Public Contract Code Definitions

California’s Public Contract Code, in Division 2, Part 2, Chapter 2, Article 1, there are definitions related to the state acquisition of goods and services.

Section 10290 defines the following terms: “department,” “director,” “centralized purchasing,” “goods,” “office,” “price schedule,” “regional contract,” “statewide contract,” “multiple award,” and “multiple award schedule.”

Section 10290.1 provides that, in exercising their delegation of contracting authority from the department, state agencies may contract for goods, information technology, or services with suppliers who have multiple award schedules with the General Services Administration of the United States if the supplier is willing to extend those terms, conditions, and prices. The department may also develop multiple award schedules or agreements for use by state agencies in the same manner.

Section 10290.3 authorizes the use of reverse auctions for the acquisition of goods and services. The reverse auction process must include a specification of an opening date and time when real-time electronic bids may be accepted, and provide that the procedure remains open until the designated closing date and time.

All bids on reverse auctions must be posted electronically on the Internet, updated on a real-time basis, and allow registered bidders to lower the price of their bid below the lowest bid posted on the Internet.

The Department of General Services must require vendors to register before the reverse auction opening date and time, and as part of the registration, agree to any terms and conditions and other requirements of the solicitation. The Department of General Services may require vendors to be prequalified prior to placing bids in a reverse auction.

The term “reverse auction” is defined to mean a competitive online solicitation process for fungible goods or services in which vendors compete against each other online in real time in an open and interactive environment. The reverse auction process may not be used for bidding on certain construction contracts.