Lessons Learned: Construction Bidding & Procurement Item D.1 Facilities Subcommittee Meeting February 28, 2017
Bid Limits The District must competitively bid any contract involving an expenditure of: Bid Limits Bid Limit as of 1/1/17* Equipment, Materials, Supplies & Non- Construction Services $88,300 Maintenance $88,300 Construction Services California Uniform Public Construction Cost Accounting Act (CUPCCAA)*** $15,000 (Labor & Materials)** <$45,000 - Quotes $45,001 to $175,000 Informal Bid > $175,000 Formal Bid *May be adjusted annually **However, PCC 22000-22045 provides that a District may adopt the California Uniform Public Construction Cost Accounting Act (CUPCCAA) procedures, effectively allowing the District to increase the formal bid limits for its public projects. ***On May 20,2009, the District s Board of Trustees passed resolution #90-0809 to become subject to the CUPCCAA.
California Uniform Public Cost Construction Accounting Act (CUPCCAA) CUPCCAA Benefits & Requirements CUPCCAA is a useful tool for the District as it raises public works thresholds, simplifies the process for small projects, reduces advertising costs, and expedites the bidding process. The District is required to create and maintain an annual list of qualified contractors, by the category of work that they perform. If the Project is less than $45K: Quotes The District may select a qualified contractor from the CUPCCAA list, without going through an informal or formal bid process. However, the District has established an internal procedure that requires Project Managers / Departments to solicit three informal quotes. If the Project is between $45K - $175K: Informal Bid Process Contracts would be awarded to the qualified contractor submitting the lowest informal bid Invitation must be sent at least 10 days prior to informal bid closing date If the lowest bid exceeds the bid limit the bid must be rejected If the Project is greater than $175K: Formal Bid Process Any contract for construction Services may be subject to standard formal bidding procedures
Types of Formal Bid Requirements Award the Contract to lowest responsive, responsible Bidder Notice & Bid Advertisement License, Registration & Prevailing Wage Sub Contractor List Bid Splitting Equal Materials & Products, if not Sole Sourced Award the contract to the lowest responsive, responsible or reject all bids. (PCC 22038). Award the contract to a "responsible bidder", i.e., a bidder who has demonstrated the attribute of trustworthiness, as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract. (PCC 1103). Publish a notice calling for bids at least once a week for two weeks in a newspaper Published notice must state the scope of work to be done or materials or supplies to be furnished and the time and the place bids will be opened (PCC 20112) Vendor must possess a valid contractor or business license (PCC 3300) Public Works contracts must be bid using prevailing wage rates and be registered with DIR (Labor Code 1720 et seq. and 1725.5) Contractors/Sub-Contractors whose bid price is equal to or greater than onehalf of one percent (0.5%) of the total base bid amount must be listed as a part of the bid proposal. (PCC 4100). Listed subcontractors can only be substituted as allowed by PCC 4107. It is unlawful to split bids into smaller contracts to avoid public competitive bidding requirements.(pcc 20116, 22033). Allow contractor on a public works project to provide an equal to materials, products, things, or services specified in the contract documents, unless the item is Sole Sourced. (PCC 3400). May also include workers compensation coverage, bid security, bid alternates, prequalification, apprenticeship and DVBE compliance.
Types of Contracts Exempt from Competitive Bidding Requirements Emergencies The State List Piggyback Bids Professional Experts PCC 1102 & 20113 provides that competitive bidding may be avoided when repairs, alterations, work, or improvements are necessary to permit the continuance of existing school classes, or to avoid danger to life or property. A unanimous vote of the governing board and the approval of the county superintendent are required. Education code 17595 and PCC 10299 provides that competitive bidding may be waived when purchasing materials, equipment, or supplies through the Department of General Services or utilizing its California Multiple Award Schedule ("CMAS"). California Multiple Award Schedules (CMAS) are supplier agreements based upon an existing Federal GSA or other approved multiple award contracts. CMAS offers a wide variety of commodity and information technology products at prices that have been assessed to be fair, reasonable, and competitive. PCC 20118 provides that competitive bidding may be waived by proper arrangement with another public agency to purchase or lease materials, supplies, equipment, vehicles, and other personal property where the purchasing agency has complied with its own applicable statutes. This is also known as "piggybacking." This purchasing arrangement involves using the pricing from a piggyback contract held by another school District or public agency in the absence of additional public bidding. The originating District must follow formal bid procedures and other piggyback procedures. Piggybacking reduces the cost of procurement and often provides lower prices than a single jurisdiction would be able to obtain. A piggyback contract generally cannot include any "public work." The piggybacking district must meet the bid requirement including bonds, insurance, and a new contract. Without going to bid, Districts may contract with a person who will furnish "special services and advice" to the District in financial, economic, accounting, engineering, legal, or administrative matters. Any person so employed must be specially trained and experienced and competent to perform those special services. (Government Code Section 53060.) However, all "architectural and engineering services" as defined in Government Code 4529.10 must be procured pursuant to a fair, competitive selection process through a request for proposal/qualification process.
Professional Expert Procurement Special Services: Contracts for financial, economic, accounting, legal, administrative, or insurance services. Government Code 53060 states that school districts and other public entities may contract without bidding for, special services and advice in financial, economic, accounting legal, or administrative matters if such persons are specially trained and experienced and competent to perform the special services required. PCC 20111(c) exempts from the public bidding requirement professional services or advice, insurance services, or any other purchase or service otherwise exempt from this section. Professional Services: Contracts for architecture, engineering, environmental services, land surveying, or construction management services. Some services related to construction work are not special services, and require a fair, competitive selection process. (Government Code 4525 et seq., 4529.12) School districts generally comply with these requirements by using a request for proposals ( RFP ) or request for qualifications ( RFQ ) process. An RFQ/RFP can also be done in one step where the District requests both the respondent s qualifications and its proposal with one request.
Thank you!