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AB-2157 Public contracts: noncompetitive bid contracts: report.(2017-2018)

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Date Published: 02/12/2018 09:00 PM
AB2157:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2157


Introduced by Assembly Member Obernolte

February 12, 2018


An act to add Section 10111.1 to the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 2157, as introduced, Obernolte. Public contracts: noncompetitive bid contracts: report.
The State Contract Act governs the bidding and award of public works contracts by specific state departments. That act prohibits, except in specified circumstances, a state agency responsible for letting public works contracts from drafting bid specifications in a manner that limits the bidding to any one concern or product, except under certain circumstances.
Existing law relating to the state acquisition of goods and services requires all contracts for the acquisition or lease of goods in an amount of $25,000, or a higher amount as established by the Director of General Services, to be made or entered into with the lowest responsible bidder meeting specifications, except in certain cases, including when the acquiring agency and the Department of General Services agree that an article of a specified brand or trade name is the only article that will properly meet the needs of the agency. That existing law, with respect to contracts for services, requires the department to prescribe the conditions under which a contract may be awarded without competition, and the methods and criteria to be used in determining the reasonableness of contract costs when a contract is awarded without competition.
This bill would require the department to, until January 1, 2023, submit an annual report to the Legislature, that shall also be made available to the public, of all noncompetitive bid contract requests it approved during the preceding year and the mechanisms the department employed during the previous year to enforce compliance with noncompetitive procurement laws and policies, as specified.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 10111.1 is added to the Public Contract Code, to read:

10111.1.
 (a) The Department of General Services shall submit an annual report to the Legislature, that shall also be made available to the public, of all noncompetitive bid contract requests it approved during the preceding year with a value over one  million dollars ($1,000,000).
(1) The report shall, with respect to each approved noncompetitive bid contract request, include, but not be limited to, all of the following:
(A) The contracting agency.
(B) The value of the noncompetitive bid contract.
(C) If the noncompetitive bid contract was an amendment of an existing contract, the value of the original contract.
(2) The report shall also address the mechanisms the department employed during the previous year to enforce compliance with noncompetitive procurement laws and policies including, but not limited to:
(A) The number of times the department rejected a noncompetitive bid contract request.
(B) The number of times the department issued a warning in an approval letter to an agency that no additional noncompetitive requests from the agency would be approved.
(C) The number of times the department required an agency to submit a corrective action plan if the reason that the agency submitted a noncompetitive request was because there was insufficient time to solicit bids.
(b) (1) A report to be submitted pursuant to subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.
(2) Pursuant to Section 10231.5 of the Government Code, this section is repealed on January 1, 2023.