Summary of Statutory and Policy Requirements for State Contracts

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Summary of Statutory and Policy Requirements for State Contracts - May, 2001

SUMMARY OF STATUTORY AND POLICY REQUIREMENTS FOR STATE CONTRACTS May, 2001

State & Consumer Services Agency • Department of General Services • Procurement Division

There are numerous statutory and policy requirements for State contracts. The following listing of those requirements contains information on how they may be met, and is organized by dollar level so that as acquisition values increase you can easily determine which requirements apply. Please do not rely on this document as an all-encompassing reference, it is only intended to provide information about the most common requirements. Contracts for information technology services should also follow the appropriate guidelines of the State Contracting Manual (SCM).

Copies of referenced Management Memos are available from the Department of General Services (DGS), Office of State Publishing (OSP) from the DGS Internet website at http://www.osp.dgs.ca.gov/. For questions regarding non-IT services or consulting services contracts, please contact the DGS Office of Legal Services (OLS) at (916) 376-5080, or visit the OLS Internet website at http://www.ols.dgs.ca.gov/.

If you have questions about small business issues, or need verification of eligibility for small business, search the OSDS Internet database at: /sbop/. For questions on TACPA, LAMBRA or EZA preferences, contact the Protest and Dispute Resolution Unit at (916) 375-4587.

Questions or comments regarding this document may be made to the Procurement Division at (916) 375-4347, or email: Diane.Leung@dgs.ca.gov

REFERENCES:
B&P = Business and Professions Code
CCR = California Code of Regulations, (Title 2)
EO = Executive Order
GC = Government Code
MM = Management Memo
PCC = Public Contract Code
R&T = Revenue and Taxation Code
SAM = State Administrative Manual
SCM = State Contracting Manual
USC = United States Code
W&I = Welfare and Institutions Code

TYPE:
CS = Consulting Services
G = Goods (Commodities, or materials, equipment, supplies)
IT = Information Technology (goods and services)
S = Services (non-IT)

NOTES:
* Addressed in PD's General Provisions, effective 01/01/01.
# Any combination of these preferences cannot exceed $100,000. If application of the Recycle, TACPA, LAMBRA and/or EZA preference precludes a certified small business from receiving an award, these preferences shall not be considered.

QUICK SCAN!
Alphabetical Cross-Reference by Keyword

KEYWORD	ITEM
Acquisition Authority	16
Advertising	24
Advertising Goods Solicitations	37
Alternative Protest Pilot	36, 41, 42, 55
Americans with Disabilities Act (ADA)	13
Anti-Trust	1
Audits	31
CAL-Card	32
Child Support Compliance	48
Community Rehabilitation Programs (CRP)	62
Contract Language	26, 50
Corporate Qualification	59
CPU Replacement	53
Delegation Authority	17
Disabled Veteran Business Enterprise (DVBE)	56
Drug Free Certification	6
Enterprise Zone Act (EZA)	45
Forced, Child, Convict, and Indentured Labor	9
Illegal Aliens	60
General Provisions	19
GS $Mart	47
Lease $Mart	43
Local Agency Military Base Recovery Act (LAMBRA)	46
Lowest Responsible Bidder	36
National Labor Relations Board (NLRB)	5
Non-Discrimination	4, 51
Number of Bidders	18, 21, 28, 35
Payee Data Record	8
Performance Bonds	56
Polluters	34
Printer/Duplicator Cartridges	61
Priority Hiring Considerations	49
Productive Use Requirements	15
Progress Payments	57, 58
Prompt Payment	14
Protests	2, 29, 41
Public Bid Opening	22, 38
Public Inspection	23, 33, 39
Recycle	3
Rejection of Low Bidder	27, 40
Restrictive Requirements	20
Sand, Gravel, Aggregates, or other Minerals	11
Sole Source	24
Small Business	7, 30
Splitting Orders	10
Statement of Compliance	4
Target Area Contract Preference Act (TACPA)	4343
Value Effective Procurements	54
World Trade Organization	51

Item No.	$ Level	Keyword / Citation	Type	Requirement	Comments
1.	All	Anti-Trust GC 4550 et seq. B & P 16720-27 SCM 5.30	All	The antitrust laws are a system of California and federal laws that prohibit unwarranted restraints on free and open competition.	If an agency suspects antitrust activity (such as bid rigging or price fixing), contact the Attorney General's office at 916/324-7879, 415/356-6320, or 213/897-2691.
2.	All	Protests PCC 12102 CCR 1 870.1 et seq.	IT	Solicitations must provide for an initial protest process, whereby potential bidders may protest the requirements or specifications in a solicitation during the solicitation process. Solicitations must also provide for a 5-working day protest period. Requires award protests by a bidder to be filed with DGS within 5 working days after the issuance of a letter of intent to award. The final award cannot be made until the protest is either withdrawn or resolved by the California Victim Compensation and Government Claims Board (formerly the Board of Control).	Initial protests must be submitted by the agency to the Protest Resolution Coordinator. The Director of DGS or his/her designee decides initial protests. PD will assist with transmittals to the California Victim Compensation and Government Claims Board and defense of the protest as appropriate. Immediately send/fax copies of any protest received to the Protest Resolution Coordinator, Procurement Division, 1823 14th Street, Sacramento, CA 95814. Fax: 916/322-9653.
3. *#	All	Recycle PCC 10308.5, 10354, 12150 et seq. SCM 7.70	G, IT, S	Requires suppliers to certify the percentage of recycled content for certain products; allows for a preference for certain products; and requires agencies to report certain information to the Integrated Waste Management Board (IWMB).	Primarily paper, oil, glass, and plastic. For information about the Recycling Program, contact PD at 916/322-7035. For information about the reporting requirement contact IWMB at 916/255-4454.
4. *	All	Non-Discrimination/ Statement of Compliance GC 12990 CCR 2 81038120 SCM 4.08, 5.30, 5.09, 7.65	All	Requires suppliers to agree, and certify, that they are in compliance with certain nondiscrimination laws. Requires each agency to report all transactions over $5,000 (Std. 16) to the Dept. of Fair Employment and Housing.	Specific language must be included in solicitations, contracts or purchase orders. Sample Statement of Compliance: The Contractor's signature affixed hereon and dated shall constitute a certification under the penalty of perjury under the laws of the State of California that the Contractor has, unless exempted, complied with the nondiscrimination program requirements of Government Code Section 12990 (a-f) and Title 2, California Code of Regulations, Section 8103.
5. *	All	NLRB PCC 10296 SCM 2.07, 10.15, 10.30	All	Requires suppliers to certify that they are in compliance with the National Labor Relations Board (NLRB) requirements.	Sample certification language: By signing hereon the Contractor swears under penalty of perjury that no more than one final, unappealable finding of contempt of court by a federal court has been issued against the Contractor within the immediately preceding two-year period because of the Contractor's failure to comply with an order of a federal court which orders the Contractor to comply with an order of the National Labor Relations Board. This provision is required by, and shall be construed in accordance with, Public Contract Code Section 10296.
6. *	All	Drug Free Certification GC 8355, SCM 4.08, 5.30, 7.55	All	Requires contractors to certify they provide a drug free work environment.	(1) Retain a copy of the certification (Std. 21) in the acquisition file, for 3 years in your agency, or (2) Include appropriate language in the contract.
7. #	All	Small Business GC 14835,14838 CCR 2 1896 et seq. SCM 5.10, 5.30, 5.80, 8.20, 8.21, 8.22	All	Requires agencies to establish goals for small business contracting, and provides for a 5% (up to $50K) small business preference when evaluating bids.	Before applying the preference, verify bidder's eligibility by searching the OSBCR Internet database at: /sbop/.
8.	All	Payee Data Record R&T 18646 SCM 4.08, 7.25 SAM 8422.19	IT, S, CS	Requires the head of each State agency entering into contracts to report certain information to the Franchise Tax Board.	Required for each service supplier an agency does business with. Use the Std. Form 204 information contained in this form is used to prepare IRS Form 1099. (IT Services only)
9. *	All	Forced, Child, Convict, and Indentured Labor PCC 6108 SCM 2.07	G, S	In accordance with PCC Section 6108, contractor must warrant that no foreign-made equipment, materials, or supplies furnished to the State pursuant to a contract are produced in whole or in part by or with the benefit of, forced labor, convict labor, indentured labor under penal sanction, abusive forms of child labor or exploitation of children in sweatshop labor. Applies to services contracts where supplying goods is a predominate purpose of the contract.	Sample certification language: No foreign-made equipment, materials, or supplies furnished to the State pursuant to this contract may be produced in whole or in part by forced labor, convict labor, indentured labor, abusive forms of child labor or exploitation of children in sweatshop labor. By submitting a bid to the State or accepting a purchase order, the contractor agrees to comply with this provision of the contract.
10.	All	Splitting Orders PCC 10329 SAM 4819.34.2 SCM 5.03	All	Prohibits the splitting of orders for the purpose of circumventing competitive bidding.
11.	All	Sand, Gravel, Aggregates or other minerals PCC 10295.5	G	Prohibits State agencies from purchasing sand, gravel, aggregates or other minerals produced from a surface mining operation subject to the Surface Mining and Reclamation Act of 1975, with certain exceptions.	Check with the Department of Conservation to determine if the supplier you wish to do business with is obtaining these materials from an acceptable mine. Contact Department of Conservation, Office of Mine Reclamation at 916/323-9198 or check their website at : http://www.consrv.ca.gov/omr.
12.	All	Service Contracts that require Employee Benefits GC 19134 CCR 2 1896.300	S	Contracts for janitorial and housekeeping services, custodians, food service workers, laundry workers, window cleaners, and security guard services, in effect for 91 days or more, must expressly provide for health, dental and vision benefits.	Additional information can be found under the "contracting information" tab on the OLS website at: http://www.ols.dgs.ca.gov/.
13. *	All	Americans with Disabilities Act (ADA) 42 U.S.C. 12101 et seq.	All	Solicitations must address process compliance with the requirements of Title II of the ADA.	For more information, contact the Department of Rehabilitation, ADA Unit at 916/322-0251.
14. *	All	Prompt Payment GC 927-927.10 SCM 7.20, 8.22	All	Payment must be made in accordance with the provisions of the California Prompt Payment Act, Government Code Section 927 et seq.	Unless expressly exempted by statute, the Act requires state agencies to pay properly submitted, undisputed invoices not more than 45 days after (i) the date of acceptance of goods or performance of services; or (ii) receipt of an undisputed invoice, whichever is later.
15.	All	Productive Use Requirements SAM 5203, 5221	IT	The Productive Use Requirements are intended to: (1) minimize risk of failure of a procured product; and (2) protect the State from procuring equipment or software that has no record of proven performance. The requirements pertain to all procurements for information technology goods.	Model language for inclusion in solicitation documents regarding Productive Use Requirements is provided in SAM Section 5221 Illustration 2, Model Invitation for Bids, Section V, Administrative Requirements. The State Administrative Manual (SAM) can be viewed online at: http://www.osp.dgs.ca.gov/.
16.	Over $100	Acquisition Authority and Oversight PCC 10308	G	Requires purchases of goods over $100 to be made by, or under the supervision of, the DGS.	Authority language for DGS oversight of statewide acquisition activities.
17.	Over $100	Delegation Authority PCC 10320, 10333, 12102 SAM 3506, 5210.1	G, IT	Allows the DGS to delegate acquisition authority to State agencies.
18.	Below $5K	Number of Bidders GC 14838.5. PCC 10335	All	No bids are required unless the state agency has reason to believe the price offered by the supplier contacted is not reasonable.
19.	$5K up	General Provisions Delegation Guidelines	G	General Provisions are required for all written transactions over $5,000. They are recommended for use on transactions under $5,000 if the situation warrants.	The current version of the General Provisions is available from DGS upon request. Contact 916/4450134 for copies. Or download from PD's website at: PD.dgs.ca.gov.
20.	$5K	No restrictive requirements in solicitations PCC10318, 10339, SCM 5.03 SAM 3503, 5212	All	Prohibits writing solicitation requirements in such a way that they limit the competition to only one supplier.	If requirements are this restrictive, then consider requesting approval to award to a sole source, instead of conducting a competition.
21.	$5K to $25K	Number of Bidders Delegation Guidelines	G	Agencies with delegated authority are required to obtain at least 2 valid quotes for acquisitions between $5,000 and $25,000, in order to achieve adequate competition. A "no-bid" is not considered a valid quote or bid.	Goods acquisitions less than $5,000 may be awarded without competition. Refer to the goods delegation guidelines for more information. See GC Section 14838.5 for exceptions for certified small businesses.
22.	$5K up	Public Bid Opening PCC 10341, SCM 5.03	S, CS	Requires bids to be sealed and publicly opened. Also requires bids to be read if anyone so desires. Late bids cannot be considered.	Bids must remain sealed and confidential until the public opening. A department may wish to consider time and date stamping bids as they are received.
23.	$5K up	Public Inspection PCC 10342, SCM 6.10	S, CS	Requires bids to be available for public inspection after being opened.
24.	$5K up	Advertising GC 14825 et seq. PCC 10335.5, 10340. SCM 5.75, 5.80	S, CS IT	Requires all (whether acquired by competitive bidding or sole source) IT service contracts of $5,000 or more to be advertised in the California State Contracts Register (CSCR).	Procurement Division administers the CSCR. Obtain more information by contacting them at 916/324-0269, or visiting their Internet website at: http://www.osmb.dgs.ca.gov/cscr. Questions regarding advertising requirements for services (non-IT) and consulting services should be directed to your OLS attorney at 916/445-4084.
25.	$5K up	Sole Source PCC 10301 10348, 12102 SCM 5.70 EO W-103-94 MM 96-16	All	DGS authority to enter in to and approve sole source transactions under certain conditions.	In addition to the provisions of MM 98-16, agencies may be subject to additional requirements by their Agency Secretary.
26.	$5K up	Contract Language PCC 10367, 10371 SCM 2.07	S, CS	Requires that every consultant services contract contain standard language.	DGS recommends this for all services contracts. You can access standardized language on the OLS website at: http://www.dgs.ca.gov/contracts/. Contact OLS at 916/445-4084 for more information on non-IT services contracts.
27.	$5K up	Rejection of Low Bidder PCC 10345 SCM 6.10	S, CS	Requires that if the low bid to an IFB is rejected, the bidder must be given 5 working days notice (by specified means) prior to award of the contract. Also, any bidder may request a 5-day posting of proposed award.	Agencies should also include information for protesting the award of services and consulting services contracts in all solicitations.
28.	$5K up	Number of Bidders PCC 10340 SCM 5.08	S, CS	Requires agencies to obtain at least 3 valid bids for contracts over $5,000.	Exemptions to the 3-bid requirement are listed in SCM 5.08
29.	$5K up	Protests PCC 10345 CCR 1 1195 SCM 6.0-6.40	S, CS	Requires that whenever a bidder files a protest, the final award cannot be made until either the protest is withdrawn or resolved by the DGS Office of Legal Services.	Upon receipt or notification of protest, immediately notify OLS at 916/445-4084 or fax 916/329-3916.
30.	$5,000.01 to $99,999.99	Small Business Suppliers GC 14838.5	All	Agencies may award contracts of $5,000.01 to $99,999.99 for goods, services, and IT to certified small businesses if they have obtained price quotations from at least two responsive and responsible certified small business suppliers and make the award to a certified small business supplier.	Verification of the status of a supplier's small business certification number can be located on the OSBCR website at http://www.dgs.ca.gov/osbcr. In addition, agencies must request each supplier's small business certification number and maintain these numbers in the contract file. For services or consulting services see guidelines published by OLS on their website at: http://www.ols.dgs.ca.gov/.
31. *	$10K up	Examination and Audit Language GC 8546.7 SCM 7.50	All	Requires contracts over $10K to be subject to examination and audit by the State Auditor for a period of three years after final payment under the contract.	Every contract shall contain a provision stating that the contracting parties agree to be subject to this examination and audit (see SCM 7.50 or PD's General Provisions for sample language).
32.	$15K	CAL-Card MM 99-2	All	Allows for purchase of goods and IT up to $15,000 per transaction. Services are limited to $1,000 or less.	CAL-Card is intended as a payment mechanism only and does not preclude the need for following all other procurement laws, rules, etc. (i.e. competitive bidding) You may obtain more information and/or training by contacting the CAL-Card Unit at 916/324-1333.
33.	$25K up	Public Inspection PCC 10305	G	Requires bids to be available for public inspection after being opened.
34. *	$25K up	Polluters GC 4475-4482	G, S	Prohibits State agencies from awarding contracts for supplies, equipment or services to air or water polluters.
35.	$25K - $500K	Number of Bidders Delegation Guidelines	IT	In order to achieve adequate competition, bids must be received from at least two responsible bidders.	Refer to the IT delegation guidelines for more information. A "no bid" is not considered a valid quote or bid.
36.	$25K up	Lowest Responsible Bidder PCC 10301	G	Requires all goods purchases of $25,000 or more (except sole sources) to be entered into with the lowest responsible bidder meeting specifications. Exceptions are those purchase entered into pursuant to the Alternative Protest Pilot (see #42).	Sales tax is not considered when determining low bidder; however, always consider preferences, i.e., small business, TACPA, EZA, LAMBRA, and recycled content.
37.	$25K up	Advertising Goods Solicitations PCC 10302 CCR 2 1890	G	Requires that all goods solicitations exceeding $25,000 be advertised in the CSCR (except transactions conducted pursuant to GC 14838.5- (see #30) Also, the solicitation must be posted in a public place until seven days after award is made.	Agencies may also post their solicitations on the Internet, however Internet posting does not meet the statutory requirement.
38.	$25K up	Public Opening PCC 10304	G	Requires bids to be sealed and publicly opened. Also requires bids to be read if anyone so desires. Late bids cannot be considered.	Bids must remain sealed and confidential until the public opening. Recommend date-and time stamping bids as they are received.
39.	$25K up	Public Inspection PCC 10305	G	Requires bids to be available for public inspection after being opened.
40.	$25K up	Rejection of Low Bidder PCC 10306	G	Requires that if the low bid is rejected, the bidder must be notified 24 hours prior to contract award. Any bidder may request posting of the intended award for 24 hours prior to contract award.	If requested to post an intent to award, it must be posted in a public place.
41.	$25K up	Protests PCC 10306 CCR 1 870.1 et seq.	G	Requires that whenever a bidder files a protest, the final award cannot be made until the protest is either withdrawn or resolved by the California Victim Compensation and Government Claims Board. Exceptions are solicitations conducted under the Alternative Protest Pilot (see #42).	PD will assist with transmittals to the California Victim Compensation and Government Claims Board and defense of the protest as appropriate. Immediately send/fax copies of any protest received to the Protest Resolution Coordinator, Procurement Division, 1823 14th St. Sacramento, CA 95814. Phone: 916/323-1468. Fax: 916/322-9653.
42.	$25K up	Alternative Protest Pilot PCC 12125 et seq. CCR 1 1400 et seq.	G	Allows agencies to conduct best value acquisitions, competitive negotiations, alternative procurements and performance-based solicitations. Also enables DGS to reject frivolous protests and impose sanctions in certain circumstances.	Agencies must obtain approval from DGS in advance prior to including these provisions in any solicitation. For more information, contact the PD Protest Resolution Coordinator at 916/323-1468.
43.	$100K up	Lease $Mart MM 99-12	G, IT	A State program available to agencies to lease acquisitions.	There are pre-approved plans available for an agency's use on the DGS website at: http://www.dgs.ca.gov/ or call the Lease $Mart.
44. #	$100K up	TACPA GC 4530 et seq. CCR 2 1896.30 et seq. SCM 8.30, 5.30	G, IT, S	The Target Area Contract Preference Act provides a range of preferences for certain work sites and workforce composition. This preference may not exceed $50,000. Contractor must certify under penalty of perjury that it is eligible for the preference. For worksite preference on TACPA 50% of the work must be done at the worksite for goods, 90% for services.	Although the preference does not apply unless the solicitation is over $100,000, it is recommend the language and preference request forms be included in solicitations estimated to be over $85,000. Preference is similar and in addition to EZA and LAMBRA although the total of all preferences may not exceed 15% or $100,000. For more information contact Susan Chan at 916/323-1468.
45. #	$100K up	EZA GC 7070 et seq. CCR 2 1896.100 et seq. SCM 8.30, 5.30	G, IT, S	Enterprise Zone Act provides for preferences similar to TACPA. This preference may not exceed $50,000. Contractor must certify under penalty of perjury that it is eligible for the preference. For worksite preferences on EZA 50% of work must be done at the worksite for goods, 90% for services.	Although the preference does not apply unless the solicitation is over $100,000, we recommend the language and preference request forms be included in all solicitations estimated to be over $85,000. Preference is similar and in addition to TACPA and LAMBRA although the total of all preferences may not exceed 15% or $100,000. For more information contact Susan Chan at 916/323-1468.
46. #	$100K up	LAMBRA GC 7118 SCM 5.30, 8.30	G, IT, S	The Local Agency Military Base Recovery Area Act provides for certain preferences for worksites and workforce compositions. This preference may not exceed $50,000. Contractor must certify under penalty of perjury that it is eligible for the preference. For worksite preferences on LAMBRA 50% of work must be done at the worksite for goods, 100% for services.	Although the preference does not apply unless the solicitation is over $100,000, we recommend the language and preference request forms be included in all solicitations estimated to be over $85,000. Preference is similar and in addition to TACPA and EZA although the total of all preferences may not exceed 15% or $100,000. For more information contact Susan Chan at 916/323-1468.
47.	$100K up	GS $Mart MM 98-06	G, IT	A State program available to agencies to finance acquisitions.	There are pre-approved plans available for an agency's use on the DGS website at http://www.dgs.ca.gov or call the GS $Mart Administrator at 916/327-2600 for more information.
48. *	$100K up	Child Support Compliance PCC 7110	All	Requires contractor to acknowledge importance of child and family support obligations and that it fully complies with all applicable State and federal laws relating to child and family support enforcement.	See PD's General Provisions for sample language for goods and IT acquisitions. For services and consulting services contracts sample language on the OLS website at: http://www.ols.dgs.ca.gov/.
49. *	$200K up	Priority Hiring Consideration PCC 10353 W&I 11349 et seq. SCM 5.30	IT, S, CS	Requires contracts to include a provision that the contractor shall give priority consideration in filling vacancies to qualified recipients of aid.	See SCM 5.30 or PD's General Provisions for sample language.
50.	$500K up	Contract Language Policy	IT	Requires contractual language to be included in all acquisitions over $500,000.	Contract modules are available for download from PD's Internet homepage at:PD.dgs.ca.gov Questions should be directed to Contract Negotiations at 916/327-8055.
51. *	$500K up	Non-discrimination toward WTO GPA signatories International Trade Agreement	All	Solicitations shall contain a provision that parties to the World Trade Organization/ Government Purchasing Agreement (WTO GPA) will be accorded nondiscriminatory treatment in the award of contracts.	Current signatories to the WTO GPA are: Aruba, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Iceland, Ireland, Israel, Italy, Japan, Korea, Liechtenstein, Luxembourg, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, and United Kingdom. This provision is included in PD's Bidder Instructions, which can be found on the Internet at /. Also requires all solicitations over $500,000 to be advertised in the California State Contracts Register.
52.	$500K up	Financing Alternatives PCC 12102>	IT	Requires solicitations to provide for consideration of a bidder's best financing alternative, including lease or purchase alternatives, if bidder so requests.	Bidders can request consideration of financing alternatives up to 30 days prior to award. Also, see #42, and #46 above.
53.	$500K up	CPU Replacement PCC 12104	IT	Requires DGS to submit an annual report to the Legislature regarding computer central processing unit (CPU) replacements.	DGS must report when a (mainframe) CPU is replaced, only one bid was received, and that bid was from the supplier whose equipment was being replaced.
54.	$500K up	Value Effective Procurements PCC 12100.7, 12102 MM-96-07	IT	Solicitations providing for selection on other than cost alone.	Value Effective solicitations may be used for any size IT competition and must be applied to all IT competitions for "large scale system integration projects" and IT services.
55.	Any	Alternative Protest Pilot PCC 12125 et seq. CCR 1 1400 et seq.	IT	Allows agencies to conduct best value acquisitions, competitive negotiations, alternative procurements and performance-based solicitations. Also enables DGS to reject frivolous protests and impose sanctions in certain circumstances.	Agencies must obtain approval from DGS prior to including these provisions in any solicitation. For more information, contact the Protest Resolution Coordinator at 916/323-1468. Note: this law does not change the requirements for IT value-effective procurements.
56.	Any	DVBE PCC 10115.2, 10115.15 CCR 2 1896.70 SCM 8.10, 8.17 MM 98-04	All	Requires awards to be made to the lowest bidder meeting Disabled Veteran Business Enterprise goals, performing a good faith effort to achieve the specified goals, or submitting a DGS approved Business Utilization Plan.	Department Directors may exempt individual transactions but the 3 % annual goal still applies.
57.	Any	Progress Payments and Performance Bonds PCC 10314, 12112	G, IT	Allows any contract for items manufactured specially for the State and not suitable for sale to others to provide for progress payments.	Applies only to work performed at the contractor's site. Requires minimum 10% withhold until completion. Also requires contractor to submit a good faith performance bond in a sum not less than half of the total amount of the contract.
58.	Any	Progress Payments PCC 10346, SCM 2.07, 7.33	S, CS	Allows contracts to provide for progress payments.	Requires minimum 10% withhold, and procedures in place to ensure that the services contracted for are being delivered in accordance with the contract.
59.	Any	Corporate Qualification R&T 23101 SCM 5.30	All	Agencies should verify a supplier's eligibility to do business in California. No verification necessary for sole proprietorships.	Agencies may contact the Secretary of State via its website at http://www.ss.ca.gov/ or call 916/653-7315 to determine if a supplier is in good standing.
60.	Any	Illegal Aliens 8 U.S.C. 1621 et seq.	All	Federal Law prohibits states from contracting with illegal aliens.	See federal codes for further information.
61.	Any	Printer or Duplicator Cartridges PCC 12156	G, IT	Agencies are required to print, in their solicitations, a statement notifying bidders that it is unlawful to prohibit the recycling of a printer or duplicator cartridge sold to the State.	See 1/21/00 "Alert" notice from PD for language to be inserted in solicitation.
62.	Any	Contracting With Community Rehabilitation Programs (CRP) W&I 1940319404 SCM 5.08, 5.80	All	Agencies may contract for any amount with CRP's without competitively bidding.	For more information see the California Alliance of Rehabilitation Industries' web page at: http://www.calrehab.org/i4a/pages/index.cfm?pageid=3287.