Department of General Services

How to do Business with the State

Overview of State Contracting 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

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 Has a service-connected disability of at least 10% or more,

and

Must be domiciled in California

and

 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 Certification -

and, if needed:

Adds local program requirements http://www.pd.dgs.ca.gov/recipro/recipartners.htm

Questions about Certification?

707 3rd Street, 1st Floor West Sacramento, CA 95605 Tel:

(916) 375-4940

Fax:

(916) 375-4950

Website:

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