text: The University of California, or any person acting on behalf of the university, may bring a civil action seeking a determination by the superior court that a contract or other transaction has been entered in violation of any provision of this chapter. If the court finds substantial evidence of a violation, it may issue a temporary injunction to prevent any further dealings upon the contract or other transaction, pending a final determination on the merits of the case. If the action results in a final determination that the contract or other transaction has been entered in violation of this chapter, it shall be void, and the state or person bringing the action shall be awarded costs and attorney’s fees. This section shall not be construed to permit an award of costs and attorney fees to the person or entity contracting or otherwise transacting with the university.

article: 5. Remedies and Penalties


kind: section

code: PCC

text: Any officer or employee of the University of California who corruptly performs any official act under this chapter to the injury of the university is guilty of a felony.

history: (History: Added by Stats. 2002, Ch. 1122, Sec. 3. Effective January 1, 2003. Operative July 1, 2003, by Sec. 5 of Ch. 1122.)

division: 2. GENERAL PROVISIONS

part: 2. CONTRACTING BY STATE AGENCIES

article: 5. Remedies and Penalties

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.1. University of California Competitive Bidding > 5. Remedies and Penalties


text: Any person contracting with the University of California by oral or written contract who corruptly permits the violation of any contract made under this chapter is guilty of a felony.

chapter: 2.1. University of California Competitive Bidding

article: 5. Remedies and Penalties


text: Persons convicted under Section 10522 or 10523 are also liable to the University of California for double the amount the university may have lost or be liable to lose by reason of the acts made crimes by this article.

history: (History: Amended by Stats. 2003, Ch. 62, Sec. 242.5. Effective January 1, 2004.)

article: 5. Remedies and Penalties


text: Willful violation of any other provision of this chapter shall constitute a misdemeanor.

article: 5. Remedies and Penalties


text: Sections 10522, 10523, 10524, and 10525 of this article do not apply to violations of Article 2.5 (commencing with Section 10510.4) of this chapter.

history: (History: Added by Stats. 2003, Ch. 699, Sec. 5. Effective January 1, 2004.)

article: 5. Remedies and Penalties


text: This article does not apply to violations of Article 2.7 (commencing with Section 10510.50) of this chapter.

history: (History: Added by Stats. 2023, Ch. 480, Sec. 2. (SB 27) Effective January 1, 2024.)

article: 5. Remedies and Penalties


text: This chapter may be cited as the California State University Contract Law.

history: (History: Added by Stats. 1984, Ch. 1128, Sec. 4.)

article: 1. General Provisions

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 1. General Provisions


text:
As used in this chapter:

(a) “Project” includes the erection, construction, alteration, painting, repair, or improvement of any state structure, building, road, or other state improvement of any kind. “Project” includes a project located on California State University property and performed pursuant to a contract entered into or awarded by an auxiliary organization, as defined in Section 89901 of the Education Code, and funded in whole or in part by public funds.

(b) “Service contract” means any contract for services in connection with a project other than a project contract, and includes, but is not limited to, contracts for architectural, engineering, planning, testing, general studies, or feasibility services.

(c) “Trustees” means the Trustees of the California State University and their designees.

history: (History: Amended by Stats. 2006, Ch. 346, Sec. 2. Effective January 1, 2007.)

chapter: 2.5. California State University Contract Law

article: 1. General Provisions


text: Contracts for the purchase of supplies or materials, which are purchased through the Department of General Services, are not subject to this chapter, even though the seller is required to perform some incidental work or service in connection with the delivery of the material or supplies.

article: 1. General Provisions


text: Work done directly by any public utility company pursuant to order of the Public Utilities Commission or other public authority, is not subject to this chapter, whether or not done under public supervision or paid for in whole or part out of public funds.

article: 1. General Provisions


text: The project shall be under the sole and direct control of the trustees, pursuant to the powers and responsibilities invested in them by Chapter 8 (commencing with Section 66600) of Part 40 of Division 5 of Title 3 of the Education Code. For the purposes of this chapter, a project located on California State University property and performed pursuant to a contract entered into or awarded by an auxiliary organization, as defined in Section 89901 of the Education Code, and funded in whole or in part by public funds, shall be deemed to be under the sole and direct control of the trustees.

history: (History: Amended by Stats. 2006, Ch. 346, Sec. 3. Effective January 1, 2007.)

article: 1. General Provisions


text:
(a) When, in the opinion of the trustees, the work does not require the application of all of the provisions of this chapter in connection therewith, the trustees may carry out the project pursuant to this section if the estimated cost does not exceed the value of a minor capital outlay project for which, pursuant to Section 10108, the services of the Department of General Services are not required and a state agency or department is authorized to carry out its own project.

(b) If the estimated total cost of any construction project or work carried out under this section exceeds five thousand dollars ($5,000), the trustees shall solicit bids in writing and shall award the work to the lowest responsible bidder or reject all bids. The trustees may carry out work in excess of five thousand dollars ($5,000) under this section by day labor if the trustees deem that the award of a contract, the acceptance of bids, or the acceptance of further bids is not in the best interests of the state, but the amount of work performed by day labor under this section shall not exceed the sum of twenty thousand dollars ($20,000).

history: (History: Amended by Stats. 2001, Ch. 219, Sec. 7. Effective January 1, 2002.)

article: 1. General Provisions


text: The trustees and the Department of General Services may enter into an agreement under which the Department of General Services will carry out any of the functions of the trustees under this chapter, upon such terms as are mutually agreed upon.

article: 1. General Provisions


text: The trustees may enter into an agreement with an auxiliary organization, as defined in Section 89901 of the Education Code, under which the auxiliary organization may carry out any of the functions of the trustees under this chapter, upon terms that are mutually agreed upon.

history: (History: Added by Stats. 2006, Ch. 346, Sec. 4. Effective January 1, 2007.)

article: 1. General Provisions


text: The trustees may enter into service contracts. Such contracts shall be subject only to Section 10820 and to such other provisions of this chapter, if any, as the trustees may from time to time designate as applicable.

article: 1. General Provisions


text:
(a) When, in the opinion of the trustees, the best interests of the California State University dictate, the trustees may enter into an agreement with a contractor to provide all or significant portions of the design services and construction of a project under this chapter. The contractor shall design the project pursuant to the scope of services set forth in the request for proposals, build the project, and present the completed project to the trustees for their approval and acceptance.

(b) Work under this section shall be carried out by a contractor chosen by a competitive bidding process that employs selection criteria in addition to cost. Any design work performed pursuant to this section shall be prepared and signed by an architect certificated pursuant to Chapter 3 (commencing with Section 5500) of Division 3 of the Business and Professions Code.

(c) When the design of portions of the project permits the selection of subcontractors, the contractor shall competitively bid those portions. The contractor shall provide to the trustees a list of subcontractors whose work is in excess of one-half of 1 percent of the total project cost as soon as the subcontractors are identified. Once listed, the subcontractors shall have the rights provided in the Subletting and Subcontracting Fair Practices Act (Chapter 4 (commencing with Section 4100) of Part 1).

history: (History: Amended by Stats. 2005, Ch. 318, Sec. 13. Effective January 1, 2006.)

article: 1. General Provisions


text: Notwithstanding any provision of the California State University Contract Law and any other provision of law to the contrary, the trustees may enter into an energy conservation construction contract, on the terms it determines are in the best interests of the California State University if they find that the anticipated cost for the alterations effected by the energy conservation construction contract will be less than the anticipated marginal cost to the California State University of energy that would have been consumed by the California State University in the absence of those alterations. The letting of contracts pursuant to this section shall be conducted through competitive means.

history: (History: Added by Stats. 1995, Ch. 522, Sec. 3. Effective January 1, 1996.)

article: 1. General Provisions


text:
(a) Notwithstanding any other provisions of this chapter, the trustees may award annual contracts that do not exceed three million dollars ($3,000,000) for repair or other repetitive work, or renovation or modification, to be done according to unit prices. The contracts shall be awarded to the lowest responsible bidder, and shall be based primarily on plans and specifications for typical work. No project shall be performed under a contract of this type except by order of the trustees. No annual contracts may be awarded under these provisions for capital outlay projects, where the total cost of the project exceeds the value of a minor capital outlay project for which, pursuant to Section 10108, the services of the Department of General Services are not required and a state agency or department is authorized to carry out its own project.

(b) For purposes of this section, “unit price” means the amount paid for a single unit of an item of work, and “typical work” means a work description applicable universally or applicable to a large number of individual projects, as distinguished from work specifically described with respect to an individual project.

history: (History: Amended by Stats. 2001, Ch. 219, Sec. 8. Effective January 1, 2002.)

article: 1. General Provisions


text: Before entering into any contract for a project, the trustees, pursuant to the powers invested in them by Chapter 8 (commencing with Section 66600) of Part 40 of Division 5 of Title 3 of the Education Code, shall cause to be prepared full, complete, and accurate plans and specifications and estimates of cost, giving such directions as will enable any competent mechanic or other builder to carry them out.

article: 2. Plans and Specifications

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 2. Plans and Specifications


text: The plans, specifications, and estimates of cost shall be approved by the trustees, and the original draft or a certified copy filed permanently in the office of the trustees before further action is taken.

article: 2. Plans and Specifications


text:
Work on all projects shall be done under contract awarded to the lowest responsible bidder pursuant to this chapter, except that it may be done by day’s labor under the direction of the trustees, by contract upon informal bids, or by a combination thereof:

(a) When the trustees determine that an emergency exists due to an act of God, earthquake, flood, storm, fire, landslide, public disturbance, vandalism, or other unexpected cause which results in damage to a state-owned building, state-owned real property, or any improvements thereon, for work and remedial measures which are required immediately and which are necessary to protect the public health, safety, and welfare.

The trustees shall annually, on or before December 31, report to the Department of Finance and the Joint Legislative Budget Committee the instances in which an exemption from the bidding process was allowed due to “unexpected causes.”

(b) At any time after the approval of plans, specifications, and estimates of cost, if the trustees deem the advertising or award of a contract, the acceptance of any bid, or the acceptance of any further bids after the rejection of all submitted bids, is not in the best interests of the state.

history: (History: Amended by Stats. 1985, Ch. 689, Sec. 1.)

article: 2. Plans and Specifications


text: Upon the approval of the trustees the authorized employees of the trustees may, when proceeding upon the basis of day’s labor, let any subdivision or unit of the work by contract upon informal bids; but such work shall be let only to a holder of a valid state contractor’s license unless such work is exempt from such licensing requirement by any other provision of law.

article: 2. Plans and Specifications


text: Bids may be received and contracts awarded on a unit basis, that is, the bids compared upon the basis of estimates of the quantities of the work to be done.

article: 2. Plans and Specifications


text: Except in unit basis contracts, contracts shall not be made exceeding in amount the estimates of costs approved by the trustees. Plans and specifications and estimates of costs, including expense of advertising and inspection, shall not be approved by the trustees requiring a greater expenditure of money than is appropriated for the specific purpose in the law authorizing the expenditure.

article: 2. Plans and Specifications


text: The trustees may receive bids for the construction of several public works projects at the California State University as a single project. Where more than one appropriation has been made for the several projects united as a single project under the provisions of this section, payments for the single project shall be made from the separate appropriations on such proportional basis as may be determined by the trustees and approved by the Department of Finance.

history: (History: Amended by Stats. 2014, Ch. 34, Sec. 37. (SB 860) Effective June 20, 2014.)

article: 2. Plans and Specifications


text:
When it appears from the estimates of cost that the estimated contract price of any project will not exceed fifteen thousand dollars ($15,000), the trustees may direct that public notice to bidders be given as follows:

(a) By publication for two consecutive insertions in a weekly trade paper of general circulation, published either in Los Angeles or San Francisco, devoted primarily to the dissemination of contract news among contracting firms; and

(b) Once a week for two consecutive weeks in a newspaper of general circulation in the county in which the project is located, or, if located in more than one county in such a newspaper in a county in which a major portion of the work is to be done.

article: 3. Advertisement for Bids

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 3. Advertisement for Bids


text: The notices shall state the time and place for the receiving and opening of sealed bids and describe in general terms the work to be done.

article: 3. Advertisement for Bids


text:
If it appears that the estimated contract price will exceed fifteen thousand dollars ($15,000), public notice to bidders shall be given by publication once a week for at least two consecutive weeks, or once a week for more than two consecutive weeks if such longer period of advertising is deemed necessary by the trustees, next preceding the day set for the receiving of bids:

(a) In two trade papers of general circulation, one published in Los Angeles and one in San Francisco, devoted primarily to the dissemination of contract and building news among contracting and building material supply firms; or

(b) In one newspaper of general circulation published in the county in which the major portion of the project is located, and in one such trade paper published in the county group, as defined in Section 187 of the Streets and Highways Code, in which the work is to be done; or

(c) Electronically on the California State University’s Internet Web site.

history: (History: Amended by Stats. 2014, Ch. 34, Sec. 38. (SB 860) Effective June 20, 2014.)

article: 3. Advertisement for Bids


text: The notices shall state the time and place for the receiving and opening of sealed bids and that the bids will be required for the entire project and for the performance of segregate designated parts of the entire project, when the trustees determine that segregation is advisable.

article: 3. Advertisement for Bids


text: The trustees may require, and on contracts the estimated cost of which exceeds the value of a minor capital outlay project for which, pursuant to the first paragraph of Section 10108, the services of the Department of General Services are not required and a state agency or department is authorized to carry out its own project, the trustees shall require, from prospective bidders, answers to questions contained in a standard form of questionnaire and financial statement including a complete statement of the prospective bidder’s financial ability and experience in performing public works projects. When completed, the questionnaire and financial statement shall be verified under oath by the bidder in the manner in which pleadings in civil actions are verified.

history: (History: Amended by Stats. 2004, Ch. 417, Sec. 4. Effective January 1, 2005.)

article: 4. Bids and Bidders

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 4. Bids and Bidders


text: The trustees shall adopt and apply a uniform system of rating bidders, on the basis of the standard questionnaires and financial statements, in respect to the size of the contracts upon which each bidder is qualified to bid.

article: 4. Bids and Bidders


text: In all projects for road, street, and bridge work where federal funds are involved and where a bidder is required to be and has been prequalified pursuant to Sections 10760 and 10761, no bid submitted or contract thereafter awarded shall be invalidated by the failure of the bidder or contractor to be properly licensed in accordance with the laws of this state, nor shall any such contractor be denied payment under any such contract because of such failure; provided, however, that the first payment for work or material under such contract shall not be made by the Controller unless and until the Registrar of Contractors certifies to him that the records of the Contractors’ State License Board indicate that such contractor was or became properly licensed between the time of bid opening and the making of the certification. Any bidder or contractor not so licensed shall be subject to all legal penalties imposed by such laws, including, but not limited to, any appropriate disciplinary action by the Contractors’ State License Board, and the trustees shall include a statement to that effect in the standard form of prequalification questionnaire and financial statement.

article: 4. Bids and Bidders


text: The questionnaires and financial statements are not public records and are not open to public inspection.

article: 4. Bids and Bidders


text: The trustees shall furnish to each bidder a standard proposal form, which, when filled out and executed, may be submitted as the bid. Bids not presented on forms so furnished shall be disregarded. The trustees shall not furnish proposal forms to any person who is required to submit and has not submitted a questionnaire and financial statement for prequalification at least five days prior to the date fixed for publicly opening sealed bids and been prequalified for at least one day prior to that date.

article: 4. Bids and Bidders


text:
(a) All bids shall be presented under sealed cover and accompanied by one of the following forms of bidder’s security: cash, a cashier’s check, certified check, or a bidder’s bond executed by an admitted surety insurer, made payable to the trustees. The security shall be in an amount equal to at least 10 percent of the amount bid. A bid shall not be considered unless one of the forms of bidder’s security is enclosed with it.

(b) A bid described in subdivision (a) may be submitted electronically in accordance with Section 1601, but only if the bidder submits the bidder’s security required by subdivision (a) within 24 hours after the opening of bids.

history: (History: Amended by Stats. 2007, Ch. 427, Sec. 2. Effective January 1, 2008.)

article: 4. Bids and Bidders


text: Whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid shall not be received after that time.

article: 4. Bids and Bidders


text:
Any bid may be withdrawn at any time prior to the time fixed in the public notice for the opening of bids only by written request for the withdrawal of the bid filed with the trustees. The request shall be executed by the bidder or his or her duly authorized representative. The withdrawal of a bid does not prejudice the right of the bidder to file a new bid.

This section does not authorize the withdrawal of any bid after the time fixed in the public notice for the opening of bids.

article: 4. Bids and Bidders


text: On the day named in the public notice the trustees shall publicly open the sealed bids and award the contracts to the lowest responsible bidders.

article: 5. Award of Contracts

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 5. Award of Contracts


text:
The trustees may require a bid for a public works contract to include prices for items that may be added to, or deducted from, the scope of work in the contract for which the bid is being submitted. Whenever additive or deductive items are included in a bid, the bid solicitation shall specify which one of the following methods will be used to determine the lowest bid. In the absence of such a specification, only the method provided by subdivision (a) will be used:

(a) The lowest bid shall be the lowest bid price on the base contract without consideration of the prices on the additive or deductive items.

(b) The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that were specifically identified in the bid solicitation as being used for the purpose of determining the lowest bid price.

(c) The lowest bid shall be the lowest total of the bid prices on the base contract and those additive or deductive items that, when taken in order from a specifically identified list of those items in the solicitation, and added to, or subtracted from, the base contract, are less than, or equal to, a funding amount publicly disclosed by the trustees before the first bid is opened.

(d) The lowest bid shall be determined in a manner that prevents any information that would identify any of the bidders or proposed subcontractors or suppliers from being revealed to the public entity before the ranking of all bidders from lowest to highest has been determined.

A responsible bidder who submitted the lowest bid as determined by this section shall be awarded the contract, if it is awarded. This section does not preclude the trustees from adding to or deducting from the contract any of the additive or deductive items after the lowest responsible bidder has been determined.

(e) Nothing in this section shall preclude the prequalification of subcontractors.

history: (History: Amended by Stats. 2002, Ch. 455, Sec. 2. Effective January 1, 2003.)

article: 5. Award of Contracts


text: If the successful bidder fails to execute the contract, the bidder’s security shall be forfeited to the state. The cash or proceeds shall be deposited in the fund out of which the expenses of preparation and printing of the plans and specifications, estimates of cost, and publication of notice are paid.

article: 5. Award of Contracts


text:
If the trustees deem it is for the best interest of the state, they may, on the refusal or failure of the successful bidder to execute the contract, award it to the second lowest responsible bidder.

If the second lowest responsible bidder fails or refuses to execute the contract, the trustees may likewise award it to the third lowest responsible bidder.

On the failure or refusal of the second or third lowest bidder, to whom a contract is so awarded, to execute it, the bidder’s security shall be likewise forfeited to the state.

article: 5. Award of Contracts


text: The failure of the successful bidder to furnish any bond required by law, within the time fixed for execution of the contract, constitutes a failure to execute the contract.

article: 5. Award of Contracts


text: The bidder’s security of the second and third lowest responsible bidders may be withheld until the contract has been finally executed. The cash, cashier’s checks, and certified checks submitted by all other unsuccessful bidders shall be returned to them within 10 days after the contract is awarded, and their bidders’ bonds shall be of no further effect.

article: 5. Award of Contracts


text: If the trustees deem the acceptance of the lowest responsible bid or bids is not for the best interests of the state, they may reject all bids and proceed by day’s labor or advertise for other bids in the manner required by this chapter.

article: 5. Award of Contracts


text:
Every contract awarded under this chapter shall be submitted to the Attorney General or the attorney appointed according to law and authorized to represent the trustees. Such a contract is not binding on the state until the appropriate attorney finds it to be in accordance with the requirements of this chapter, and endorses such finding thereon.

A certified copy of each contract shall be filed with the Controller, but the failure to so file does not invalidate it.

article: 7. Contract Requirements

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 7. Contract Requirements


text: Every contract shall provide for the filing of separate performance and payment bonds by the contractor executed by an admitted surety insurer, subject to the approval of the trustees.

article: 7. Contract Requirements


text: Each bond shall be in a sum equal to at least one-half of the contract price, except as otherwise provided in Section 9554 of the Civil Code.

history: (History: Amended by Stats. 2010, Ch. 697, Sec. 46. (SB 189) Effective January 1, 2011. Operative July 1, 2012, by Sec. 105 of Ch. 697.)

article: 7. Contract Requirements


text: The payment bond shall secure the payment of the claims of laborers, mechanics, or materialmen employed on the work under the contract and shall contain all other provisions required by law.

article: 7. Contract Requirements


text: The performance bond shall guarantee the faithful performance of the contract by the contractor.

article: 7. Contract Requirements


text: No payment shall be made upon the contract to the contractor or any assignee of the contractor until an order by the trustees that a sufficient surety be substituted on the bond, or that a new, additional, or supplemental bond be given, is satisfied.

article: 7. Contract Requirements


text: Every contract shall contain a provision in regard to the time when the whole or any specified portion of the work contemplated shall be completed, and shall provide that for each day completion is delayed beyond the specified time, the contractor shall forfeit and pay to the state a specified sum of money, to be deducted from any payments due or to become due to the contractor. The sum so specified is valid as liquidated damages unless manifestly unreasonable under the circumstances existing at the time the contract was made. A contract for a road project may also provide for the payment of extra compensation to the contractor, as a bonus for completion prior to the specified time, such provision, if used, to be included in the specifications and to clearly set forth the basis for such payment.

article: 7. Contract Requirements


text: Every contract shall provide that the trustees may make changes in the plans and specifications pursuant to this chapter.

article: 7. Contract Requirements


text: Notwithstanding any other law, commencing January 1, 2024, the California State University shall not approve a health benefit plan contract for employees that does not comply with the contraceptive coverage requirements of Sections 1367.25 and 1367.255 of the Health and Safety Code, and Sections 10123.1945 and 10123.196 of the Insurance Code.

history: (History: Added by Stats. 2022, Ch. 630, Sec. 20. (SB 523) Effective January 1, 2023.)

article: 7. Contract Requirements


text:
(a) No person, firm, or subsidiary thereof who has been awarded a consulting services contract may submit a bid or be awarded a contract on or after July 1, 2003, for the provision of services, the procurement of goods or supplies, or any other related action that is required, suggested, or otherwise deemed appropriate in the end product of the consulting services contract.

(b) This section does not apply to any person, firm, or subsidiary thereof who is awarded a subcontract of a consulting services contract that amounts to no more than 10 percent of the total monetary value of the consulting services contract.

(c) This section does not apply to consulting services contracts subject to Chapter 10 (commencing with Section 4525) of Division 5 of Title 1 of the Government Code.

history: (History: Added by Stats. 2003, Ch. 699, Sec. 6. Effective January 1, 2004.)

article: 7.8. Conflict of Interest

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 7.8. Conflict of Interest


text: No officer or employee of the California State University shall engage in any employment, activity, or enterprise for which the officer or employee receives compensation or in which the officer or employee has a financial interest if that employment, activity, or enterprise is sponsored or funded, or sponsored and funded, by any California State University department through or by a California State University contract unless the employment, activity, or enterprise is within the course and scope of the officer’s or employee’s regular California State University employment. No officer or employee in the California State University shall contract on his or her own individual behalf as an independent contractor with any California State University department to provide services or goods. This section shall not apply to officers or employees of the California State University with teaching or research responsibilities.

article: 7.8. Conflict of Interest


text:
(a) No retired, dismissed, separated, or formerly employed person of the California State University employed with the California State University or otherwise appointed to serve in the California State University may enter into a contract in which he or she engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decisionmaking process relevant to the contract while employed in any capacity by any California State University department. The prohibition of this subdivision shall apply to a person only during the two-year period beginning on the date the person left California State University employment.

(b) For a period of 12 months following the date of his or her retirement, dismissal, or separation from the California State University, no person employed in the California State University or otherwise appointed to serve in the California State University may enter into a contract with any California State University department, if he or she was employed by that department in a policymaking position in the same general subject area as the proposed contract within the 12-month period prior to his or her retirement, dismissal, or separation. The prohibition of this subdivision shall not apply to a contract requiring the person’s services as an expert witness in a civil case or to a contract for the continuation of an attorney’s services on a matter he or she was involved with prior to leaving the California State University.

(c) This section does not prohibit the rehire or reappointment of California State University employees after retirement, consistent with California State University administrative policies, nor does it apply to inventors and authors of intellectual property licensed under technology transfer agreements.

article: 7.8. Conflict of Interest


text:
(a) Except as otherwise provided in subdivision (b), each contractor who enters into a contract with a California State University campus for ten thousand dollars ($10,000) or more shall be assigned an identification number by the president of that California State University campus. Each contractor who has been assigned a number shall list it on each contract the contractor enters into with the California State University campus, regardless of the amount of the contract. In the case of a corporation or firm, the president’s assigned number shall be used exclusively on each contract with that president’s campus. The assigned number shall remain unchanged regardless of future name changes.

(b) If the identification numbers cannot be tracked centrally by the Trustees of the California State University, then the trustees, and not the presidents, shall assign the identification numbers.

article: 7.8. Conflict of Interest


text: The trustees may increase or decrease quantities of work to be done under a unit basis contract during the progress of the work.

history: (History: Added by Stats. 1984, Ch. 1128, Sec. 4.)

article: 8. Modifications; Performance; Payment

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 8. Modifications; Performance; Payment


text: The trustees may cause the insertion of provisions in any contract for the performance of such extra work and the furnishing of materials therefor by the contractor as the trustees require for the proper completion or construction of the whole work contemplated, if the bidders have equal opportunity of knowing the proposed terms for the extra work.

article: 8. Modifications; Performance; Payment


text: The trustees may grant such extensions of time for completion as they deem for the best interests of the state.

article: 8. Modifications; Performance; Payment


text:
If the trustees deem that a contractor has failed to supply an adequate working force, or material of proper quality, or has failed in any other respect to prosecute the work with the diligence and force specified by the contract, the trustees may:

(a) After written notice of at least five days to the contractor, specifying the defaults to be remedied, provide any such labor or materials and deduct the cost from any money due or to become due to the contractor under the contract; or

(b) If the trustees consider that the failure is sufficient ground for such action, they may give written notice of at least five days to the contractor and the contractor’s sureties, that if the defaults are not remedied the contractor’s control over the work will be terminated.

article: 8. Modifications; Performance; Payment


text: If the defaults are not remedied within the time specified in the notice, the contractor’s control shall terminate as of the expiration of that time.

article: 8. Modifications; Performance; Payment


text: Upon such termination, the trustees may take possession of and use all or any part of the contractor’s materials, tools, equipment, and appliances upon the premises to complete the contract. Thereupon, the trustees may permit the surety to complete or cause the contract work to be completed, or they may direct that all or any part of the work be completed by day’s labor or by employment of other contractors on informal contracts, or both.

article: 8. Modifications; Performance; Payment


text: Such informal contracts may be awarded only after a proposal form has been prepared, a copy is served upon the contractor whose control has been terminated, and upon his or her surety, and three days allowed thereafter so that he or she may cause others to bid. Any person who is prequalified therefor under Article 4 (commencing with Section 10760) of this chapter may bid on informal contracts.

article: 8. Modifications; Performance; Payment


text: The provisions of this chapter, except as to prequalifications, are not applicable to the award of informal contracts.

article: 8. Modifications; Performance; Payment


text: If the control of a contractor is terminated or he or she abandons the work, and the work is performed by day’s labor or informal contract as provided in Section 10845, he or she is not entitled to receive any portion of the amount to be paid under the contract until it is fully completed. After completion, if the unpaid balance exceeds the sum of the amount expended by the state in finishing the work, plus all damages sustained or to be sustained by the state, the excess not otherwise required by law to be retained shall be paid to the contractor, but if such sum exceeds the unpaid balance, the contractor and his or her surety are liable to the state for the excess. If the surety completes the contract work, as provided in Section 10845, such surety shall be subrogated to money due under the contract and to money which shall become due in the course of completion by the surety, to the extent provided by law.

article: 8. Modifications; Performance; Payment


text: On the completion of the contract, the original contractor is entitled to the return of all his or her unused materials, and his or her equipment, tools, and appliances, except that he or she shall have no claim on account of usual and ordinary depreciation, loss, and wear and tear.

article: 8. Modifications; Performance; Payment


text: The notices required by this article may be served on the contractor or on his or her agent having charge of the work, personally, or by registered mail addressed to the contractor or his or her agent, or, if neither can be located or their addresses are unknown, by posting in a conspicuous place upon the premises of the project.

article: 8. Modifications; Performance; Payment


text: Payments upon contracts shall be made as the trustees prescribe upon estimates made and approved by the trustees, but progress payments shall not be made in excess of 95 percent of the percentage of actual work completed plus a like percentage of the value of material delivered on the ground or stored subject to or under the control of the state, and unused. The trustees shall withhold not less than 5 percent of the contract price until final completion and acceptance of the project. The Controller shall draw warrants upon estimates so made and approved by the trustees and the Treasurer shall pay them.

article: 8. Modifications; Performance; Payment


text:
At the request and expense of the contractor, and with the approval of the trustees, any amount withheld pursuant to Section 10851 may be deposited with the Treasurer as the escrow agent, who shall pay such moneys to the contractor upon the placing of securities eligible for the investment of state funds under Section 16430 of the Government Code or bank certificates of deposit into such escrow account by the contractor.

“Approval of the trustees,” as used in this section, means that the trustees may, in their discretion, allow or deny the request of the contractor to avail itself of the provisions of this section and that the trustees may, in their discretion, allow the request of the contractor upon the satisfaction of conditions which may be specified by the trustees.

The contractor shall be beneficial owner of any securities in an escrow account pursuant to this section and shall receive any interest thereon.

Any escrow agreement entered into pursuant to this section shall contain as a minimum, the following provisions:

(a) The amount of securities to be deposited; such amount shall not be less than the amount which would otherwise be withheld pursuant to Section 10851;

(b) The terms and conditions of conversion to cash in case of the default of the contractor; and

(c) The termination of the escrow upon completion of the contract.

article: 8. Modifications; Performance; Payment


text:
(a) If the trustees fail to make a progress payment on a contract within 39 days after receipt of an undisputed and properly submitted payment request from a contractor on a construction contract, the trustees shall pay interest to the contractor equivalent to the legal rate set forth in subdivision (a) of Section 685.010 of the Code of Civil Procedure. If the payment is not made within 39 days of receipt of the contractor’s request, and the Controller has processed the payment within 14 days of the receipt of the request, the trustees shall pay interest to the contractor equivalent to the legal rate as provided in subdivision (a) of Section 685.010 of the Code of Civil Procedure. If the payment is not made within 39 days of receipt of the contractor’s request, and the trustees have processed the payment within 25 days after the receipt of the request, the Controller shall pay interest equivalent to the legal rate as provided in subdivision (a) of Section 685.010 of the Code of Civil Procedure.

(b) Upon receipt of a payment request, the trustees shall act in accordance with the following:

(1) Each payment request shall be reviewed by the trustees as soon as practicable after receipt for the purpose of determining that the payment request is a proper payment request.

(2) Any payment request determined not to be a proper request suitable for payment shall be returned to the contractor as soon as practicable, but not later than seven days after receipt. A request returned pursuant to this paragraph shall be accompanied by a document setting forth in writing the reasons why the payment request is not proper.

(3) Upon request from the trustees, the Controller may elect to expedite each payment request and may charge the trustees an appropriate amount, as determined by the Controller, for costs incurred in expediting the payment request.

(c) The number of days available to the trustees to make a payment without incurring interest shall be reduced by the number of days by which the trustees exceed the seven-day return requirement set forth in paragraph (2) of subdivision (b).

(d) A properly submitted payment request shall be defined as the date upon which the trustees receive a payment request, certified in accordance with the contract, at the address identified in the contract.

(e) For purposes of this section:

(1) A “progress payment” includes all payments due contractors, except that portion of the final payment withheld pursuant to Section 10851.

(2) A payment request shall be considered properly executed if funds are available for payment of the payment request and payment is not delayed due to an audit inquiry by the Controller.

history: (History: Added by Stats. 1992, Ch. 799, Sec. 1. Effective January 1, 1993.)

article: 8. Modifications; Performance; Payment


text: Any officer or employee of the trustees who corruptly performs any official act to the injury of the state, is guilty of a felony.

article: 9. Offenses

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 2.5. California State University Contract Law > 9. Offenses


text: Any contractor or his or her agent or employee who corruptly permits the violation of any contract awarded under this chapter to the injury of the state is guilty of a felony.

article: 9. Offenses


text: Any subcontractor or agent or employee of any contractor or subcontractor, who has knowledge of any work being done in violation of any contract under this chapter and does not immediately notify the trustees or the inspector or resident engineer upon the project of the violation, is guilty of a felony.

article: 9. Offenses


text: Such felonies are punishable by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code.

history: (History: Amended by Stats. 2011, Ch. 15, Sec. 556. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.)

article: 9. Offenses


text: Such persons are also liable to the state for double the amount the state may have lost, or be liable to lose by reason of the acts made crimes by this article.

article: 9. Offenses


text: “Spouse,” as used in this code, includes “registered domestic partner,” as required by Section 297.5 of the Family Code.

history: (History: Added by Stats. 2016, Ch. 50, Sec. 91. (SB 1005) Effective January 1, 2017.)

article: 9. Offenses


text:
(a) The Legislature finds that the unique aspects of information technology goods and services and their importance to state programs warrant a separate body of governing statutes. The Legislature further finds that this separate body of governing statutes should enable the timely acquisition of information technology goods and services to meet the state’s needs in the most value-effective manner.

(b) (1) All contracts for the acquisition of information technology goods and services related to information technology projects defined in Chapter 4800 of the State Administrative Manual shall be made by or under the supervision of the Department of Technology consistent with this chapter.

(2) The Department of Technology shall have the authority necessary for the acquisition of information technology goods and services related to information technology projects as prescribed in this chapter.

(c) The Department of Technology shall have the final authority in the determination of information technology procurement policy.

(d) The Department of Technology shall have the final authority in the determination of information technology procurement procedures applicable to acquisitions subject to subdivision (b) and telecommunications procurements made pursuant to Section 12120.

(e) The Department of Technology shall have the final authority in the determination of procurement policy in telecommunications procurements made pursuant to Section 12120.

(f) Except as expressly provided in subdivision (b), all contracts for the acquisition of information technology goods or services, whether by lease or purchase, shall be made by or under the supervision of the Department of General Services.

(g) Except as expressly provided in subdivision (d), the Department of General Services shall have the final authority in the determination of information technology procurement procedures. This includes, but is not limited to, the following:

(1) Acquisitions delegated by the Department of General Services pursuant to paragraph (1) of subdivision (e) of Section 12102.2, if the Department of Technology has also delegated project authority pursuant to subdivision (b) of Section 11546 of the Government Code.

(2) Acquisitions of information technology goods or services relating to information technology projects delegated by the Department of Technology under subdivision (b) of Section 11546 of the Government Code, but not delegated by the Department of General Services under paragraph (1) of subdivision (e) of Section 12102.2.

(3) If the Department of Technology has not delegated project authority pursuant to subdivision (b) of Section 11546 of the Government Code, but the Department of General Services has delegated acquisition authority pursuant to paragraph (1) of subdivision (e) of Section 12102.2 and the Department of Technology has authorized the state agency to conduct the acquisition.

history: (History: Amended by Stats. 2018, Ch. 37, Sec. 50. (AB 1817) Effective June 27, 2018.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 3. Acquisition of Information Technology Goods and Services


text: The Regents of the University of California, the Trustees of the California State University, and the Board of Governors of the California Community Colleges shall not be subject to this chapter except that the trustees shall develop policies and procedures maintained in its state university administrative manual and the board shall adopt policies and procedures maintained in its administrative manual that further the legislative policies for contracting expressed in this chapter but without the involvement of the Director of Finance, the Director of General Services, the Department of Finance, the Department of General Services, the Director of Technology, or the Department of Technology.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 52. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)

chapter: 3. Acquisition of Information Technology Goods and Services


text: The Trustees of the California State University are subject to Article 1.5 (commencing with Section 10115) of Chapter 1. The contents of any report that the trustees are required to submit to the Governor and the Legislature pursuant to that article shall be organized so that, whenever applicable, each campus is individually featured.

history: (History: Added by Stats. 1993, Ch. 1097, Sec. 6. Effective January 1, 1994.)


text:
As used in this chapter:

(a) “Multiple award schedule” (MAS) is an agreement established between the General Services Administration of the United States and certain suppliers to do business under specific prices, terms, and conditions for specified goods, information technology, and services.

(b) “Multiple award” means a contract of indefinite quantity for one or more similar goods, information technology, or services to more than one supplier.

(c) “Procedures” means the rules, methods, and practices to be followed in conducting information technology procurements.

(d) “Policies” means determining what information technology goods or services are to be purchased and by whom.

(e) For purposes of this chapter, “value-effective acquisition” may be defined to include, but not be limited to, the following:

(1) The operational cost that the state would incur if the bid or proposal is accepted.

(2) Quality of the product or service, or its technical competency.

(3) Reliability of delivery and implementation schedules.

(4) The maximum facilitation of data exchange and systems integration.

(5) Warranties, guarantees, and return policy.

(6) Supplier financial stability.

(7) Consistency of the proposed solution with the state’s planning documents and announced strategic program direction.

(8) Quality and effectiveness of business solution and approach.

(9) Industry and program experience.

(10) Prior record of supplier performance.

(11) Supplier expertise with engagements of similar scope and complexity.

(12) Extent and quality of the proposed participation and acceptance by all user groups.

(13) Proven development methodologies and tools.

(14) Innovative use of current technologies and quality results.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 53. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
It is the intent of the Legislature that policies and procedures developed by the Department of Technology and the Department of General Services in accordance with this chapter provide for the following:

(a) The expeditious and value-effective acquisition of information technology goods and services to satisfy state requirements.

(b) The acquisition of information technology goods and services within a competitive framework.

(c) The delegation of authority by the Department of General Services to each state agency that has demonstrated to the department’s satisfaction the ability to conduct value-effective information technology goods and services acquisitions.

(d) The exclusion from state bid processes, at the state’s option, of any supplier having failed to meet prior contractual requirements related to information technology goods and services.

(e) The review and resolution of protests submitted by any bidders with respect to any information technology goods and services acquisitions.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 54. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
The Department of General Services shall prenegotiate the repetitively used terms and conditions in the state’s model contract with each interested vendor who bids or proposes on electronic data processing or telecommunications procurements. The contract language shall be kept on file, as a matter of public record, and shall remain operational until either the state or the vendor provides 30 days’ notice to the other party that new negotiations are deemed appropriate.

If, for a particular procurement, the state seeks to make any further changes to either the negotiated or the standard contract language, or both, it shall identify those changes to each bidder or proposer prior to the due date for the bid or proposal. If for a particular procurement, a bidder or proposer seeks to propose a negotiated change or standard contract language change, it shall make this identification within the timeframe identified in the solicitation document.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 55. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) It is the intent of the Legislature that agencies of the state use an acquisition method that is compatible with their short- and long-term fiscal needs in contracts relating to commodities and information technology goods and services. State agencies should be able to specify their anticipated life cycle requirements that would become one of the criteria for contractor selection. These agencies should be given the choice of suppliers to meet statewide standardization needs, unique service requirements, application requirements, and long-term satisfaction criteria. There is a need for the state to enter into long-term contracts with annual cancellation and fund-out clauses, as required, to protect the state’s interests as well as provide the option for multiyear renewals to encourage suppliers to develop higher levels of service and support throughout the contracts.

(b) The state may utilize multiple awards, including federal General Service Administration Multiple Awards Schedules and master agreements or contracts for goods, information technology, services, or consulting services. For purposes of this subdivision, a multiple award is an award of an indefinite quantity contract for one or more similar goods, information technology, or services to more than one supplier. Except for possible multiple awards as permitted by this subdivision, and except as described in subdivision (d), all the requirements of this chapter pertaining to other types of information technology acquisitions shall be followed. The Department of General Services shall administer this section and ensure that multiple award schedules are in compliance with all other applicable statutes.

(c) Notwithstanding any other provision of law, state agencies, in exercising their contracting authority delegated by the Department of General Services, may contract with suppliers who have multiple award schedules with the General Services Administration of the United States on the same terms, conditions, and prices if the supplier is willing to do so. The Department of General Services may also develop multiple award schedules or agreements for use by state agencies in the same manner. The Department of General Services shall determine the delegation contracting authority for agencies wishing to use multiple award schedules.

(d) For contracts related to information technology integration or development projects that generate revenues or achieve savings over a quantifiable baseline of existing costs, state agencies shall consider and may incorporate performance-based or share-in-savings contract terms to manage risks and create incentives for successful contract performance. Performance-based or share-in-savings contracts may have the following characteristics, among others:

(1) Contract terms that specify business outcomes to be achieved, not the solution to be provided.

(2) Contract terms that structure the contract to maintain maximum vendor commitment to project success and minimize risk to the state by sharing risk with the private sector.

(3) Utilization of “best value” evaluation methods, which means to select the solution that will achieve the best result based on business performance measures, not necessarily the lowest price.

(4) Contract terms that base payments to the vendor primarily on achieving predefined performance measures.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 56. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) Notwithstanding the sealed bidding provisions of this chapter, reverse auctions may be utilized for the acquisition of information technology, in accordance with the procedures set forth in Section 10290.3.

(b) For purposes of this section, “reverse auction” means a competitive online solicitation process for fungible information technology in which vendors compete against each other online in real time in an open and interactive environment.

history: (History: Added by Stats. 2003, Ch. 266, Sec. 2. Effective January 1, 2004.)


text:
(a) The Department of General Services shall maintain, in the State Administrative Manual, all policies and procedures governing the acquisition and disposal of information technology goods and services, including, but not limited to, the policies and procedures that the Department of Technology is authorized to establish for the acquisition of information technology projects. The Department of Technology shall provide a link to information technology policies and procedures in the State Administrative Manual on the homepage of the Internet Web site.

(b) Except as specified in Section 12102.1, acquisition of information technology goods and services shall be conducted through competitive means, except when the Director of General Services determines that (1) the goods and services proposed for acquisition are the only goods and services which can meet the state’s need, or (2) the goods and services are needed in cases of emergency where immediate acquisition is necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of General Services. The Department of General Services shall maintain, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology goods and services. These guidelines may be in the form of standard formats or model formats.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 57. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) The Department of Technology shall establish in the State Administrative Manual all of the following:

(1) Policies governing the acquisition of information technology projects.

(2) Procedures governing the acquisition of information technology projects reportable under Chapter 4800 of the State Administrative Manual and not delegated under subdivision (e) of Section 12102.2.

(3) Policies and procedures governing the acquisition of telecommunications goods and services, as authorized under Section 12120.

(b) Acquisition of information technology goods and services that are subject to subdivision (a) shall be conducted through competitive means, except when the Director of Technology determines that (1) the goods and services proposed for acquisition are the only goods and services that can meet the state’s need, or (2) the goods and services are needed for an emergency and immediate acquisition and are necessary for the protection of the public health, welfare, or safety. The acquisition mode to be used and the procedure to be followed shall be approved by the Director of Technology. The Department of Technology shall establish, in the State Administrative Manual, appropriate criteria and procedures to ensure compliance with the intent of this chapter. These criteria and procedures shall include acquisition and contracting guidelines to be followed by state agencies with respect to the acquisition of information technology projects that are reportable under State Administrative Manual Section 4800 et seq. These guidelines may be in the form of standard formats or model formats.

history: (History: Added by Stats. 2013, Ch. 28, Sec. 58. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) Contract awards for all large-scale systems integration projects shall be based on the proposal that provides the most value-effective solution to the state’s requirements, as determined by the evaluation criteria contained in the solicitation document. Evaluation criteria for the acquisition of information technology goods and services, including systems integration, shall provide for the selection of a contractor on an objective basis not limited to cost alone.

(1) The Department of Technology shall invite active participation, review, advice, comment, and assistance from the private sector and state agencies in developing procedures to streamline and to make the acquisition process more efficient, including, but not limited to, consideration of comprehensive statements in the request for proposals of the business needs and governmental functions, access to studies, planning documents, feasibility study reports and draft requests for proposals applicable to solicitations, minimizing the time and cost of the proposal submittal and selection process, and development of a procedure for submission and evaluation of a single proposal rather than multiple proposals.

(2) Solicitations for acquisitions based on evaluation criteria other than cost alone shall provide that sealed cost proposals shall be submitted and that they shall be opened at a time and place designated in the solicitation for bids and proposals. Evaluation of all criteria, other than cost, shall be completed before the time designated for public opening of cost proposals, and the results of the completed evaluation shall be published immediately before the opening of cost proposals. The state’s contact person for administration of the solicitation shall be identified in the solicitation for bids and proposals, and that person shall execute a certificate under penalty of perjury, which shall be made a permanent part of the official contract file, that all cost proposals received by the state have been maintained, sealed and under lock and key, until the time cost proposals are opened.

(b) The acquisition of hardware acquired independently of a system integration project may be made on the basis of lowest cost meeting all other specifications.

(c) The 5 percent small business preference provided for in Chapter 6.5 (commencing with Section 14835) of Part 5.5 of Division 3 of Title 2 of the Government Code and the regulations implementing that chapter shall be accorded to all qualifying small businesses.

(d) For all transactions formally advertised, evaluation of bidders’ proposals for the purpose of determining contract award for information technology goods shall provide for consideration of a bidder’s best financing alternatives, including lease or purchase alternatives, if any bidder so requests, not less than 30 days prior to the date of final bid submission, unless the acquiring agency can prove to the satisfaction of the Department of General Services that a particular financing alternative should not be so considered.

(e) Notwithstanding Section 12100:

(1) Acquisition authority may be delegated by the Director of General Services, in consultation with the Department of Technology, to any state agency that has been determined to be capable of effective use of that authority. This authority may be limited by the Department of General Services. A state agency shall not conduct an acquisition for information technology goods and services related to an information technology project under delegated acquisition authority pursuant to this section unless the Department of Technology has done one of the following:

(A) Delegated project authority to that state agency pursuant to Section 11546 of the Government Code.

(B) Authorized the state agency to conduct the acquisition.

(2) Acquisitions conducted under delegated acquisition authority shall be reviewed by the Department of General Services on a selective basis.

(3) The Department of General Services shall maintain procedures for complying with the State Agency Buy Recycled Campaign (Chapter 4 (commencing with Section 12153)). The procedures shall include procedures for meeting the minimum recycled content requirements in state contracting as established by CalRecycle pursuant to Section 12209 and procedures for complying with reporting requirements as established by CalRecycle pursuant to Section 12211.

(f) To the extent practical, the solicitation documents shall provide for a contract to be written to enable acquisition of additional items to avoid essentially redundant acquisition processes when it can be determined that it is economical to do so.

(g) Protest procedures shall be developed to provide bidders an opportunity to protest any formal, competitive acquisition conducted in accordance with this chapter. The procedures shall provide that protests must be filed no later than five working days after the issuance of an intent to award. Authority to protest may be limited to participating bidders. The Director of Technology, or a person designated by the director, may consider and decide on initial protests of bids for information technology projects conducted by the Department of Technology and telecommunications procurement made pursuant to Section 12120. The Director of General Services, or a person designated by the director, may consider and decide on initial protests of all other information technology acquisitions. A decision regarding an initial protest shall be final. If, before the last day to protest, any bidder who has submitted an offer files a protest with the department against the awarding of the contract on the ground that their bid or proposal should have been selected in accordance with the selection criteria in the solicitation document, the contract shall not be awarded until either the protest has been withdrawn or the Department of General Services has made a final decision as to the action to be taken relating to the protest. Within 10 calendar days after filing a protest, the protesting bidder shall file with the Department of General Services a full and complete written statement specifying in detail the grounds of the protest and the facts in support thereof.

(h) Consistent with the procedures established and administered by the Department of General Services, information technology goods that have been determined to be surplus to state needs shall be disposed of in a manner that will best serve the interests of the state. Procedures governing the disposal of surplus goods may include auction or transfer to local governmental entities.

(i) A supplier may be excluded from bid processes if the supplier’s performance with respect to a previously awarded contract has been unsatisfactory, as determined by the state in accordance with established procedures that shall be maintained in the State Administrative Manual. This exclusion shall not exceed 36 months for any one determination of unsatisfactory performance. Any supplier excluded in accordance with this section shall be reinstated as a qualified supplier at any time during this 36-month period, upon demonstrating to the Department of General Services’ satisfaction that the problems that resulted in the supplier’s exclusion have been corrected.

history: (History: Amended by Stats. 2022, Ch. 517, Sec. 2. (AB 661) Effective January 1, 2023.)


text:
(a) The department shall conduct a postevaluation of each contract for the acquisition of information technology services totaling five hundred thousand dollars ($500,000) or more that it executes.

(b) The department shall evaluate the performance of the contractor in doing the work for which the contract was awarded. The department shall base a postevaluation on objective facts and support them with program and contract performance data. The Department of Technology and the Department of General Services shall jointly develop a standard form or forms and the procedures to implement this section. Each department shall use the standard form or forms that contain objective postevaluation factors or metrics appropriate to the nature of the information technology service and project type. In developing a standard postevaluation form or forms under this subdivision, the Department of Technology and the Department of General Services shall jointly gather feedback from stakeholders in the information technology industry to ensure that the use of any factors or metrics on the standard form or forms are appropriate to the nature of the information technology service or project type. A public official who signs a postevaluation shall confirm its accuracy. The department shall use a standard form developed pursuant to this subdivision to report on all of the following:

(1) Whether the contracted work was completed within the time specified in the contract.

(2) Whether the contracted work was completed within the budget specified in the contract.

(3) Factors outside the control of the contractor that caused difficulties in contractor performance.

(4) Other information the department, the Department of Technology, or the Department of General Services may require.

(c) If the contractor’s performance was judged unsatisfactory on any of the factors or metrics specified in a standard postevaluation form developed pursuant to subdivision (b) and was not mitigated by any factors or metrics outside the control of the contractor that may have caused difficulties in the contractor’s performance, the postevaluation shall be considered unsatisfactory for the purposes of subdivisions (e) and (f).

(d) The postevaluation shall be prepared within 60 days of the completion of the contract.

(e) Postevaluations shall remain on file at the offices of the department for a period of 36 months following contract completion. The department conducting the postevaluation shall place one copy of the postevaluation form in the department’s contract file and, if the department is not the Department of Technology, send one copy of the form to the Department of Technology within five working days of the completion of the postevaluation. The postevaluations and contractor responses on file shall not be public records. The Department of Technology shall act as a central depository for all departments making postevaluations or desiring information on a contractor’s record with the state and shall send a copy of any postevaluation report and response to the contracting manager or contracting officer of any department, upon request. Failure by a department to send a postevaluation to the Department of Technology may be grounds for the rejection of future delegation of information technology projects pursuant to Section 11546 of the Government Code.

(f) (1) Upon submitting an unsatisfactory postevaluation to the Department of Technology, the department shall notify and send a copy of the postevaluation to the contractor within 15 days.

(2) A contractor may comment on a negative postevaluation. Comments made pursuant to this paragraph shall be submitted to the department and the Department of Technology, to be attached to and filed with the copies of the postevaluation required to be filed pursuant to subdivision (e).

(g) For purposes of this section, the following definitions shall apply:

(1) “Department” means the state agency that receives the information technology services.

(2) “Information technology services” means services, including, but not limited to, information technology personal services and information technology consulting services, acquired in connection with an information technology project, as defined in Section 4819.2 of the State Administrative Manual.

history: (History: Added by Stats. 2019, Ch. 496, Sec. 1. (AB 971) Effective January 1, 2020.)


text:
In addition to the mandatory requirements enumerated in Sections 12102, 12102.1, and 12102.2, the acquisition policies and procedures developed by the Department of Technology and the Department of General Services in accordance with this chapter may provide for the following:

(a) Price negotiation with respect to contracts entered into in accordance with this chapter.

(b) System or equipment component performance, or availability standards, including an assessment of the added cost to the state to receive contractual guarantee of a level of performance.

(c) Requirement of a bond or assessment of a cost penalty with respect to a contract or consideration of a contract offered by a supplier whose performance has been determined unsatisfactory in accordance with established procedures maintained in the State Administrative Manual as required by Section 12102.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 60. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
For those information technology purchases for which the Department of General Services or the Department of Technology determines that a request for proposal (RFP) is appropriate, the controlling department, as specified under Section 12100, shall identify and document the following, with respect to information technology procurements, prior to releasing the RFP:

(a) Identify the legislative mandate, state business, or operational reason for the information technology procurement.

(b) Identify the existing business processes currently used to accomplish the legislative mandate, state business, or operational reason.

(c) Identify the most important priorities for the information technology project to accomplish.

(d) Identify what current technology is being used and how it is being used.

(e) If the data used in a proposed information technology system comes from multiple sources, identify the existing business processes or technical systems that produce and maintain the source data to ensure interoperability.

(f) Identify how the new information technology project leverages existing technology investments while accomplishing its business objectives.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 61. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) (1) The State Contracting Manual shall set forth all procedures and methods that shall be used by the state when seeking to obtain bids for the acquisition of information technology.

(2) Revisions to the manual must be publicly announced, including, but not limited to, postings on the Internet Web site homepage of the Department of General Services. The Department of Technology shall provide a link to the State Contracting Manual on its Internet Web site homepage.

(b) The Department of General Services and the Department of Technology in accordance with this chapter shall develop, implement, and maintain standardized methods for the development of all information technology requests for proposals.

(c) All information technology requests for proposals shall be reviewed by the Department of Technology prior to release to the public.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 62. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) All rules and requirements governing an information technology acquisition, for which the Department of General Services or the Department of Technology determines that a request for proposal (RFP) is appropriate, shall be communicated in writing to all vendors that have expressed an intent to bid and shall be posted in a public location. Any changes to the rules and requirements governing that RFP shall be communicated in writing to all vendors that have expressed an intent to bid and shall be posted in a public location. Requirements other than those provided by law or outside of the published RFP and posted addendums shall not be used to score bids.

(b) (1) All requests for proposals shall contain the following statement:

“It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions Code.”

(2) The Department of General Services shall post in the State Contracting Manual instructions for including the statement required by paragraph (1) in all affected contracts.

(3) The statement required by paragraph (1) shall be deemed to be part of a request for proposal even if the statement is inadvertently omitted from the request for proposal.

(c) The requirements of this section shall be in addition to any other requirement provided by law.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 63. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text: The Department of General Services and the Department of Technology shall coordinate in the development of policies and procedures that implement the intent of this chapter.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 64. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text: The Department of General Services and the Department of Technology may, in addition to fulfilling the mandatory requirements enumerated in Sections 12102, 12102.1, and 12102.2, adopt such rules and regulations as are necessary for the purposes of this chapter.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 65. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text: Until the time that the Department of General Services and the Department of Technology have published in the State Administrative Manual the procedures required in accordance with Section 12102, acquisitions of information technology goods and services shall be accomplished in accordance with either existing State Administrative Manual procedures for the acquisition of information technology goods and services, or Article 2 (commencing with Section 14790) of Chapter 6 of Part 5.5 of Division 3 of Title 2 of the Government Code, as determined by the Department of General Services.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 66. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text: The Director of General Services and the Director of Technology may make the services of their respective departments under this chapter available, upon the terms and conditions that may be deemed satisfactory, to any tax-supported public agency in the state, including a school district, for assisting the agency in the acquisition of information technology goods or services.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 67. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) Any contract for information technology goods or services, to be manufactured or performed by the contractor especially for the state and not suitable for sale to others in the ordinary course of the contractor’s business may provide, on the terms and conditions that the controlling department, as specified in Section 12100, deems necessary to protect the state’s interests, for progress payments for work performed and costs incurred at the contractor’s shop or plant, provided that not less than 10 percent of the contract price is required to be withheld until final delivery and acceptance of the goods or services. Notwithstanding this subdivision, if the department determines that lesser withholding levels are appropriate based upon an evaluation of risk determined under subdivision (b) and the contract price is ten million dollars ($10,000,000) or more, the department shall withhold no less than 5 percent of the contract price until final delivery and acceptance of the goods or services. If the department determines that lesser withholding levels are appropriate based on an evaluation of risk determined under subdivision (b) and the contract price is less than ten million dollars ($10,000,000), the department shall withhold no less than 3 percent of the contract price until final delivery and acceptance of the goods or services.

(b) The Department of General Services, in consultation with the Department of Finance, shall develop and maintain criteria for the evaluation of risk to the state that results from the acquisition of information technology. This risk analysis shall determine the need for financial protection that is in the best interest of the state, including, but not limited to, any of the following:

(1) An acceptable performance bond as described in Chapter 2 (commencing with Section 995.010) of Title 14 of Part 2 of the Code of Civil Procedure.

(2) Any surety as defined in Section 2787 of the Civil Code.

(3) A letter of credit as described in Division 5 (commencing with Section 5101) of the Commercial Code.

(4) Protection in the form of contract terms.

(5) Any other form of security or guaranty of performance in an amount sufficient to protect the state in the case of default by the contractor providing information technology, or any other breach or malfunction of the goods or services, or both.

(c) For purposes of this section, “information technology” means information technology goods or services, or both, as appropriate.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 68. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
(a) Software license contracts allowing the use of the software for a specified time period with recurring payments may be paid in advance subject to the procedures, terms, and conditions that the controlling department, as specified in Section 12100, deems necessary to protect the state’s interests.

(b) If an agreement combines the purchase of software with contracted personnel, this section may be applied only to the software purchase and payment in advance for contracted personnel is prohibited. “Contracted personnel” includes, but is not limited to, consulting services, instructor-led training, and other personal services.

(c) A single payment for a lifetime license is permitted.

(d) Advance payments authorized under this section shall not exceed three years.

(e) Procedures, terms, and conditions shall address, at minimum, all of the following:

(1) Annual advance payment provisions for multiyear agreements.

(2) Encouraging suppliers to develop higher levels of service and support.

(3) Financial risk, including supplier’s financial stability.

(4) The supplier’s prior record of performance.

(5) Reassignment of licenses within the contract term.

(6) A cancellation clause to protect the state’s interests.

(f) Acquisitions shall be accomplished in accordance with this chapter.

history: (History: Added by Stats. 2026, Ch. 84, Sec. 34. (SB 172) Effective July 13, 2026.)


text:
(a) Notwithstanding any other provision of law, state and local agencies may enter into agreements to pay for telecommunications services to be utilized beyond the current fiscal year. “Telecommunications services” for purposes of this section shall include, but not be limited to, central office-based leased communications systems equipped with primary station lines, capable of receiving in-dialed voice and data communications and capable of out-dialing voice and data communications and any customer premised equipment, software and installation costs necessary for utilization by the state or local agency.

(b) State and local agencies may enter into financing agreements for the acquisition of telecommunications services whenever the state or local agency may derive monetary benefit and greater services as a result of its ability to acquire capital at lower interest cost than the supplier of those services can provide directly to the agency or whenever the state or local agency may obtain a reduced cost of service based on length of agreement if offered by the supplier of telecommunications service.

(c) Acquisition requirements for financing of telecommunications goods and services shall be considered to have been met whenever the financing is within the scope of public sector requests for proposals or whenever the financing is offered by a sole source provider or that provider’s assignee.

(d) The provisions of this section shall not be construed to alter or circumvent any existing acquisition procedure or requirement, nor to alter or circumvent the acquisition authority of any state or local agency.

history: (History: Amended by Stats. 2000, Ch. 776, Sec. 49. Effective September 27, 2000.)


text: The Legislature finds and declares that, with the advent of deregulation in the telecommunications industry, substantial cost savings can be realized by the state through the specialized evaluation and acquisition of alternative telecommunications systems. Any contract for the acquisition of telecommunications services and any contract for the acquisition of telecommunications goods, whether by lease or purchase, shall be made by, or under the supervision of, the Department of Technology. Any acquisition shall be accomplished in accordance with Chapter 3 (commencing with Section 12100), relating to the acquisition of information technology goods and services, except to the extent any directive or provision is uniquely applicable to information technology acquisitions. The Department of Technology shall have responsibility for the establishment of policy and procedures for telecommunications. The Trustees of the California State University and the Board of Governors of the California Community Colleges shall assume the functions of the agency with regard to acquisition of telecommunications goods and services by the California State University and the California Community Colleges, respectively. The trustees and the board shall each grant to the agency an opportunity to bid whenever the university or the college system solicits bids for telecommunications goods and services.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 69. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 3.5. Acquisition of Telecommunications Goods and Services


text: There is hereby established the Alternative Protest Process to be administered by the Department of General Services and the Department of Technology in accordance with Chapter 3 (commencing with Section 12100) of Part 2 of Division 2 and this chapter.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 71. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)

path: 2. GENERAL PROVISIONS > 2. CONTRACTING BY STATE AGENCIES > 3.6. The Alternative Protest Pilot Project


text:
(a) Notwithstanding any other law, any department or agency may use the solicitation and alternative protest procedures outlined in this chapter for solicitations authorized under Chapter 2 (commencing with Section 10290) or Chapter 3 (commencing with Section 12100). The Department of General Services shall develop procedures and guidelines for the implementation of this alternative protest process.

(b) To be eligible for this alternative protest process, the contracting department shall agree to participate in the Alternative Protest Process and the Department of General Services or the Department of Technology, as appropriate, shall indicate that the proposed solicitation shall be conducted as part of the Alternative Protest Process prior to release of the solicitation. Submission of a bid constitutes consent for participation in the Alternative Protest Process. Any protests filed in relation to the proposed contract award shall be conducted under the procedures set forth by the Department of General Services for the Alternative Protest Process.

(c) Notwithstanding any other law to the contrary, any bid protest conducted under this chapter shall include one or more of the following alternative procedures:

(1) The Alternative Protest Process shall not prevent the commencement of work in accordance with the terms of any other contract awarded pursuant to this chapter. A contract may be entered into pending a final decision on the protest.

(2) The Department of General Services, in bid protests for procurements it conducts or supervises, shall review the protest within seven days of the filing date to determine if the protest is frivolous. If determined to be frivolous, the protest shall not proceed under this chapter until the bidder posts a protest bond in an amount not less than 10 percent of the estimated contract value, as determined by the Department of General Services in the solicitation.

(3) The Department of Technology, in bid protests for procurements it conducts or supervises pursuant to paragraph (1) of subdivision (b) of Section 12100 and telecommunications procurements made pursuant to Section 12120, shall review the protest within seven days of the filing date to determine if the protest is frivolous. If determined to be frivolous, the protest shall not proceed under this chapter until the bidder posts a protest bond in an amount not less than 10 percent of the estimated contract value, as determined by the Department of Technology in the solicitation.

(4) The Director of General Services or the Director of Technology, as appropriate under paragraphs (2) and (3), shall issue a decision within a period not to exceed 45 days from the date the protest is filed.

(5) Arbitration, as defined and established by the Department of General Services, shall be the resolution tool.

(d) Authority to protest under this chapter shall be limited to participating bidders.

(1) Grounds for major information technology acquisition protests shall be limited to violations of the solicitation procedures and that the protestant should have been selected.

(2) Any other acquisition protest filed pursuant to this chapter shall be based on the ground that the bid or proposal should have been selected in accordance with selection criteria in the solicitation document.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 72. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)

chapter: 3.6. The Alternative Protest Pilot Project


text:
Major information technology acquisitions subject to this chapter shall meet the following criteria:

(a) The agency or department has stated its business needs and not detailed specification in the solicitation.

(b) The agency or department has stated the criteria and the weight to be given to each criterion by which it will evaluate all proposals.

(c) The contract shall be awarded based on “value effective acquisition,” as that term is defined in Section 12100.7, competitive negotiation, an alternative procurement, or performance-based solicitations.

history: (History: Added by Stats. 1997, Ch. 762, Sec. 1. Effective January 1, 1998.)


text:
All other procurements subject to this chapter shall meet one or more of the following criteria:

(a) The agency or department has stated its business needs and not detailed specification in the solicitation.

(b) The agency or department has stated the criteria and the weight to be given to each criterion by which it will evaluate all proposals.

(c) The contract shall be awarded based on “value effective acquisition,” as that term is defined in Section 12100.7, competitive negotiation, an alternative procurement, performance-based solicitations, or other methodologies as established by the Department of General Services.


text:
The Department of General Services and the Department of Technology in accordance with Chapter 3 (commencing with Section 12100) of Part 2 of Division 2 and this chapter shall apply this chapter to the following categories:

(a) Information technology and ancillary services.

(b) Material, supplies, equipment, and ancillary services.

history: (History: Amended by Stats. 2013, Ch. 28, Sec. 73. (SB 71) Effective June 27, 2013. Operative July 1, 2013, by Sec. 93 of Ch. 28.)


text:
The Department of General Services shall electronically submit a report and recommendations to the Legislature regarding the Alternative Protest Process on or before January 1, 2007, and on or before January 1, 2010. The report shall include the following:

(a) The percentage of bids with values under five hundred thousand dollars ($500,000), under one million dollars ($1,000,000), and over one million dollars ($1,000,000) or more that were not subject to the Alternative Protest Process that were protested.

(b) The percentage of bids with values under five hundred thousand dollars ($500,000), under one million dollars ($1,000,000), and over one million dollars ($1,000,000) that were subject to the Alternative Protest Process that were protested.

(c) The number of protests determined to be frivolous by the Department of General Services, subject to this chapter, with corresponding data for solicitations issued pursuant to existing procedures.

(d) The percentage of contracts awarded under the Alternative Protest Process that were subsequently challenged in a court of law with corresponding data for solicitations issued pursuant to existing procedures.

(e) The length of time to resolve protests pursuant to this chapter and the corresponding data for solicitations issued pursuant to existing procedures.

history: (History: Amended by Stats. 2005, Ch. 272, Sec. 5. Effective January 1, 2006.)