Bids and Bidders in California Public Contracting

California’s Public Contract Code Division 2, Part 2, Chapter 1, Article 4, deals with bids and bidders. Section 10160 authorizes the department to require from prospective bidders answers to questions contained in a standard form of questionnaire and financial statement including a complete statement of the prospective bidder’s financial ability and experience in performing public works.

When completed, the questionnaire and financial statement are to be verified under oath by the bidder in the manner in which pleadings in civil actions are verified. Whenever prequalification is required of any bidder on a contract, it is required for all prospective bidders to that contract.

Section 10161 authorizes the department to require from prospective bidders the completion, under penalty of perjury, of a standard form of questionnaire concerning the past safety record of each prospective bidder. The director of the department prescribes guidelines listing criteria which will be utilized administratively in determining an unsatisfactory safety record.

Section 10162 requires the department to require from all prospective bidders the completion, under penalty of perjury, of a standard form of questionnaire inquiring whether such prospective bidder has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal, state, or local government project because of a violation of law or a safety regulation, and if so to explain the circumstances.

Section 10163 requires the department to adopt and apply a uniform system of rating bidders on the basis of the standard questionnaires and financial statements, in respect to the size of the contracts upon which each bidder is qualified to bid. When bids for more than one project are to be received at the same bid opening, the department may permit a bidder to submit bids for each project within the bidder’s prequalification rating.

A bidder cannot be awarded a contract if the contract award would result in the bidder having under contract work for which prequalification is required in excess of that authorized by his prequalification rating. In this regard, the department may use its estimated cost of such contract rather than the amount of the bidder’s bid.

Section 10164 states that, in all state projects where federal funds are involved, no bid submitted is to be invalidated by the failure of the bidder to be licensed in accordance with the laws of this state. However, at the time the contract is awarded, the contractor is required to be properly licensed in accordance with the laws of this state.

In addition, the contract cannot be awarded unless the state agency has verified that the contractor has a valid license in the appropriate classification for the work performed. Any bidder or contractor not licensed is subject to all legal penalties imposed by law. And, the failure of the bidder to obtain proper and adequate licensing for an award of a contract constitutes a failure to execute the contract results in the forfeiture of the security of the bidder.

Section 10165 specifies that the questionnaires and financial statements are not public records and are not open to public inspection.

Section 10166 requires the department to furnish to each bidder a standard proposal form, which, when filled out and executed may be submitted as his bid. Bids not presented on forms furnished are disregarded.

Section 10167 requires all bids to be presented under sealed cover and accompanied by one of the three specified forms of bidder’s security. The required bidder’s security must be in an amount equal to at least 10% of the amount bid. And, a bid is not considered unless one of the forms of bidder’s security is enclosed with it.

Section 10168 states that, whether or not bids are opened exactly at the time fixed in the public notice for opening bids, a bid cannot be received after that time.

Section 10169 authorizes any bid to be withdrawn at any time prior to the time fixed in the public notice for the opening of bids only by written request for the withdrawal of the bid filed with the director of the department or the chief of the division under which the work is to be performed. The withdrawal of a bid does not prejudice the right of the bidder to file a new bid. However, this section does not authorize the withdrawal of any bid after the time fixed in the public notice for the opening of bids.