Section § 217

Explanation

This California statute explains terms related to job order contracting, a method used in public works projects. It defines an 'adjustment factor' as a competitive bid adjustment by a contractor against standard prices in a catalog.

A 'job order' is a fixed-price contract given to a contractor for specific work listed in a catalog, covering either single projects or ongoing work. 'Project' refers to the actual tasks a contractor must complete under a job order.

The 'unit price catalog' is a book with standard prices for construction tasks that contractors use to bid on jobs. Prices include materials, labor, and equipment, but not overhead or profit, and are based on local wage rates.

As used in this article, the following definitions apply:
(a)CA Streets And Highways Code § 217(a) “Adjustment factor“ means the job order contractor’s competitively bid adjustment to the department’s prices as published in the unit price catalog.
(b)CA Streets And Highways Code § 217(b) “Job order” means a firm, fixed-priced, lump-sum order issued by the department to a job order contractor for a definite project scope or work as compiled from the unit price catalog to be performed pursuant to a job order contract.
(c)CA Streets And Highways Code § 217(c) “Job order” means a contract, awarded pursuant to this section, between the department and a licensed, bonded, and general liability insured contractor in which the contractor agrees to a fixed-period, fixed-unit price, and indefinite quantity contract that provides for the use of job orders for public works or maintenance projects.
(d)CA Streets And Highways Code § 217(d) “Project” means the specific requirements and work to be accomplished by the job order contractor in connection with an individual job order.
(e)CA Streets And Highways Code § 217(e) “Unit price catalog” means a book containing 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, where 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.

Section § 217.1

Explanation

This law allows the use of job order contracting for transportation and public works projects in order to save money and time compared to traditional processes. The department can use this method for projects like highway maintenance, installing traffic safety devices, tree removal, culvert repairs, and more. Projects adding vehicular lanes are not allowed under this method.

Contracts must be competitively bid, and awarded to the lowest qualified bidder. Contractors need to be prequalified and meet criteria such as having adequate insurance and bonds. The contracts can last for a year and be renewed twice with department agreement.

A public report is required annually with details on contract execution, costs, time savings, and any issues. Small businesses and disabled veteran enterprise participation are encouraged, and compliance with labor laws is mandatory.

(a)CA Streets And Highways Code § 217.1(a) It is the intent of the Legislature to enable the use of job order contracting as an option for constructing transportation and public works projects when it is anticipated that the use of this method will reduce procurement costs or expedite project completion in a manner that is not achievable through the design-bid-build method. It is the intent of the Legislature that this contracting method will improve the efficiency and efficacy of contracted work and not supplant work completed by the department’s field maintenance employees.
(b)Copy CA Streets And Highways Code § 217.1(b)
(1)Copy CA Streets And Highways Code § 217.1(b)(1) The department may use the procurement method outlined in this article for job order contracts.
(2)CA Streets And Highways Code § 217.1(b)(2) A job order contract of the department shall be competitively bid and awarded to the lowest bidder providing a qualified responsive bid.
(c)Copy CA Streets And Highways Code § 217.1(c)
(1)Copy CA Streets And Highways Code § 217.1(c)(1) The department may use job order contracting, consistent with this article, when undertaking the following projects:
(A)CA Streets And Highways Code § 217.1(c)(1)(A) Highway maintenance or safety projects, including, but not limited to, bridge deck sealing, bridge and asphalt pavement overlays, concrete pavement slab work, repair and replacement of active transportation and complete streets facilities, joint seals, installation of new traffic safety devices, rumble strips, and traffic control devices, and other safety, bridge repair, or highway repair projects that are basic and repetitive.
(B)CA Streets And Highways Code § 217.1(c)(1)(B) Traffic management and detection system installation, replacement, and repair.
(C)CA Streets And Highways Code § 217.1(c)(1)(C) Tree removal.
(D)CA Streets And Highways Code § 217.1(c)(1)(D) Clearing and grubbing.
(E)CA Streets And Highways Code § 217.1(c)(1)(E) Culvert installation and repairs.
(F)CA Streets And Highways Code § 217.1(c)(1)(F) Improvements to, removal of, and installation of facilities, systems, and traffic control devices needed to comply with the federal Americans with Disabilities Act of 1990 (Public Law 101–336).
(G)CA Streets And Highways Code § 217.1(c)(1)(G) Facility repairs, including, but not limited to, building maintenance.
(H)CA Streets And Highways Code § 217.1(c)(1)(H) Installation of stormwater pollution control devices.
(I)CA Streets And Highways Code § 217.1(c)(1)(I) Safety barriers.
(2)CA Streets And Highways Code § 217.1(c)(2) No job order contract may be awarded for adding vehicular travel lanes.
(3)CA Streets And Highways Code § 217.1(c)(3) The department shall, when undertaking job order contracting for the projects specified in paragraph (1), establish a procedure to prequalify job order contractors for projects and shall prepare a set of documents for each job order contract. The documents shall include all of the following:
(A)CA Streets And Highways Code § 217.1(c)(3)(A) A unit price catalog of construction tasks with preestablished unit prices.
(B)CA Streets And Highways Code § 217.1(c)(3)(B) Job order contract specifications.
(C)CA Streets And Highways Code § 217.1(c)(3)(C) Any other information deemed necessary to adequately describe the department’s needs.
(4)CA Streets And Highways Code § 217.1(c)(4) Based on the documents prepared under paragraph (3), the department shall develop a system for evaluating job order contract bids for the award of job order contracts. The award of a job order contract shall progress as follows:
(A)CA Streets And Highways Code § 217.1(c)(4)(A) The department shall prepare a request for bids for job order contracts based on the documents prepared under paragraph (3) that invites prospective contractors to submit sealed bids in the manner prescribed by the department.
(B)CA Streets And Highways Code § 217.1(c)(4)(B) Each bidding 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 advertised technical specifications.
(C)CA Streets And Highways Code § 217.1(c)(4)(C) Each bidding job order contractor shall identify any subcontractors to be used for the job orders performed pursuant to the awarded job order contract pursuant to Chapter 4 (commencing with Section 4100) of Part 1 of Division 2 of the Public Contract Code.
(D)CA Streets And Highways Code § 217.1(c)(4)(D) The award of job order contracts, if any, shall be made to one or more job order contractors that the department determines to be qualified and responsive based upon preestablished criteria to be determined by the department.
(5)CA Streets And Highways Code § 217.1(c)(5) Any job order contractor that is selected for a project pursuant to this article shall possess or obtain sufficient bonding to cover the contract amount for construction services and risk and liability insurance as the department may require.
(6)CA Streets And Highways Code § 217.1(c)(6) Nothing in this article is intended to affect, expand, alter, or limit any rights or remedies otherwise available at law.
(d)CA Streets And Highways Code § 217.1(d) Notwithstanding paragraph (3) of subdivision (c) and subparagraph (B) of paragraph (4) of subdivision (c), the department may, in accordance with the requirements of Section 14838.7 of the Government Code, award a job order contract pursuant to this article with an estimated value of greater than five thousand dollars ($5,000) but less than the cost limit, as specified in subdivision (b) of Section 10105 of the Public Contract Code, after obtaining written bid submittals from two or more certified small businesses, including microbusinesses, or from two or more disabled veteran business enterprises.
(e)CA Streets And Highways Code § 217.1(e) Job order contracts may be executed for an initial contract term of no more than 12 months with the option of extending or renewing the job order contract for two 12-month periods. All extensions or renewals shall be priced as provided in the request for bids. An extension or renewal shall be mutually agreed to by the department and the job order contractor.
(f)CA Streets And Highways Code § 217.1(f) On or before July 1 of each year, until July 1, 2033, the department shall publish on its internet website regarding the status of all active job order contracts and those job order contracts that expired in the previous year. The report shall include, but is not limited to, all of the following information:
(1)CA Streets And Highways Code § 217.1(f)(1) A listing of all projects completed under each job order contract.
(2)CA Streets And Highways Code § 217.1(f)(2) The name of each job order contractor awarded a contract.
(3)CA Streets And Highways Code § 217.1(f)(3) The estimated and actual project costs.
(4)CA Streets And Highways Code § 217.1(f)(4) The estimated procurement time savings.
(5)CA Streets And Highways Code § 217.1(f)(5) A description of any written protests concerning any aspect of the solicitation, bid, proposal, or award of the job order contract, including, but not limited to, the resolution of the protests.
(6)CA Streets And Highways Code § 217.1(f)(6) A summary of small business usage.
(7)CA Streets And Highways Code § 217.1(f)(7) A summary of Labor Code violations, including, but not limited to, prevailing wage, apprenticeship, and health and safety statutes to the extent information is readily available.
(8)CA Streets And Highways Code § 217.1(f)(8) The percentage of the project completed by subcontractors certified by the Department of General Services as small business and disabled veteran business enterprise.
(9)CA Streets And Highways Code § 217.1(f)(9) Recommendations regarding the most appropriate uses for the job order contract process.
(g)CA Streets And Highways Code § 217.1(g) Job order contracts shall be monitored by the department’s labor compliance program for compliance with federal and state labor laws.

Section § 217.2

Explanation

This law is temporary and will no longer be in effect after December 31, 2033. On that date, it will be officially removed or canceled.

This article shall remain in effect only until December 31, 2033, and as of that date is repealed.