In the bid advertisement (notice to contractors), the campus inputs the date and time for the public bid opening, prior to which the bidder must tender their bids. No bids may be accepted after the time set for opening bids.
Process: For opening bids, there is an Announcer & Recorder; the Announcer signals the end of the bid acceptance period and makes a formal announcement to that effect. They then proceed to open each bid proposal package and document for each bidder that all the requisite documentation is enclosed, and record this information on the abstract. Then the Announcer states the bid amounts and alternative bid or unit price amounts for each bidder, along with any requested Small Business Enterprise (SBE) Bid Preferences or proposed Disabled Veteran Business Enterprise (DVBE) Incentives, and the Recorder enters this information on the abstract, and, once all bids are recorded, signs the abstract. Announcer formally closes the bid opening, and advises that: all documents required to be submitted within 24 hours of bid opening will be checked; all SBE/DVBE certifications will be checked. The Announcer will provide the location where the final tabulation of bids will be posted. Announcer will also open a Question Period where the Announcer will field questions about the bids only.
Once opened, a bid submitted under this procedure becomes a public record.
Using the Abstract of Bids form that is posted on the Chancellor's Office CPDC website, the Announcer and Recorder, after documenting all the bidders' information on the abstract, must determine who the low bidder is, prior to calculating small business preference and Disabled Veteran Business Enterprise (DVBE) bid incentives. If low bidder is a Small Business Enterprise (SBE), then no bidder is allowed the SBE bid preference, and only the SBEs qualify for the DVBE bid incentive. Recorder shall calculate the DVBE bid incentive for SBEs only, as only an SBE may displace the low bidder SBE.
If low bidder is not an SBE, then all SBE and Non-Small Businesses (NSB) qualify and shall first be given the SBE bid preference. If an SBE becomes low bidder after applying the SBE bid preference, then only SBE bidders qualify for DVBE incentives.
If low bidder is not an SBE, then all SBE and NSB qualify and shall first be given the SBE preference. I low bidder is not an SBE, then calculations of the DVBE preference shall be done for all bidders.
Full DVBE documentation and the expanded subcontractor listing is due from the Bidders within 24 hours of bid opening. Failure to submit this documentation is grounds for Trustees' rejection of bids.
SUAM sections 9774 and 9774.02.
Statewide SB/DVBE Advocate Toolkits:
Both toolkits are available on the DGS website, under Advocate Resources at:
Project Bid Analysis (after bid opening): Construction Administrator reviews all bids received, especially the apparent low bid, to make sure the bid is complete and responsible to the contract requirements. Construction Administrator will also review cost, unit pricing (if used), that the following forms are executed properly: list of subcontractors, bid bond, noncollusion affidavit, certification of appropriate license-Dept. of Industrial Relations (DIR) registration-California company (checking DIR, Contractors State License Board (CSLB) websites to verify), signed bid proposal signature page (with certification and copy of firm’s official record authorizing officers or employees of the firm to execute Contract Documents or to execute a bid submittal), and claims for Small Business Preference and Disabled Veteran Business Enterprise (DVBE) Incentive. Within 24 hours of bid opening, Construction Administrator should receive and review the expanded sub listing and the full DVBE documentation package. Failure to submit this documentation is grounds for Trustees' rejection of bids.
Failure to List Subcontractor: Occasionally a contractor who is properly licensed to receive a bid package and bids the project, may fail to list a subcontractor for a major portion of the work. In this case the contractor must self-perform the work (Public Contract Code sections 4106, 4107-c) or pay a penalty of up to 10% of the amount of the subcontract to the Trustees (Public Contract Code section 4110). In order to self perform the work the contractor shall add a properly licensed person to its payroll, known as a Responsible Managing Employee, or RME. After award, CA shall follow up with CSLB to see if contractor hired an RME, and that the RME meets the licensing requirements.
Licensed to Bid, But Not with Requisite License: A contractor must be licensed to submit a bid to a public agency, but must have the requisite license at the time of award. Bus. & Prof. Code section 7028.15 states that ""it is a misdemeanor for any person to submit a bid to a public agency in order ...to act in the capacity of a cotnractor within this state without having a license therefore..."" Public Contract Code section 3300 states that CSU ""shall specify the classification of the contractor's license which a contractor shall possess at the time a contract is awarded.
Bids Exceed Budget: In the event a qualified, responsible low bid on a major capital outlay project exceeds the project architect/engineer's approved bid estimate, follow the Chancellor's Office-CPDC Bid Overrun Analysis Policy No. 2. This policy memo is on the CPDC website, and is also in SUAM Appendix D. If the Construction Administrator determines that the project budget has overrun, Construction Administrator may reject all bids, make clarifications in the bid documents, and quickly move to rebid-all done via addendum.
Abstract of Bids, Statement of Finance After Bids, CPDC 2-7, identify bid savings, if any, Bid Overrun Analysis, issue Request for Approval to Award with all back-up documentation to Planner.
Determination of Successful Bidder: If the bid comes in within budget, bid has been properly signed, Construction Administrator has reviewed all requisite bid documents that have been submitted, that bidder's contracting license and Dept. of Industrial Relations (DIR) registration are current and appropriate, subs are properly licensed and registered with the DIR, then Construction Administrator will make a determination of a successful bid, and proceed to award of contract.
Bid Protest: If one of the bidders files a bid protest, Construction Administrator must quickly review and respond to the letter, so as not to hold up the project. Construction Administrator should work with Office of General Counsel to ensure a proper response to the protest.
Request for Approval to Award