Article 2. Materials, Goods, And Services of California Public Contract Code >> Division 2. >> Part 2. >> Chapter 2.1. >> Article 2.
It is the intent of the Legislature to encourage the
procurement of recycled paper products by the University of
California by developing guidelines to encourage the procurement of
recycled paper products where suitable for the uses intended and
where the quality is equal and the price is equal or less than
nonrecycled paper products. It is also the intent of the Legislature
that the regents report annually to the Legislature, the Governor,
and the California Integrated Waste Management Board commencing
January 1, 1991, on the percentage of the total dollar amount of
recycled paper products purchased or procured under this article.
Except as provided for in this article, the Regents of the
University of California shall let all contracts involving an
expenditure of more than one hundred thousand dollars ($100,000)
annually for goods and materials to be sold to the University of
California to the lowest responsible bidder meeting specifications,
or else reject all bids. Contracts for services to be performed,
other than personal or professional services, involving an
expenditure of one hundred thousand dollars ($100,000) or more
annually shall be made or entered into with the lowest responsible
bidder meeting specifications, or else all bids shall be rejected. If
the regents deem it to be for the best interest of the university,
the regents may, on the refusal or failure of the successful bidder
for materials, goods, or services to execute a tendered contract,
award it to the second lowest responsible bidder meeting
specifications. If the second lowest responsible bidder fails or
refuses to execute the contract, the regents may likewise award it to
the third lowest responsible bidder meeting specifications.
(a) As provided for in this article, when the University
of California determines that it can expect long-term savings through
the use of life-cycle cost methodology, the use of more sustainable
goods and materials, and reduced administrative costs, the lowest
responsible bidder may be selected on the basis of the best value to
the university. In order to implement this method of selection, the
Regents of the University of California shall adopt and publish
policies and guidelines for evaluating bidders that ensure that best
value selections by the university are conducted in a fair and
impartial manner. These policies and guidelines shall conform to the
requirements of subdivisions (c) and (d) and shall be applicable to
the university when using best value as the bid evaluation
(b) For the purposes of this section, the following definitions
(1) "Best value" means the most advantageous balance of price,
quality, service, performance, and other elements, as defined by the
university, achieved through methods in accordance with this section
and determined by objective performance criteria that may include
price, features, long-term functionality, life-cycle costs, overall
sustainability, and required services.
(2) "Best value agreement" means an agreement entered into
pursuant to the provisions of this section.
(3) "Best value awardee" means the lowest responsible bidder or
bidders that are awarded an agreement for goods, materials, or
services that was awarded through the use of best value for the bid
(4) "Best value criteria" means those criteria set forth in
(5) "University" means all current campuses and locations of the
University of California, including the medical centers, the national
laboratories, and any future University of California campuses and
(c) (1) The university shall consider all of the following when
adopting policies and guidelines pursuant to subdivision (a):
(A) Price and service proposals that reduce the university's
overall operating costs.
(B) Supply and material standards that support the university's
strategic sourcing initiatives.
(C) A procedure for bid protest and resolution.
(2) The university shall award a best value agreement as follows:
(A) The university shall evaluate bidders based solely upon the
best value criteria set forth in the solicitation documents.
Solicitation for bids shall describe the best value criteria that the
university will consider in evaluating the bidders by overall
category and by specific attributes.
(B) The university shall award the agreement to the lowest
responsible bidder or bidders whose bid or bids are determined by the
university to be the best value in terms of price, quality, service,
and performance, and that meet the university's requirements.
(C) Bid participants that are not awarded a best value agreement
shall be notified in writing at the end of the agreement award
(d) For the purposes of this section, the university may take into
consideration any of the following best value criteria when awarding
a best value agreement for goods, materials, and services:
(1) The total cost to the university of its use or consumption of
goods, materials, and services.
(2) The operational cost or benefit incurred by the university as
a result of a contract award.
(3) The added value to the university, as defined in the request
for proposal, of vendor-added services.
(4) The quality and effectiveness of goods, materials, and
(5) The use of more sustainable goods and materials in the
manufacturing of the goods and materials and the packaging of these
(6) The reliability and timeliness of delivery and installation.
(7) The terms and conditions of product warranties, maintenance,
and vendor guarantees.
(8) The vendor's quality assurance, continuous improvement, and
business resumption programs and their benefit to the university.
(9) The vendor's experience with the timely provision of goods,
materials, and services.
(10) The consistency of quality and availability of the vendor's
proposed supplies, materials, and services with the university's
overall procurement program.
(11) The economic benefits to the local community, including, but
not limited to, job creation or retention and the support of small
and local businesses.
(e) The university shall ensure that all businesses have a fair
and equitable opportunity to compete for, and participate in, the
university best value bids and shall also ensure that discrimination
in the award and performance of the agreement does not occur on the
basis of gender, marital status, ancestry, medical condition, or any
characteristic listed or defined in Section 11135 of the Government
Code, or retaliation for having filed a discrimination complaint or
protest in the performance of university contractual obligations.
(f) (1) On or before July 1, 2016, the University of California
shall provide the Legislative Analyst's Office with a list of the
policies and procedures adopted pursuant to subdivision (a). In
addition, the university shall also collect and provide the following
information to the Legislative Analyst's Office for each contract
involving an expenditure of more than one hundred thousand dollars
($100,000) for goods, materials, or services that was entered into on
or after the effective date of this section:
(A) Whether the contract was awarded to the lowest responsible
bidder or using best value.
(B) A description of the products, commodities, or services as
defined in the bid solicitation.
(C) The names of the awardee or awardees of the agreement or
(D) The actual volume resulting from the agreements, or estimated
volume if the agreements are less than one year old, of all
(E) A description of any written bid protest or protests
concerning an aspect of the solicitation, bid, or award of the
agreement, including the resolution of the protest.
(F) For each contract awarded using best value, the criteria used
to evaluate the bids, as well as a summary of the rationale for
awarding the contract.
(G) For each contract awarded using best value, a summary of any
additional economic benefit other than the price of the contract,
including an explanation of whether those benefits were realized as
(H) For each contract awarded using best value, the university
shall identify one or more comparable contracts awarded using the
traditional lowest responsible bidder method, including, but not
limited to, contracts awarded prior to the adoption of the best value
(2) On or before February 1, 2017, the Legislative Analyst shall
report to the Legislature on the use of best value procurement by the
University of California. The Legislative Analyst shall use the
information provided by the university to report all of the
(A) An assessment of any benefits or disadvantages of best value
acquisition as compared to bids awarded to the lowest responsible
(B) An assessment of whether the use of best value procurement has
led to a difference in the number of disputes as compared to
contracts awarded using the traditional lowest responsible bidder
(C) An assessment of the policies adopted by the university
pursuant to subdivision (a), as well as an assessment of the
performance criteria used by the university to evaluate the bids and
the effectiveness of the methodology.
(D) A comparison of the overall cost of contracts let under best
value acquisition pursuant to this section to similar contracts let
under traditional low bid procurement practices.
(E) Recommendations as to whether the best value at lowest cost
acquisition procurement authority should be continued.
(g) This section applies solely to the procurement of goods,
materials, or services and shall not apply to construction contracts.
(h) This section shall remain in effect only until January 1,
2018, and as of that date is repealed.
(i) Except as otherwise provided in this article, this article is
not intended to change in any manner any guideline, criteria,
procedure, or requirement of the Regents of the University of
California to let any contract for goods, materials, or services to
the lowest responsible bidder meeting certain specifications or to
reject all bids.
The requirements of this article shall not be applicable
when the regents determine that a brand or trade name article, thing,
or product or proprietary service is the only one which will
properly meet the needs of the University of California because the
item or service is unique, available only from a sole source, or is
designated to match others, used in, or furnished to, a particular
installation, facility, or location. Contracts for unique products or
services, or personal or professional services, shall not be made
unless the regents determine that the proposed price therefor is
(a) Notwithstanding any other law, including, but not
limited to, the advertising, bidding, and protest provisions of
Chapter 2.1 (commencing with Section 10500), the University of
California may award a contract for the acquisition of goods,
services, or information technology that has an estimated value of
greater than one hundred thousand dollars ($100,000), but less than
two hundred fifty thousand dollars ($250,000), to a certified small
business, including a microbusiness, or to a disabled veteran
business enterprise, if the University of California obtains price
quotations from two or more certified small businesses, including
microbusinesses, or from two or more disabled veteran business
(b) In carrying out subdivision (a), the University of California
shall consider a responsive offer timely received from a responsible
certified small business, including a microbusiness, or from a
disabled veteran business enterprise.
(c) No provision of this section shall apply to the University of
California except to the extent that the Regents of the University of
California, by appropriate resolution, make that provision
The Regents of the University of California shall prescribe
methods of procurement for goods, materials, and services to be
(a) Requirements for public advertisement where feasible and
practicable or for solicitation from at least three sources in other
(b) Bidder prequalification and evaluation standards.
(c) Guidelines for negotiating contracts for unique products or
(d) Procedures for solicitation of vendor and service contractor
(e) Dissemination of award information.
(f) Such other matters as may encourage the receipt of the most
favorable price and conditions of purchase by the university.
The requirements of this article shall not be applicable to
the procurement of goods, materials, or services funded exclusively
by federal agencies to the extent that the requirements of this
article are in conflict with mandatory requirements of such federal