To: Board of Supervisors
From: Warren Lai, Public Works Director/Chief Engineer
Report Title: Adoption of Best Value Procurement Policy Pursuant to Public Contract Code Section 20155
☒Recommendation of the County Administrator ☐ Recommendation of Board Committee
RECOMMENDATIONS:
1. ADOPT the Contra Costa County Best Value Procurement Policy in accordance with Public Contract Code Section 20155.
2. AUTHORIZE the Director of Public Works, or designee, to implement the Best Value Procurement Program for qualifying public works projects in excess of $1,000,000.
FISCAL IMPACT:
There is no direct fiscal impact associated with the adoption of this policy. Fiscal impacts for individual projects utilizing the Best Value method will be evaluated and presented to the Board at the time of project-specific authorization. The use of Best Value procurement is intended to reduce overall project costs by mitigating change orders and claims through the selection of highly qualified contractors.
BACKGROUND:
Public Contract Code 20155 establishes a program for California Counties, including Contra Costa County, authorizing the award of Design-Bid-Build construction contracts for projects of more than $1,000,000 to the bidder who offers the proposal that affords the best value to the County based upon the evaluation of price and pre-identified qualitative criteria, including contractor qualifications.
Traditional low-bid procurement requires the County to award contracts to the bidder with the lowest price, regardless of their specific expertise or past performance on complex facilities. The Best Value procurement approach allows consideration of qualitative factors such as contractor experience with complex site conditions, project staffing, and the proposed technical approach when pre-qualifying and selecting contractors. The County has previously used best value procurement for Design-Build and progressive Design-Build contracts. Unlike Design-Build, which combines design and construction, this Best Value program applies to traditional Design-Bid-Build projects where the County has already completed the design.
To utilize this authority, the County must first adopt and publish procedures and criteria to ensure that all selections are conducted in a fair and impartial manner. The attached policy establishes the required "Global Best Value Procurement Program" for Contra Costa County.
REASONS FOR RECOMMENDATION
The proposed Best Value Procurement Policy provides the following benefits to the County’s Capital Projects Management (CPM) division:
1. Enhanced Quality and Safety: The policy mandates a two-step selection process. The first step Request for Statement of Qualification (RFSOQ) filters for contractors with proven financial strength, superior safety records, and relevant experience in complex environments, such as HCAI/healthcare facilities, detention centers, and critical utility or infrastructure projects. The second step invites the prequalified bidders to submit the bid, and at County’s discretion, a project-specific technical proposal.
2. Project-Specific Technical Evaluation: For high-risk projects, the policy allows the County to score a contractor’s specific technical plan and risk mitigation strategy before price bids are opened. This ensures the County selects the firm with the best "plan," not just the best "resume."
3. Transparency and Fairness: The policy establishes a transparent award formula (Weighted Total Best Value Score) that allows the County to adjust the balance between price and quality based on project risk. It mandates a 'Three-Bid Minimum' and a strict two-envelope bidding process to ensure that price remains hidden while technical qualifications are scored, resulting in a truly impartial selection
Adopting this policy fulfills the prerequisite requirement identified by County Counsel to establish a formal Best Value Program. Upon adoption, the Public Works Department will return to the Board with specific project findings to authorize the use of this method for upcoming critical infrastructure and healthcare projects.
CONSEQUENCE OF NEGATIVE ACTION:
Failure to adopt the Best Value Procurement Policy will result in the following consequences:
1. Legal Limitation: Per statutory requirements, the County cannot utilize Best Value selection for any specific project until this formal global program is adopted.
2. Increased Risk: The County remains forced to accept the "Lowest Bidder" regardless of technical qualifications, increasing the potential for safety incidents and change orders.
3. Operational Impact: Forfeiting the Best Value method on high-complexity infrastructure projects often results in higher long-term costs and significant schedule delays.