SBCTA Analyzing Insurance Requirements

April 12, 2021

To ensure that SBCTA is being as cost effective as possible for Measure I taxpayer dollars and to provide accessibility for all levels of contractors, SBCTA staff is conducting an analysis of its current procurement insurance requirements.

A certain level of insurance is required for all vendors that provide services to SBCTA, based on the level of risk to the activity the vendor provides. This ensures taxpayer dollars are protected in the event of an incident caused by the vendor during performance of their services.

In reviewing recent contracts, SBCTA has found that the agency may be at a competitive disadvantage in the procurement process because of conservative insurance requirements, and this may result in higher bids on projects, elevated change orders or project cost amendments. In addition, more conservative insurance requirements in the procurement process has the potential to create barriers for small businesses when competing for SBCTA contracts.

An ongoing analysis is being conducted by SBCTA’s Department of Special Projects and Strategic Initiatives to evaluate agency requirements and make them more in line with its sister transportation agencies in the region. The revised insurance requirements will be incorporated into future procurements with the goals to make SBCTA more competitive in the market place while still ensuring SBCTA is protected from potential losses, as well as make contracts more accessible and equitable to local small businesses.

Loading icon