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CALIFORNIA'S INFORMAL BIDDING ACT
(Click here to read about PubliConstructionLaw's Guide to the Informal Bidding Act, which is available for purchase.) The Informal Bidding Act is a great tool for local public agencies which want to raise their bidding thresholds, simplify the bidding process for small projects and increase the likelihood that the bids they receive will be from responsible contractors. Most agencies will also be able to perform larger projects with their own employees instead of taking bids for these projects. Many agencies have heard of the Informal Bidding Act, but choose not to implement it for fear that they will have to implement extensive new accounting procedures. In fact, the accounting requirements apply only when agencies choose to perform projects valued at more than $45,000 with their own employees.
The following is a short summary of the Act
(formally named the "Uniform Public Construction Cost Accounting Act"),
which
is located at Public Contract Code section 22000 et seq. WHEN BIDS ARE
REQUIRED 1. No Bids Required.
Projects of $45,000 or less may be performed by: 2. Informal Bids. Contracts for work valued at $175,000 or less may be awarded through the Act’s informal bidding procedures. 3. Formal Bids. Contracts for work valued at more than $175,000 must be awarded through the Act’s formal bidding procedures. These procedures are similar to the procedures most agencies already use. "ADVERTISING" FOR BIDS Agencies may maintain lists of contractors by trades and give notice of informally-bid projects only to the listed contractors. Notice of formally-bid projects
must be published in a local newspaper at
least 14 days prior to bid, and sent either by fax or email, and by mail, to all
trade journals designated by the Uniform Construction Cost Accounting Act
Commission, at least 15 days before the bid date. PROCEDURE FOR MAINTAINING LISTS OF CONTRACTORS Each November, agencies must publish notices informing contractors that they are preparing their contractor lists for the next year. Effective January 1, agencies may abandon their previous year's lists. This process can eliminate contractors who do not regularly submit paperwork to be included on the lists.
Agencies
must include all appropriately-licensed contractors who submit requests, even
when their requests are submitted mid-year. They can, however, combine the
process of maintaining their contractor lists with the prequalification process
which is authorized by the Public Contract Code. STEPS TO TAKE TO IMPLEMENT THE INFORMAL BIDDING ACT Local public agencies must adopt a resolution and administrative regulation to implement the Act and provide a copy to the Office of the State Controller. PubliConstructionLaw has prepared city, county, school and community college versions of PubliConstructionLaw's Guide to the Informal Bidding Act. The Guides incorporates the substance of the Act and the State's official Manual in an easy-to-use format. They also include forms for adopting and implementing the Act. Click here to print an order form. Click here to visit the Commission's web site, which includes a Frequently-Asked Questions section. The State's 156-page official Uniform Public Construction Cost Accounting Policy and Procedures Manual can be found online.
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