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 July 1, 2027, would amend the act to authorize the Department of General Services to engage in job order contracting, as prescribed, as an alternative procurement procedure for public works projects. The bill would require the department to establish prescribed procedures, standards, and requirements relating to the bidding for, and award of, contracts. The bill would restrict such a contract to a maximum initial contract term of 24 months. The bill would impose a maximum contract amount of $10,000,000 in the first term of the contract. The bill would authorize the department to issue a single extension to each job order contract, up to an additional $5,000,000 and one additional 12-month period. The bill would require the department to submit to the Joint Legislative Budget Committee, on or before January 1, 2027, a report containing a description of the department’s utilization of job order contracting under the bill’s provisions through July 1, 2026, including prescribed information.

Existing law establishes requirements that apply when a public entity is required by statute or regulation to obtain an enforceable commitment that a bidder, contractor, or other entity will use a skilled and trained workforce, which requires, among other conditions, that all the workers performing work in an apprenticeable occupation, as defined, in the building and construction trades are either skilled journeypersons or registered apprentices. Existing law also authorizes a public entity to require that a bidder, contractor, or other entity use a skilled and trained workforce to complete a contract or project, regardless of whether the public entity is required to do so by a statute or regulation.

This bill, with prescribed exceptions, would prohibit a contractor from being awarded a job order contract unless the contractor provides an enforceable commitment to the Director of General Services that the contractor and its subcontractors at every tier will use a skilled and trained workforce to perform all work for each job order that falls within an apprenticeable occupation in the building and construction trades, in accordance with existing law.