Senate BillNo. 276


Introduced by Senator Roth

February 14, 2013


An act to amend Section 14838.5 of the Government Code, relating to public contracts.

LEGISLATIVE COUNSEL’S DIGEST

SB 276, as introduced, Roth. Public contracts: small business contracts.

The Small Business Procurement and Contract Act permits a state agency to award a contract for goods, services, or information technology with a value of between $5,000 and $250,000 to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, without complying with specified competitive bidding requirements.

This bill would increase the upper limit of the value of those contracts to $500,000.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

P1    1

SECTION 1.  

Section 14838.5 of the Government Code is
2amended to read:

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14838.5.  

(a) Notwithstanding the advertising, bidding, and
4protest provisions of Chapter 6 (commencing with Section 14825)
5of this part and Chapter 2 (commencing with Section 10290) and
6Chapter 3 (commencing with Section 12100) of Part 2 of Division
72 of the Public Contract Code, a state agency may award a contract
8for the acquisition of goods, services, or information technology
P2    1that has an estimated value of greater than five thousand dollars
2($5,000), but less thanbegin delete two hundred fiftyend deletebegin insert five hundredend insert thousand
3dollarsbegin delete ($250,000),end deletebegin insert ($500,000),end insert to a certified small business,
4including a microbusiness, or to a disabled veteran business
5enterprise, as long as the agency obtains price quotations from two
6or more certified small businesses, including microbusinesses, or
7from two or more disabled veterans business enterprises.

8(b) In carrying out subdivision (a), a state agency shall consider
9a responsive offer timely received from a responsible certified
10small business, including a microbusiness, or from a disabled
11veteran business enterprise.

12(c) If the estimated cost to the state is less than five thousand
13dollars ($5,000) for the acquisition of goods, services, or
14information technology, or a greater amount as administratively
15established by the director, a state agency shall obtain at least two
16price quotations from responsible suppliers whenever there is
17reason to believe a response from a single source is not a fair and
18reasonable price.



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