Infrastructure-Related Bond Act of 2006 - 1302

Opportunity

In 2006, the people of California enacted the infrastructure-related bond acts of 2006 (I-Bonds) authorizing the issuance of $42.7 billion in bonds for five distinct infrastructure programs: transportation (proposition 1B), housing (proposition 1C), education (proposition 1D), flood control (proposition 1E), and natural resources (proposition 84). Collectively, these bonds fund more than 60 programs within the state and are the first stage of the twenty-year California Strategic Growth Plan.

In keeping with the state's commitment to SB, MB, and DVBE, Assembly Bill 761 was signed into law (added Government Code, Section 14838.1) ensuring that SB, MB, and DVBE are given an opportunity to participate in, and be a successful part of the state's infrastructure construction.

Contract Requirements

In conformity to Government Code Section 14838.1, each state department awarding contracts directly to contractors with proceeds of the I-Bonds shall do all of the following:

• Establish a 25% SB participation goal in all I-Bond financed contracts awarded directly from the department to the contractor.
• Advertise all opportunities to bid on I-Bond funded contracts in the FI$Cal California State Contracts Register (CSCR). Contract announcements Opportunities* published in the CSCR must use the following numbering convention:
  • For Proposition 1B: if your department is using funds from the Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006, begin your contract opportunity number with Bond06-1B HWY followed by your department’s unique identifying number. For example: Bond06-1B HWY-08-316604
  • For Proposition 1C: if your department is using funds from the Housing and Emergency Shelter Trust Fund Act of 2006, begin your contract opportunity number with Bond06-1C HOUSE followed by your department’s unique identifying number. For example: Bond06-1C HOUSE-08-316604
  • For Proposition 1D: if your department is using funds from the Kindergarten-University Public Education Facilities Bond Act of 2006, begin your contract opportunity number with Bond06-1D EDU followed by your department’s unique identifying number. For example: Bond06-1D EDU-C0837010
  • For Proposition 1E: if your department is using funds from the Disaster Preparedness and Flood Prevention Bond Act of 2006, begin your contract opportunity number with Bond06-1E DIS followed by your department’s unique identifying number. For example: Bond06-1E DIS-08-316604
  • For Proposition 84: if your department is using funds from the Safe Drinking Water, Water Quality and Supply, Flood Control, River and Coastal Protection Bond Act of 2006, begin your contract opportunity number with Bond06-84 WATER followed by your department’s unique identifying number. For example: Bond06-84 WATER-10088675
• Include in the advertisement an Internet link to information for prospective bidders, including at minimum, general bidding procedures and proper procedures for preparing a bid for I-Bond funded contracts.

The CSCR uses “contract number” rather than “opportunity number.”

Participation Reporting 

State departments must report the SB, MB, and DVBE participation in their I-Bond funded contracts beginning with fiscal year 2008-2009. Each department, on or before August 1, 2009, and annually thereafter, will complete and submit a STD 810A Infrastructure Bond Acts of 2006 Activity Report. Report coordinators may contact DGS reports coordinator at osdshelp@dgs.ca.gov for assistance.

SB Advocate

There is no additional requirement to Government Code, Section 14846, for departments contracting directly with the proceeds of I-Bond funding to designate a SB advocate. In accordance with section 14846, departments must assure that payments due on a contract with a SB are made promptly as provided for in Government Code, Section 927 et seq.

SB Preference

I-Bond funded contracts shall offer a 5% preference to SBs when evaluating bids. For more information on the application of the SB preference.

SB and DVBE Requirements

For requirements and definitions of California-Certified SB, MB, and DVBE, visit the OSDS Website.

SB or DVBE Option

The SB or DVBE Option, Government Code, Sections 14838.5 and 14838.7, shall not be allowed for I-Bond funded projects directly contracted by a state department.

NCB Contracts

The use of non-competitive bid contracting with I-Bond financing as defined in PCC, Sections 10301 and 12102 shall not be allowed for I-Bond funded projects directly contracted by a state department.

LPA Contracts

The use of leveraged procurement agreements including master agreements, California Multiple Award Schedules, statewide contracts, the Software Licensing Program, or the State Price Schedules shall not be allowed for I-Bond funded projects directly contracted by a state department.

Further Assistance

For further assistance with I-Bond funded contracting, please contact:

• Your department’s budgeting or capital outlay office to determine whether your department received funding form the Infrastructure-Related Bond Acts of 2006.
• OSDS for general assistance at 916-375-4940, or via email: osdshelp@dgs.ca.gov
• DGS/PD for non-IT goods and IT goods and services: ppo@dgs.ca.gov
• DGS/OLS website for non-IT services and public works: http://www.dgs.ca.gov/ols
• DGS Real Estate Services Division (RESD): DCalvo@dgs.ca.gov.