Article 3. Competitive Bidding And Other Acquisition Procedures of California Public Contract Code >> Division 2. >> Part 2. >> Chapter 2. >> Article 3.
(a) A Customer and Supplier Advocate shall be established in
the department as a resource to state agencies and departments, and
suppliers seeking information regarding the state process,
procedures, and regulations for bidding on state contracts, and as a
resource to bidders seeking to file a protest on award in accordance
with this chapter. The advocate shall, at a minimum, provide the
following services to the protesting bidder:
(1) Assistance to customer departments and agencies regarding
contracting rules and regulations, and acquisition resource options.
(2) Assistance to the bidder in assessing the validity of the
bidder's proposed grounds of filing the protest in accordance with
the terms of the solicitation, as well as statutory or regulatory
guidelines governing the solicitation in question.
(3) Provision of information to the protesting bidder regarding
avenues and options available to the bidder to proceed with a formal
protest of the award.
(b) The advocate shall make services, as specified in this
section, available on a timely basis to the protesting bidder.
(c) Notification to bidders regarding the availability of services
by the advocate shall be included in the solicitation. This
notification shall also outline procedures and timelines for bidders
who may wish to engage the services of the advocate.
Except in cases when the agency and the department agree
that an article of a specified brand or trade name is the only
article that will properly meet the needs of the agency, or in cases
where the State Board of Control has made a determination pursuant to
Section 10308, all contracts for the acquisition or lease of goods
in an amount of twenty-five thousand dollars ($25,000), or a higher
amount as established by the director, shall be made or entered into
with the lowest responsible bidder meeting specifications.
For purposes of determining the lowest bid, the amount of sales
tax shall be excluded from the total amount of the bid.
(a) Except in cases of emergency where immediate purchase of
goods without bid is necessary for the protection of the public
health, welfare, or safety, whenever the department contracts for
goods in excess of twenty-five thousand dollars ($25,000), or a
higher amount as established by the director, the department shall
advertise in the California State Contracts Register the availability
of its solicitation, and interested suppliers, upon request, shall
be furnished with copies of the solicitation. In addition to
advertising in the California State Contracts Register, the
department shall post in a public place a copy of the solicitation,
which shall remain posted until seven days after an award has been
made. Whenever a contract in excess of twenty-five thousand dollars
($25,000), or a higher amount as established by the director, is made
pursuant to this section or Section 10301 without the taking of
bids, the department shall prepare a written document stating the
fact of the contract together with the facts requiring the contract
of the goods without the taking of bids. This document shall be
maintained by the department and shall be available as a public
(b) (1) Every solicitation shall contain the following statement:
"It is unlawful for any person engaged in business within this
state to sell or use any article or product as a "loss leader" as
defined in Section 17030 of the Business and Professions Code."
(2) On and after March 31, 2010, and until December 31, 2011, if a
solicitation does not contain the statement required by paragraph
(1), the awarding agency shall report this error to the department
within 30 days of the date the awarding agency discovers this error.
(3) The department shall post in the State Contracting Manual
instructions for including the statement required by paragraph (1) in
all affected contracts.
(4) The statement required by paragraph (1) shall be deemed to be
part of a solicitation even if the statement is inadvertently omitted
from the solicitation.
All product specifications that the department or any
other state agency prepares for goods for any contract entered into
by any state agency for the acquisition of goods under Section 10295
are not subject to the review and adoption procedure under Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code.
Product specifications as prepared by the department or
any other state agency shall not be written with the intent of
excluding goods manufactured, produced, grown, or otherwise
originating in California.
The department shall adopt, publish and apply uniform
standards of rating bidders, on the basis of questionnaires and
required statements, with respect to contracts upon which each bidder
is qualified to bid. The department may adopt and publish lists of
qualified bidders. No list so adopted and published shall preclude a
qualified bidder not on the list from submitting a bid or bids and
from being awarded a contract or contracts as the successful bidder.
The department may remove a bidder who has demonstrated a lack of
reliability in complying with and completing previously awarded
contracts with the state, based upon his or her performance on
contracts previously been awarded by the state. The department may
remove the bidder from any list of qualified bidders prepared by the
department for a period of not less than six months but not to exceed
Any bidder temporarily removed under this section shall be
returned to the list of qualified bidders at any time after the
initial six months, upon demonstrating to the department's
satisfaction that the problems that resulted in the bidder's
previously demonstrated unreliability in complying with and
completing state contracts have been corrected.
All bids shall be sealed and shall be publicly opened and
read at the time set forth in the solicitation, provided any person
present desires the bids to be so read. No bids shall be considered
which have not been received in the office of the department prior to
the closing time for bids set forth in the invitations to bids. The
department shall maintain confidentiality regarding each bid until
the public opening and reading takes place.
Notwithstanding Sections 10301, 10302, and 10304, the
Department of Water Resources may award contracts for the acquisition
of specialized equipment for facilities of the State Water Resources
Development System, as defined in Section 12931 of the Water Code.
Prior to exercising the authority granted by this section, the
Department of Water Resources, in collaboration with the department,
shall establish the conditions under which any contract in excess of
twenty-five thousand dollars ($25,000) is awarded without the
competitive bidding process. The conditions shall be developed to
expedite operations and maintenance work to reduce the risk of the
loss of water or power to the State Water Resources Development
System, and shall require the Department of Water Resources to
prepare a written document declaring that the contract meets those
conditions. Consistent with its authority under Section 10297, the
department shall review those contracts for consistency with the
conditions established pursuant to this section.
After being opened the bids shall be available for public
inspection and tabulations shall be completed within seven days.
Whenever a contract or purchase order under this article is
not to be awarded to the lowest bidder, the bidder shall be notified
24 hours prior to awarding the contract or purchase order to another
bidder. Upon written request by any bidder who has submitted a bid,
notice of the proposed award shall be posted in a public place in the
offices of the department at least 24 hours prior to awarding the
contract or purchase order. If prior to making the award, any bidder
who has submitted a bid files a protest with the department against
the awarding of the contract or purchase order on the ground that he
or she is the lowest responsible bidder meeting specifications, the
contract or purchase order shall not be awarded until either the
protest has been withdrawn or the State Board of Control has made a
final decision as to the action to be taken relative to the protest.
In computing the 24-hour periods provided for in this section,
Saturdays, Sundays, and legal holidays shall be excluded.
Within 10 days after filing a protest, the protesting bidder shall
file with the State Board of Control a full and complete written
statement specifying in detail the ground of the protest and the
facts in support thereof.
The director shall establish statewide acquisition
standards, the purpose of which shall be to ensure the necessary
quality of goods acquired by or under the supervision of the
department and to permit the consolidation of acquisitions in order
to effect greater economies in state contracting.
Except as provided otherwise in this chapter, every
acquisition of goods in excess of one hundred dollars ($100) for any
state agency shall be made by or under the supervision of the
department. However, the state agency may specify the quality of the
goods to be acquired. If the department determines that the quality
specified by the agency is inconsistent with the statewide standards
established by the director under Section 10307, it shall change the
request to make it consistent with the standards, and it shall notify
the state agency, within a reasonable time, before a contract is
issued. If the agency is of the opinion the interests of the state
would not be served by the acquisition of goods of a lesser quality
or different than that specified by the agency, the agency may
request a hearing before the State Board of Control and the board
shall determine which goods will best serve the interests of the
state, whereupon the department shall issue a contract for the goods
specified by the State Board of Control.
Except as provided in Sections 10332 and 10333, no state
agency may acquire goods in the open market, unless permission has
been given by the department, upon a showing of the necessity
Upon the request of the department, every state agency that
is authorized by law to acquire goods shall designate some person in
the agency whose duty it shall be to make reports to the department
at times and in a manner as it may require.
(a) An estimate or requisition approved by the state agency
in control of the appropriation or fund against which an acquisition
is to be charged, is full authority for any contract for goods of the
quality specified by the agency or determined by the State Board of
Control as provided in this article made pursuant thereto by the
(b) The department shall issue a call for bids within 30 days
after receiving a requisition for any goods that are regularly
acquired within this state. The period of closing time designated in
the invitations for bids shall be exclusive of holidays and shall be
extended to the next working day after a holiday.
(c) Except as provided in subdivision (d), after the closing date
for receiving any bids within or without this state, the contract
shall be awarded or the bids shall be rejected within 45 days unless
a protest is filed as provided in Section 10306.
(d) After the 45-day time period prescribed by subdivision (c),
the department may in its sound discretion either award the contract
to the lowest responsible bidder meeting specifications who remains
willing to accept the award or else reject all bids.
(e) The amendments made to this section at the 1987-88 Regular
Session of the Legislature do not constitute a change in, but are
declaratory of, existing law.
Immediately upon the rendition of services or the delivery
of goods, the disbursing officer shall transmit the invoice or demand
for payment together with his or her sworn statement to the
Controller. The sworn statement shall show that the services have
been rendered and the goods delivered to the state agency in
accordance with the contract and law.
The director may make the services of the department under
this article available, upon those terms and conditions as he or she
may deem satisfactory, to any tax-supported public agency in the
state, including a school district.
Any contract for goods to be manufactured by the contractor
specially for the state and not suitable for sale to others in the
ordinary course of the contractor's business may provide, on such
terms and conditions as the department deems necessary to protect the
state's interests, for progress payments for work performed and
costs incurred at the contractor's shop or plant, provided that not
less than 10 percent of the contract price is required to be withheld
until final delivery and acceptance of the goods, and provided
further, that the contractor is required to submit a faithful
performance bond, acceptable to the department, in a sum not less
than one-half of the total amount payable under the contract securing
the faithful performance of the contract by the contractor.
The department may rent, lease, construct, and maintain
warehouses and make the rules and regulations that are necessary for
the proper and economical making of state acquisitions.
The department may insure in the name of the state any goods
or merchandise belonging to the state which are stored in any
warehouse or storage depot not under exclusive state control, in an
amount sufficient to indemnify the state against loss or damage by
fire. Premiums for such insurance shall be paid out of the Service
Revolving Fund and prorated and added to the price of the goods or
Each person in the department who has personal supervision
and control of any warehouse or storage depot wherein merchandise or
goods belonging to the state are stored, shall execute to the people
of the state a bond in the penal sum of five thousand dollars
($5,000). Premiums on the bonds shall be paid by the state as are the
premiums upon the bonds of state officers.
No state agency or employee thereof shall draft or cause to
be drafted, any specifications for bids, in connection with the
acquisition or contemplated acquisition of any goods or textbooks for
use in the day and evening elementary schools of the state, in such
a manner as to limit the bidding directly or indirectly, to any one
Bidders may be required to furnish a bond or other indemnification
to the state against claims or liability for patent infringement.
To meet an emergency, goods of a perishable nature, in an
amount not exceeding one hundred dollars ($100) in value, may be
acquired by a state agency without the permission of the department.
(a) Commencing January 1, 1992, all state agencies subject
to this chapter that enter into installment purchase or
lease-purchase contracts shall make periodic payments, which shall
include interest computed from a date no later than the acceptance
date of the goods purchased pursuant to the contract. However, if the
contract requires an acceptance test, interest shall be computed
from a date no later than the first day of the successful acceptance
test period. Unless otherwise provided for in the contract, periodic
payments shall commence upon acceptance of the goods or, if the
contract requires an acceptance test, as of the first day of the
successful acceptance test period. Late charges shall accrue for any
periodic payment not made to the contractor or its assigns from
either the payment date provided in the contract or 60 days following
the receipt of a valid invoice for the periodic payment, whichever
is later. However, in the event any invoice is received prior to the
acceptance date, the receipt date of the invoice shall be construed
to be the acceptance date. Late charges under this section shall be
assessed using the interest rate as specified in Section 927.6 of the
(b) The department is authorized to refinance installment purchase
contracts when, in the determination of the department, it is
financially beneficial to the state to do so.
Any person who supplies any state agency with livestock
products derived from any of the animals enumerated in Section 19501
of the Food and Agricultural Code shall file with the department a
sworn statement that the animals were slaughtered by methods defined
in that section and in Sections 19502 and 19503 of the Food and
To assist the department and other state agencies in the
enforcement of the provisions of Section 19501 of the Food and
Agricultural Code, the Department of Food and Agriculture shall
provide, through cooperation with the United States Department of
Agriculture in the enforcement of Public Law 85-765 and by means of
appropriate regulations, suitable methods of identifying the
carcasses of animals inspected and passed under Chapter 4 (commencing
with Section 18651) of Part 3 of Division 9 of the Food and
Agricultural Code that have been slaughtered by methods prescribed by
Sections 19501, 19502, and 19503 of that code.
Each quarter, the department shall, upon request, provide
each city, county, city and county, district, local government body,
or public corporation empowered to expend public funds for the
acquisition of consumable goods and other interested parties with a
list of those items available for acquisition under Section 10324.
The department may supplement the quarterly lists with a monthly
supplement of changes, additions and deletions. Terms, conditions,
and specifications shall be provided upon request.
In establishing bid specifications for the acquisition of
motor vehicles and in determining the lowest responsible bidder,
consideration may be given by the state to the probable resale value
of the vehicles as determined by recognized published used car
marketing guides and other established historical evidence of future
used motor vehicle value or, in lieu thereof, by contractual
guarantee of the apparent low bidder that the resale value of the
vehicle will be no less in proportion to bid price than any other
comparable vehicle complying with specifications for which a bid was
(a) A campus or a facility of a California Community
College or a campus or a facility of the California State University,
that owns, leases, or otherwise has possession or control of a
15-passenger van, may not, on or after January 1, 2005, authorize the
operation of that van for the purpose of transporting passengers
unless the person driving or otherwise operating that van has both of
(1) A valid class B driver's license, as provided in Division 6
(commencing with Section 12500) of the Vehicle Code, issued by the
Department of Motor Vehicles.
(2) An endorsement for operating a passenger transportation
vehicle, as provided in Article 6 (commencing with Section 15275) of
Chapter 7 of Division 6 of the Vehicle Code, issued by the Department
of Motor Vehicles.
(b) (1) Except as provided in paragraph (2), for purposes of this
section, a "15-passenger van" means any van manufactured to
accommodate 15 passengers, including the driver, regardless of
whether that van has been altered to accommodate fewer than 15
(2) For purposes of this section, a "15-passenger van" does not
mean a 15-passenger van with dual rear wheels that has a gross weight
rating equal to, or greater than, 11,500 pounds.
(c) The Legislature recommends that the Regents of the University
of California adopt rules and regulations similar to the provisions
contained in this section.
(a) As used in this section, "best value procurement"
means a contract award determined by objective criteria related to
price, features, functions, and life-cycle costs that may include the
(1) Total cost of ownership, including warranty, under which all
repair costs are borne solely by the warranty provider, repair costs,
maintenance costs, fuel consumption, and salvage value.
(2) Product performance, productivity, and safety standards.
(3) The supplier's ability to perform to the contract
(4) Environmental benefits, including reduction of greenhouse gas
emissions, reduction of air pollutant emissions, or reduction of
toxic or hazardous materials.
(b) The department may purchase and equip heavy mobile fleet
vehicles and special equipment for use by the Department of
Transportation by means of best value procurement, using
specifications and criteria developed in consultation with the
Department of Transportation.
(c) In addition to disclosure of the minimum requirements for
qualification, the solicitation document shall specify what business
performance measures in addition to price shall be given a weighted
value. The department shall use a scoring method based on those
factors and price in determining the successful bid. Any evaluation
and scoring method shall ensure substantial weight is given to the
contract price. The solicitation document shall provide for
submission of sealed price information. Evaluation of all criteria
other than price shall be completed before the opening of price
(d) Upon written request of any bidder who has submitted a bid,
notice of the proposed award shall be posted in a public place in the
offices of the department at least 24 hours before awarding the
contract or purchase order. If, before making an award, any bidder
who has submitted a bid files a protest with the department against
the awarding of the contract or purchase order on the ground that his
or her bid should have been selected in accordance with the
selection criteria in the solicitation document, the contract or
purchase order shall not be awarded until either the protest has been
withdrawn or the California Victim Compensation and Government
Claims Board has made a final decision as to the action to be taken
relative to the protest. Within 10 days after filing a protest, the
protesting bidder shall file with the California Victim Compensation
and Government Claims Board a full and complete written statement
specifying in detail the ground of the protest and the facts in
(e) The total value of vehicles and equipment purchased through
best value procurement pursuant to this section shall be limited to
twenty million dollars ($20,000,000) annually.
(f) On or before June 1, 2020, the Department of General Services
shall prepare an evaluation of the best value procurement pilot
authorized by this section, including a recommendation on whether or
not the process should be continued. The evaluation shall be posted
on the Department of Transportation's Internet Web site on or before
June 30, 2020.
(g) This section shall remain in effect only until January 1,
2021, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2021, deletes or extends
Except for motor vehicles described in Section 43805 of the
Health and Safety Code, the provisions of Article 1 (commencing with
Section 43800) of Chapter 4 of Part 5 of Division 26 of the Health
and Safety Code shall govern the acquisition of all motor vehicles by
the state to the extent that the department determines that these
low-emission vehicles are reasonable to meet state needs pursuant to
Section 43804 of the Health and Safety Code.
The bid requirements prescribed in this article are not
applicable to contracts for the acquisition of the following:
(a) Fluid milk and fluid cream, the price of which is established
in accordance with Section 61871 of the Food and Agricultural Code.
(b) Fruits and vegetables procured under contract with growers for
the use of canneries maintained and operated by state agencies, if
these canneries are maintained and operated so that their canned
products will meet the standards prescribed for similar commercially
packed canned products under federal law.
(c) Agricultural surpluses that are available to the state or its
agencies by any governmental agency.
No person shall willfully split a single transaction into a
series of transactions for the purpose of evading the bidding
requirements of this article.
On July 1 of each year, the department shall establish the
minimum dollar level below which authority to acquire goods shall be
delegated to state agencies that meet the requirements of Section
10333. The level established at eight hundred dollars ($800) on
January 1, 1983, and adjusted on July 1, 1983, pursuant to former
Section 14792.1 of the Government Code, shall be retained and
adjusted each July 1 thereafter to reflect, at a minimum, the
percentage change from April 1 of the prior year to April 1 of the
current year in the California Consumer Price Index for all items, as
determined by the California Department of Industrial Relations.
The department shall establish a program for delegating
authority to acquire goods to state agencies that meet the
requirements of Section 10333. Each delegation shall be subject to
annual review by the department. Delegated authority may be withdrawn
at any time the department finds that the state agency to which
authority has been delegated is not in compliance with the
requirements of Section 10333.
Any state agency that receives delegated authority to
acquire goods shall be authorized, at a minimum, to make the
following types of acquisitions:
(a) Acquisitions not exceeding the dollar value established
pursuant to Section 10330.
(b) Acquisitions in any amount of goods available under an
unexpired statewide or regional contract. Acquisitions of goods for
which a valid statewide or regional contract is in effect may not be
made, without the approval of the office, from a supplier other than
the supplier with whom the state has a valid contract.
(c) Acquisitions in any amount of goods that state agencies are
required, by Section 2807 of the Penal Code, to acquire from the
Prison Industry Authority.
(d) Acquisitions not exceeding the dollar amount, established
pursuant to Section 10330, of goods designated in price schedules
that the office has established with suppliers. Acquisitions not
exceeding the dollar amount, established pursuant to Section 10330,
of goods designated in price schedules may be made from a supplier
other than the supplier specified on a price schedule if another
supplier offers the same or equivalent goods at a price lower than
the price established in the price schedule. The agency shall notify
the office prior to making the acquisition. The acquisition may be
made 48 hours after receipt of the notice by the office unless the
office advises the agency that the goods to be acquired are not the
same or equivalent to the goods specified on a price schedule.
(e) Acquisitions not exceeding the dollar value, established
pursuant to Section 10330, of goods that are available from the state
warehouses but which the state agency can acquire from another
supplier at a price lower than the price charged by the department.
The agency shall notify the office prior to making the acquisition.
The acquisition may be made 48 hours after receipt of the notice by
the office unless the office advises the agency that the goods to be
acquired are not the same or equivalent to the goods available from
the state warehouses.
(a) The department shall delegate purchasing authority, as
specified in Section 10332, to any state agency that does all of the
(1) Designates an agency officer as responsible and directly
accountable for the agency's purchasing program.
(2) Establishes written policies and procedures, including
procedures for ensuring and documenting competitive purchasing,
complying with purchasing standards established pursuant to Section
10307, inspecting acquired products for compliance with
specifications, reporting contractor failures to deliver products as
specified in contracts, ensuring that agency contracting personnel
are free from conflict of interest, and complying with other
provisions of law as the department may require.
(3) Establishes procedures for complying with the provisions of
the Small Business Procurement and Contract Act. The procedures shall
include procedures for meeting the goals for the extent of
participation of small businesses in state contracting as established
by the department pursuant to subdivision (a) of Section 14838 of
the Government Code.
(4) Establishes policies for training personnel in purchasing law
and procedures, controlling and reviewing purchasing practices,
auditing purchasing activities, and delegating purchasing authority
within the agency.
(5) Reports the data to the office that the department may
(b) The department shall conduct an audit of each state agency to
which purchasing authority has been delegated at least once in each
three-year period. The authority to acquire goods may be withdrawn by
the department at any time that the department finds that the state
agency to which authority has been delegated is not in compliance
with the requirements of this section.
(a) No state employee shall acquire any goods from the
state, unless the goods are offered to the general public in the
regular course of the state's business on the same terms and
conditions as those applicable to the employee. "State employee," as
used in this section, means any employee of the state included within
Section 82009 of the Government Code, and all officers and employees
included within Section 4 of Article VII of the California
Constitution, except those persons excluded from the definition of
"designated employee" under the last paragraph of Section 82019 of
the Government Code.
(b) Notwithstanding subdivision (a), any peace officer as defined
in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of
the Penal Code, employed by the State of California for a period of
more than 120 months who has been duly retired through a service
retirement or a peace officer retiring from a job-incurred disability
not related to a mental or emotional disorder and who has been
granted the legal right to carry a concealed firearm pursuant to
Article 2 (commencing with Section 25450) of Chapter 2 of Division 5
of Title 4 of Part 6 of the Penal Code may be authorized by the
person's department head to purchase his or her state-issued handgun.
Disability retired peace officers need not meet the 120-month
employment requirement. The cost of the handgun shall be the fair
market value as listed in the annual Blue Book of Gun Values or
replacement cost, whichever is less, of the handgun issued as
determined by the appointing power, plus a charge for the cost of
handling. The retiring officer shall request to purchase his or her
handgun in writing to the department within 30 calendar days of his
or her retirement date.
(c) Notwithstanding subdivision (a), any peace officer described
in Chapter 4.5 (commencing with Section 830) of Title 3 of Part 2 of
the Penal Code employed by the State of California who is authorized
to carry firearms may purchase his or her state-issued service
firearm if the person's department head directs the department to
change its state-issued service weapon system. The cost of the
service firearm shall be the fair market value as listed in the
annual Blue Book of Gun Values or replacement cost, whichever is
less, of the firearm issued as determined by the department head,
plus a charge for the cost of handling. The requesting officer shall
request to purchase his or her firearm in writing to the department
within 10 calendar days of receiving the new state-issued weapon.
(d) Notwithstanding subdivision (a), the spouse or domestic
partner of a peace officer as defined in Chapter 4.5 (commencing with
Section 830) of Title 3 of Part 2 of the Penal Code who was employed
by the State of California and who died in the line of duty, may be
authorized by his or her spouse's or domestic partner's department
head to purchase his or her state-issued handgun. The cost of the
handgun shall be the fair market value of the handgun as listed in
the annual Blue Book of Gun Values or replacement cost, whichever is
less, as determined by the appointing power, plus a charge for the
cost of handling. The spouse or domestic partner shall request to
purchase the handgun in writing to the department within 30 calendar
days of his or her spouse's or domestic partner's death. A sale of a
firearm pursuant to this subdivision shall be made pursuant to
Chapter 5 (commencing with Section 28050) of Division 6 of Title 4 of
Part 6 of the Penal Code, as required by Section 27545 of the Penal