SB 1055

SB1055:v97#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Senate Bill

No. 1055

An act to add Article 130 (commencing with Section 21650) to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, relating to public contracts.

LEGISLATIVE COUNSEL'S DIGEST

SB 1055, as amended, Laird. Pajaro Regional Flood Management Agency: contracts.

Existing law, the Local Agency Public Construction Act, governs public works contracts awarded by counties and requires the work of construction or repair of specified public buildings to be done by contract, if the estimated cost exceeds $4,000, as prescribed. Existing law, in counties containing a population of 500,000 or more, exempts that work from the above-described requirement if the estimated cost of the work is less than $6,500.

This bill would, until January 1, 2035, authorize the Pajaro Regional Flood Management Agency, upon approval of its governing body, to use specified alternative project delivery methods, in addition to other contracting methods allowable by law, and require a contract awarded pursuant to these provisions to be awarded on a best value basis or to the lowest responsible bidder. Because the bill would expand the crime of perjury, it would impose a state-mandated local program. The bill would require the agency to follow specified procedures if its governing body approves the use of Job Order contracting, as defined, and limit the maximum total dollar amount that may be awarded under a single Job Order contract and the term of a Job Order contract. The bill would require the agency to prepare an independent cost estimate for each individual job order developed under a Job Order contract.

This bill would make legislative findings and declarations as to the necessity of a special statute for the Pajaro Regional Flood Management Agency.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Article 130 (commencing with Section 21650) is added to Chapter 1.5 of Part 3 of Division 2 of the Public Contract Code, to read:

Article 130. Pajaro Regional Flood Management Agency

21650.

The provisions of this article shall apply to contracts by the Pajaro Regional Flood Management Agency.

21651.

For the purposes of this chapter, article, the following definitions apply:

(a) “Adjustment factor” means the job order contractor’s competitively bid adjustment to the local agency prices as published in the unit price catalog.

(b) “Agency” means the Pajaro Regional Flood Management Agency.

(c)“Best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the agency and meeting the objectives of the project.

(d)

(c) “Construction manager” means a partnership, corporation, or other legal entity that is a licensed contractor pursuant to Chapter 9 (commencing with Section 7000) of Division 3 of the Business and Professions Code, and that is able to provide appropriately licensed contracting and engineering services as needed, pursuant to a Construction Manager/General Contractor method contract.

(e)

(d) “Construction Manager/General Contractor method” or “CM/GC method” means a project delivery method in which a construction manager is procured to provide preconstruction services during the design phase of the project and construction services during the construction phase of the project. The contract for construction services may be entered into at the same time as the contract for preconstruction services or at a later time. The execution of the design and the construction of the project may be in sequential phases or concurrent phases.

(f)

(e) “Job Order contract” means a competitively bid contract between the local agency and a responsible contractor in which the contractor agrees to a fixed period, fixed-unit price, and indefinite quantity contract that provides for job orders for public works.

(g)

(f) “Preconstruction services” means advice during the design phase, including, but not limited to, scheduling, pricing, and phasing to assist the local agency to design a more constructible project.

(h)

(g) “Project” means the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

(i)

(h) “Technical specifications” means information published by the agency detailing the technical specifications with regard to quality of materials and workmanship to be used by the job order contractor in accomplishing the tasks listed in the unit price catalog.

(j)

(i) “Unit price” means the amount paid for a single unit of an item of work identified in the unit price catalog multiplied by the contractor's contractor’s adjustment factor.

(k)

(j) “Unit price catalog” means a compilation of specific construction tasks and the unit prices to install or demolish that construction. The listed tasks shall be based on generally accepted industry standards and information, if available, for various items of work to be performed by the job order contractor. The prices shall include the cost of materials, labor, and equipment for performing the items of work. The prices shall not include overhead and profit. All unit prices shall be developed using local prevailing wages.

21652.

Upon approval by its governing body, the Pajaro Regional Flood Management Agency, in addition to other contracting methods allowable by law, may utilize any of the following alternative project delivery methods:

(a) Award to the lowest bidder.

(b) Progressive Design-Build contracting, as provided in Chapter 4.1 (commencing with Section 22170).

(c) Construction Manager-at-Risk contracting, as provided in Section 20146.

(d) Design-Build contracting as follows:

(1) The agency shall follow the procedures described in Chapter 4 (commencing with Section 22160).

(2) A contract awarded pursuant to this subdivision before it becomes inoperative, but after Chapter 4 (commencing with Section 22160) becomes inoperative pursuant to Section 22169, shall continue in full force and effect until completion, including any subsequently executed changes to the contract, or its termination.

(e) Construction Manager/General Contractor (CM/GC) Contracting as provided in either of the following:

(1) The agency shall follow the procedures described in Article 121.1 (commencing with Section 21568.5).

(2) A contract awarded pursuant to this article before it becomes inoperative, but after Article 121.1 (commencing with Section 21568.5) becomes inoperative pursuant to Section 21568.11, shall continue in full force and effect until completion, including any subsequently executed changes to the contract, or its termination.

(f) Best Value Procurement contracting as follows:(1) The agency shall follow the procedures described in Article 3.7 (commencing with Section 20155) of Chapter 1.(2) A contract awarded pursuant to this subdivision before it becomes inoperative, but after Article 3.7 (commencing with Section 20155) of Chapter 1 becomes inoperative pursuant to Section 20155.9, shall continue in full force and effect until completion, including any subsequently executed changes to the contract, or its termination.

(f)

(g) Job Order contracting.

21653.

If the governing body approves the agency to use Job Order contracting, it shall be used in accordance with the following:

(a) Job Order contracts of the agency shall be competitively bid and awarded to bidders providing qualified responsive bids.

(b) Job Order contracts shall be for repair, remodeling, or other repetitive work to be done according to unit prices. No annual contracts may be awarded for any new construction.

(c) Solicitations for job order contractors shall progress pursuant to the following:

(1) The agency shall prepare a set of documents for Job Order contracts. The documents shall include a unit price catalog or other established unit prices, Job Order contract terms, Job Order contract technical specifications, and any other information the agency deems necessary to adequately describe the agency’s needs.

(2) An architect, engineer, consultant, or contractor retained by the agency to assist in the development of the Job Order contract solicitation documents shall not be eligible to bid or to participate in the preparation of a Job Order contract bid related to that solicitation.

(3) The agency may award multiple Job Order contracts in response to a single Job Order contract solicitation as determined by the lowest combined adjustment factors outlined in the invitation for bids.

(d) The agency shall develop a system for evaluating Job Order contract bids for awarding Job Order contracts, as follows:

(1) The agency shall prepare a request for bids for Job Order contracts based on the solicitation documents prepared under paragraph (1) of subdivision (c) that invites job order contractors to submit sealed bids in the manner prescribed by the agency.

(2) Each bidding job order contractor shall include in its bid one or more adjustment factors to the established unit prices provided in the request for bids based on the contract’s technical specifications.

(3) Each bidding job order contractor shall agree to identify any subcontractors to be used for the job orders performed pursuant to the Job Order contract.

(4) The award of Job Order contracts, if any, shall be made to a job order contractor or to job order contractors that the agency determines to be qualified and responsive based upon preestablished criteria determined by the agency.

(5) Notwithstanding paragraph (4), the agency, by a process determined by the agency, may award any job order for repair or renovation work with a value equal to or less than two hundred fifty thousand dollars ($250,000) to a job order contractor that is also a certified small business enterprise, as established by the agency’s small business enterprise certification process or any similar certification process acceptable to the agency, or to a job order contractor that is also a disabled veterans business enterprise, as certified by the Department of General Services.

21653.1.

(a) The maximum total dollar amount that may be awarded under a single Job Order contract shall not exceed five million dollars ($5,000,000) in the initial contract term of the Job Order contract. No single job order shall exceed one million dollars ($1,000,000), not including change orders necessary to complete the scope of the original project.

(b) Job Order contracts shall be executed for an initial contract term of no more than 24 months which may be extended for one year up to four times, and for a maximum of five million dollars ($5,000,000) over the subsequent four terms of the contract.

(c) (1) Work shall not be split or separated into smaller job orders for the purpose of evading the cost limits of this article.

(2) Notwithstanding paragraph (1), the agency may award phased job orders, if necessary, to comply with environmental regulations, permitting requirements, tidal or seasonal construction windows, or other operational constraints, provided that the phasing is not used to circumvent the monetary limitations established in this section.

(d) Notwithstanding subdivisions (a) to (c), inclusive, maximum amounts specified for Job Order contract value and job order value shall be adjusted each January 1 to reflect the percentage change in the annual California Construction Cost Index as used by the agency. The amount shall be rounded off to the nearest one-thousand-dollar figure.

21653.2.

(a) All work bid under the Job Order contract shall comply with Chapter 4 (commencing with Section 4100) of Part 1 and is subject to all of the penalties and provisions set forth in that chapter.

(b) For purposes of this article, if the primary job order contractor chooses to use subcontractors, the primary job order contractor is required to verify that the subcontractors possess the appropriate licenses and required credentials.

(c) If the agency, after conducting an administrative due process review, determines that there has been a violation of Chapter 4 (commencing with Section 4100) of Part 1, including, but not limited to, bid shopping by the job order contractor, the agency may terminate the job order or declare the contractor ineligible for future Job Order contracts for a period of time to be determined by the agency, or withdraw authorization for the contractor to proceed with awarded work.

21653.3.

(a) A Job Order contract shall set forth in the general conditions of the contract the party or parties responsible for ensuring compliance with the requirements specified in Article 2 (commencing with Section 1770) of Chapter 1 of Part 7 of Division 2 of the Labor Code.

(b) For purposes of Job Order contracting, a prevailing wage shall apply to all work ordered under the contract regardless of thresholds set forth in Section 1771.5 of the Labor Code.

(c) The job order contractor shall pay the prevailing wage in effect at the time the Job Order contract is issued by the agency and all increases as published by the Department of Industrial Relations for the term of the Job Order contract, including all overtime, holiday, and shift provisions published by the Department of Industrial Relations.

21653.4.

In order to prevent fraud, waste, and abuse, the agency shall prepare for each individual job order developed under a Job Order contract an independent cost estimate. The estimate shall be prepared before the receipt of any job order contractor’s estimate for the work and shall be compared to the job order contractor’s estimate to determine the reasonableness of that estimate before issuance of any job order. If the agency finds the job order contractor’s estimate to perform work for a given job order to be unreasonable, not cost effective, or undesirable, the agency may elect not to issue the job order to the job order contractor, and may, instead, use any other available procurement procedure, or choose not to move forward with the work.

21654.

(a) The agency shall award a contract pursuant to this article on a best value basis or to the lowest responsible bidder.

(b) For purposes of this section, “best value” means a value determined by evaluation of objective criteria that relate to price, features, functions, life-cycle costs, experience, and past performance. A best value determination may involve the selection of the lowest cost proposal meeting the interests of the agency and meeting the objectives of the project.

21655.

Nothing in this article shall preclude the Pajaro Regional Flood Management Agency from utilizing any future contracting methods awarded to joint powers authorities or their member agencies.

21656.

The provisions of this chapter article shall remain in effect only until January 1, 2035, and as of that date are inoperative.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances faced by the Pajaro Regional Flood Management Agency.

SEC. 3.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.