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Committee backs amendments to modernize Chapter 6 contracting rules, debates emergency-notice and threshold changes
Summary
The committee voted to forward an ordinance to comprehensively revise Chapter 6 of the Administrative Code, adopting Budget Analyst amendments on notice, emergency procedure reporting and LBE outreach while approving a proposal to add sole-source construction provisions and raise the contracting threshold to $600,000.
The Government and Oversight Committee on Thursday recommended that the Board of Supervisors consider an ordinance to comprehensively revise Chapter 6 of the Administrative Code, which governs the selection and contracting process for the city’s public-works and capital projects.
Department of Public Works and controller’s office staff told the committee a cross-agency working group produced recommendations to modernize procurement processes, including a proposed sole-source provision for construction contracts, a change in selection weighting for construction-manager/general-contractor (CM/GC) and design-build contracts from at least 65% cost/35% non-cost to 40% cost/60% non-cost, and an increase in the Chapter 6 threshold from an effective $440,000 to $600,000.
Edgar Lopez (Public Works) said the sole-source provision is intended for narrowly defined cases — proprietary systems, single vendors for follow-on work, or statutory mandates — and includes checks such as commission approval where applicable and review by the Office of Contract Administration for LBE participation. Lopez said changing the cost/quality weighting is intended to secure higher-quality early advice on complex projects.
Deborah Newman of the Budget and Legislative Analyst’s office outlined recommended amendments and cautions. Newman said departments would save roughly $165,000 annually by shifting newspaper notices to web posting, recommended keeping a three-day "shall" posting requirement for informal bids, and retained the $250,000 Board-approval threshold for emergency contracts. Newman also described proposed language requiring department heads to provide immediate notice of an emergency to the president of the Board, the mayor and the controller and recommended that the emergency resolution be submitted to the Board within 60 days.
Supervisors asked for stronger notification to the Board. Deputy City Attorney John Givner said the ordinance can require notice but cannot delegate final approval to the Board president; supervisors successfully amended the language to require immediate notice to the clerk and the full Board rather than the president alone. Departments said immediate notice would not impair emergency response; Public Works said typical major emergencies over $250,000 occur about five to 10 times a year.
Miguel Galarza, chair of the LBE subcommittee, told the committee the outreach to contractors and LBEs was comprehensive and supported the $600,000 threshold as a tool to expand opportunities for micro-LBEs.
Supervisor Breed moved to accept the Budget Analyst’s recommendations and amend the emergency-notification language to notify the full Board; the motion was seconded and carried with no objection. The amended ordinance will be forwarded to the full Board with a positive recommendation.
