Best Value Contractor Selection Pilot Program

Background

SB 835 was a UC-sponsored bill to extend UCSF’s Best Value construction contract pilot program, which had been set to expire on January 1, 2012, to all campuses and medical centers for five more years. The pilot program is now available for all UC campuses with a new sunset date of January 1, 2017. This means that Best Value can be used, provided the appropriate procedures are followed, for all contract awards between January 1, 2012 and December 31, 2016. Best Value contractor selection has demonstrated savings in final project costs and has an improved the quality of product and service.

Text of the new law is available: Senate Bill No. 835 (pdf).

What is it?

As with design/build selection, the UC campus may assign a "qualification score" to each bid, based upon five specific statutory factors, and no other factors, which is then divided into the bidder’s price to determine the lowest cost per quality point. It does not change contractor selection or bidding processes in any other respect. The process is best utilized on projects with complex design, delivery and installation requirements, including research and medical installations, as well as constrained work areas and scheduling needs based on maintaining ongoing operations.

The five qualifications that must be exclusively evaluated are defined in Public Contract Code Section 10506.5 and include the bidder’s:

  • financial condition
  • relevant experience
  • demonstrated management competency
  • labor compliance
  • safety record

Best Value selections have been, and will continue to be, closely monitored by the Office of the President to ensure good results that will support passage of a permanent program during the 2016 legislative session. In the interim, UC has several reporting obligations back to the Legislature.

OP CRM and the Capital Programs Institute (CPI) will be providing appropriate training and guidelines for campus staff wishing to implement the program. Specific training with OP is required before a campus may utilize the Best Value contractor selection method. CPI will present an event November 30 at UCSF and on January 25, 2012 at UCSD.

How it got done

We would like to thank Senator Lois Wolk and her staff lobbyist Michael Erke. UC had wonderful efforts from Dave Ackerman of AGC and support from key labor unions represented by their lobbyist Eddy Bernacchi.

Those in-house doing the heavy lifting, in no particular order, included:

  • David Bergquist – UCSF/OGC Sr. Counsel
  • Deborah Wiley -- AVP CRM
  • Jason Murphy – SGR
  • Ed Stewart – IMPAC
  • Chris Hornbeck – Construction Services