California Code, Public Contract Code - PCC § 10512

(b)(1) The regents shall accept in public the bid or proposal that it deems to offer the best combination of price, terms, and bidder's qualifications to the university, or reject all bids or proposals.  A bidder's qualifications may include factors other than price and terms, such as the bidder's ability to complete the transaction or to secure development entitlements.

(2) If a successful bidder fails to perform in the manner specified, the regents may, at their sole option and without further notice, accept, from those remaining bids or proposals submitted and opened in public pursuant to subdivision (a), the bid or proposal that it deems to offer the best combination of price, terms, and bidder's qualifications to the university.