Competitive bidding: design-build and best value construction contracting.
The bill represents a significant shift in how local agencies can procure construction contracts, especially for projects exceeding $1,000,000. It introduces the 'best value' contracting method, where contracts can be awarded not solely based on the lowest bid but also considering factors such as quality, expertise, and management capacity. This change is intended to provide local agencies more flexibility and efficiency in project management, fostering better outcomes for construction projects, particularly in the healthcare and open-space sectors.
Senate Bill 793, which was approved in October 2017, focuses on amending the public contract procedures relating to competitive bidding and the design-build process for certain local agencies in California. Specifically, it authorizes the Peninsula Health Care District, the Midpeninsula Regional Open Space District, and the Santa Clara Valley Open-Space Authority to utilize the design-build process for construction projects, enabling them to expedite project delivery while ensuring compliance with existing laws. By allowing these entities to engage in design-build contracts, the bill aims to streamline project completion and reduce unnecessary change orders and construction defects, ultimately saving taxpayer money.
Generally, SB 793 has been viewed positively among proponents who believe that it enhances the efficiency of public contracting. Supporters argue that the design-build process encourages innovation and collaboration between designers and builders, leading to improved project results. However, some critics of the process have raised concerns regarding transparency and potential favoritism in awarding contracts, suggesting that the switch from a low-bid approach could compromise competitive pricing.
One of the notable points of contention around SB 793 revolves around the authority it grants to local agencies to bypass the traditional bidding process in favor of a more flexible framework. While proponents argue that this will lead to expedited construction timelines and cost savings, detractors see it as a potential avenue for corruption or favoritism. Additionally, the bill establishes a new crime related to the verification of information under oath for bidders, which adds another layer of complexity and debate regarding accountability within the procurement process.