Amended in Senate June 23, 2016

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.

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This bill would increase the upper limit of the value of those contracts from $250,000 to $300,000.

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This bill would increase the upper limit of the value of those contracts for a disabled veteran business enterprise to $500,000.

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

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

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begin insert SECTION 1. end insert   

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begin insert Section 14838.5 of the end insert begin insert Government Code end insert begin insert is
amended to read: end insert

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

(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.

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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
as follows:

(1)  A contract that has an estimated value of greater than five
thousand dollars ($5,000), but less than two hundred fifty thousand
dollars ($250,000), may be awarded to a certified small business,
including a microbusiness, if the agency obtains price quotations
from two or more certified small businesses, including
microbusinesses.

(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.

(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.

end delete