Ways to Achieve Small Business (SB) Participation

The following list describes several ways to achieve small business/microbusiness (SB/MB) participation as required by Excecutive Order S-02-06, which requires state agencies achieve a goal of 25% small business/microbusiness participation in state contracts:

• Under $5,000, where state agencies are not required to obtain competitive quotations so long as the price is fair and reasonable, awarding to a certified SB/MB achieves the state's objective and can be counted towards the 25% goal.
• 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.
• Contracts awarded directly to a certified SB/MB who are eligible for the small business 5% bid preference (California Code of Regulations, Title 2, Section 1896.6 (a)) OR
• Contracts awarded to a non-small business who subcontracts at 25% of the contract with SB/MB are also eligible for a 5% bid preference (California Code of Regulations, Title 2, Section 1896.6 (b)).

Note:  Orders from leveraged procurement agreements (e.g., CMAS, Master Agreements, etc.) with a certified SB/MB firm may be counted toward SB/MB participation goals, but are not subject to the 5% bid preference.

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