Original Issue/Approval Date: January 20, 1978
Last Revision: Original
Regents' Policy 6036

The Regents reaffirm their policy that construction contracts be competitively bid, as required by law, and be awarded to the lowest responsible bidder or, on the refusal or failure of such bidder to execute a tendered contract, be awarded to the second-lowest responsible bidder or, on that bidder's refusal or failure to execute a tendered contract, be awarded to the third-lowest responsible bidder, unless it is determined that the acceptance of a responsible bid is not in the best interests of the University, in which case all bids shall be rejected.

[Editor's Note: Beginning on January 1, 1978, the California Education Code was amended to impose competitive bidding requirements on The Regents where formerly such bidding was required as a matter of self-imposed Regents' policy. Before the code was amended, The Regents did have the right to negotiate and award sole-source contracts of any dollar amount. The right to negotiate contracts is now restricted by the Public Contract Code, Sections 10500-10506, which superseded the California Education Code in 1984 as the competitive bidding law applicable to the University (see text of Public Contract Code that follows Guidelines ).]

Competitive bidding law and policy require the award of a publicly advertised contract to the lowest responsible bidder submitting a responsive bid unless it is in the best interest of the University to reject all bids. Responsibility refers to a prospective bidder's ability to satisfactorily perform the work. Selection of the lowest responsible bidder does not require an award to the bidder submitting the lowest dollar bid unless that bidder is deemed to have such ability. Responsiveness refers to the conformity of the form and content of a bid to what is called for in the bidding documents. (See FM5[I]:1 for further guidelines on competitive bidding.)

[Editor's Note: Beginning on January 1, 1996, pursuant to The Regents' Interim Policy to Ensure Equal Opportunity in University Business Contracting, the University will continue to set goals and timetables for small disadvantaged, women-owned, and disabled veteran business enterprises where such goals and timetables are required as a condition of federal or state funded contracts or grants; maintain statistics on utilization of such businesses; and will return to self-certificatoin. In addition, the University will continue to utilize outreach programs to assure equality of opportunity. Because Public Contract Code Section 10500.5 calls for voluntary action by The Regents, policies, programs, and activities using race, religion, sex, color, ethnicity, or national origin as criteria in business practices shall, except as described above, be discontinued.]

[Editor's Note: The following state code text retains California state style conventions regarding capitalization and punctuation that are contrary to Facilities Manual style.]

Section 10500. Project

As used in this article, "project" includes the erection, construction, alteration, repair, or improvement of any University of California structure, building, road, or other improvement which will exceed in cost a total of fifty thousand dollars ($50,000).

Section 10502. Public notice to bidders

The Regents of the University of California shall give public notice of a project to bidders by publication once a week for at least two consecutive weeks next preceding the day set for the receiving of bids as follows:

1. 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 circulated in the county in which the major portion of the work is to be done.
2. The notices shall state the time and place for the receiving and opening of sealed bids, describe in general terms the work to be done, and describe the bidding mode by which the lowest responsible bidder will be selected.

Section 10503. Preparation of estimates: plans and specifications; documents for solicitation

Before entering into any contract for a project, the Regents of the University of California shall cause to be prepared estimates and either:

1. Complete plans and specifications setting forth such directions as will enable a competent mechanic or other builder to carry them out.
2. Documents for the solicitation of bids on a design-and-build basis, including: (1) a program setting forth the scope of the project, the size, type, and desired design character of the buildings and the site, (2) a set of performance specifications covering the quality of materials, equipment, and workmanship, (3) a maximum acceptance cost, and (4) a method and grading system for evaluating contractor proposals on the basis of a preliminary design, outline specifications, a price, and the financial condition and relevant experience of the contractor and the contractor's architect.
3. Documents for the solicitation of bids for construction manager mode of contracting including prequalification standards, schematic plans, and outline specifications indicating the general scope of the project and the designation of those fees and other fixed commitments upon which prequalified contractors will be invited to submit competitive bids which will serve as the basis for selection.
4. Documents for the solicitation of bids on a cost-plus fee mode of contracting, including prequal- ification standards, outline specifications, and schematic drawings generally describing the scope of the work, a definition of reimbursable and nonreimbursable costs, and the designation of fees and other fixed costs upon which prequalified contractors will be invited to submit quotations which will provide the basis for selection.
5. Documents for the solicitation of bids under such other contracting mode as the regents determine to be in the best interest of the university, provided that such proposals be compared on a uniform basis and that award be made as determined by the published selection standards.

   Section 10504. Performance of work under contract

   Except as otherwise provided in Section 10506, work on all projects shall be performed under contract awarded in accordance with Section 10401 [Editor's Note: This is probably intended to read Section 10501. ] except that it may be done on a time and materials basis, by contract upon informal bids, by University of California employees, by day labor under the direction of the regents, or by a combination thereof, in case of emergency due to an act of God, earthquake, flood, storm, fire, landslide, public disturbance, vandalism, or failure which causes damage to a university-owned building, university-owned real property or any improvements thereon, when such work or remedial measures are required immediately and are necessary to protect the public health, safety, and welfare.

   Section 10505. Performance of projects with university employees

   The Regents of the University of California may perform projects with university employees if the regents 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 university, provided that (1) the estimated value of work to be so performed shall not exceed twenty thousand dollars ($20,000) or (2) the project is for the erection, construction, alteration, repair, or improvement of experimental or diagnostic equipment, except that the provisions of this section shall not apply to the painting or repainting of a structure, building, road, or improvement of any kind if the estimated value of such painting or repainting work exceeds ten thousand dollars ($10,000).

   Section 10506. Exceptions

   The requirements of Sections 10502, and 10503 shall not be applicable to (1) any project of which the Regents of the University of California is only part owner, or (2) any project funded by a federal agency to the extent that requirements of Sections 10502, and 10503 are in conflict with mandatory requirements of such federal agency, or (3) projects performed pursuant to Section 10505

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