|
Small Business and Microbusiness Certification Benefits
Upon meeting eligibility requirements, certified small businesses (SBs) and microbusinesses (MBs) are entitled to the following:
- A 5% bid preference on applicable state solicitations.
- Under the Prompt Payment Act, the state must pay a certified SB/MB higher interest penalties for late payment of an undisputed invoice. Prompt payment penalties for construction firms are addressed seperately under Public Contract Code, Section 10261.5). (See Prompt Payment Program.)
- State agencies may use a streamlined process known as the "SB/DVBE Option" by contracting directly with a California-certified small business for goods, services, and information technology valued between $5,001 and $99,999 after obtaining price quotes from at least two California-certified small businesses. For public works projects, the contract value can be up to $147,000.
- The Department of General Services, Procurement Division charges state and local agencies an administrative fee when contracting with a California Multiple Award Schedules (CMAS) vendor. As an incentive, the fee is waived if the CMAS vendor is a certified small business.
- As an incentive, a non-small business prime contractor who uses certified small business subcontractors for at least 25% of its net bid price is eligible for a bid preference of five percent (5%) of the lowest responsible bid when competing against another non-small business.
When applying bidder preferences in which non-small business bidders may be eligible, certified small business and microbusiness bidders have precedence over non-small business bidders. (Small business bids cannot be displaced by non-small business bids when applying any applicable lawful preferences).
Top of Page
Small Business Certification Eligibility Requirements
- Must be independently owned and operated;
- Cannot be dominant in its field of operation;
- Must have its principal office located in California;
- Must have its owners (or officers in the case of a corporation) domiciled in California; and
- Together with its affiliates, be either:
- A business with 100 or fewer employees, and an average annual gross receipts of $12 million or less over the previous three tax years, or
- A manufacturer with 100 or fewer employees.
Top of Page
For small business certification purposes, a manufacturer is a business that is both of the following:
- Primarily engaged in the chemical or mechanical transformation of raw materials or processed substances into new products.
- Classified between Codes 2000 to 3999, inclusive, of the Standard Industrial Classification (SIC) Manual published by the United States Office of Management and Budget, 1987 edition.
Top of Page
Certification Application
Authority
California Government Code, Section 14835
California Code of Regulations, Title 2, Section 1896-1896.40
Need Help? Contact Us
Email osdchelp@dgs.ca.gov or call (916) 375-4940.
|
