SMALL BUSINESS AND DISABLED VETERAN BUSINESS ENTERPRISE CONTRACTING - 1200

Opportunity

Pursuant to the Small Business Procurement and Contract Act (Government Code (GC), Section 14835 through 14843) and Military and Veterans Code (M&VC), Section 999 et seq., all departments must offer procurement opportunities to California (CA) certified Small Businesses (SB), Microbusinesses and Disabled Veteran Business Enterprise (DVBE) whenever possible. Hereafter, unless otherwise directed, any reference to certified SB also includes certified Microbusinesses as defined by the above referenced GC.

Consequently, departments should make every effort to seek out and include certified SB and DVBE when conducting any procurement activity within its approved purchasing authority.

Annual Statewide Participation Goals

Pursuant to Executive Order S-02-06, D-43-01, and M&VC, Section 999.2, each department shall have an annual statewide participation goal in state procurement and contracting of not less than 25% for SB participation and not less than 3%for DVBE participation.

These participation goals were established to enhance and encourage competition by creating an optimum environment that affords all businesses equal access to State procurement and contracting opportunities. Departments unable to meet the required participation goal(s) are required to submit an Improvement Plan to DGS by October 1 of each year as detailed in Chapter 22, Section 2200.2 with their annual reporting(s).

SB/DVBE Advocate

In accordance with GC, Section 14846 and M&VC, Section 999.12, state departments whose annual purchasing activities $100,000 or more (regardless of purchasing type(s) or categories) shall designate a SB/DVBE advocate whose duties include but are not limited to:

• Identify potential SB and/or DVBE prime contractors or subcontractors and potential contracting opportunities.
• Information regarding pending solicitations available to and consider offers from certified SB and/or DVBE firms capable of meeting the state’s business need.
• Ensure that payments due on purchase documents with SB suppliers are promptly made as provided by GC, Section 927 et seq.

Available Acquisition Approaches to Achieve Goals

Several purchasing categories, depending on a department’s approved purchasing authority, including competitive solicitation, leveraged procurement agreement (LPA) contracts and the SB/DVBE option, are available to departments for use in achieving participation goals.

All acquisition methods approaches can be used to achieve participation goals.  Examples include competitive solicitations, such as the SB/DVBE Option and use of existing sources such as leveraged procurement agreements (LPAs). 

Refer to Leveraged Procurement Agreements (LPA), for information on the process of claiming SB and DVBE contracting dollars under an LPA purchasing category.

SB or DVBE Option

GC, Section 14838.5 (a) and (b) enables a department to conduct a competitive solicitation valued at $5,000.01 through $249,999.99 that targets only certified SB, including micro businesses, or certified DVBEs.

Refer to Competitive Solicitations, for detailed information regarding the SB/DVBE Option process.

Buyers conducting a competitive solicitation utilizing the SB/DVBE Option need to verify if there are mandated or sourced contracts associated to the product or services.  Some Statewide Contracts include language allowing departments to exercise a SB/DVBE off-ramp.

Verify Certification Status

Solicitations (including verbal or written requests for offers), consideration of bids, or award of contracts shall not be provided to any firm that has been suspended from state procurement and contracting as listed on DGS/PD web page.

The FI$Cal system maintains certification status of SBs and DVBEs.

The database printout in support of an SB and/or DVBE certification must be maintained in the procurement file.