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Terry Tao

1. Bid Irregularities/Errors
   1. Is the public entity assured that a contract will be entered into?
      Could the bidder use the error as a reason for claiming that the bid was non-responsive?
   2. Did the irregularity or error serve to place the bidder at an advantage over other bidders?

2. Bidder Relief (PCC 5103)
   1. Mistake must be made in the preparation of the bid.
   2. Detailed notice to public entity within five days after opening.
   3. Mistake made bid materially different than what intended.
   4. Mistake not due to error in judgement or carelessness in inspecting the site of work or in reading the plans or specifications.

3. Subcontractor Listing Errors (PCC 4107.5)
   1. Written notice to public entity within two working days with copies to both subcontractors.
   2. The listed subcontractor has six working days within which to respond.
   3. If written objections provided by listed subcontractor, public entity shall hold a hearing.

4. Addenda Issuance (PCC 4104.5)
   1. No "material changes" later than 72 hours before bid.
   2. "Material change" means a change with a substantial cost impact.

5. Kajima/Ray Wilson v. L.A. County Metro. Transportation
   1. California Supreme Court held that bid preparation expenses are recoverable while denying a protesting bidder’s lost profits.

1. Advertisements (PCC 20112)
   1. Must be placed in a newspaper of general circulation in the district once a week for two weeks. We use the rule 14 days and 7 days before. Could then bid on fifteenth day.

2. Prevailing Wage (LC 1773.2, 1773.4)
   1. The awarding body shall specify in the bid solicitation the general rate for each classification needed to complete the contract.
   2. A prospective bidder shall have 20 days within which to file a verified petition to Director of Industrial Relations. Bid period must be extended to five days after receipt of determination.

3. Licensing (B&PC 7059)
   1. Awarding authority shall determine the classification necessary to bid and perform the project.
   2. Awarding authority may not issue a contract to a specialty contractor unless his/her classification constitutes the majority of the work.

4. Bid Climate/Bid Timing
   1. Try not to bid on a Monday or a Friday or the day before or after a holiday.
   2. Although trending and total work on hand is important, it is more important to avoid scheduling the bidding of a project within ten days to two weeks of like kind project.

5. Bid Form/Bid Strategies
   1. Keep bid form a simple as possible. Group additive and deductive alternates consecutively. Avoid the "stupid factor".
   2. Limit the number of alternates.

Debate Topics

1. Alternates (PCC 20103.8)
   1. Must in bid solicitation specify method to determine lowest bidder otherwise must use base bid only.
   2. 1. Base only;
      2. Base bid plus specified alternates;
      3. Base bid plus specified alternates in order depending upon available funds as identified in the bid solicitation;
      4. Blind ranking.

   3. Makes a distinction between lowest bid and method of award.
   4. Does not prevent adding or deducting form the contract any of the additive or deductive items once lowest bidder has been determined (10% limit).
   5. Considerations with regard to using base bid plus all alternates (b):
      1. The two problems are that either no incentive to keep alternates accurate or cumbersome and open to challenge as in d.
      2. Keeps bidders focused on providing accurate alternates.
      3. Accordingly, provides for a more accurate measure for c.o.’s.
      4. Statute says can add or deduct once determined and not once awarded.
      5. Alternates in excess of 10% would be unusual anyway.

2. Interest in More than One Bid (PCC 7106)
   1. Possible circumstances:
      1. Prime bid and influenced another to submit a false or sham bid.
      2. Prime bid and sub bid on same project or scope of work.
      3. CM Multiple Prime – submit both a prime bid and a combination prime bid containing same scope of work. Combination or Combinations which do not overlap. In the public interest to allow combo’s b/c there are economies.

   2. Noncollusion Affidavit States: No collusive or sham bids and bidder has not sought to fix the bid price of any other bidder, or to fix any overhead, profit, or cost element of the bid price or to secure any advantage against the public body.

3. Material Preference Issues (PCC 3400)
   1. Allows for the substitution of products which are equal
   2. Necessitates that all trade name specifications be followed by "or equal" clauses
   3. Specifically states that, "...specifications shall provide a period of time prior to the award of the contract for a request for substitution of ‘an equal" item.
   4. Limits bidding in the following way:
      1. Since most awards are ten to fifteen days after bid, not sufficient time to gather data or do thorough review.
      2. If you limit to 5 days after bid, then may have to extend award to allow sufficient time for review.
      3. Thirty five days from date of award is old standard and I would argue still available under PCC 3400.

4. Subcontractor Listing Requirements (PCC 4104)
   1. Prime contractor fails to specify or lists two subs for work in excess of .5% of bid then must perform that portion himself/herself.
   2. This will become important later with regard to bonding of subcontractors.
   3. Intended to avoid bid peddling or shopping after the fact.
   4. Watch for splitting of labor and materials to avoid listing requirement.
   5. Watch for the filing of preliminary 20 day notices after work starts.

5. Effect of Rejecting All Bids
   1. Will in long term raise the price on the project in that the low bidder will move up.
   2. Will serve to eliminate bidders from specific bid.
   3. Will serve to eliminate bidders from the district if practice becomes a habit.
   4. Bidders incur considerable expense and are not able to overcome the "stupid factor"
   5. Contact bonding company if too low bidder will not withdraw.

6. Prequalification of Contractors (PCC 20111.5)
   1. Difficult to consistently apply and want to avoid sizing problems.
   2. Financial data may not be a reliable indicator – things like liquidity may not consider ability to borrow or personal data. Most individuals reluctant to provide personal information.
   3. If able to establish reasonable criteria may wan to use experiential factors only. May use for later responsibility hearing if subsequent info. is available.

7. DVBE Issues
   1. Use District resolution and 3% goal and require contractors to provide "Statement of intent to meet DVBE participation goas."
   2. Avoids bid challenges.
   3. Avoids added expense and complication to the bidder.
   4. Avoids District expense in lengthy review of paperwork provided by services.

8. Bonding Subcontractors
   1. Places requirement on Prime Bidder that a bonding company must approve the experiential and financial criteria which a contractor must satisfy.
   2. Must be applied consistently. The process of taking a credit often results in 50 cents on the dollar and encourages Prime Bidders to take a chance.
   3. Helps ensure that the proper wage is being paid and quality of performance and work is ensured.
   4. Important to include requirement in public entity’s advertisement for bids.