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.

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

www.dgs.ca.gov/cmas

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

http://www.pd.dgs.ca.gov/smbus/getcertified.htm

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 www.cscr.dgs.ca.gov

Subscription Outreach Service (SOS)

Notifies you of contracting opportunities the day they are published in the CSCR

Create custom profile and matching opportunities are e-mailed or faxed to you automatically

No fee www.cscr.dgs.ca.gov/cscr/sosdesc.asp

Information

Small Business/DVBE Advocates Directory

State Telephone Directory State Agency Portal

http://www.pd.dgs.ca.gov/smbus/relatedsites.htm

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 Certificationand, if needed:

- Adds local program requirements

http://www.pd.dgs.ca.gov/recipro/recipartners.htm

Questions about Certification?707 3rd Street, 1st FloorWest Sacramento, CA 95605

Tel: (916) 375-4940Fax: (916) 375-4950Website: www.pd.dgs.ca.gov/smbus

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