Department of General Services C A L I F O R N I A D E P A R T M E N T O F G E N E R A L S E R V I C E S P R O C U R E M E N T D I V I S I O N How to do Business with the State Overview of State Contracting

Fiscal Year 2004/2005  The State awarded over $8.95 billion for goods, services and construction -$ 1.9 billion to Small Businesses -$ 970 million to Micro Businesses -$104 million to DVBEs

How the State Purchases  Formal Bids  Informal Bids  California Multiple Award Schedules (CMAS)  Master Agreements

Formal Bids  Commodities over $50,000  Services and Construction over $5,000  IT goods and Services over $500,000  Advertised in the California State Contract Register (CSCR)  Written Solicitations and Responses  Sealed Bids -Invitation for Bid (IFB) -Request for Proposal (RFP) -Request for Qualifications or Quotes (RFQ)

Informal Bids  For commodities up to $50,000  For services and construction up to $5,000 -Oral solicitations and responses  SB/DVBE “Option” -For contracts between $5,000 and up to $100,000. (Public Works up to $131,000) Agencies obtain quotes from two certified small businesses or two certified DVBEs, and award to a certified small business or a certified DVBE.small businesses

CMAS  An agreement with the State to provide similar or same products/services at the same or similar price for: -all non-IT commodities up to $100,000 -all types of non IT-services up to $250,000 -IT goods and services up to $500,000

CMAS  Agencies do not advertise  Administrative surcharge of 2.24% is waived for certified small businesses 

Master Agreements  Are competitively bid when a solicitation is issued, usually advertised in the California State Contracts Register (CSCR)  You agree to sell products or services at a set price but can vary depending on the agreement  The agreement is usually for a term of two to three years

Economic Development Programs  Small Business Preference Benefits and Eligibility Program  DVBE Participation, Certification and Eligibility Program  Others -Target Area Contract Preference Act (TACPA) -Local Agency Military Base Recovery Area Act (LAMBRA) -Enterprise Zone Act (EZA)

Small Business Preference Benefits and Eligibility  Created in 1973 by the Small Business Procurement and Contract Act  Administered within the Department of General Services  State Agencies are to award at least 25% of annual contracting dollars to certified firms - Executive Order S-02-06

Small Business Preference Benefits and Eligibility  Certified firms are: -eligible for a 5% bidding preference -eligible for the SB/DVBE option -entitled to higher prompt payment penalty interest -listed in detail on the Internet - Certified Firm Listing  CMAS administrative fee is waived to State agencies using certified firms  Other entities may “honor” the State’s Small Business certification (known as Reciprocity)

Small Business Preference Benefits and Eligibility  Principal office must be located in California  Officers/owners must be domiciled in California  Business must be independently owned and operated  Business must not be dominant in its field of operation

Small Business Preference Benefits and Eligibility  Construction, Service and Non-manufacturer firms: -100 or fewer employees -Average annual gross receipts of $12 million or less per year for each of the most recent three years

Small Business Preference Benefits and Eligibility  Manufacturer firms: -100 or fewer employees -Primarily engaged in the chemical or mechanical transformation of raw materials or processed substances into new products -Standard Industrial Classification (SIC) Codes 2000 through 3999

DVBE Participation Certification and Eligibility Program  Military and Veterans Code Section 999  Administered within the Department of General Services  Established to further the participation of Disabled Veteran Business Enterprise (DVBE) in State contracting

DVBE Participation Certification and Eligibility Program State agencies are to award at least 3% of annual contracting dollars to DVBE firms -directly, by contracting with a DVBE, or -indirectly, by contracting with a firm who subcontracts part of the work to a DVBE firm.

DVBE Participation Certification and Eligibility Program  Disabled Veteran means -A veteran of the U.S. military service and -Has a service-connected disability of at least 10% or more, and -Must be domiciled in California  At least 51% owned by one or more disabled veterans  Daily business operations must be managed and controlled be one or more disabled veterans  Home office must be located in the U.S.

TACPA, LAMBRA, EZA Programs  Target Area Contract Preference Act  Local Agency Military Base Recovery Area Act  Enterprise Zone Act -These programs include a range of preferences for certain work sites and work force composition

New: “Commercially Useful Function”  Execute a distinct element of the work;  Actually perform, manage, supervise an element of the work;  Perform work normal for operations;  Not further subcontract a greater portion than normal  Must add value and not a “pass through” just to obtain the mere appearance of a certified firm.

Additional Information and On Line Resources

On-line application  New! Jan. 30, 2007

California State Contracts Register (CSCR)  Advertises State contracting opportunities – hundreds daily  Central sources for locating contracting opportunities  Easy on-line access  You can attach your own advertisements to existing government advertisements in the CSCR  You can advertise for sub-contractors and suppliers, or conversely, sub-contractors and suppliers can announce their availability to contribute to a project  Small fee 

Subscription Outreach Service (SOS)  Notifies you of contracting opportunities the day they are published in the CSCR  Create custom profile and matching opportunities are ed or faxed to you automatically  No fee 

Information  Small Business/DVBE Advocates Directory Small Business/DVBE Advocates Directory  State Telephone Directory State Telephone Directory  State Agency Portal State Agency Portal

Reciprocity  The program’s goal is to attain One-Stop Certification in California.  Reciprocity is achieved when: -A local program “honors” State Small Business or DVBE Certification and, if needed: -Adds local program requirements

Questions about Certification? 707 3rd Street, 1st Floor West Sacramento, CA Tel: (916) Fax: (916) Website: Office Hours: M–F 8:00 a.m.– 5:00 p.m. C A L I F O R N I A D E P A R T M E N T O F G E N E R A L S E R V I C E S P R O C U R E M E N T D I V I S I O N