contract bids for the award of job order contracts. The award of a job order contract shall progress as follows:
(A)The department shall prepare a request for bids for job order contracts based on the documents prepared under paragraph (3) that invites prospective contractors to submit sealed bids in the manner prescribed by the department.
(B)Each bidding contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the advertised technical specifications.
(C)Each bidding job order contractor shall identify any subcontractors to be used for the job orders performed pursuant to the awarded job order contract pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.
(D)The award of job order contracts, if any, shall be made to one or more job order contractors that the department determines to be qualified and responsive based upon preestablished criteria to be determined by the department.
(5)Any job order contractor that is selected for a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require.
(6)Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law.
(d)Notwithstanding paragraph (3) of subdivision (c) and subparagraph (B) of paragraph (4) of subdivision (c), the department may, in accordance with the requirements of Section 14838.7 of the Government Code, award a job order contract pursuant to this article with an estimated value of greater than five thousand dollars ($5,000) but less than the cost limit, as specified in subdivision (b) of Section 10105 of the Public Contract Code, after obtaining written bid submittals from two or more certified small businesses, including microbusinesses, or from two or more disabled veteran business enterprises.
(e)Job order contracts may be executed for an initial contract term of no more than 12 months with the option of extending or renewing the job order contract for two 12-month periods. All extensions or renewals shall be priced as provided in the request for bids. An extension or renewal shall be mutually agreed to by the department and the job order contractor.
(f)On or before July 1 of each year, until July 1, 2033, the department shall publish on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year. The report shall include, but is not limited to, all of the following information:
(1)A listing of all projects completed under each job order contract.
(2)The name of each job order contractor awarded a contract.
(3)The estimated and actual project costs.
(4)The estimated procurement time savings.
(5)A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the job order contract, including, but not limited to, the resolution of the protests.
(6)A summary of small business usage.
(7)A summary of Labor Code violations, including, but not limited to, prevailing wage, apprenticeship, and health and safety statutes to the extent information is readily available.
(8)The percentage of the project completed by subcontractors certified by the Department of General Services as small business and disabled veteran business enterprise.
(9)Recommendations regarding the most appropriate uses for the job order contract process.
(g)Job order contracts shall be monitored by the departments labor compliance program for compliance with federal and state labor laws.
217.2.This article shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To promote environmental protection and safeguard economic development of Californias diverse public resources and people, and enhance the states ability to maximize federal funding to support those efforts, it is necessary for this act to take effect immediately.
(a)The secretary, on behalf of the agency, and any department, office, or other unit within the agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, public transportation, or multimodal project.
(b) Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(c)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(d)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(e)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(f)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(g)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(h)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(i)This section shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 2.Section 13979.4 is added to the Government Code, to read:13979.4.(a)(1)Consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government, the secretary, upon the request of a local or regional agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency.
(2)For purposes of this section, local or regional agency includes, but is not limited to, a city, county, city and county, special district, or joint powers authority.
(b)The secretary shall report to the transportation policy committees of the Legislature regarding which local or regional agencies requested that the secretary assume the authority under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) by December 31, 2033.
(3)A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(d)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(e)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(f)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(g)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(h)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(i)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(j)This section shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 3.Article 6.7 (commencing with Section 10215) is added to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, to read:6.7.Progressive Design-Build Projects10215.For purposes of this article, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Department means any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a progressive design-build contract.
(e)Design-build project means a capital project using the progressive design-build construction procurement process described in this article.
(f)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors.
(g)Director means the director of any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting, or their designee.
(h)Guaranteed maximum price means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.
(i)Progressive design-build means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase.
(j)Qualifications-based selection means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award.
10215.1.(a)(1)Notwithstanding any other law, both of the following departments may procure progressive design-build contracts for public works projects for which the estimated price, as determined pursuant to subdivision (a) of Section 10215.2, exceeds twenty five million dollars ($25,000,000):
(A)The Department of Water Resources as established in Section 120 of the Water Code.
(B)The Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code.
(2)This subdivision does not authorize a design-build-operate contract for any project. A contract pursuant to this article may provide for operations during a training or transitional period, but shall not include long-term operations for any design-build project.
(3)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by the Department of Transportation consistent with Section 91.2 of the Streets and Highways Code.
(4)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the Department of Water Resources consistent with Section 148 of the Water Code.
(5)A department described in paragraph (1) shall be limited to utilizing progressive-design build contracts for no more than eight design-build projects.
(b)The director of each department identified in subdivision (a) shall develop guidelines for a standard departmental conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a progressive design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team.
(c)This article does not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
10215.2.The procurement process for progressive design-build projects shall progress as follows:
(a)The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the departments needs.
(b)The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements:
(1)Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.
(2)Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities responses and consider those costs in evaluating the statements of qualifications.
(3)The relative importance or the weight assigned to each of the factors identified in the request for qualifications.
(4)A request for a statement of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required:
(A)If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the design-build entitys shareholders, partners, or members who, at the time the statement of qualification is submitted, the design-build entity knows will perform work on the design-build project if the design-build entity is selected by the department.
(B)Evidence that the members of the design-build team have completed, or have 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 design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the design-build project.
(C)The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, 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.
(E)Information concerning workers compensation experience history and a worker safety program.
(F)If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.
(G)An acceptable safety record. A design-build entitys safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or 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 design-build entity is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
(H)A full disclosure regarding each of the following, if applicable:
(i)Any serious or willful violation of 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 or otherwise resolved against any member of the design-build team.
(ii)Any debarment, disqualification, or removal of any member of the design-build team or its owners, officers, or managing employees from a federal, state, or local government public works project.
(iii)Any instance in which a member of the design-build team, or 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.
(iv)Any instance in which any member of the design-build team, or its owners, officers, or managing employees, defaulted on a construction contract.
(v)Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, by a member of the design-build team or its owners, officers, or managing employees, including alleged violations of Federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or federal Insurance Contribution Act withholding requirements settled against any member of the design-build entity.
(vi)Any bankruptcy or receivership of any member of the design-build team, including, but not limited to, information concerning any work completed by a surety.
(vii)Any adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build team during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the design-build entity or any member of the design-build team. Information shall also be provided concerning any work completed by a surety during this five-year period.
(viii)Any adverse claims, disputes, or lawsuits between any member of the design-build team and any employee of that entity during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the entity.
(5)The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.
(c)(1)Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the departments request for qualifications.
(2)For each request for qualifications, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications before entering into negotiations for the contract or contracts to which the request for qualifications applies.
(3)If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with that entity concerning contract terms and award a contract for design and preconstruction services to that entity. Such contract shall provide for the subsequent negotiation of terms governing the construction phase of the design-build project. If the department is unable to negotiate a satisfactory contract with that entity for design and preconstruction services, the department may undertake negotiations with a separate qualified design-build entity that participated in the request for qualifications process.
(4)If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department.
(d)Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit.
10215.3.(a)The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the director, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.
(b)The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project.
(c)The department shall develop a standard form of payment and performance bond for its design-build projects.
10215.4.(a)After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.
(b)Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, upon agreement of the guaranteed maximum price for the design-build project, the department, at its sole and absolute discretion, may amend its contract with the design-build entity, or enter into a new contract, and direct the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or a new contract with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.
(c)If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. Any savings provided to the department shall revert to the fund from which the appropriation was made.
(d)If the department and the design-build entity do not reach an agreement on a guaranteed maximum price or the department otherwise elects not to have the design-build entity complete some or all of the remaining work, the department may solicit proposals to complete some or all of the remaining work from firms that submitted a statement of qualifications pursuant to subdivision (b) of Section 10215.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other entities to complete all or some of the remaining work, or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, any contract awarded shall be made on a best value basis.
10215.5.(a)The department, in each request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entitys statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
(b)Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:
(1)Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualification statements, bids, or proposals will be due.
(2)Establish reasonable qualification criteria and standards.
(3)Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.
(c)Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
10215.6.(a)Any department authorized by Section 10215.1 to utilize progressive design-build contracts pursuant to this article shall prepare and submit to the Legislature a report by January 1, 2034, that describes each design-build project awarded under this article that has begun construction by January 1, 2033.
(b)The report described in subdivision (a) shall include relevant data including, but not limited to, all of the following information:
(1)The cost of the design-build project.
(2)The current status or stage of the design-build project.
(3)If complete, the completion date of the design-build project.
(4)If incomplete, the estimated completion date of the design-build project.
(c)The report described in subdivision (a) shall also provide a comprehensive assessment on the effectiveness of the progressive design-build project delivery method relative to project cost and time savings.
(d) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
10215.7.This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law.
10215.8.This article shall remain in effect only until December 31, 2033, and as of that date is repealed. The repeal of this article shall not affect the contracts entered into by the department, or the departments authority to complete the design-build projects for which a design and preconstruction phase contract has been entered under this article, before December 31, 2033.
SEC. 4.Article 6.5 (commencing with Section 217) is added to Chapter 1 of Division 1 of the Streets and Highways Code, to read:6.5.Job Order Contracting217.As used in this article, the following definitions apply:
(a)Adjustment factor means the job order contractors competitively bid adjustment to the departments prices as published in the unit price catalog.
(b)Job order means a firm, fixed-priced, lump-sum order issued by the department to a job order contractor for a definite project scope or work as compiled from the unit price catalog to be performed pursuant to a job order contract.
(c)Job order means a contract, awarded pursuant to this section, between the department and a licensed, bonded, and general liability insured contractor in which the contractor agrees to a fixed-period, fixed-unit price, and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects.
(d)Project means the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(e)Unit price catalog means a book containing specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages.
217.1.(a)It is the intent of the Legislature to enable the use of job order contracting as an option for constructing transportation and public works projects when it is anticipated that the use of this method will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method. It is the intent of the Legislature that this contracting method will improve the efficiency and efficacy of contracted work and not supplant work completed by the departments field maintenance employees.
(b)(1)The department may use the procurement method outlined in this article for job order contracts.
(2)A job order contract of the department shall be competitively bid and awarded to the lowest bidder providing a qualified responsive bid.
(c)(1)The department may use job order contracting, consistent with this article, when undertaking the following projects:
(A)Highway maintenance or safety projects, including, but not limited to, bridge deck sealing, bridge and asphalt pavement overlays, concrete pavement slab work, repair and replacement of active transportation and complete streets facilities, joint seals, installation of new traffic safety devices, rumble strips, and traffic control devices, and other safety, bridge repair, or highway repair projects that are basic and repetitive.
(B)Traffic management and detection system installation, replacement, and repair.
(C)Tree removal.
(D)Clearing and grubbing.
(E)Culvert installation and repairs.
(F)Improvements to, removal of, and installation of facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990 (Public Law 101336).
(G)Facility repairs, including, but not limited to, building maintenance.
(H)Installation of stormwater pollution control devices.
(I)Safety barriers.
(2)No job order contract may be awarded for adding vehicular travel lanes.
(3)The department shall, when undertaking job order contracting for the projects specified in paragraph (1), establish a procedure to prequalify job order contractors for projects and shall prepare a set of documents for each job order contract. The documents shall include all of the following:
(A)A unit price catalog of construction tasks with preestablished unit prices.
(B)Job order contract specifications.
(C)Any other information deemed necessary to adequately describe the departments needs.
(4)Based on the documents prepared under paragraph (3), the department shall develop a system for evaluating job order contract bids for the award of job order contracts. The award of a job order contract shall progress as follows:
(A)The department shall prepare a request for bids for job order contracts based on the documents prepared under paragraph (3) that invites prospective contractors to submit sealed bids in the manner prescribed by the department.
(B)Each bidding contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the advertised technical specifications.
(C)Each bidding job order contractor shall identify any subcontractors to be used for the job orders performed pursuant to the awarded job order contract pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.
(D)The award of job order contracts, if any, shall be made to one or more job order contractors that the department determines to be qualified and responsive based upon preestablished criteria to be determined by the department.
(5)Any job order contractor that is selected for a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require.
(6)Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law.
(d)Notwithstanding paragraph (3) of subdivision (c) and subparagraph (B) of paragraph (4) of subdivision (c), the department may, in accordance with the requirements of Section 14838.7 of the Government Code, award a job order contract pursuant to this article with an estimated value of greater than five thousand dollars ($5,000) but less than the cost limit, as specified in subdivision (b) of Section 10105 of the Public Contract Code, after obtaining written bid submittals from two or more certified small businesses, including microbusinesses, or from two or more disabled veteran business enterprises.
(e)Job order contracts may be executed for an initial contract term of no more than 12 months with the option of extending or renewing the job order contract for two 12-month periods. All extensions or renewals shall be priced as provided in the request for bids. An extension or renewal shall be mutually agreed to by the department and the job order contractor.
(f)On or before July 1 of each year, until July 1, 2033, the department shall publish on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year. The report shall include, but is not limited to, all of the following information:
(1)A listing of all projects completed under each job order contract.
(2)The name of each job order contractor awarded a contract.
(3)The estimated and actual project costs.
(4)The estimated procurement time savings.
(5)A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the job order contract, including, but not limited to, the resolution of the protests.
(6)A summary of small business usage.
(7)A summary of Labor Code violations, including, but not limited to, prevailing wage, apprenticeship, and health and safety statutes to the extent information is readily available.
(8)The percentage of the project completed by subcontractors certified by the Department of General Services as small business and disabled veteran business enterprise.
(9)Recommendations regarding the most appropriate uses for the job order contract process.
(g)Job order contracts shall be monitored by the departments labor compliance program for compliance with federal and state labor laws.
217.2.This article shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To promote environmental protection and safeguard economic development of Californias diverse public resources and people, and enhance the states ability to maximize federal funding to support those efforts, it is necessary for this act to take effect immediately.
(a)The secretary, on behalf of the agency, and any department, office, or other unit within the agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, public transportation, or multimodal project.
(b) Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(c)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(d)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(e)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(f)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(g)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(h)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(h)(i)This section shall remain in effect only until January 1, 2025, December 31, 2033, and as of that date is repealed.
SEC. 2.Section 13979.4 is added to the Government Code, to read:13979.4.(a)(1)Consistent with, and subject to the requirements of, any memorandum of understanding between the state and federal government, the secretary, upon the request of a local or regional agency with the authority to implement transportation projects, may assume responsibilities under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) and other federal environmental laws, pursuant to Section 327 of Title 23 of the United States Code, for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency.
(2)For purposes of this section, local or regional agency includes, but is not limited to, a city, county, city and county, special district, or joint powers authority.
(b)The secretary shall report to the transportation policy committees of the Legislature regarding which local or regional agencies requested that the secretary assume the authority under the federal National Environmental Policy Act of 1969 (42 U.S.C. Sec. 4321 et seq.) by December 31, 2033.
(3)A report to be submitted pursuant to paragraph (1) shall be submitted in compliance with Section 9795 of the Government Code.
(c)Before assuming the responsibilities set forth in subdivision (a) through execution of a memorandum of understanding between the State of California and the federal government, the secretary shall submit a copy of the draft memorandum of understanding to the Joint Legislative Budget Committee. Execution of the memorandum of understanding shall occur no sooner than 30 days after the secretary provides the draft memorandum of understanding to the Joint Legislative Budget Committee, or whatever lesser time after that notification that the chair of the joint committee, or the chairs designee, may determine.
(d)The State of California consents to the jurisdiction of the federal courts with regard to the compliance, discharge, or enforcement of any responsibilities assumed pursuant to subdivision (a).
(e)In any action brought pursuant to the federal laws described in subdivision (a) for a project for which responsibilities have been assumed pursuant to subdivision (a), no immunity from suit may be asserted pursuant to the Eleventh Amendment to the United States Constitution, and any immunity is hereby waived.
(f)No responsibility assumed pursuant to subdivision (a) may be delegated to any political subdivision of the state, such as a county, or its instrumentalities.
(g)This section does not affect the obligation of the secretary and all departments, offices, and other units within the agency to comply with state and federal law.
(h)Nothing in this section is intended to repeal or modify Section 820.1 of the Streets and Highways Code.
(i)This section shall not be construed as changing the requirements of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(j)This section shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 3.Article 6.7 (commencing with Section 10215) is added to Chapter 1 of Part 2 of Division 2 of the Public Contract Code, to read:6.7.Progressive Design-Build Projects10215.For purposes of this article, the following definitions apply:
(a)Best value means a value determined by evaluation of objective criteria that may include, but are not limited to, cost factors, price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the department and meeting the objectives of the project, or a tradeoff between cost and other specified factors.
(b)Construction subcontract means each subcontract awarded by the design-build entity to a subcontractor that will perform work or labor or render service to the design-build entity in or about the construction of the work or improvement, or a subcontractor licensed by the State of California that, under subcontract to the design-build entity, specially fabricates and installs a portion of the work or improvement according to detailed drawings contained in the plans and specifications produced by the design-build team.
(c)Department means any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting.
(d)Design-build entity means a corporation, limited liability company, partnership, joint venture, or other legal entity that is able to provide appropriately licensed contracting, architectural, and engineering services as needed pursuant to a progressive design-build contract.
(e)Design-build project means a capital project using the progressive design-build construction procurement process described in this article.
(f)Design-build team means the design-build entity itself and the individuals and other entities identified by the design-build entity as members of its team. Members shall include the general contractor and, if utilized in the design of the project, all civil, geotechnical, electrical, mechanical, and plumbing contractors.
(g)Director means the director of any department of the State of California authorized pursuant to Section 10215.1 to utilize progressive design-build contracting, or their designee.
(h)Guaranteed maximum price means the maximum payment amount agreed upon by the department and the design-build entity for the design-build entity to finish all remaining design, preconstruction, and construction activities sufficient to complete and close out the project.
(i)Progressive design-build means a project delivery process in which the design, preconstruction services, and construction of a project are procured, in one or more stages, from a single design-build entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. However, the progressive design-build model offers flexibility to retain a different entity for the construction phase of the project, should the parties be unable to agree, after a specified portion of the design phase is complete, on a guaranteed maximum price for the construction phase.
(j)Qualifications-based selection means the process by which the department solicits for services from the design-build entities and that best value is the basis of the award.
10215.1.(a)(1)Notwithstanding any other law, both of the following departments may procure progressive design-build contracts for public works projects for which the estimated price, as determined pursuant to subdivision (a) of Section 10215.2, exceeds twenty five million dollars ($25,000,000):
(A)The Department of Water Resources as established in Section 120 of the Water Code.
(B)The Department of Transportation as established under Part 5 (commencing with Section 14000) of Division 3 of Title 2 of the Government Code.
(2)This subdivision does not authorize a design-build-operate contract for any project. A contract pursuant to this article may provide for operations during a training or transitional period, but shall not include long-term operations for any design-build project.
(3)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by the Department of Transportation consistent with Section 91.2 of the Streets and Highways Code.
(4)The progressive design-build authorization in this subdivision shall not include the authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the Department of Water Resources consistent with Section 148 of the Water Code.
(5)A department described in paragraph (1) shall be limited to utilizing progressive-design build contracts for no more than eight design-build projects.
(b)The director of each department identified in subdivision (a) shall develop guidelines for a standard departmental conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity that performs services for the department relating to the solicitation of a progressive design-build project, to submit a statement of qualifications, a proposal, or both as a design-build entity, or to join a design-build team.
(c)This article does not apply to procurement by the Department of Water Resources for the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects.
10215.2.The procurement process for progressive design-build projects shall progress as follows:
(a)The department shall determine the scope and estimated price of the design-build project. The determination may include, but need not be limited to, the size, type, and desired design character of the project and any other information deemed necessary to describe adequately the departments needs.
(b)The department shall prepare and issue a request for qualifications. The request for qualifications shall include, but is not limited to, all of the following elements:
(1)Identification of the basic scope and needs of the design-build project or contract, the expected cost range, the methodology that will be used by the department to evaluate qualifications, the procedure for final selection of the design-build entity, and any other information deemed necessary by the director to inform interested parties of the contracting opportunity.
(2)Significant factors that the department reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, and all other nonprice-related factors. The department may require that a cost estimate, including the detailed basis for the estimate, be included in the design-build entities responses and consider those costs in evaluating the statements of qualifications.
(3)The relative importance or the weight assigned to each of the factors identified in the request for qualifications.
(4)A request for a statement of qualifications with a template for the statement that is prepared by the department. The department shall require all of the following information in the statement and indicate, in the template, that all of the following information is required:
(A)If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the design-build entitys shareholders, partners, or members who, at the time the statement of qualification is submitted, the design-build entity knows will perform work on the design-build project if the design-build entity is selected by the department.
(B)Evidence that the members of the design-build team have completed, or have 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 design-build project, and a financial statement that ensures that the design-build entity has the capacity to complete the design-build project.
(C)The licenses, registration, and credentials required to design and construct the design-build project, including, but not limited to, 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.
(E)Information concerning workers compensation experience history and a worker safety program.
(F)If the proposed design-build entity is a corporation, limited liability company, partnership, joint venture, or other legal entity, a copy of the organizational documents or agreement committing to form the organization.
(G)An acceptable safety record. A design-build entitys safety record shall be deemed acceptable if its experience modification rate for the most recent three-year period is an average of 1.00 or less, and its average total recordable injury or 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 design-build entity is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.
(H)A full disclosure regarding each of the following, if applicable:
(i)Any serious or willful violation of 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 or otherwise resolved against any member of the design-build team.
(ii)Any debarment, disqualification, or removal of any member of the design-build team or its owners, officers, or managing employees from a federal, state, or local government public works project.
(iii)Any instance in which a member of the design-build team, or 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.
(iv)Any instance in which any member of the design-build team, or its owners, officers, or managing employees, defaulted on a construction contract.
(v)Any violations of the Contractors State License Law, as described in Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, by a member of the design-build team or its owners, officers, or managing employees, including alleged violations of Federal or state law regarding the payment of wages, benefits, apprenticeship requirements, or personal income tax withholding, or federal Insurance Contribution Act withholding requirements settled against any member of the design-build entity.
(vi)Any bankruptcy or receivership of any member of the design-build team, including, but not limited to, information concerning any work completed by a surety.
(vii)Any adverse claims, disputes, or lawsuits between the owner of a public works project and any member of the design-build team during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the design-build entity or any member of the design-build team. Information shall also be provided concerning any work completed by a surety during this five-year period.
(viii)Any adverse claims, disputes, or lawsuits between any member of the design-build team and any employee of that entity during the five years preceding submission of a bid under this article, in which the claim, settlement, or judgment exceeded fifty thousand dollars ($50,000) and was settled or otherwise resolved against the entity.
(5)The information provided by a design-build entity in response to a request for qualifications shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.
(c)(1)Following the deadline for submission of a statement of qualifications, the department shall review the submissions. The department may evaluate submissions based solely upon the information provided in each design-build entitys statement of qualifications. The department may also interview some or all of the design-build entities to further evaluate their qualifications for the design-build project. The department may also hold discussions or negotiations with design-build entities using the process described in the departments request for qualifications.
(2)For each request for qualifications, the department shall generate a final list of qualified design-build entities that participated in the request for qualifications before entering into negotiations for the contract or contracts to which the request for qualifications applies.
(3)If submissions in response to a request for qualifications provide sufficient information to determine which qualified design-build entity has offered the best value to the public, the department may enter into negotiations with that entity concerning contract terms and award a contract for design and preconstruction services to that entity. Such contract shall provide for the subsequent negotiation of terms governing the construction phase of the design-build project. If the department is unable to negotiate a satisfactory contract with that entity for design and preconstruction services, the department may undertake negotiations with a separate qualified design-build entity that participated in the request for qualifications process.
(4)If additional information is necessary to determine which qualified design-build entity offers the best value to the public, the department may prepare a further request for proposals, based on the documents prepared as described in subdivision (a), that invites qualified design-build entities identified pursuant to paragraph (2) to submit competitive sealed proposals in the manner prescribed by the department.
(d)Notwithstanding any other provision of this code, upon issuance of a contract award, the director shall publicly announce its award, identifying the design-build entity to which the award is made, along with a statement regarding the basis of the award. The statement regarding the contract award and the contract file shall provide sufficient information to satisfy an external audit.
10215.3.(a)The design-build entity shall provide payment and performance bonds for the design-build project in the form and in the amount required by the director, which are issued by a California admitted surety. The amount of the payment bond shall not be less than the amount of the performance bond.
(b)The design-build contract shall require errors and omissions insurance coverage for the design elements of the design-build project.
(c)The department shall develop a standard form of payment and performance bond for its design-build projects.
10215.4.(a)After selecting a design-build entity for the design and preconstruction phase, the department may enter into a contract and direct the design-build entity to begin design and preconstruction activities sufficient to establish a guaranteed maximum price for the project.
(b)Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, upon agreement of the guaranteed maximum price for the design-build project, the department, at its sole and absolute discretion, may amend its contract with the design-build entity, or enter into a new contract, and direct the entity to complete the remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project, and may add funds not exceeding the guaranteed maximum price to the contract for these activities. Any amendment of the existing contract or a new contract with the design-build entity shall not require any additional competitive process. This section does not require the department to amend an existing contract or enter into a new contract for remaining design, preconstruction, or construction activities.
(c)If the cost for completing all remaining design, preconstruction, and construction activities sufficient to complete and close out the design-build project exceeds the guaranteed maximum price, the costs exceeding the guaranteed maximum price shall be the responsibility of the design-build entity. If the cost for these activities is less than the guaranteed maximum price, the design-build entity shall not be entitled to the difference between the cost and the guaranteed maximum price. Any savings provided to the department shall revert to the fund from which the appropriation was made.
(d)If the department and the design-build entity do not reach an agreement on a guaranteed maximum price or the department otherwise elects not to have the design-build entity complete some or all of the remaining work, the department may solicit proposals to complete some or all of the remaining work from firms that submitted a statement of qualifications pursuant to subdivision (b) of Section 10215.2. The department may also, upon written determination that it is in the best interest of the state to do so, formally solicit proposals from other entities to complete all or some of the remaining work, or complete the design-build project using other delivery methods. Subject to Section 13332.19 of the Government Code, if otherwise applicable to the department, any contract awarded shall be made on a best value basis.
10215.5.(a)The department, in each request for qualifications or request for proposals, may identify specific types of subcontractors that are required to be included in the design-build entitys statement of qualifications. All construction subcontractors that are identified in the statement of qualifications shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
(b)Following award of the design-build contract, except for those construction subcontractors listed in the statement of qualifications or proposal, the design-build entity shall proceed as follows in awarding construction subcontracts with a value exceeding one-half of 1 percent of the contract price allocable to construction work:
(1)Provide public notice of availability of work to be subcontracted in accordance with the publication requirements applicable to the competitive bidding process of the department, including a fixed date and time on which qualification statements, bids, or proposals will be due.
(2)Establish reasonable qualification criteria and standards.
(3)Award the subcontract either on a best value basis or to the lowest responsible bidder. The process may include prequalification or short-listing.
(c)Subcontractors awarded construction subcontracts under this subdivision shall be afforded all the protections of Chapter 4 (commencing with Section 4100) of Part 1.
10215.6.(a)Any department authorized by Section 10215.1 to utilize progressive design-build contracts pursuant to this article shall prepare and submit to the Legislature a report by January 1, 2034, that describes each design-build project awarded under this article that has begun construction by January 1, 2033.
(b)The report described in subdivision (a) shall include relevant data including, but not limited to, all of the following information:
(1)The cost of the design-build project.
(2)The current status or stage of the design-build project.
(3)If complete, the completion date of the design-build project.
(4)If incomplete, the estimated completion date of the design-build project.
(c)The report described in subdivision (a) shall also provide a comprehensive assessment on the effectiveness of the progressive design-build project delivery method relative to project cost and time savings.
(d) The report submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
10215.7.This article does not affect, expand, alter, or limit any rights or remedies otherwise available at law.
10215.8.This article shall remain in effect only until December 31, 2033, and as of that date is repealed. The repeal of this article shall not affect the contracts entered into by the department, or the departments authority to complete the design-build projects for which a design and preconstruction phase contract has been entered under this article, before December 31, 2033.
SEC. 4.Article 6.5 (commencing with Section 217) is added to Chapter 1 of Division 1 of the Streets and Highways Code, to read:6.5.Job Order Contracting217.As used in this article, the following definitions apply:
(a)Adjustment factor means the job order contractors competitively bid adjustment to the departments prices as published in the unit price catalog.
(b)Job order means a firm, fixed-priced, lump-sum order issued by the department to a job order contractor for a definite project scope or work as compiled from the unit price catalog to be performed pursuant to a job order contract.
(c)Job order means a contract, awarded pursuant to this section, between the department and a licensed, bonded, and general liability insured contractor in which the contractor agrees to a fixed-period, fixed-unit price, and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects.
(d)Project means the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(e)Unit price catalog means a book containing specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be based on generally accepted industry standards and information, where available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages.
217.1.(a)It is the intent of the Legislature to enable the use of job order contracting as an option for constructing transportation and public works projects when it is anticipated that the use of this method will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method. It is the intent of the Legislature that this contracting method will improve the efficiency and efficacy of contracted work and not supplant work completed by the departments field maintenance employees.
(b)(1)The department may use the procurement method outlined in this article for job order contracts.
(2)A job order contract of the department shall be competitively bid and awarded to the lowest bidder providing a qualified responsive bid.
(c)(1)The department may use job order contracting, consistent with this article, when undertaking the following projects:
(A)Highway maintenance or safety projects, including, but not limited to, bridge deck sealing, bridge and asphalt pavement overlays, concrete pavement slab work, repair and replacement of active transportation and complete streets facilities, joint seals, installation of new traffic safety devices, rumble strips, and traffic control devices, and other safety, bridge repair, or highway repair projects that are basic and repetitive.
(B)Traffic management and detection system installation, replacement, and repair.
(C)Tree removal.
(D)Clearing and grubbing.
(E)Culvert installation and repairs.
(F)Improvements to, removal of, and installation of facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990 (Public Law 101336).
(G)Facility repairs, including, but not limited to, building maintenance.
(H)Installation of stormwater pollution control devices.
(I)Safety barriers.
(2)No job order contract may be awarded for adding vehicular travel lanes.
(3)The department shall, when undertaking job order contracting for the projects specified in paragraph (1), establish a procedure to prequalify job order contractors for projects and shall prepare a set of documents for each job order contract. The documents shall include all of the following:
(A)A unit price catalog of construction tasks with preestablished unit prices.
(B)Job order contract specifications.
(C)Any other information deemed necessary to adequately describe the departments needs.
(4)Based on the documents prepared under paragraph (3), the department shall develop a system for evaluating job order contract bids for the award of job order contracts. The award of a job order contract shall progress as follows:
(A)The department shall prepare a request for bids for job order contracts based on the documents prepared under paragraph (3) that invites prospective contractors to submit sealed bids in the manner prescribed by the department.
(B)Each bidding contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the advertised technical specifications.
(C)Each bidding job order contractor shall identify any subcontractors to be used for the job orders performed pursuant to the awarded job order contract pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.
(D)The award of job order contracts, if any, shall be made to one or more job order contractors that the department determines to be qualified and responsive based upon preestablished criteria to be determined by the department.
(5)Any job order contractor that is selected for a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require.
(6)Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law.
(d)Notwithstanding paragraph (3) of subdivision (c) and subparagraph (B) of paragraph (4) of subdivision (c), the department may, in accordance with the requirements of Section 14838.7 of the Government Code, award a job order contract pursuant to this article with an estimated value of greater than five thousand dollars ($5,000) but less than the cost limit, as specified in subdivision (b) of Section 10105 of the Public Contract Code, after obtaining written bid submittals from two or more certified small businesses, including microbusinesses, or from two or more disabled veteran business enterprises.
(e)Job order contracts may be executed for an initial contract term of no more than 12 months with the option of extending or renewing the job order contract for two 12-month periods. All extensions or renewals shall be priced as provided in the request for bids. An extension or renewal shall be mutually agreed to by the department and the job order contractor.
(f)On or before July 1 of each year, until July 1, 2033, the department shall publish on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year. The report shall include, but is not limited to, all of the following information:
(1)A listing of all projects completed under each job order contract.
(2)The name of each job order contractor awarded a contract.
(3)The estimated and actual project costs.
(4)The estimated procurement time savings.
(5)A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the job order contract, including, but not limited to, the resolution of the protests.
(6)A summary of small business usage.
(7)A summary of Labor Code violations, including, but not limited to, prevailing wage, apprenticeship, and health and safety statutes to the extent information is readily available.
(8)The percentage of the project completed by subcontractors certified by the Department of General Services as small business and disabled veteran business enterprise.
(9)Recommendations regarding the most appropriate uses for the job order contract process.
(g)Job order contracts shall be monitored by the departments labor compliance program for compliance with federal and state labor laws.
217.2.This article shall remain in effect only until December 31, 2033, and as of that date is repealed.
SEC. 5.No reimbursement is required by this act pursuant to Section 6 of Article XIIIB of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIIIB of the California Constitution.
SEC. 6.This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To promote environmental protection and safeguard economic development of Californias diverse public resources and people, and enhance the states ability to maximize federal funding to support those efforts, it is necessary for this act to take effect immediately.
SECTION 1.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.It is the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
|
Date
|
Status
|
|---|---|
| Jul 10, 2023 | Chaptered by Secretary of State. Chapter 58, Statutes of 2023. |
| Jul 10, 2023 | Approved by the Governor. |
| Jul 5, 2023 | Enrolled and presented to the Governor at 4 p.m. |
| Jul 5, 2023 | Urgency clause adopted. |
| Jul 5, 2023 | Assembly amendments concurred in. (Ayes 39. Noes 0. Page 1895.) Ordered to engrossing and enrolling. |
| Jul 3, 2023 | In Senate. Concurrence in Assembly amendments pending. |
| Jun 29, 2023 | Read third time. Urgency clause adopted. Passed. (Ayes 74. Noes 0. Page 2488.) Ordered to the Senate. |
| Jun 29, 2023 | From committee: Do pass. (Ayes 15. Noes 0.) (June 29). |
| Jun 29, 2023 | Assembly Rule 63 suspended. (Ayes 57. Noes 15. Page 2472.) |
| Jun 27, 2023 | Joint Rule 62(a) suspended. |
| Jun 27, 2023 | Re-referred to Com. on TRANS. pursuant to Assembly Rule 96. |
| Jun 26, 2023 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET. |
| Mar 30, 2023 | Referred to Com. on BUDGET. |
| Mar 27, 2023 | In Assembly. Read first time. Held at Desk. |
| Mar 27, 2023 | Read third time. Passed. (Ayes 29. Noes 8. Page 500.) Ordered to the Assembly. |
| Mar 20, 2023 | Read second time. Ordered to third reading. |
| Mar 16, 2023 | Withdrawn from committee. (Ayes 28. Noes 8. Page 357.) |
| Mar 16, 2023 | Ordered to second reading. |
| Jan 25, 2023 | Referred to Com. on B. & F.R. |
| Jan 19, 2023 | From printer. May be acted upon on or after February 18. |
| Jan 18, 2023 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 5, 2023 | Unfinished Business SB146 Gonzalez et al. Urgency Clause Concurrence | Senate Floor |
Passed |
|
| Jun 29, 2023 | SB 146 Gonzalez Third Reading Urgency By RIVAS, L. | Assembly Floor |
Passed |
|
| Jun 29, 2023 | Do pass. | Assembly Standing Committee on Transportation |
Passed |
|
| Mar 27, 2023 | Senate 3rd Reading SB146 B. & F.R. (Skinner) | Senate Floor |
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
|
|---|---|---|
| American Society of Civil Engineers | * Support | Jun 29, 2023 |
| California Municipal Utilities Association | * Support | Jun 29, 2023 |
| California Transit Association | * Support | Jun 29, 2023 |
| Los Angeles County Business Federation | * Support | Jun 29, 2023 |
| Transportation California | * Support | Jun 29, 2023 |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 146 |
UNFINISHED BUSINESS
Bill No: SB 146
Author: Gonzalez (D) and Friedman (D)
Amended: 6/26/23
Vote: 27 - Urgency
SENATE FLOOR: Not relevant
ASSEMBLY FLOOR: 74-0, 6/29/23 - See last page for vote
SUBJECT: Public resources: infrastructure: contracting
SOURCE: Author
DIGEST:
This bill authorizes the use of the progressive design-build project delivery method for the California Department of Transportation (Caltrans) and the job order contracting procurement method for Caltrans and the Department of Water Resources (DWR), as well as expands and extends the existing authorization for the California Secretary of Transportation (CalSTA) to assume the responsibilities under the National Environmental Protection Act (NEPA) of 1969 for transportation projects.
Assembly Amendments
delete the Senate version of this bill and instead add the current language.
ANALYSIS:
Existing law:
- Authorizes the Director of General Services to use the progressive design-build procurement process for the construction of up to 3 capital outlay projects, as jointly determined by the Department of General Services and the Department of Finance, and prescribes that process.
- Defines “progressive design-build” as a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project.
- Provides, pursuant to the process, after selection of a design-build entity, authorizes the Department of General Services (DGS) to contract for design and preconstruction services sufficient to establish a guaranteed maximum price, as defined.
- Authorizes DGS, upon agreement on a guaranteed maximum price, to amend the contract in its sole discretion, as specified.
- Requires specified information to be verified under penalty of perjury.
This bill:
- Authorizes the use of the progressive design-build project delivery method for Caltrans and DWR for the construction of up to eight public works projects per department with an estimated contract price that exceeds $25 million.
- Specifies the procurement process for progressive design-build projects.
- Prohibits Caltrans and DWR from including the authority to perform inspection services for projects, as specified.
- Prohibits DWR from using progressive design-build for the design or construction of Delta conveyance facilities or seawater desalination projects.
- Requires the departments to submit a report to the Legislature by January 1, 2034 if they utilize progressive design-build, and contains a sunset date of January 1, 2034.
- Authorizes Caltrans to utilize the job order contracting procurement method for certain types of projects, as specified.
- Prohibits the department from awarding a job order contract for adding vehicular travel lanes.
- Specifies the process for job order contracts and estimated value thresholds for contracts to small businesses.
- Authorizes an initial contract term of no more than 12 months with the option of extending the contract for two additional 12-month periods.
- Requires Caltrans to publish a report, on or before July 1st of every year until 2033, on its website, regarding the status of all active job order contracts.
- Sunsets the authority to use job order contracting by Caltrans in January 1, 2034.
- Extends the existing authorization for CalSTA to assume the responsibilities under NEPA for railroad, public transportation or multimodal projects to January 1, 2034.
- Expands the authorization for CalSTA to assume the responsibilities under NEPA to include railroad, local public transportation, or multimodal projects implemented by a local or regional agency.
- Requires CalSTA to report to the transportation policy committees of the Legislature regarding the assumption of responsibilities under the NEPA requested by a local or regional agency by January 1, 2034.
- Contains an urgency clause.
Comments
- Progressive Design-Build. Traditional design-build refers to a procurement and project delivery method in which both the design and construction of a project are procured from a single entity. Design-build differs from the traditional design-bid-build contracting method whereby work on a project is divided into two separate phases: design and construction. Design–build is used to minimize risks for the project sponsor and to reduce the delivery schedule by overlapping the design phase and construction phase of a project. Both Caltrans and DWR have had the ability to utilize the design-build procurement method, with some restrictions.
Progressive design-build is a more recent variant on traditional design-build contracting. The progressive design-build model generally includes two phases. In the first phase, the sponsoring government agency uses a best value process to select a design-build entity who completes preliminary plans and preconstruction services necessary to provide a cost estimate and final design proposal. The project then “progresses” to the second phase of the project, where the sponsoring agency and the design-build entity agree to a final design, project cost, and schedule. If they cannot agree, there is an “off ramp” between the two phases where the sponsoring agency can pursue other options, but still benefit from having the first phase work complete. This is different from traditional design-build where the sponsoring agency contracts with a single entity to design and construct a project at a set price before design work begins, and without a similar off ramp.
As part of the 2021-22 state budget, the Legislature authorized some state agencies, not including Caltrans or DWR, to use progressive design-build with Department of Finance and the State Public Works Board approval. Additionally, last year, the Legislature authorized the use of progressive design-build for certain local agencies, specifically for the delivery of water projects, limiting the authority to 15 projects valued at over $5 million.
- Job Order Contracting. A job order contract (JOC) is a competitively bid, fixed price, indefinite quantity contract for the performance of minor construction, such as the renovation, alteration, and repair of existing public facilities. A JOC is generally a multi-year contract that includes a base year and multiple "option years," and is awarded before the awarding agency has identified specific work that it needs the contractor to perform. A typical JOC involves a variety of tasks such as routine maintenance work, that can include roofing, electrical work, plumbing, and painting that are required for a public agency's infrastructure for a period of years.
A JOC is a fixed price agreement in that it is based upon specified charges contained in a Unit Price Book or Catalogue (catalogue), which is prepared by the public agency or by independent commercial sources. The catalogue sets forth detailed repair and construction tasks, including task descriptions, specifications, units of measurement, and unit prices for each task. Unit price refers to the amount paid for a single unit of an item of work.
The total JOC value may be specified as a range with a certain guaranteed minimum. The award of annual contracts on a unit price basis enables what would otherwise be multiple separately-bid projects to be combined into one bid. This contracting method is intended to reduce costs and accelerate completion of smaller projects. It is not generally viewed as an appropriate method of contracting for large, complex construction projects that require extensive or innovative design or are likely to encounter changes and revisions during construction. JOCs are typically used for well-defined, recurring or repetitive work where quick execution is essential, not for single larger projects.
The Legislature has authorized multiple public agencies to use job order contracting, some state and some local, including counties, school districts, community college districts, and the California State University system. California counties have enjoyed the authority to use job order contracting since 1983. However, JOC is fairly new for transportation agencies. As part of the 2021-2022 state budget, the Legislature authorized Caltrans to use JOC, but the authority is limited to the Clean California Beautification Program. Additionally, last year, the Legislature authorized JOC for the Santa Clara Valley Transportation Authority (VTA), and currently AB 499 (L. Rivas), pending in the Senate Transportation Committee, would authorize JOC for the Los Angeles Metropolitan Transportation Authority (LA Metro).
- NEPA. The purpose of California assuming the responsibility to enforce NEPA on behalf of the federal government is to expedite environmental review. California has assumed NEPA responsibilities for roads since 2006 and the Senate Budget Committee has found that this has been effective. California’s NEPA authority for rail and public transit projects started in 2017 as a pilot program which has been extended twice, in 2020 and 2021. It currently expires in 2025.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
SUPPORT: (Verified 6/26/23)
None received
OPPOSITION: (Verified 6/26/23)
None received
ASSEMBLY FLOOR: 74-0, 6/29/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Mike Fong, Vince Fong, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, McKinnor, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Soria, Ta, Ting, Valencia, Waldron, Wallis, Ward, Weber, Wicks, Wood, Zbur, Rendon
NO VOTE RECORDED: Essayli, Flora, Friedman, Joe Patterson, Villapudua, Wilson
Prepared by: Eunice Roh / B. & F.R. / (916) 651-4103
7/3/23 16:13:19
**** END ****
(Without Reference to File)
SENATE THIRD READING
STR Bill Id:SB 146
Author:(Gonzalez and Friedman)
As Amended Ver:June 26, 2023
2/3 vote. Urgency
SUMMARY
Makes various changes related to Progressive Design-Build authority for the California Department of Transportation (Caltrans) and the Department of Water Resources (DWR), authorizes Job Order Contracting for Caltrans, and provides for federal National Environmental Policy Act (NEPA) delegation to the Secretary of Transportation.
Major Provisions
National Environmental Policy Act (NEPA) delegation authority
- Extends the provisions under existing law that authorize the Secretary of Transportation to assume the responsibilities for any railroad, public transportation, or multimodal project under the federal NEPA of 1969 from January 1, 2025, to December 31, 2033.
- Authorizes the Secretary, consistent with the requirements of any memorandum of understanding between the state and federal government, upon the request of a local or regional agency, to assume NEPA responsibilities for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency until December 31, 2033.
- Requires the Secretary to report to the transportation policy committees of the Legislature regarding which local or regional agencies requested that the secretary assume the authority under NEPA by December 31, 2033.
- Clarifies that delegation of this authority does not change the requirements of the California Environmental Quality Act.
Progressive design-build authority for the Department of Water Resources (DWR) and the Caltrans
- Authorizes DWR and Caltrans to use progressive design-build contracts for eight projects each for which the estimated price exceeds $25 million until the authority expires on December 31, 2033.
- Excludes projects pertaining to the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects from using progressive design-build.
- This bill does not authorize the following:
- The use of design-build-operate;
- The authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by Caltrans; and,
- The authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the DWR.
- Establishes how the procurement process for design-build projects for DWR and Caltrans will progress.
- Requires design-build entities to provide payment and performance bonds. Requires the design-build contract to include errors and omissions insurance coverage for the design elements of the design-build project. Requires DWR and Caltrans to develop a standard payment and performance bond format.
- Grants the department broad authority to amend, continue, or create a new contract with the awarded design-build entity after a guaranteed maximum price is agreed to, without an additional competitive bidding process. Deems, the design-build entity responsible for all costs that exceed the agreed guaranteed maximum price. Clarifies that design-build entities are not entitled to the difference between completed project cost and guaranteed maximum price. Requires all cost savings be returned to the fund it was originally appropriated from. Permits the DWR or Caltrans to exit a contract if the awarded design-build entity and the department fail to agree on a guaranteed maximum price. Permits DWR and Caltrans to solicit bids for the remaining work and award contracts on a best-value basis.
- Authorizes the department to specify the type of subcontractor that must be included in a design-build entity statement of qualification. Establishes a process for a design-build entity to award contracts to subcontractors. Grants subcontractors full protection under labor law.
- Requires DWR and Caltrans by January 1, 2034, to submit a report to the legislature detailing progressive design-build project metrics and a comprehensive review of the effectiveness of this procurement method to save time and reduce costs.
Job order contracting for Caltrans
- Defines various terms related to job order contracting (JOC) and states legislative intent to enable the use of job order contracting when it is anticipated that it will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method, and improve the efficiency and efficacy of contracted work and not supplant work completed by the department's field maintenance employees.
- Authorizes the Department of Transportation to use the job order contracting procurement method until December 31, 2033, and allows JOC to be used for highway maintenance, safety repairs, facility repairs, and installation of stormwater pollution control devices. Prohibits the department from using job order contracting for adding vehicular travel lanes.
- Requires Caltrans to establish a procedure to prequalify job order contractors for projects.
- Requires Caltrans to prepare for each job order contract a unit price catalog of construction tasks with preestablished unit prices, job order contract specifications, and additional information detailing the department's needs.
- Requires the department to develop a process for evaluating bids and requires this process to include a bid request period, a sealed bid submission period. Requires Caltrans to award job order contracts to the most qualified and responsive job order contractors.
- Requires selected job order contractors to have sufficient bonding to cover the contract amount for construction services and risk and liability insurance required by Caltrans.
- Restricts the job order contracts' value that Caltrans awards to small businesses and veteran business to $5,000 – $250,000.
- Restricts the length of the initial contract term to 12 months. Permits two additional 12-month extensions.
- Requires Caltrans, on or before July 1 and until July 1 2033, to publish an annual report on its website that includes a listing of all projects awarded under job order contract, the name of each contractor, the estimated and actual project costs and estimated procurement time saving, and recommendations regarding the most appropriate uses for the JOC process.
COMMENTS
National Environmental Policy Act (NEPA) Delegation Authority
NEPA is a United States (US) environmental law that promotes the enhancement of the environment. NEPA is applied to any major federal, state, or local project that involves federal funding, work performed by the federal government, or permits issued by a federal agency.
The federal government allows for the assignment of US Department of Transportation environmental responsibilities under NEPA to states for highway projects, and more recently for railroad, public transportation, and/or multimodal projects. California via Caltrans has exercised this option for highway projects (since 2007) and more recently delegated this authority to the Secretary of the California State Transportation Agency (CalSTA) for rail, public transportation, and multimodal projects undertaken by state agencies.
According to Caltrans, "NEPA Assignment has resulted in documents being approved in less time; improved the efficiency in which Caltrans prepares, reviews, and approves environmental documents; improved the quality of documents; and provides for greater accountability through monitoring." The recent statutory authority to CalSTA for NEPA delegation for rail, public transportation, and multimodal projects sunsets January 1, 2025.
Six other states have a NEPA delegation and a seventh state is in progress. Most delegations are for highway projects only and one state includes railroads, public transit and multimodal projects. It does not appear that any other state has a delegation for locally-led projects.
Progressive Design Build Authority for Caltrans and DWR
State and local agencies typically use design-bid-build method for constructing public works. This approach splits construction projects into two distinct phases: design and construction. During the design phase, the agency prepares detailed project plans and specifications using its own employees or by hiring outside architects and engineers. Once project designs are complete, agencies invite bids from the construction community and award the contract to the lowest responsible bidder. The design-bid-build process was developed to secure a fair and reasonable price for public works construction through competition between bidding contractors.
In 1990s, public works agencies began experimenting with alternative project delivery methods, namely design-build. Under the design-build method, a single contract covers the design and construction of a project with a single company or consortium that acts as both the project designer and builder. The design-build entity arranges all architectural, engineering, and construction services. The design-build entity is responsible for delivering the project at a guaranteed price and schedule based upon performance criteria set by the public agency.
Progressive design-build is a variant of design-build contracting that generally includes two phases. In the first phase, the awarding authority uses a best-value process to select a design-build entity that completes preliminary plans and preconstruction services necessary to provide a cost estimate and final design proposal. The project then "progresses" to the second phase, where the awarding authority and the design-build entity agree to a final design, project cost ("guaranteed max price"), and schedule. If they cannot agree, there is an "off-ramp" between the two phases where the awarding authority can pursue other options, but still benefit from having the first phase of work completed. This is different from traditional design-build, where the awarding entity contracts with a single entity to design and construct a project at a set price before design work begins, and without a similar off-ramp.
Job Order Contracting
Job Order Contracting (JOC) is a competitively bid, fixed price, indefinite-quantity contract for the performance of minor construction, renovation, and maintenance. JOC is typically used for well-defined, recurring, or repetitive work where quick execution is essential, not for single larger projects. These contracts can run for one or more years, and contracts can be renewed a limited number of times.
JOC was developed to simplify federal procurement for smaller contracts where bidding requirements were viewed as burdensome and expensive. The award of annual contracts on a unit price basis enables what would otherwise be multiple separately bid projects to be combined into one bid. It is not generally viewed as an appropriate method of contracting for large, complex construction projects that require extensive or innovative design or are likely to encounter changes and revisions during construction.
California counties have had the authority to use JOC since 1983. Furthermore, the Legislature has authorized multiple agencies to use JOC, some state and some local, including counties, school districts, community college districts, and the California State University system. Finally, Caltrans is granted limited authority to use JOC for building the statewide Broadband "Middle-Mile" Network (BMMN) and the Clean California Program.
Arguments in Support
Writing in support, the California Municipal Utilities Association (CMUA), representing local publicly owned electric utilities (POUs) that provide power to 25% of the state and public water and wastewater agencies that provide water to over 70% of Californians, is pleased to support SB 146 and states "that the bill will help critical water projects come online quicker."
Arguments in Opposition
None on file
FISCAL COMMENTS
Unknown
VOTES
SENATE FLOOR: 29-8-3
YES: Allen, Alvarado-Gil, Archuleta, Atkins, Becker, Blakespear, Bradford, Caballero, Cortese, Dodd, Durazo, Eggman, Glazer, Gonzalez, Hurtado, Laird, Limón, McGuire, Menjivar, Min, Newman, Padilla, Portantino, Roth, Skinner, Smallwood-Cuevas, Umberg, Wahab, Wiener
NO: Dahle, Grove, Jones, Nguyen, Niello, Ochoa Bogh, Seyarto, Wilk
ABS, ABST OR NV: Ashby, Rubio, Stern
UPDATED
VERSION: June 26, 2023
CONSULTANT: Farra Bracht / TRANS. / (916) 319-2093 FN: 0001162
Date of Hearing: 06-29-2023
ASSEMBLY COMMITTEE ON TRANSPORTATION
Laura Friedman, Chair
SBPCA Bill Id:SB 146
Author:(Gonzalez and Friedman) – As Amended Ver:June 26, 2023
SENATE VOTE: Not applicable
SUBJECT: Public resources: infrastructure: contracting.
SUMMARY: Makes various changes related to Progressive Design-Build authority for the California Department of Transportation (Caltrans) and the Department of Water Resources (DWR), authorizes Job Order Contracting for Caltrans, and federal National Environmental Policy Act (NEPA) delegation to the Secretary of Transportation. Specifically, this bill, an urgency measure:
National Environmental Policy Act (NEPA) delegation authority
- Extends the provisions under existing law that authorize the Secretary of Transportation to assume the responsibilities for any railroad, public transportation, or multimodal project under the federal NEPA of 1969 from January 1, 2025 to December 31, 2033.
- Authorizes the Secretary, consistent with the requirements of any memorandum of understanding between the state and federal government, upon the request of a local or regional agency, to assume NEPA responsibilities for any railroad, local public transportation, or multimodal project implemented by the requesting local or regional agency until December 31, 2033.
- Requires the Secretary to report to the transportation policy committees of the Legislature regarding which local or regional agencies requested that the secretary assume the authority under NEPA by December 31, 2033.
- Clarifies that delegation of this authority does not change the requirements of the California Environmental Quality Act.
Progressive design-build authority for the Department of Water Resources (DWR) and the Caltrans
- Authorizes DWR and Caltrans to use progressive design-build contracts for eight projects each for which the estimated price exceeds $25 million until the authority expires on December 31, 2033.
- Excludes projects pertaining to the design or construction of through-Delta conveyance facilities of the Sacramento-San Joaquin Delta or seawater desalination projects from using progressive design-build.
- This bill does not authorize the following:
- The use of design-build-operate;
- The authority to perform construction inspection services for projects on or interfacing with the state highway system, which shall be performed by Caltrans; and,
- The authority to perform construction inspection services for projects on the State Water Project or any other state-owned or -operated water resources facility, which shall be performed by the DWR.
- Establishes how the procurement process for design-build projects for DWR and Caltrans will progress. Including:
- Requires the department to set the scope and estimated project cost of the progressive design-build project;
- Requires the department to prepare and issue a request for qualifications that details the scope of the project, qualification evaluation criteria and their assigned importance, and a request for a statement of qualifications;
- Requires the department to review the submissions and to evaluate design-build entities only on the information submitted in the entity’s statement of qualifications;
- Grants the awarding department flexibility in negotiating contracts with the final list of qualified design-build entities; and,
- Requires the director of DWR or Caltrans to upon issuance of a contract award, to publically announce its award, identifying the design-build entity to which the award was made and a statement regarding the basis of the award.
- Requires design-build entities to provide payment and performance bonds. Requires the design-build contract to include errors and omissions insurance coverage for the design elements of the design-build project. Requires DWR and Caltrans to develop a standard payment and performance bond format.
- Grants the department broad authority to amend, continue, or create a new contract with the awarded design-build entity after a guaranteed maximum price is agreed to, without an additional competitive bidding process. Deems, the design-build entity responsible for all costs that exceed the agreed guaranteed maximum price. Clarifies that design-build entities are not entitled to the difference between completed project cost and guaranteed maximum price. Requires all cost savings be returned to the fund it was originally appropriated from. Permits the DWR or Caltrans to exit a contract if the awarded design-build entity and the department fail to agree on a guaranteed maximum price. Permits DWR and Caltrans to solicit bids for the remaining work and award contracts on a best-value basis.
- Authorizes the department to specify the type of subcontractor that must be included in a design-build entity statement of qualification. Establishes a process for a design-build entity to award contracts to subcontractors. Grants subcontractors full protection under labor law.
- Requires DWR and Caltrans by January 1, 2034, to submit a report to the legislature detailing progressive design-build project metrics and a comprehensive review of the effectiveness of this procurement method to save time and reduce costs.
Job order contracting for Caltrans
- Defines various terms related to job order contracting (JOC) and states legislative intent to enable the use of job order contracting when it is anticipated that it will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method, and improve the efficiency and efficacy of contracted work and not supplant work completed by the department’s field maintenance employees.
- Authorizes the Department of Transportation to use the job order contracting procurement method until December 31, 2033 and allows JOC to be used for highway maintenance, safety repairs, facility repairs, and installation of stormwater pollution control devices. Prohibits the department from using job order contracting for adding vehicular travel lanes.
- Requires Caltrans to establish a procedure to prequalify job order contractors for projects.
- Requires Caltrans to prepare the following documents for each job order contract:
- A unit price catalog of construction tasks with preestablished unit prices;
- Job order contract specifications; and,
- Additional information detailing the department’s needs.
- Requires the department to develop a process for evaluating bids and requires this process to include a bid request period, a sealed bid submission period. Requires Caltrans to award job order contracts to the most qualified and responsive job order contractors.
- Requires selected job order contractors to have sufficient bonding to cover the contract amount for construction services and risk and liability insurance required by Caltrans.
- Restricts the job order contracts’ value that Caltrans awards to small businesses and veteran business to $5,000- $250,000.
- Restricts the length of the initial contract term to 12 months. Permits two additional 12-month extensions.
- Requires Caltrans, on or before July 1 and until July 1 2033, to publish an annual report on its website that includes a listing of all projects awarded under job order contract, the name of each contractor, the estimated and actual project costs and estimated procurement time saving, and recommendations regarding the most appropriate uses for the JOC process.
- Requires Caltrans’ labor compliance program to monitor job order contracts to ensure their compliance with federal and state labor laws.
EXISTING LAW:
- Allows the Secretary of the Transportation Agency to assume federal NEPA responsibilities for any railroad, public transportation, or multimodal project until January 1, 2025. (Government Code 13979.2)
- Authorizes the Department of General Services (DGS) to use the progressive design-build procurement process for the construction of up to 3 capital outlay projects that are jointly approved by DGS and the Department of Finance (DOF). (Public Contract Code (PCC) 10198.1)
- Defines “progressive design-build” as a project delivery process in which both the design and construction of a project are procured from a single entity that is selected through a qualifications-based selection at the earliest feasible stage of the project. (PCC 10198)
- Establishes Caltrans and provides that it has full possession and control of all state highways and property and rights in property acquired for state highway purposes. Requires Caltrans to improve and maintain state highways. (Streets and Highways Code (SHC) 90)
- The State Contract Act generally provides for a contracting process by state agencies for public works of improvement pursuant to a competitive bidding process, under which bids are awarded to the lowest responsible bidder, with specified alternative procurement procedures authorized in certain cases. (PCC 10100, et seq.)
- Requires Caltrans to administer the Clean California Local Grant Program of 2021 to provide funding, upon appropriation, for grants to specified local entities for purposes of beautifying and cleaning up local streets and roads, tribal lands, parks, pathways, transit centers, and other public spaces, and administers the Clean California State Beautification Program of 2021 to provide funding, upon appropriation, for purposes of beautifying and cleaning up state highways. Authorizes Caltrans to use job order contracting for the Clean California Beautification Program of 2021 as specified. (SHC 91.43)
- Creates a structure and framework for the construction of a $3.25 billion state-owned open-access middle-mile broadband infrastructure through a third-party administrator overseen by the Department of Technology. Defines the construction process for middle-mile infrastructure:
- Allows the use of a construction manager/general contractor method of construction, with no limit to the contract amount;
- Allows for one or more contractors to be selected to build all or portions of the middle-mile;
- Requires Caltrans to establish a procedure to prequalify job order contractors and prepare a set of documents for each job order contract that stipulates unit prices and job order contract specifications; and,
- Allows the Office of Broadband and Digital Literacy, or Caltrans, to solicit competitive sealed bids from prequalified job order contractors for contracts lasting no more than 12 months, with two additional possible 12-month extensions or renewal periods. (GOV 11549.50-11549.55)
FISCAL EFFECT: Unknown
COMMENTS:
National Environmental Policy Act Delegation Authority
NEPA is a United States environmental law that promotes the enhancement of the environment. NEPA is applied to any major project, whether on a federal, state, or local level, that involves federal funding, work performed by the federal government, or permits issued by a federal agency.
The federal government allows for the assignment of US Department of Transportation environmental responsibilities under NEPA to states for highway projects, and more recently for railroad, public transportation, and/or multimodal projects. California via Caltrans has exercised this option for highway projects (since 2007) and more recently delegated this authority to the Secretary of the California State Transportation Agency (CalSTA) for rail, public transportation, and multimodal projects undertaken by state agencies.
According to Caltrans, “NEPA Assignment has resulted in documents being approved in less time; improved the efficiency in which Caltrans prepares, reviews, and approves environmental documents; improved the quality of documents; and provides for greater accountability through monitoring.” The recent statutory authority to CalSTA for NEPA delegation for rail, public transportation, and multimodal projects sunsets January 1, 2025.
Currently six other states have a NEPA delegation and a seventh state is in progress. Most of the delegations are for highway projects only and one state includes railroads, public transit and multimodal projects. It does not appear that any other state has a delegation for locally led projects.
Progressive Design Build Authority for Caltrans and DWR
State and Local agencies typically use the traditional design-bid-build method for constructing public works. This approach splits construction projects into two distinct phases: design and construction. During the design phase, the agency prepares detailed project plans and specifications using its own employees or by hiring outside architects and engineers. Once project designs are complete, agencies invite bids from the construction community and award the contract to the lowest responsible bidder. The design-bid-build process was developed to secure a fair and reasonable price for public works construction through competition between bidding contractors.
In 1990s, public works agencies began experimenting with alternative project delivery methods, namely to design-build. Design-build is an alternate method for procuring design and construction services for the delivery of public works projects from a single entity. Under the design-build method, a single contract covers the design and construction of a project with a single company or consortium that acts as both the project designer and builder. The design-build entity arranges all architectural, engineering, and construction services. The design-build entity is responsible for delivering the project at a guaranteed price and schedule based upon performance criteria set by the public agency.
Progressive design-build is a variant of traditional design-build contracting that generally includes two phases. In the first phase, the awarding authority uses a best-value process to select a design-build entity that completes preliminary plans and preconstruction services necessary to provide a cost estimate and final design proposal. The project then “progresses” to the second phase, where the awarding authority and the design-build entity agree to a final design, project cost (“guaranteed max price”), and schedule. If they cannot agree, there is an “off-ramp” between the two phases where the awarding authority can pursue other options, but still benefit from having the first phase work complete. This is different from traditional design-build, where the awarding entity contracts with a single entity to design and construct a project at a set price before design work begins, and without a similar off-ramp.
The Legislature enacted SB 785 (Wolk), Chapter 931, Statutes of 2014 to outline a standardized design-build procurement process. Legislation has been enacted in recent years to allow local agencies to use design build for specific projects such as AB 36 (Gallagher), Chapter 689, Statutes of 2021 to allow the Town of Paradise and the Paradise Irrigation District to use of design-build contracting for sewer and water conveyance projects. and AB 2932 (O’Donnell), Chapter 54, Statutes of 2020 to allow the City of Long Beach to use design-build for curb ramps to comply with ADA requirements. Most recently, the Legislature enacted SB 991 (Newman), Chapter 243, Statutes of 2022 authorizes local agencies, that provide for the production, storage, supply, treatment, or distribution of any water from any source, to use the progressive design-build process for up to 15 public works projects in excess of $5 million for each project, similar to the progressive design-build process authorized for use by the Director of General Services.
All procurement methods contain some element of risk. Using the lowest bidder for highly complicated projects can sometimes lead local agencies to sacrifices in quality or significant change orders. Also, when methods require a different firm for design and construction, there can be inconsistencies between the two firms, leading to additional costs and delays. Design-build contractors are typically selected using qualifications-based selection criteria or best-value analysis. These approaches are more subjective than a low-bid approach, potentially subjecting the public works owner to greater contract challenges and higher costs. Therefore, giving State agencies the flexibility to choose the best procurement methods can have some benefits.
Job Order Contracting
Job Order Contracting (JOC) is a competitively bid, fixed price, indefinite-quantity contract for the performance of minor construction, renovation, and maintenance. JOC is typically used for well-defined, recurring, or repetitive work where quick execution is essential, not for single larger projects. These contracts can run for one or more years, and contracts can be renewed a limited number of times.
JOC was developed to simplify federal procurement for smaller contracts where bidding requirements were viewed as burdensome and expensive. The award of annual contracts on a unit price basis enables what would otherwise be multiple separately bid projects to be combined into one bid. It is not generally viewed as an appropriate method of contracting for large, complex construction projects that require extensive or innovative design or are likely to encounter changes and revisions during construction.
California counties have had the authority to use JOC since 1983. Furthermore, the Legislature has authorized multiple agencies to use JOC, some state and some local, including counties, school districts, community college districts, and the California State University system. Finally, Caltrans is granted limited authority to use JOC for building the statewide Broadband “Middle-Mile” Network (BMMN) and the Clean California Program.
REGISTERED SUPPORT / OPPOSITION:
Support
None on file
Opposition
None on file
Analysis Prepared by: Farra Bracht / TRANS. / (916) 319-2093
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 146 |
THIRD READING
Bill No: SB 146
Author: Committee on Budget and Fiscal Review
Introduced: 1/18/23
Vote: 21
SOURCE: Author
DIGEST:
This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2023.
ANALYSIS: Senate Bills 100 through 219, inclusive, are to be considered as vehicles for the 2023-24 Budget Trailer Bills.
FISCAL EFFECT: Appropriation: No Fiscal Com.: No Local: No
SUPPORT: (Verified 3/21/23)
None received
OPPOSITION: (Verified 3/21/23)
None received
Prepared by: Jonas Austin / SFA / (916) 651-1520
3/22/23 14:01:40
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Discussed in Hearing
8MIN
Senate Floor
7MIN
Assembly Standing Committee on Transportation
14MIN
Assembly Floor
Bill Co-Author(s):