The Move to “Best Value Delivery”

In 2016, California amended the Public Contract Code, Section 20155.1 to allow the use of “Best Value Delivery” as an alternative to Design-Bid-Build (DBB) for construction projects as a pilot program for Alameda, Los Angeles, Riverside, San Bernardino, San Diego, Solano, and Yuba Counties.

The amendment defines “Best Value” as a procurement process whereby the selected bidder can be selected using objective criteria for evaluating the qualifications of the bidders with the resulting selection representing the best combination of price and qualifications.

The evaluation criteria can include ‒ but is not limited to ‒ the following:

• Financial condition
• Labor compliance
• Demonstrated management competency
• Qualifications including those of the proposed subcontractors
• Quantifiable measurements
• Safety record for the past three years

Subsequently, on March 8, 2017, the Los Angeles County Board of Supervisors adopted Best Value Delivery as an alternative to using DBB for construction projects. Close on the heels of this action by the Board, California passed State Senate Bill (SB) 793, which expanded the use of the Best Value pilot program to include the County of San Mateo.

Additionally, SB 793 expands the use of Best Value Delivery to include annual construction contracts that are more commonly known as Job Order Contracts used for repairing, remodeling, and other repetitive construction work. A contract cannot exceed $3 million per year. The maximum contract value for the term of each contract cannot exceed $6 million. As a result, on August 14, 2018, the Los Angeles County Board of Supervisors adopted Best Value Delivery for Job Order Contracts.

Currently, California doesn’t seem to have any standard guidelines for the Best Value Delivery Pilot Program except for designating the participating counties and specifying that Best Value Delivery can be used by these counties as an alternative to DBB and on Job Order Contracts.

Due to this, the Best Value Delivery Pilot Program presents a unique opportunity for our members to work with policymakers and the participating counties to establish benchmarks, rating criteria, and outcomes that favor companies that are construction-focused and union contractors.

Suzanne Scheideker Cook can be reached at (909) 553-5768 or strategicventuresbuild@gmail.com.