Amended in Senate June 21, 2016

Amended in Assembly May 27, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 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 begin insert for end insert begin insert a disabled veteran business enterprise end insert to begin delete $300,000. end delete begin insert $500,000. 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:

SECTION 1.  

Section 14838.5 of the Government Code is
amended to read:

14838.5.  

(a) Notwithstanding the advertising, bidding, and
protest provisions of Chapter 6 (commencing with Section 14825)
of this part and Chapter 2 (commencing with Section 10290) and
Chapter 3 (commencing with Section 12100) of Part 2 of Division
2 of the Public Contract Code, a state agency may award a contract
for the acquisition of goods, services, or information technology

begin delete that end delete begin insert as follows: end insert

begin insert (1) end insert begin insert   end insert begin insert A contract that end insert has an estimated value of greater than five
thousand dollars ($5,000), but less than begin delete three hundred thousand
dollars ($300,000), end delete begin insert two hundred fifty thousand dollars ($250,000),
may be awarded end insert to a certified small business, including a
microbusiness, begin delete or to a disabled veteran business enterprise, as long
as end delete begin insert if end insert the agency obtains price quotations from two or more certified
small businesses, including begin delete microbusinesses, or from two or more
disabled veterans business enterprises. end delete begin insert microbusinesses. end insert

begin insert

(2) A contract that has an estimated value of greater than five
thousand dollars ($5,000), but less than five hundred thousand
dollars ($500,000), may be awarded to a disabled veteran business
enterprise, if the agency obtains price quotations from two or more
disabled veteran business enterprises.

end insert

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

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