AB 2192 – Bid Limit Changes to California Uniform Public Construction Cost Accounting Act

The California Uniform Public Construction Cost Accounting Act ( CUPCCAA) authorizes a public agency, which has, by resolution, elected to become subject to uniform construction cost accounting procedures to utilize an alternative bidding procedures when contracting for public projects.

Assembly Bill 2192 (AB 2192) expands the definition of “Public Project” to include installations involving any publicly owned, leased, or operated facility.

AB 2192 increases the monetary limits of the Public Projects subject to CUPCCAA. The new limits are as follows:

• For Public Projects of $75,000 or less, the public agency may perform the project by the employees of a public agency by force account, by negotiated contract, or by purchase order (this is an increase for the former limit of $60,000 or less).
• For Public Projects of $220,000 or less, the public agency may award the project by informal bidding procedures (this is an increase from the former limits of $200,000 or less).
• For Public Projects of $220,000 or more, the public agency must award the project by formal bidding procedures.
• In the event all of the bids are in excess of $220,000, the governing body of a public agency may award the contract at $235,000 or less to the lowest responsible bidder if it determines the cost estimate of the public agency was reasonable.

CUPCCAA creates the California Uniform Construction Cost Accounting Commission (Commission) to fulfill certain duties, including recommending for adoption by the Controller uniform construction cost accounting procedures for implementation by public agencies in the performance of, or in contracting for, construction on Public Projects.

CUPCCAA requires the Commission to review the accounting procedures of any participating public agency where an interested party presents evidence that the work undertaken by the public agency is to be performed by a public agency after rejection of all bids, claiming work can be done less expensively by the public agency, exceeded the force account limits or has been improperly classified as maintenance.

AB 2192 provides two additional scenarios where the Commission is required to review the public agency’s accounting procedures if an interested party presents evidence regarding the work undertaken by the public agency. The two additional scenarios include work undertaken by the public agency that has been split or separated into smaller work orders or projects, or the work that has exceeded the limits for informal bidding or otherwise did not met the informal or formal bidding requirements.

AB 2192 requires the California Uniform Construction Cost Accounting Commission to review noncompliance with bidding procedures for the publication or posting and electronic transmission of notice inviting formal bids.

(AB 2192 amends sections 22002, 22032, 22034, 22039, 22042, 22042.5, 22043, and 22044 of the Public Contract Code)