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Purpose
Promotes economic development and employment opportunities in designated enterprise zones, by offering bidding preferences in specified State contracts.
Description
The DGS, Procurement Division, Dispute Resolution and Preference Programs acts as the review agency for the EZA bid preference program. The EZA provides a 5 percent bid preference on service and commodity contracts valued at more than $100,000 if the business work site is located in an enterprise zone as designated by the State Trade and Commerce Agency. EZA bid preferences do not apply to construction or other contracts where the provisions of the State's contract fix the work site.
The EZA allows state contracting officials to give California based companies the bid preference when 50% of the labor required to perform a commodities contracts or 90% of the labor for services contracts is performed at the approved EZA work site(s). To receive a contract award based on preferences, the company must certify under penalty of perjury that the required contract labor shall be accomplished at the approved work site.
Companies qualifying for the 5 percent work site preference may request an additional 1 to 4 percent workforce preference by certifying to hire a specified percent of their contract workforce labor hours from a targeted employment area, or from enterprise zone eligible employees.
The awarding State agency is responsible for including bid and contract language to ensure compliance with the EZA and for monitoring compliance with the EZA.
Changes Effective January 1, 1999, new legislation (Assembly Bill 835) requires companies claiming this preference to demonstrate and certify that work is accomplished at the identified work site. Penalties were established for non-compliance.
Authority California Government Code, Title I, Division 5, Chapter 12.8, Section 7070 et seq.
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