Download - Small Business and DVBE Services Branch Procurement Division Department of General Services
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Small Business and DVBE Services Branch
Procurement DivisionDepartment of General Services
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Session Highlights
Overview of Small Business– Certification– Benefits
Reciprocity
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Each year…
the State awards over $5 billion in contracts for goods, services, and construction.
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Small Business Participation Program
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Small Business Preference
Created in 1973 by the Small Business Procurement and Contract Act
Administered within the Department of General Services
Established to further the participation of small business in State contracting
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Small Business Preference continued
Furthers SB participation utilizing:
– A 5% bidding preference—Small Businesses must be certified by the OSDC to be eligible
– A 25% participation goal—State agencies are to award at least 25% of annual contracting dollars to certified firms
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SB Certification Eligibility
Principle 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
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SB Certification Eligibility continued
Construction, Service and Non-manufacturer firms:
– 100 or fewer employees
– Average annual gross receipts of $10 million or less per year for each of the most recent three years
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SB Certification Eligibility continued
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
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Program Benefits
Certified firms are eligible for a 5% bidding preference
Certified firms are eligible for consideration in the streamlined contracting process
Certified firms are entitled to higher Prompt Payment penalty interest
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Applying the 5% Preference
The Contract is Awarded to Bidder B for the original bid amount of $102,000$102,000
It pays to get certified!!!
Bidder A Bid = $100,000Adjusted Bidder B Bid = $97,000
Bids $102,000
Bidder B Is a Certified Small Business
Bidder ANot a Certified Small Business
Bids $100,000
$102,000- 5,000$ 97,000
$100,000x .05 (5%)$ 5,000
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Streamlined Contracting Process
For service and commodity purchases between $5,000 and up to $100,000.
For construction up to $120,000.
Agencies obtain quotes from two certified small businesses or two certified DVBEs, and award to a certified small business or a certified DVBE.
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Prompt Payment Program
All businesses are entitled to receive payment within 45 days of undisputed invoice and/or receipt of goods.
Certified Small Businesses receive higher penalty interest.
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Program Benefits continued
Certified firms are listed in detail on the Internet—Certified Firm Listing
Other entities may “honor” the State’s Small Business certification (known as Reciprocity)
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Application
Internet– http://www.pd.dgs.ca.gov/
smbus
E-mail– [email protected]
Phone – 916.375.4940
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Reciprocity
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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
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SB Reciprocity Partners
Sacramento Municipal Utility District
Sacramento Housing and Redevelopment Agency
County of Los Angeles City of San Diego County of Sacramento San Diego Water Authority
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City of Sacramento San Diego Airport Authority Contra Costa County Los Angeles Unified School District Plus, more forthcoming
Reciprocity Partnerships
SB Reciprocity Partners
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Small Business and DVBE Services Branch
707 Third Street, First FloorWest Sacramento, CA 95605
Tel: (916) 375-4940Fax: (916) 375-4950
Website: www.pd.dgs.ca.gov/smbusOffice Hours: M-F 8:00 A.M. – 5:00 P.M.
Business Card
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The End