AB 2440

Bill Subjects

Abstract

(1) Existing law creates the Los Angeles County Metropolitan Transportation Authority, with specified powers and duties. Existing law requires a contract by the authority for a purchase of supplies, equipment, or materials with the purchase price exceeding $100,000 to be let to the lowest responsible bidder, or best value proposer. This bill would increase that amount to $150,000. (2) Existing law requires the authority to obtain a minimum of 3 quotations when the expected expenditure exceeds $3,000 but not $100,000. This bill would increase the upper limit of $100,000 to $150,000. (3) Existing law allows the authority, on certain contracts above $100,000, to take various actions to facilitate contract awards to small businesses. This bill would, in this regard, delete the requirement for the contracts to be above $100,000. (4) Existing law provides for the inspector general of the authority to prepare a prequalification questionnaire to be completed by certain potential contractors. Existing law requires the authority to adopt a change order procedure meeting certain requirements. This bill would repeal these provisions. The bill would enact new provisions authorizing the authority to establish and maintain a prequalification program for bidders on certain contracts and providing for the authority to require prospective bidders for construction projects to complete and submit a standarized questionnaire and financial statement, as specified. The bill would state legislative intent with regard to the authority's construction change order and related claims process. By imposing new prequalification requirements on the authority, the bill would impose a state-mandated local program. (5) Existing law authorizes the authority to enter into contracts with private entities that combine into a single contract all or some of the planning, design, permitting, development, joint development, construction, construction management, acquisition, leasing, installation, and warranty of some or all components of transit systems and certain facilities. Existing law requires a contract under these provisions to be let to the lowest responsible bidder, with a notice requesting bids required to be published in a newspaper of general circulation at least 60 days before receipt of bids. This bill would allow the authority to select a contractor under these provisions using objective selection criteria in addition to price. This bill would retain the 60-day publication requirement for contracts estimated to exceed $10,000,000, but would otherwise impose a 30-day requirement. This bill, in the case of the design of projects permitting the selection of subcontractors, would require the contractor to competitively bid those portions and provide the authority with a list of subcontractors, as specified. Once on the list, the bill would provide that the subcontractors shall have the rights provided under a certain part of the Public Contract Code. (6) 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, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.