AB 1125, as introduced, Weber. State agency contracts: small business.
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. Existing law provides, in solicitations where an award is made to the lowest responsible bidder, that the preferences shall not exceed $50,000 for any bid and that the combined cost of preferences granted shall not exceed $100,000. Existing law provides that, in bids in which the state has reserved the right to make multiple awards, the $50,000 maximum preference cost shall be applied.
This bill would provide, in solicitations where an award is made to the lowest responsible bidder, that the preference to small business and microbusiness be 5% of the lowest responsible nonsmall business bidder meeting specifications and that the preference to nonsmall business bidders that provide for small business or microbusiness subcontractor participation be up to a maximum of 5% of the lowest responsible nonsmall business bidder. This bill also would provide that the preference not exceed $100,000 for any contract award and that the combined cost of preferences granted not exceed $150,000. This bill would require that the $100,000 maximum preference cost be applied in multiple contract awards.
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,
4including microbusiness, in the provision of goods, information
5technology, and services to the state, and in the construction
6(including alteration, demolition, repair, or improvement) of state
7facilities, the directors of the department and other state agencies
8that enter those contracts, each within their respective areas of
9responsibility, shall do all of the following:
10(a) Establish goals, consistent with those established by the
11Office of Small Business Certification and Resources, for the extent
12of participation of small businesses, including microbusinesses,
13in the provision of goods, information technology, and services to
14the state, and in the construction of state
facilities.
15(b) Provide for small business preference, or nonsmall business
16preference for bidders that provide for small business and
17microbusiness subcontractor participation, in the award of contracts
18for goods, information technology, services, and construction, as
19follows:
20(1) In solicitations where an award is to be made to the lowest
21responsible bidder meeting specifications, the preference to small
22business and microbusiness shall be 5 percent of the lowest
23responsiblebegin insert nonsmall businessend insert bidder meeting specifications. The
24preference to nonsmall business bidders that provide for small
25business or microbusiness subcontractor participation shall be, up
26to a maximum of 5 percent of the lowest responsiblebegin insert
nonsmall
27businessend insert bidder meeting specifications, determined according to
P3 1rules and regulations established by the Department of General
2Services.
3(2) In solicitations where an award is to be made to the highest
4scored bidder based on evaluation factors in addition to price, the
5preference to small business or microbusiness shall be 5 percent
6of the highest responsible bidder’s total score. The preference to
7nonsmall business bidders that provide for small business or
8microbusiness subcontractor participation shall be up to a
9maximum 5 percent of the highest responsible bidder’s total score,
10determined according to rules and regulations established by the
11Department of General Services.
12(3) The preferences under paragraphs (1) and (2) shall not be
13awarded to a noncompliant bidder and shall not be used to achieve
14any applicable minimum
requirements.
15(4) The preference under paragraph (1) shall not exceedbegin delete fiftyend delete
16begin insert one hundredend insert thousand dollarsbegin delete ($50,000)end deletebegin insert ($100,000)end insert for anybegin delete bid,end delete
17begin insert contract award,end insert and the combined cost of preferences granted
18pursuant to paragraph (1) and any other provision of law shall not
19exceed one hundredbegin insert fiftyend insert thousand dollarsbegin delete ($100,000). In bidsend delete
20begin insert ($150,000). For contract awardsend insert in which the state has reserved
21the right to make multiple awards, thisbegin delete fiftyend deletebegin insert one hundredend insert thousand
22dollarbegin delete ($50,000)end deletebegin insert ($100,000)end insert maximum preference cost shall be
23applied, to the extent possible, so as to maximize the dollar
24participation of small businesses, including microbusinesses, in
25the contract award.
26(c) Give special consideration to small businesses and
27microbusinesses by both:
28(1) Reducing the experience required.
29(2) Reducing the level of inventory normally required.
30(d) Give special assistance to small businesses and
31microbusinesses in the preparation and submission of the
32information requested in Section 14310.
33(e) Under
the authorization granted in Section 10163 of the
34Public Contract Code, make awards, whenever feasible, to small
35business and microbusiness bidders for each project bid upon
36within their prequalification rating. This may be accomplished by
37dividing major projects into subprojects so as to allow a small
38business or microbusiness contractor to qualify to bid on these
39subprojects.
P4 1(f) Small business and microbusiness bidders qualified in
2accordance with this chapter shall have precedence over nonsmall
3business bidders in that the application of a bidder preference for
4which nonsmall business bidders may be eligible under this section
5or any other provision of law shall not result in the denial of the
6award to a small business or microbusiness bidder. In the event of
7a precise tie between the low responsible bid of a bidder meeting
8specifications of a small business or microbusiness, and the low
9responsible bid of a bidder meeting the
specifications of a disabled
10veteran-owned small business or microbusiness, the contract shall
11be awarded to the disabled veteran-owned small business or
12microbusiness. This provision applies if the small business or
13microbusiness bidder is the lowest responsible bidder, as well as
14if the small business or microbusiness bidder is eligible for award
15as the result of application of the small business and microbusiness
16bidder preference granted by subdivision (b).
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