Legis
Education
SB 1154, Chapter 323, Statutes of 2026 · Friday 18 September 2026

Public contracts: best value procurement: community college districts

Community college districts may use best-value bidding for public works over $1 million through 2030.

Districts can weigh contractor qualifications alongside price rather than choosing solely the lowest responsible bidder. The law sets workforce, transparency, evaluation, and reporting safeguards for that option.

What the law does

  • Authorizes community college district governing boards to use best-value procurement for projects exceeding $1 million through December 31, 2030.
  • Requires districts to publish fair evaluation procedures that score price and qualifications, including financial capacity, relevant experience, management ability, labor compliance, and safety.
  • Requires bidder prequalification, sealed bids, disclosed evaluation criteria and weights, and qualification scoring before bidder identities or prices are revealed.
  • Requires contractors and subcontractors to commit to using a skilled and trained workforce for apprenticeable construction-trade work, subject to specified project labor agreement exceptions.
  • Caps district contract retention at 5% when the solicitation requires performance and payment bonds, with limited exceptions for subcontractors that do not provide requested bonds.
  • Requires participating districts to submit an independently prepared report to legislative policy and fiscal committees by January 1, 2030, and repeals the authorization on January 1, 2031.

Who it affects

  • Community college district governing boards and procurement staff.
  • Construction contractors and subcontractors bidding on eligible district public projects.
  • Construction workers and apprentices performing work on those projects.