Department of General Services

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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
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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

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How the State Purchases

• Formal Bids
• Informal Bids
• California Multiple Award Schedules (CMAS)
• Master Agreements

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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)

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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.

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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

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CMAS

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

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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

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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)

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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

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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 States Small
  Business certification (known as Reciprocity)

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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

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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

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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

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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

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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.

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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.

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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

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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.

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• Additional Information and
• On Line Resources

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On-line application

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

New! Jan. 30, 2007
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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

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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

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Information

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

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Reciprocity

• The programs 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

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Questions about Certification?

• 707 3rd Street, 1st Floor
• West Sacramento, CA 95605
• Tel [phone]
• Fax [phone]
• Website www.pd.dgs.ca.gov/smbus
• Office Hours MF 800 a.m. 500 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