State lawmakers have proposed legislation that would penalize California contractors who bid or work on federally-funded infrastructure projects along California’s southern border between the United States and Mexico. Proposed punishments would be issued in the form of monetary penalties and/or future bans from working with state agencies and individual cities.
Furthermore, city officials in San Francisco, Berkeley, and Oakland have already introduced legislation that would bar any company who has bid on those types of projects, regardless of whether their application is successful, from bidding on future city contracts. Additional bills, such as SB 30 (Lara), would prohibit the state from awarding or renewing contracts; and AB 946 (Ting) would discourage state pension investments in any companies involved in the types of projects referenced.
The Associated General Contractors of California (AGC) maintains its Policy on Bid Procedures and opposes any legislation or city resolutions that prohibit fair bidding practices.
“These bills violate the open and fair competition bidding practices that Californians have come to enjoy,” AGC of California Chief Executive Officer Tom Holsman said. “Imposing any ban not based on contractor qualifications is preferential treatment.”
The Association has worked with agencies and owners to preserve the fairness and integrity of bidding, a practice and policy that has been in place since 1920, and as such, does not believe these legislative proposals accomplish those goals.