Article 40. Municipal Water Districts of California Public Contract Code >> Division 2. >> Part 3. >> Chapter 1. >> Article 40.

The provisions of this article shall apply to contracts by municipal water districts, as provided for in the Municipal Water District Law of 1911, Division 20 (commencing with Section 71000) of the Water Code.

A district may prescribe methods for the construction of works and for the letting of contracts for any of the following purposes:
  (a) The construction of works, structures or equipment.
  (b) The performance or furnishing of labor, materials, or supplies, necessary or convenient for carrying out any of the purposes of this division.
  (c) The acquisition or disposal of any real or personal property.

When work is not to be done by the district itself by force account, and the amount involved is thirty-five thousand dollars ($35,000), or more, any contract for the doing of the work shall be let to the lowest responsible bidder, after publication, in the manner prescribed by the board, of notices inviting bids therefor. However, the board may reject any and all proposals.

All bids for construction work shall be presented under sealed cover and shall be accompanied by one of the following forms of bidder's security:
  (a) Cash.
  (b) A cashier's check made payable to the district.
  (c) A certified check made payable to the district.
  (d) A bidder's bond executed by an admitted surety insurer, made payable to the district. Upon an award to the lowest bidder, the security of an unsuccessful bidder shall be returned in a reasonable period of time, but in no event shall that security be held by the district beyond 60 days from the time the award is made.

Notwithstanding Section 20642, contracts, in writing or otherwise, for the acquisition or disposal of any real or personal property may be let without calling for competitive bids.

The board may, from time to time, establish the manner of calling for bids and letting contracts, but except as such procedure so established by the board otherwise requires, all contracts may be entered into upon such terms and in such manner as the board may authorize.

In the case of an emergency, if notice for bids to let contracts will not be given, the board shall comply with Chapter 2.5 (commencing with Section 22050).