Department of General Services

1. 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

2. 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

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

4. 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)

5. 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.

6. 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

7. CMAS • Agencies do not advertise • Administrative surcharge of 2.24% is waived for certified small businesses • www.dgs.ca.gov/cmas

8. 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

9. 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)

10. 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

11. 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)

12. 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

13. 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

14. 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

15. 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

16. 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.

17. 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.

18. 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

19. 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.

20. Additional Information and On Line Resources

21. On-line application • http://www.pd.dgs.ca.gov/smbus/getcertified.htm New! Jan. 30, 2007

22. 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

23. 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

24. Information • Small Business/DVBE Advocates Directory • State Telephone Directory • State Agency Portal http://www.pd.dgs.ca.gov/smbus/relatedsites.htm

25. 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

26. 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