Public WorksQuestion 1604 of 1632

The main reason competitive sealed bidding is used for public works is to:

a.Relieve the agency of the duty to require bonds
b.Let the agency pick whichever contractor it likes
c.Secure fairness and economy in public spending
d.Guarantee the agency pays published union rates

Explanation

Competitive sealed bidding exists to spend public money economically and to give every qualified bidder the same shot, which is why the award goes to the lowest responsible, responsive bidder on published criteria. It does not remove the bonding requirements, which come from the call for bids and Civil Code §9550 and apply on top of it. Discretion to pick a favourite is the very thing the process removes. Wage rates are fixed by the DIR determination under Labor Code §1773 whatever bidding method is used, and they are not union rates by definition.

Law Reference: Public Contract Code §20162; §20166; Labor Code §1773

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