Cal. Code Regs. Tit. 19, § 2915 - Contracting and Procurement

(a) General Provisions:

(1) Applicants receiving federal disaster assistance funds must comply with applicable federal contracting and procurement requirements contained in Title 44, Code of Federal Regulations (CFR), Part 13, Sections 13.35 and 13.36, and Office of Management and Budget Circulars (OMB) A-102 (Revised 10/7/94, As Further Amended 8/29/97) and A-110 (Revised 11/19/93, As Further Amended 9/30/99). Funds withdrawn by the federal government, due to non-compliance with the applicable federal contracting and procurement requirements shall result in a loss or reduction of state cost-sharing assistance. The state shall not provide additional funding to an applicant to substitute for federal funding withdrawn as a result of noncompliance with federal regulations.

(2) Any work performed by a state agency, at the request of a local agency, shall be agreed upon in writing and subject to the state Public Contracts Code. Work performed by a local agency shall be subject to the laws governing the performance of such work by the local agency and any other applicable state or federal laws. Neither the state nor any officer or employee thereof shall have any responsibility in connection with any work performed by a local agency.

(3) Any contract executed between the local agency and the Director, pursuant to the Act, shall contain a provision under which the local agency agrees to hold the state harmless from damages resulting from the work for which funds are allocated; and

(4) A payment bond is required on all public work contracts involving expenditures in excess of twenty-five thousand dollars ($25,000), pursuant to Civil Code Sections 3247 and 3248, for a local agency including, but not limited to, improvements and replacements of any building, road, bridge or other structure.

(b) Special Provisions for Reclamation and Levee Maintenance Districts:

(1) All contracts must be bid as required under applicable state or federal laws or regulations, including 44 CFR, Part 13, whichever is the more restrictive. Public Contracts Code Section 20924 requires that districts seeking state or federal assistance comply with the procurement requirements of such state or federal program, if they are more restrictive than the requirements of Public Contracts Code Section 20920 et seq. If the district's governing board determines that a district is not required to competitively bid work, that determination must be documented in writing with a full statement of the reasons why bids are not required. The determination to bid or not bid shall be approved by the district board prior to contracting, where possible. If such prior approval is not possible, the board must ratify the decision within 15 days after the decision is made.

(2) If the district's governing board determines that a sole source contract is legally justified or that an emergency exists which justifies an exemption, then the district shall utilize informal bids, or shall, at arm's length, negotiate the best possible price. All contracts will be in writing, approved by the district board, and supported by documentation justifying the price and detailing the negotiations as required in 44 CFR, Part 13, or other appropriate law or regulation. All contracts must clearly indicate the specific work to be performed and the time and location of performance of the work, and require the maintenance of adequate source records for audit. Contracts must also provide separate unit prices for emergency and non-emergency work, when the contract covers work which will be done under both emergency and non-emergency conditions.

(3) A written contract shall clearly define the responsibility and the compensation of the engineer. The district's governing board must assure adequate contract administration. This shall include, but not be limited to, such items as sticking barges, checking quantities of material and labor, and maintaining adequate auditable records.

(4) In all contracts for work, services, or materials, the contractor must maintain and retain for three years after notification of the start of the retention period by the Director, auditable source documents and records, which shall be available for audit by federal or state auditors.

(5) Districts must maintain separate accounts for registered warrants covering approved work and such other records and accounts as are necessary to assure that all approved work is paid for prior to final reimbursement from the state or FEMA.

(6) Districts will certify and provide Cal OES with verification that none of the costs reimbursed by the state under the Act or by FEMA have been claimed or paid through any other state or federal program, including but not limited to work performed under the Delta Levees Subvention Program, Water Code Sections 12980 et seq.

Notes

Cal. Code Regs. Tit. 19, § 2915

1. New section filed 10-19-90 as an emergency; operative 10-29-90. Submitted to OAL for printing only pursuant to Government Code section 8682.9 (Register 91, No. 2). A Certificate of Compliance must be submitted to OAL by 2-26-91 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-7-91 as an emergency; operative 3-7-91. Submitted to OAL for printing only pursuant to Government Code section 8682.9 (Register 91, No. 16). A Certificate of Compliance must be submitted to OAL by 7-5-91 or emergency language will be repealed by operation of law on the following day.
3. Editorial correction of HISTORY 1. (Register 91, No. 16).
4. Readoption of emergency filed 3-7-91; operative 3-7-91. Readoption filed 7-2-91, pursuant to Government Code section 8682.9; operative 7-2-91 (Register 91, No. 40).
5. New section refiled 10-30-91 as an emergency; operative 10-30-91 (Register 92, No. 6). A Certificate of Compliance must be transmitted to OAL 2-27-92 or emergency language will be repealed by operation of law on the following day.
6. New section filed 9-30-92; operative 10-30-92 (Register 92, No. 41).
7. Amendment of subsections (a)(1) and (b)(4) filed 8-30-2001 as an emergency; operative 8-30-2001 (Register 2001, No. 35). A Certificate of Compliance must be transmitted to OAL by 12-28-2001 or emergency language will be repealed by operation of law on the following day.
8. Certificate of Compliance as to 8-30-2001 order, including further amendment of section, transmitted to OAL 12-26-2001 and filed 2-8-2002 (Register 2002, No. 6).
9. Change without regulatory effect amending subsection (b)(6) filed 12-19-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 51).
10. Amendment of subsections (a)(4) and (b)(1) filed 11-14-2008; operative 12-14-2008 (Register 2008, No. 46).
11. Change without regulatory effect amending subsections (a)(3), (b)(4) and (b)(6) and NOTE filed 5-12-2010 pursuant to section 100, title 1, California Code of Regulations (Register 2010, No. 20).
12. Change without regulatory effect amending subsections (a)(3), (b)(4) and (b)(6) filed 5-5-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 19).

Note: Authority cited: Sections 8585 and 8682.9, Government Code. Reference: Sections 8585, 8682.6, 8682.7, 8685.7, 8685.8 and 8690.6, Government Code.

1. New section filed 10-19-90 as an emergency; operative 10-29-90. Submitted to OAL for printing only pursuant to Government Code section 8682.9 (Register 91, No. 2). A Certificate of Compliance must be submitted to OAL by 2-26-91 or emergency language will be repealed by operation of law on the following day.
2. New section refiled 3-7-91 as an emergency; operative 3-7-91. Submitted to OAL for printing only pursuant to Government Code section 8682.9 (Register 91, No. 16). A Certificate of Compliance must be submitted to OAL by 7-5-91 or emergency language will be repealed by operation of law on the following day.
3. Editorial correction of History 1. (Register 91, No. 16).
4. Readoption of emergency filed 3-7-91; operative 3-7-91. Readoption filed 7-2-91, pursuant to Government Code section 8682.9; operative 7-2-91 (Register 91, No. 40).
5. New section refiled 10-30-91 as an emergency; operative 10-30-91 (Register 92, No. 6). A Certificate of Compliance must be transmitted to OAL 2-27-92 or emergency language will be repealed by operation of law on the following day.
6. New section filed 9-30-92; operative 10-30-92 (Register 92, No. 41).
7. Amendment of subsections (a)(1) and (b)(4) filed 8-30-2001 as an emergency; operative 8-30-2001 (Register 2001, No. 35). A Certificate of Compliance must be transmitted to OAL by 12-28-2001 or emergency language will be repealed by operation of law on the following day.
8. Certificate of Compliance as to 8-30-2001 order, including further amendment of section, transmitted to OAL 12-26-2001 and filed 2-8-2002 (Register 2002, No. 6).
9. Change without regulatory effect amending subsection (b)(6) filed 12-19-2002 pursuant to section 100, title 1, California Code of Regulations (Register 2002, No. 51).
10. Amendment of subsections (a)(4) and (b)(1) filed 11-14-2008; operative 12-14-2008 (Register 2008, No. 46).
11. Change without regulatory effect amending subsections (a)(3), (b)(4) and (b)(6) and Note filed 5-12-2010 pursuant to section 100, title 1, California Code of Regulations (Register 2010, No. 20).
12. Change without regulatory effect amending subsections (a)(3), (b)(4) and (b)(6) filed 5-5-2021 pursuant to section 100, title 1, California Code of Regulations (Register 2021, No. 19).