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AB-2996 Department of Transportation: Job order contracting.(2017-2018)

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Date Published: 02/16/2018 09:00 PM


Assembly Bill No. 2996

Introduced by Assembly Member Fong

February 16, 2018

An act to add and repeal Article 6.6 (commencing with Section 217.10) of Chapter 1 of Division 1 of the Streets and Highways Code, relating to transportation public contracts.


AB 2996, as introduced, Fong. Department of Transportation: Job order contracting.
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.
This bill, until July 1, 2022, would authorize the Department of Transportation to use job order contracting, an alternative procurement procedure, for certain types of highway maintenance work. The bill would require the department to establish a procedure to prequalify job order contractors, and to award work for renewable 12-month contract terms based on competitive sealed bids pursuant to a unit price book of tasks and job order contract specifications. The bill would also require the department to report annually to the Legislature on specified matters relating to job order contracts.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


 Article 6.6 (commencing with Section 217.10) is added to Chapter 1 of Division 1 of the Streets and Highways Code, to read:
Article  6.6. Job Order Contracting

 (a) This section provides the Department of Transportation the opportunity to examine and evaluate an alternative procurement procedure for transportation maintenance projects.
(b) (1) It is the intent of the Legislature to enable the use of job order contracting as an option for constructing transportation maintenance projects 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.
(c) The department shall establish a procedure to prequalify job order contractors only for the following types of highway maintenance work:
(1) Routine bridge maintenance and preservation.
(2) Pavement repair, replacement, and seals.
(3) Clearing and grubbing.
(4) Traffic and detection system installation, replacement, and repair.
(5) Improvements to, and repairs of, maintenance facilities.
(6) Improvements to, removal of, and installation of facilities, systems, and traffic control devices needed to comply with the Americans with Disabilities Act of 1990 (Public Law 101-336).
(7) Routine culvert maintenance and preservation as applicable.
(8) Tree mortality mitigation.
(9) Water conservation mitigation.
(10) Stormwater mitigation.
(d) The department shall prepare a set of documents for each job order contract. The documents shall include a unit price book of construction tasks with preestablished unit prices, job order contract specifications, and any other information deemed necessary to describe adequately the department’s needs.
(e) Based on the documents prepared under subdivision (d), the department shall prepare a request for bids that invites prequalified job order contractors to submit competitive sealed bids in the manner prescribed by the department.
(f) 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. The extension or renewal shall be mutually agreed to by the department and the job order contractor.
(g) On or before July 1 of each year, the department shall report to the Legislature with regard to the status of all active job order contracts and those job order contracts that expired in the previous year. The report shall be submitted pursuant to Section 9795 of the Government Code and shall include, but not be limited to, 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) An assessment of the prequalification process and criteria.
(7) A summary of small business utilization.
(8) Recommendations regarding the most appropriate uses for the job order contract process.
(h) Any job order contractor that is selected to construct 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.
(i) Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law.

 This article shall remain in effect only until July 1, 2022, and as of that date is repealed.