California 2019 2019-2020 Regular Session

California Assembly Bill AB971 Amended / Bill

Filed 04/11/2019

                    Amended IN  Assembly  April 11, 2019 Amended IN  Assembly  April 04, 2019 Amended IN  Assembly  March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 971Introduced by Assembly Member SalasFebruary 21, 2019 An act to amend Section 10226 of, and to add Section 10111.1 to, Sections 12102.3 and 12112.1 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 971, as amended, Salas. Public contracts: information technology services: completion bonuses: contractor evaluations.Existing law requires all contracts for the acquisition of information technology goods and services related to information technology projects, as defined, to be made by or under the supervision of the Department of Technology. Existing law requires all other contracts for the acquisition of information technology goods or services to be made by or under the supervision of the Department of General Services. Under existing law, both the Department of Technology and the Department of General Services are authorized to delegate their authority to another agency, as specified.Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. works projects. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System specified projects to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment.This bill would similarly authorize a contract for the acquisition of information technology services to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, but would additionally require for such a bonus completion within the contract price.This bill would additionally require for such a bonus completion within the contract price. The bill would revise the bonus provision to remove restrictions on eligible projects.Other existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing a postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions. This bill would amend the State Contract Act to require an awarding department department, as specified, to conduct a postevaluation similar to the one described above for each contract for a public work the acquisition of information technology services totaling $5,000 or more awarded under the act. more. The bill would require a department to base a postevaluation on objective facts and support them with program and contract performance data. The bill would require the Department of General Services to develop, and each awarding department to use, a standard form that contains postevaluation factors and ratings. The bill would require the ratings to designate a contractors work as either satisfactory or unsatisfactory. The bill would require a public official who signs a postevaluation to certify its accuracy under penalty of perjury, thereby imposing a state-mandated local program by expanding the crime of perjury. The bill would require a solicitation or contract under the act for the acquisition of information technology services to notify a contractor that their performance will be evaluated and that the postevaluation may be a public record. Under the bill, a postevaluation would be made public only if a contractor receives 2 or more negative postevaluations in a 3-year period. The bill would authorize a contractor to comment on a negative postevaluation. The bill would authorize the Director of General Services to waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES Bill TextThe 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.SECTION 1. Section 12102.3 is added to the Public Contract Code, to read:12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.SEC. 2.Section 10226 of the Public Contract Code is amended to read:10226.Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a project may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SEC. 2. Section 12112.1 is added to the Public Contract Code, to read:12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 10111.1 12102.3 of the Public Contract Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To protect the interest of contractor privacy, it is necessary that a postevaluation pursuant to Section 10111.1 12102.3 of the Public Contract Code be made public only after a contractor receives two or more negative evaluations in a three-year period. To protect the interest of safety, it is necessary that the Director of General Services have the authority to waive public access to a postevaluation if the director of an awarding department under the State Contract Act determines public access to postevaluations may dissuade qualified bidders from bidding and thereby create safety concerns. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

 Amended IN  Assembly  April 11, 2019 Amended IN  Assembly  April 04, 2019 Amended IN  Assembly  March 19, 2019 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 971Introduced by Assembly Member SalasFebruary 21, 2019 An act to amend Section 10226 of, and to add Section 10111.1 to, Sections 12102.3 and 12112.1 to the Public Contract Code, relating to public contracts. LEGISLATIVE COUNSEL'S DIGESTAB 971, as amended, Salas. Public contracts: information technology services: completion bonuses: contractor evaluations.Existing law requires all contracts for the acquisition of information technology goods and services related to information technology projects, as defined, to be made by or under the supervision of the Department of Technology. Existing law requires all other contracts for the acquisition of information technology goods or services to be made by or under the supervision of the Department of General Services. Under existing law, both the Department of Technology and the Department of General Services are authorized to delegate their authority to another agency, as specified.Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. works projects. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System specified projects to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment.This bill would similarly authorize a contract for the acquisition of information technology services to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, but would additionally require for such a bonus completion within the contract price.This bill would additionally require for such a bonus completion within the contract price. The bill would revise the bonus provision to remove restrictions on eligible projects.Other existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing a postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions. This bill would amend the State Contract Act to require an awarding department department, as specified, to conduct a postevaluation similar to the one described above for each contract for a public work the acquisition of information technology services totaling $5,000 or more awarded under the act. more. The bill would require a department to base a postevaluation on objective facts and support them with program and contract performance data. The bill would require the Department of General Services to develop, and each awarding department to use, a standard form that contains postevaluation factors and ratings. The bill would require the ratings to designate a contractors work as either satisfactory or unsatisfactory. The bill would require a public official who signs a postevaluation to certify its accuracy under penalty of perjury, thereby imposing a state-mandated local program by expanding the crime of perjury. The bill would require a solicitation or contract under the act for the acquisition of information technology services to notify a contractor that their performance will be evaluated and that the postevaluation may be a public record. Under the bill, a postevaluation would be made public only if a contractor receives 2 or more negative postevaluations in a 3-year period. The bill would authorize a contractor to comment on a negative postevaluation. The bill would authorize the Director of General Services to waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: YES 

 Amended IN  Assembly  April 11, 2019 Amended IN  Assembly  April 04, 2019 Amended IN  Assembly  March 19, 2019

Amended IN  Assembly  April 11, 2019
Amended IN  Assembly  April 04, 2019
Amended IN  Assembly  March 19, 2019

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

Assembly Bill No. 971

Introduced by Assembly Member SalasFebruary 21, 2019

Introduced by Assembly Member Salas
February 21, 2019

 An act to amend Section 10226 of, and to add Section 10111.1 to, Sections 12102.3 and 12112.1 to the Public Contract Code, relating to public contracts. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 971, as amended, Salas. Public contracts: information technology services: completion bonuses: contractor evaluations.

Existing law requires all contracts for the acquisition of information technology goods and services related to information technology projects, as defined, to be made by or under the supervision of the Department of Technology. Existing law requires all other contracts for the acquisition of information technology goods or services to be made by or under the supervision of the Department of General Services. Under existing law, both the Department of Technology and the Department of General Services are authorized to delegate their authority to another agency, as specified.Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. works projects. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System specified projects to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment.This bill would similarly authorize a contract for the acquisition of information technology services to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, but would additionally require for such a bonus completion within the contract price.This bill would additionally require for such a bonus completion within the contract price. The bill would revise the bonus provision to remove restrictions on eligible projects.Other existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing a postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions. This bill would amend the State Contract Act to require an awarding department department, as specified, to conduct a postevaluation similar to the one described above for each contract for a public work the acquisition of information technology services totaling $5,000 or more awarded under the act. more. The bill would require a department to base a postevaluation on objective facts and support them with program and contract performance data. The bill would require the Department of General Services to develop, and each awarding department to use, a standard form that contains postevaluation factors and ratings. The bill would require the ratings to designate a contractors work as either satisfactory or unsatisfactory. The bill would require a public official who signs a postevaluation to certify its accuracy under penalty of perjury, thereby imposing a state-mandated local program by expanding the crime of perjury. The bill would require a solicitation or contract under the act for the acquisition of information technology services to notify a contractor that their performance will be evaluated and that the postevaluation may be a public record. Under the bill, a postevaluation would be made public only if a contractor receives 2 or more negative postevaluations in a 3-year period. The bill would authorize a contractor to comment on a negative postevaluation. The bill would authorize the Director of General Services to waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding.Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.This bill would make legislative findings to that effect.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.

Existing law requires all contracts for the acquisition of information technology goods and services related to information technology projects, as defined, to be made by or under the supervision of the Department of Technology. Existing law requires all other contracts for the acquisition of information technology goods or services to be made by or under the supervision of the Department of General Services. Under existing law, both the Department of Technology and the Department of General Services are authorized to delegate their authority to another agency, as specified.

Existing law, the State Contract Act, governs state contracts for public works projects and generally requires that a department, defined as the Department of General Services and other specified state government entities, award a contract to the lowest responsible bidder. works projects. The act authorizes a contract for a road project, flood control project, or project involving facilities of the State Water Resources Development System specified projects to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time. The act requires this provision to be included in the project specifications and to clearly set forth the basis for the payment.

This bill would similarly authorize a contract for the acquisition of information technology services to provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, but would additionally require for such a bonus completion within the contract price.

This bill would additionally require for such a bonus completion within the contract price. The bill would revise the bonus provision to remove restrictions on eligible projects.



Other existing law establishes various procedures for the procurement of state goods and services, including consulting services and personal services. Existing law requires each state agency to conduct a postevaluation, by completing a postevaluation form, of each consulting services contract totaling $5,000 or more that it executes. Existing law requires the state agency to evaluate the performance of the contractor in doing the work or delivering the services for which the contract was awarded, including evaluating any cost overruns or delayed completions.

 This bill would amend the State Contract Act to require an awarding department department, as specified, to conduct a postevaluation similar to the one described above for each contract for a public work the acquisition of information technology services totaling $5,000 or more awarded under the act. more. The bill would require a department to base a postevaluation on objective facts and support them with program and contract performance data. The bill would require the Department of General Services to develop, and each awarding department to use, a standard form that contains postevaluation factors and ratings. The bill would require the ratings to designate a contractors work as either satisfactory or unsatisfactory. The bill would require a public official who signs a postevaluation to certify its accuracy under penalty of perjury, thereby imposing a state-mandated local program by expanding the crime of perjury. The bill would require a solicitation or contract under the act for the acquisition of information technology services to notify a contractor that their performance will be evaluated and that the postevaluation may be a public record. Under the bill, a postevaluation would be made public only if a contractor receives 2 or more negative postevaluations in a 3-year period. The bill would authorize a contractor to comment on a negative postevaluation. The bill would authorize the Director of General Services to waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

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.

## Digest Key

## Bill Text

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.SECTION 1. Section 12102.3 is added to the Public Contract Code, to read:12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.SEC. 2.Section 10226 of the Public Contract Code is amended to read:10226.Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a project may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SEC. 2. Section 12112.1 is added to the Public Contract Code, to read:12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 10111.1 12102.3 of the Public Contract Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To protect the interest of contractor privacy, it is necessary that a postevaluation pursuant to Section 10111.1 12102.3 of the Public Contract Code be made public only after a contractor receives two or more negative evaluations in a three-year period. To protect the interest of safety, it is necessary that the Director of General Services have the authority to waive public access to a postevaluation if the director of an awarding department under the State Contract Act determines public access to postevaluations may dissuade qualified bidders from bidding and thereby create safety concerns. SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

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

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





SECTION 1. Section 12102.3 is added to the Public Contract Code, to read:12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.

SECTION 1. Section 12102.3 is added to the Public Contract Code, to read:

### SECTION 1.

12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.

12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.

12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.(2) Whether the contracted work met the quality standards specified in the contract.(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.(4) Factors outside the control of the contractor that caused difficulties in contractor performance.(5) Other information the department may require.(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).(d) The postevaluation shall be prepared within 60 days of the completion of the contract.(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. (g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.(h) For purposes of this section, department means the following:(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.



12102.3. (a) The department shall conduct a postevaluation of each contract for a public work the acquisition of information technology services totaling five thousand dollars ($5,000) or more that it executes.

(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of General Services shall develop, and each department shall use, a standard form that contains postevaluation factors and ratings. The ratings shall designate a contractors work as either satisfactory or unsatisfactory. A public official who signs a postevaluation shall certify its accuracy under penalty of perjury. The department shall report on all of the following:

(1) Whether the contracted work was completed as specified in the contract, and reasons for and amount of any cost overruns or delayed completions.

(2) Whether the contracted work met the quality standards specified in the contract.

(3) Whether the contractor fulfilled all the requirements of the contract and if not, in what ways the contractor did not fulfill the contract.

(4) Factors outside the control of the contractor that caused difficulties in contractor performance.

(5) Other information the department may require.

(c) If the contractors performance was judged unsatisfactory on any of the factors specified in subdivision (b) and was not mitigated by circumstances specified in paragraph (4) of subdivision (b), the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).

(d) The postevaluation shall be prepared within 60 days of the completion of the contract.

(e) Postevaluations shall remain on file at the offices of the awarding department for a period of 36 months following contract completion. If the contractor did not satisfactorily perform the work specified in the contract, the department conducting the postevaluation shall place one copy of the postevaluation form in the departments contract file and, if the department is not the Department of General Services, send one copy of the form to the Department of General Services within five working days of the completion of the postevaluation.

(f) Upon filing an unsatisfactory postevaluation or sending a copy to the Department of General Services, the department shall notify and send a copy of the postevaluation to the contractor within 15 days. 

(g) (1) A solicitation or contract under this chapter for the acquisition of information technology services shall notify a contractor that their performance will be evaluated and that the postevaluation may be a public record subject to paragraph (2).

(2) A postevaluation shall be made public only if a contractor receives two or more negative postevaluations in a three-year period.

(3) A contractor may comment on a negative postevaluation. Comments pursuant to this paragraph shall be included in a postevaluation made public pursuant to this subdivision.

(4) The Director of General Services may waive the requirement that a postevaluation be made public if the director of the awarding department determines this will dissuade qualified bidders from bidding and thereby create safety concerns.

(h) For purposes of this section, department means the following:

(1) The Department of Technology when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.

(2) The Department of General Services when the contract for the acquisition of information technology services is required to be made by or under the supervision of the department pursuant to Section 12100.

(3) Any other agency with the authority to contract for the acquisition of information technology services when that authority has been delegated to the agency pursuant to paragraph (1) of subdivision (e) of Section 12102.2 or subdivision (b) of Section 11546 of the Government Code.





Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a project may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.



SEC. 2. Section 12112.1 is added to the Public Contract Code, to read:12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.

SEC. 2. Section 12112.1 is added to the Public Contract Code, to read:

### SEC. 2.

12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.

12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.

12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.



12112.1. Every contract for the acquisition of information technology services shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for the acquisition of information technology services may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time and for completion within the contract price, the provision, if used, to be included in the specifications and to clearly set forth the basis for the payment.

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 10111.1 12102.3 of the Public Contract Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To protect the interest of contractor privacy, it is necessary that a postevaluation pursuant to Section 10111.1 12102.3 of the Public Contract Code be made public only after a contractor receives two or more negative evaluations in a three-year period. To protect the interest of safety, it is necessary that the Director of General Services have the authority to waive public access to a postevaluation if the director of an awarding department under the State Contract Act determines public access to postevaluations may dissuade qualified bidders from bidding and thereby create safety concerns. 

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 10111.1 12102.3 of the Public Contract Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:To protect the interest of contractor privacy, it is necessary that a postevaluation pursuant to Section 10111.1 12102.3 of the Public Contract Code be made public only after a contractor receives two or more negative evaluations in a three-year period. To protect the interest of safety, it is necessary that the Director of General Services have the authority to waive public access to a postevaluation if the director of an awarding department under the State Contract Act determines public access to postevaluations may dissuade qualified bidders from bidding and thereby create safety concerns. 

SEC. 3. The Legislature finds and declares that Section 1 of this act, which adds Section 10111.1 12102.3 of the Public Contract Code, imposes a limitation on the publics right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:

### SEC. 3.

To protect the interest of contractor privacy, it is necessary that a postevaluation pursuant to Section 10111.1 12102.3 of the Public Contract Code be made public only after a contractor receives two or more negative evaluations in a three-year period. To protect the interest of safety, it is necessary that the Director of General Services have the authority to waive public access to a postevaluation if the director of an awarding department under the State Contract Act determines public access to postevaluations may dissuade qualified bidders from bidding and thereby create safety concerns. 

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

SEC. 4. No reimbursement is required by this act pursuant to Section 6 of Article XIIIB 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 XIIIB of the California Constitution.

### SEC. 4.