AB 172, as introduced, Weber. State agency contracts: microbusiness preference.
Existing law, the Small Business Procurement and Contract Act, provides for various programs to encourage the participation of small businesses, as certified by the Department of General Services, in state agency contracts, including a microbusiness and a disabled veteran business enterprise. Existing law requires directors of state agencies, in awarding prescribed contracts, to provide a 5% preference to small businesses and microbusinesses, and a preference of up to 5% to a nonsmall business that provides for small business or microbusiness subcontractor participation, not to exceed prescribed amounts.
This bill would raise the microbusiness preference to 7% and would raise the preference for a nonsmall business with microbusiness subcontractor participation to a maximum of 7%.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 14838 of the Government Code is
2amended to read:
In order to facilitate the participation of small business,
2including microbusiness, in the provision of goods, information
3technology, and services to the state, and in the construction
4(including alteration, demolition, repair, or improvement) of state
5facilities, the directors of the department and other state agencies
6that enter those contracts, each within their respective areas of
7responsibility, shall do all of the following:
8(a) Establish goals, consistent with those established by the
9Office of Small Business Certification and Resources, for the extent
10of participation of small businesses, including microbusinesses,
11in the provision of goods, information technology, and services to
12the state, and in the construction of state
facilities.
13(b) Provide for small business preference, or nonsmall business
14preference for bidders that provide for small business and
15microbusiness subcontractor participation, in the award of contracts
16for goods, information technology, services, and construction, as
17follows:
18(1) In solicitations where an award is to be made to the lowest
19responsible bidder meeting specifications, the preference to small
20businessbegin delete and microbusinessend delete shall be 5 percentbegin insert, and the preference end insert
21begin insertto microbusiness shall be 7 percent,end insert of the lowest responsible
22bidder meeting specifications. The preference to nonsmall business
23bidders that provide for small businessbegin delete or microbusinessend delete
24
subcontractor participation shallbegin delete be,end deletebegin insert beend insert up to a maximum of 5
25percent of the lowest responsible bidder meeting specifications,
26begin insert and the preference for nonsmall business bidders that provide for end insert
27begin insertmicrobusiness subcontractorend insertbegin insert participation shall be up to a end insert
28begin insertmaximum of 7 percent of the lowest responsible bidder meeting end insert
29begin insertspecifications,end insert determined according to rules and regulations
30established by the Department of General Services.
31(2) In solicitations where an award is to be made to the highest
32scored bidder based on evaluation factors in
addition to price, the
33preference to small businessbegin delete or microbusinessend delete
shall be 5 percentbegin insert, end insert
34begin insertand the preference to microbusiness shall be 7 percent,end insert of the
35highest responsible bidder’s total score. The preference to nonsmall
36business bidders that provide for small businessbegin delete or microbusinessend delete
37 subcontractor participation shall be up to a maximum 5 percent of
38the highest responsible bidder’s total score,begin insert and the preference to end insert
39begin insertnonsmall business bidders that provide for microbusiness end insert
40begin insertsubcontractor participation shall be up to a maximum of 7 percent end insert
P3 1begin insertof the highest responsible bidder’s total scoreend insert determined according
2to rules and regulations established by the Department of General
3Services.
4(3) The preferences
under paragraphs (1) and (2) shall not be
5awarded to a noncompliant bidder and shall not be used to achieve
6any applicable minimum requirements.
7(4) The preference under paragraph (1) shall not exceed fifty
8thousand dollars ($50,000) for any bid, and the combined cost of
9preferences granted pursuant to paragraph (1) and any other
10provision of law shall not exceed one hundred thousand dollars
11($100,000). In bids in which the state has reserved the right to
12make multiple awards, this fifty thousand dollar ($50,000)
13maximum preference cost shall be applied, to the extent possible,
14so as to maximize the dollar participation of small businesses,
15including microbusinesses, in the contract award.
16(c) Give special consideration to small businesses and
17microbusinesses by both:
18(1) Reducing the experience required.
19(2) Reducing the level of inventory normally required.
20(d) Give special assistance to small businesses and
21microbusinesses in the preparation and submission of the
22information requested in Section 14310.
23(e) Under the authorization granted in Section 10163 of the
24Public Contract Code, make awards, whenever feasible, to small
25business and microbusiness bidders for each project bid upon
26within their prequalification rating. This may be accomplished by
27dividing major projects into subprojects so as to allow a small
28business or microbusiness contractor to qualify to bid on these
29subprojects.
30(f) Small business and microbusiness bidders qualified in
31accordance with this chapter shall have precedence over nonsmall
32business bidders in that the application of a
bidder preference for
33which nonsmall business bidders may be eligible under this section
34or any other provision of law shall not result in the denial of the
35award to a small business or microbusiness bidder. In the event of
36a precise tie between the low responsible bid of a bidder meeting
37specifications of a small business or microbusiness, and the low
38responsible bid of a bidder meeting the specifications of a disabled
39veteran-owned small business or microbusiness, the contract shall
40be awarded to the disabled veteran-owned small business or
P4 1microbusiness. This provision applies if the small business or
2microbusiness bidder is the lowest responsible bidder, as well as
3if the small business or microbusiness bidder is eligible for award
4as the result of application of the small business and microbusiness
5bidder preference granted by subdivision (b).
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