Section 12751.3 Of Article 3. Purchases From California Public Utilities Code >> Division 6. >> Chapter 6. >> Article 3.
12751.3
. (a) The purpose of this section is to provide affected
districts with an alternative acquisition process that will result in
reduced costs to ratepayers. Notwithstanding Section 12751, when the
expenditure for the purchase of supplies and materials exceeds fifty
thousand dollars ($50,000) and the district determines that
ratepayers reasonably can expect a net benefit in the cost of
district services, the district may provide for the purchase of the
supplies and materials by contract let in accordance with best value
at the lowest cost acquisition policies adopted by the board pursuant
to this section.
(b) The best value at the lowest cost acquisition policies adopted
pursuant to subdivision (a) shall include the following:
(1) Price and service level proposals that reduce the district's
overall operating costs.
(2) Supplies and materials standards that support the district's
strategic supplies and materials acquisition and management program
direction.
(3) A procedure for protest and resolution.
(c) For purposes of this section, "best value at the lowest cost
acquisition" means a competitive procurement process whereby the
award of a contract for supplies and materials may take into
consideration any of the following factors:
(1) The total cost to the district of its use or consumption of
supplies and materials.
(2) The operational cost or benefit incurred by the district as a
result of the contract award.
(3) The value to the district of vendor-added services.
(4) The quality, effectiveness, and innovation of supplies,
materials, and services.
(5) The reliability of delivery or installation schedules.
(6) The terms and conditions of product warranties and vendor
guarantees.
(7) The financial stability of the vendor.
(8) The vendor's quality assurance program.
(9) The vendor's experience with the provision of supplies,
materials, and services.
(10) The consistency of the vendor's proposed supplies, materials,
and services with the district's overall supplies and materials
procurement program.
(11) The economic benefits to the general community related to job
creation or retention.
(d) If a district that did not purchase supplies and materials by
contract let pursuant to this section before January 1, 2006, elects
to purchase supplies and materials by contract, let in accordance
with best value acquisition policies adopted by the board pursuant to
this section, the district shall submit a report to the Legislative
Analyst on or before January 1, 2011. The district shall include in
the report a summary of the costs and benefits of best value
acquisition compared to traditional low bid procurement practices.
The report shall also include statistics showing the number of
contracts awarded to small businesses, minority-owned businesses, and
new businesses and the number of years each contract awardee had
been in business. The report shall also include an analysis of the
effects of best value procurement practices on these businesses, the
nature of any disputes arising from the use of best value procurement
practices, and the status of those disputes. On or before April 1,
2011, the Legislative Analyst shall report to the Legislature on the
use of "best value at lowest cost acquisition" procurement practices
used by municipal utility districts, and recommend whether to modify
this section and extend the authority of additional districts to
elect to purchase supplies and materials by contract let in
accordance with best value acquisition policies, beyond January 1,
2012.
(e) The district shall ensure that all businesses have a fair and
equitable opportunity to compete for, and participate in, district
contracts and shall also ensure that discrimination in the award and
performance of contracts does not occur on the basis of marital
status, ancestry, medical condition, any characteristic listed or
defined in Section 11135 of the Government Code, or retaliation for
having filed a discrimination complaint in the performance of
district contractual obligations.
(f) A district that did not purchase supplies and materials by
contract let pursuant to this section before January 1, 2006, shall
not purchase supplies and materials by contract let pursuant to this
section after January 1, 2012.