Bill Text

PDF |Add To My Favorites |Track Bill | print page

AB-2654 Design-build: Orange County.(2017-2018)

SHARE THIS:share this bill in Facebookshare this bill in Twitter
Date Published: 04/10/2018 09:00 PM
AB2654:v98#DOCUMENT

Amended  IN  Assembly  April 10, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 2654


Introduced by Assembly Member Quirk-Silva

February 15, 2018


An act to add Chapter 4.3 (commencing with Section 22170) to Part 3 of Division 2 of Sections 22162.6 and 22162.7 to the Public Contract Code, relating to public contracts.


LEGISLATIVE COUNSEL'S DIGEST


AB 2654, as amended, Quirk-Silva. Design-build: Orange County.
Existing law, until January 1, 2025, authorizes local agencies, as defined, to use the design-build procurement process for specified public works with prescribed cost thresholds. Existing law requires specified information submitted by a design-build entity in the design-build procurement process to be certified under penalty of perjury.
This bill would establish similar provisions specific to Orange County. The bill would authorize the County of Orange and the Orange County Flood Control District, indefinitely and without exclusion, to use the design-build process for specified types of public works infrastructure projects projects, limited to no more than an average of 3 projects per year in excess of $1,000,000. The bill would require specified information to be verified under penalty of perjury. By expanding the crime of perjury, the bill would impose a state-mandated local program. $5,000,000. The bill would also authorize the Orange County Flood Control District to use the design-build process for flood protection improvements and would limit those to no more than an average of 3 projects per year in excess of $5,000,000. By expanding design-build authority to include additional projects, the bill would expand the scope of the crime of perjury, thereby imposing a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for Orange County. the County of Orange and the Orange County Flood Control District.
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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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


SECTION 1.Chapter 4.3 (commencing with Section 22170) is added to Part 3 of Division 2 of the Public Contract Code, to read:
4.3.Orange County Design-Build Projects
22170.

(a)The Legislature finds and declares that the design-build method of project delivery, using a best value procurement methodology, has been authorized for various agencies that have reported benefits from such projects including reduced project costs, expedited project completion, and design features that are not achievable through the traditional design-bid-build method.

(b)It is the intent of the Legislature that the following occur:

(1)This chapter provides general authorization for Orange County to use design-build for public works infrastructure projects.

(2)This chapter shall not be deemed to provide a preference for the design-build method over other procurement methodologies.

22171.

For purposes of this chapter, the following definitions apply:

(a)“Best value” means a value determined by evaluation of objective criteria that relate to 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 Orange County and meeting the objectives of the project, selection of the best proposal for a stipulated sum established by the procuring agency, or a tradeoff between price 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)“Design-build” means a project delivery process in which both the design and construction of a project are procured from a single entity.

(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 design-build contract.

(e)“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 electrical, mechanical, and plumbing contractors.

(f)“Orange County” means:

(1)The County of Orange.

(2)The Orange County Flood Control District.

(g)“Project” means a public works infrastructure project.

22172.

(a)Notwithstanding any other law, Orange County, with the approval of its governing body, may procure design-build contracts for public works projects in excess of one million dollars ($1,000,000), awarding the contract to either the low bid or the best value.

(b)Orange County shall develop guidelines for a standard organizational conflict-of-interest policy, consistent with applicable law, regarding the ability of a person or entity, that performs services for Orange County relating to the solicitation of a design-build project, to submit a proposal as a design-build entity, or to join a design-build team. This conflict-of-interest policy shall apply to Orange County design-build contracts authorized under this chapter.

22173.

The procurement process for the design-build projects shall progress as follows:

(a)(1)   Orange County shall prepare a set of documents setting forth the scope and estimated price of the project. The documents may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering the quality of materials, equipment, workmanship, preliminary plans or building layouts, or any other information deemed necessary to describe Orange County’s needs adequately. The performance specifications and any plans shall be prepared by a design professional who is duly licensed and registered in California.

(2)The documents shall not include a design-build-operate contract for any project. The documents, however, may include operations during a training or transition period but shall not include long-term operations for any project.

(b)Orange County shall prepare and issue a request for qualifications in order to prequalify or short-list the design-build entities whose proposals shall be evaluated for final selection. The request for qualifications shall include, but need not be limited to, the following elements:

(1)Identification of the basic scope and needs of the project or contract, the expected cost range, the methodology that will be used by Orange County to evaluate proposals, the procedure for final selection of the design-build entity, and any other information deemed necessary by Orange County to inform interested parties of the contracting opportunity.

(2)Significant factors that Orange County reasonably expects to consider in evaluating qualifications, including technical design and construction expertise, an acceptable safety record, and all other nonprice-related factors.

(3)A standard template request for statements of qualifications prepared by Orange County. In preparing the standard template, Orange County may consult with the construction industry, the building trades and surety industry, and other interested parties using the authorization provided by this article. The template shall require the following information:

(A)If the design-build entity is a privately held corporation, limited liability company, partnership, or joint venture, a listing of all of the shareholders, partners, or members known at the time of statement of qualification submission who will perform work on the project.

(B)Evidence that the members of the design-build team have completed, or 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 project, and a financial statement that ensures that the design-build entity has the capacity to complete the project.

(C)The licenses, registration, and credentials required to design and construct the 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 proposer’s 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 proposer is a party to an alternative dispute resolution system as provided for in Section 3201.5 of the Labor Code.

(4)(A)   The information required under this subdivision shall be certified under penalty of perjury by the design-build entity and its general partners or joint venture members.

(B)Information required under this subdivision that is not otherwise a public record under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code) shall not be open to public inspection.

(c)Based on the documents prepared as described in subdivision (a), Orange County shall prepare a request for proposals that invites prequalified or short-listed entities to submit competitive sealed proposals in the manner prescribed by Orange County. The request for proposals shall include, but need not be limited to, the following elements:

(1)Identification of the basic scope and needs of the project or contract, the estimated cost of the project, the methodology that will be used by Orange County to evaluate proposals, whether the contract will be awarded on the basis of low bid or best value, and any other information deemed necessary by Orange County to inform interested parties of the contracting opportunity.

(2)Significant factors that Orange County reasonably expects to consider in evaluating proposals, including, but not limited to, cost or price and all nonprice-related factors.

(3)The relative importance or the weight assigned to each of the factors identified in the request for proposals.

(4)Where a best value selection method is used, Orange County may reserve the right to request proposal revisions and hold discussions and negotiations with responsive proposers, in which case Orange County shall so specify in the request for proposals and shall publish separately or incorporate into the request for proposals applicable procedures to be observed by Orange County to ensure that any discussions or negotiations are conducted in good faith.

(d)For those projects utilizing low bid as the final selection method, the competitive bidding process shall result in lump-sum bids by the prequalified or short-listed design-build entities, and awards shall be made to the design-build entity that is the lowest responsible bidder.

(e)For those projects utilizing best value as a selection method, the design-build competition shall progress as follows:

(1)Competitive proposals shall be evaluated by using only the criteria and selection procedures specifically identified in the request for proposals. The following minimum factors, however, shall be weighted as deemed appropriate by Orange County:

(A)Price, unless a stipulated sum is specified.

(B)Technical design and construction expertise.

(C)Life-cycle costs over 15 or more years.

(2)Pursuant to subdivision (d), Orange County may hold discussions or negotiations with responsive proposers using the process articulated in Orange County’s request for proposals.

(3)When the evaluation is complete, the responsive proposers shall be ranked based on a determination of value provided, provided that no more than three proposers are required to be ranked.

(4)The award of the contract shall be made to the responsible design-build entity whose proposal is determined by Orange County to have offered the best value to the public.

(5)Notwithstanding any other provision of this code, upon issuance of a contract award, Orange County 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.

(6)The statement regarding Orange County’s contract award, described in paragraph (5), and the contract file shall provide sufficient information to satisfy an external audit.

SECTION 1.

 Section 22162.6 is added to the Public Contract Code, to read:

22162.6.
 (a) Upon approval of the board of supervisors, the County of Orange may use the design-build contracting process described in this chapter to award a contract for the following projects:
(1) Flood protection improvements.
(2) Harbor and beach improvements.
(3) Bikeway improvements.
(b) In addition to the requirements set forth in Section 22164, for a project authorized under subdivision (a), the county shall be responsible for the performance of, and county employees in Orange County Public Works shall perform, project development services, including performance specifications, preliminary engineering, procurement services and the preparation of project reports, and construction inspection services, excluding specialty bridge inspectors. The county shall also be the responsible agency for, and county employees in Orange County Public Works shall perform, the preparation of documents that may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering quality of materials, equipment, and workmanship, preliminary plans, and any other information deemed necessary to describe adequately the needs of the County of Orange.
(c) For a project authorized under subdivision (a), the county shall be limited to no more than an average of three projects per year in excess of five million dollars ($5,000,000).

SEC. 2.

 Section 22162.7 is added to the Public Contract Code, to read:

22162.7.
 (a) Upon approval of the governing body, the Orange County Flood Control District, as defined in Chapter 36 of the Orange County Flood Control Act, Sections 1 to 23 of the Orange County Flood Control Act, Water Code Appendix, may use the design-build contracting process described in this chapter to award a contract for flood protection improvements.
(b) In addition to the requirements set forth in Section 22164, for a project authorized under subdivision (a), the Orange County Flood Control District shall be responsible for the performance of, and county employees in Orange County Public Works shall perform, project development services, including performance specifications, preliminary engineering, procurement services and the preparation of project reports, and construction inspection services, excluding specialty bridge inspectors. The county shall also be the responsible agency for, and county employees in Orange County Public Works shall perform, the preparation of documents that may include, but need not be limited to, the size, type, and desired design character of the project, performance specifications covering quality of materials, equipment, and workmanship, preliminary plans, and any other information deemed necessary to describe adequately the needs of the Orange County Flood Control District.
(c) For a project authorized under subdivision (a), the district shall be limited to no more than an average of three projects per year in excess of five million dollars ($5,000,000).

SEC. 2.SEC. 3.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique conditions in Orange County that make it necessary to grant the County of Orange and the Orange County Flood Control District the authority to use the specific design-build procurement process described in this act.

SEC. 3.SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B 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 XIII B of the California Constitution.