Amended in Assembly May 27, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2358


Introduced by Assembly Members Bigelow and Wood

February 18, 2016


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

LEGISLATIVE COUNSEL’S DIGEST

AB 2358, as amended, Bigelow. 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 an estimated 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 tobegin delete $500,000.end deletebegin insert $300,000.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. 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:

3

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
P2    1Chapter 3 (commencing with Section 12100) of Part 2 of Division
22 of the Public Contract Code, a state agency may award a contract
3for the acquisition of goods, services, or information technology
4that has an estimated value of greater than five thousand dollars
5($5,000), but less thanbegin delete fiveend deletebegin insert threeend insert hundred thousand dollars
6begin delete ($500,000),end deletebegin insert ($300,000),end insert to a certified small business, including a
7microbusiness, or to a disabled veteran business enterprise, as long
8as the agency obtains price quotations from two or more certified
9small businesses, including microbusinesses, or from two or more
10disabled veterans business enterprises.

11(b) In carrying out subdivision (a), a state agency shall consider
12a responsive offer timely received from a responsible certified
13small business, including a microbusiness, or from a disabled
14veteran business enterprise.

15(c) If the estimated cost to the state is less than five thousand
16dollars ($5,000) for the acquisition of goods, services, or
17information technology, or a greater amount as administratively
18established by the director, a state agency shall obtain at least two
19price quotations from responsible suppliers whenever there is
20reason to believe a response from a single source is not a fair and
21reasonable price.



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