For purposes of this chapter, the following definitions
(a) "Best value" means a value determined by objective criteria,
including, but not limited to, price, features, functions, life-cycle
costs, and other criteria deemed appropriate by the transportation
(b) "Commission" means the California Transportation Commission.
(c) "Design-build" means a procurement process in which both the
design and construction of a project are procured from a single
(d) "Design-build entity" means a partnership, corporation, or
other legal entity that is able to provide appropriately licensed
contracting, architectural, and engineering services as needed
pursuant to a design-build contract.
(e) "Design-build team" means the design-build entity itself and
the individuals and other entities identified by the design-build
entity as members of its team.
(f) "Department" means the Department of Transportation as
established under Part 5 (commencing with Section 14000) of Division
3 of Title 2 of the Government Code.
(g) "Expressway" means expressway as defined in Section 257 of the
Streets and Highways Code.
(h) "Interfacing with the state highway system" means work
performed within the state highway right-of-way, including airspace
over or under that property, or work performed upon property acquired
by the department for construction of a state highway, including
airspace over or under that property.
(i) "Regional transportation agency" means any of the following:
(1) A transportation planning agency described in Section 29532 or
29532.1 of the Government Code.
(2) A county transportation commission established under Section
130050, 130050.1, or 130050.2 of the Public Utilities Code.
(3) Any other local or regional transportation entity that is
designated by statute as a regional transportation agency.
(4) A joint exercise of powers authority established pursuant to
Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of
the Government Code, with the consent of a transportation planning
agency or a county transportation commission for the jurisdiction in
which the transportation project will be developed.
(5) A local transportation authority designated pursuant to
Division 12.5 (commencing with Section 131000) or Division 19
(commencing with Section 180000) of the Public Utilities Code.
(6) The Santa Clara Valley Transportation Authority established
pursuant to Part 12 (commencing with Section 100000) of Division 10
of the Public Utilities Code.
(j) "Transportation entity" means the department or a regional
(a) The department may utilize the design-build method of
procurement for up to 10 projects on the state highway system, based
on either best value or lowest responsible bid.
(b) A regional transportation agency may utilize the design-build
method of procurement to design and construct projects on or adjacent
to the state highway system, including related nonhighway portions
of the project, based on either best value or lowest responsible bid.
A regional transportation agency and the department shall enter into
a cooperative agreement reflecting the roles and responsibilities
assigned by law for a project on or interfacing with the state
highway system authorized under this subdivision. The cooperative
agreement shall also include the requirement to develop a mutually
agreed upon issue resolution process with a primary objective to
ensure the project stays on schedule and issues between the parties
are resolved in a timely manner.
(c) (1) A regional transportation agency may utilize the
design-build method of procurement, based on either best value or
lowest responsible bid, to design and construct projects on
expressways that are not on the state highway system if the projects
are developed in accordance with an expenditure plan approved by
voters as of January 1, 2014.
(2) The entity responsible for the maintenance of the local
streets and roads within the jurisdiction of the expressway shall be
responsible for the maintenance of the expressway.
(d) A city, county, or city and county shall not utilize the
design-build method of procurement under this chapter. A regional
transportation agency shall not utilize the design-build method of
procurement on behalf of a city, county, or city and county.
(e) The design-build authorization in subdivisions (a) and (b)
shall not include the authority to perform construction inspection
services for projects on or interfacing with the state highway
system, which shall be performed by the department consistent with
Section 91.2 of the Streets and Highway Code.
(f) (1) Not later than the first day of July that occurs two years
after a design-build contract is awarded, and each July 1 thereafter
until a project is completed, the department or the regional
transportation agency shall submit a report on the progress of the
project and compliance with this section to the legislative policy
committees having jurisdiction over transportation matters.
(2) The requirement of submitting a report imposed under paragraph
(1) is inoperative on the first day of July four years after the
first report was submitted, pursuant to Section 10231.5 of the
(3) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
The procurement process for the design-build project shall
progress as follows:
(a) A transportation entity shall prepare a set of documents
setting forth the scope and estimated price of a project. The
documents may include, but need not be limited to, the size, type,
and desired design character of the project, performance
specifications covering the quality of materials, equipment,
workmanship, preliminary plans, and any other information deemed
necessary to describe adequately the transportation entity's needs.
The performance specifications and any plans shall be prepared by a
design professional who is duly licensed and registered in
(b) Based on the documents prepared as described in subdivision
(a), the transportation entity shall prepare a request for proposals
that invites interested parties to submit competitive sealed
proposals in the manner prescribed by the transportation entity. The
request for proposals shall include, but need not be limited to, the
(1) Identification of the basic scope and needs of the project or
contract, the estimated cost of the project, the methodology that
will be used by the transportation entity to evaluate proposals,
whether the contract will be awarded on the basis of the lowest
responsible bid or on best value, and any other information deemed
necessary by the transportation entity to inform interested parties
of the contracting opportunity.
(2) Significant factors that the transportation entity reasonably
expects to consider in evaluating proposals, including, but not
limited to, cost or price and all nonprice-related factors.
(3) The relative importance or the weight assigned to each of the
factors identified in the request for proposals.
(4) For transportation entities authorized to utilize best value
as a selection method, the transportation entity reserves the right
to request proposal revisions and hold discussions and negotiations
with responsive bidders and shall so specify in the request for
proposals and shall publish separately or incorporate into the
request for proposals applicable rules and procedures to be observed
by the transportation entity to ensure that any discussions or
negotiations are conducted in good faith.
(c) Based on the documents prepared under subdivision (a), the
transportation entity shall prepare and issue a request for
qualifications in order to prequalify or short-list the design-build
entities whose proposals shall be evaluated for final selection. The
request for qualifications shall include, but need not be limited to,
the following elements:
(1) Identification of the basic scope and needs of the project or
contract, the expected cost range, the methodology that will be used
by the transportation entity to evaluate proposals, the procedure for
final selection of the design-build entity, and any other
information deemed necessary by the transportation entity to inform
interested parties of the contracting opportunity.
(2) (A) Significant factors that the transportation entity
reasonably expects to consider in evaluating qualifications,
including technical design and construction expertise, skilled labor
force availability, and all other nonprice-related factors.
(B) For purposes of subparagraph (A), skilled labor force
availability shall be determined by the existence of an agreement
with a registered apprenticeship program, approved by the California
Apprenticeship Council, that has graduated at least one apprentice in
each of the preceding five years. This graduation requirement shall
not apply to programs providing apprenticeship training for any craft
that was first deemed by the Department of Labor and the Department
of Industrial Relations to be an apprenticeable craft within the five
years prior to the effective date of this article.
(3) A standard form request for statements of qualifications
prepared by the transportation entity. In preparing the standard
form, the transportation entity may consult with the construction
industry, the building trades and surety industry, and other public
agencies interested in using the authorization provided by this
chapter. The standard form shall require information including, but
not limited to, all of the following:
(A) If the design-build entity is a partnership, limited
partnership, joint venture, or other association, a listing of all of
the partners, general partners, or association members known at the
time of statement of qualification submission who will participate in
the design-build contract.
(B) Evidence that the members of the design-build entity have
completed, or demonstrated the experience, competency, capability,
and capacity to complete projects of similar size, scope, or
complexity, and that proposed key personnel have sufficient
experience and training to competently manage and complete the design
and construction of the project, and a financial statement that
assures the transportation entity that the design-build entity has
the capacity to complete the project.
(C) The licenses, registration, and credentials required to design
and construct the project, including, but not limited to,
information on the revocation or suspension of any license,
credential, or registration.
(D) Evidence that establishes that the design-build entity has the
capacity to obtain all required payment and performance bonding,
liability insurance, and errors and omissions insurance.
(E) Information concerning workers' compensation experience
history and a worker safety program.
(F) A full disclosure regarding all of the following that are
(i) Any serious or willful violation of Part 1 (commencing with
Section 6300) of Division 5 of the Labor Code or the federal
Occupational Safety and Health Act of 1970 (Public Law 91-596),
settled against any member of the design-build entity.
(ii) Any debarment, disqualification, or removal from a federal,
state, or local government public works project.
(iii) Any instance where the design-build entity, or its owners,
officers, or managing employees submitted a bid on a public works
project and were found to be nonresponsive or were found by an
awarding body not to be a responsible bidder.
(iv) Any instance where the design-build entity, or its owners,
officers, or managing employees defaulted on a construction contract.
(v) Any violations of the Contractors' State License Law, as
described in Chapter 9 (commencing with Section 7000) of Division 3
of the Business and Professions Code, including alleged violations of
federal or state law regarding the payment of wages, benefits,
apprenticeship requirements, or personal income tax withholding, or
Federal Insurance Contribution Act (FICA) withholding requirements
settled against any member of the design-build entity.
(vi) Any bankruptcy or receivership of any member of the
design-build entity, including, but not limited to, information
concerning any work completed by a surety.
(vii) Any settled adverse claims, disputes, or lawsuits between
the owner of a public works project and any member of the
design-build entity during the five years preceding submission of a
bid under this article, in which the claim, settlement, or judgment
exceeds fifty thousand dollars ($50,000). Information shall also be
provided concerning any work completed by a surety during this
(G) If the proposed design-build entity is a partnership, limited
partnership, joint-venture, or other association, a copy of the
organizational documents or agreement committing to form the
organization, and a statement that all general partners, joint
venture members, or other association members agree to be fully
liable for the performance under the design-build contract.
(H) An acceptable safety record. A bidder's safety record shall be
deemed acceptable if its experience modification rate for the most
recent three-year period is an average of 1.00 or less, and its
average total recordable injury/illness rate and average lost work
rate for the most recent three-year period does not exceed the
applicable statistical standards for its business category or if the
bidder is a party to an alternative dispute resolution system as
provided for in Section 3201.5 of the Labor Code.
(4) The information required under this subdivision shall be
verified under oath by the design-build entity and its members in the
manner in which civil pleadings in civil actions are verified.
Information required under this subdivision that is not a public
record under the California Public Records Act, as described in
Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code, shall not be open to public inspection.
(d) For those projects utilizing low bid as the final selection
method, the competitive bidding process shall result in lump-sum bids
by the prequalified or short-listed design-build entities. Awards
shall be made to the lowest responsible bidder.
(e) For those projects utilizing best value as a selection method,
the design-build competition shall progress as follows:
(1) Competitive proposals shall be evaluated by using only the
criteria and selection procedures specifically identified in the
request for proposals. However, the following minimum factors shall
be weighted as deemed appropriate by the contracting transportation
(B) Technical design and construction expertise.
(C) Life-cycle costs over 15 years or more.
(2) Pursuant to subdivision (b), the transportation entity may
hold discussions or negotiations with responsive bidders using the
process articulated in the transportation entity's request for
(3) When the evaluation is complete, the top three responsive
bidders shall be ranked sequentially based on a determination of
(4) The award of the contract shall be made to the responsible
bidder whose proposal is determined by the transportation entity to
have offered the best value to the public.
(5) Notwithstanding any other provision of this code, upon
issuance of a contract award, the transportation entity shall
publicly announce its award, identifying the contractor to whom the
award is made, along with a written decision supporting its contract
award and stating the basis of the award. The notice of award shall
also include the transportation entity's second- and third-ranked
(6) The written decision supporting the transportation entity's
contract award, described in paragraph (5), and the contract file
shall provide sufficient information to satisfy an external audit.