Bill Text: CA AB2278 | 2013-2014 | Regular Session | Amended
Bill Title: State agency contracts: small business.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-05-23 - In committee: Set, second hearing. Held under submission. [AB2278 Detail]
Download: California-2013-AB2278-Amended.html
BILL NUMBER: AB 2278 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 6, 2014
INTRODUCED BY Assembly Member Weber
( Coauthor: Assembly Member
V. Manuel Pérez )
FEBRUARY 21, 2014
An act to amend Section Sections 4535.2
and 14838 of the Government Code, relating to public contracts.
LEGISLATIVE COUNSEL'S DIGEST
AB 2278, as amended, Weber. State agency contracts: small
business.
Existing law, the Target Area Contract Preference Act, provides,
except as specified, that the state shall award preferences to
California-based companies submitting bids or proposals for state
contracts who demonstrate and certify under penalty of perjury that
of the total labor hours required to manufacture the goods and
perform the contract, at least 50 percent of the hours shall be
accomplished at an identified worksite or worksites located in a
distressed area by persons with a high risk of unemployment if the
contract is for goods or services in excess of $100,000. Existing law
also provides that the maximum preference and incentive a bidder may
be awarded pursuant to these provisions is $50,000 for any bid, and
$100,000 for the combined cost of these preferences and incentives
and those provided pursuant to any other provision of law.
This bill would instead provide that the maximum preference and
incentive a bidder may be awarded pursuant to these provisions shall
not exceed $350,000 for any bid, and $400,000 for the combined cost
of these preferences and incentives and those provided pursuant to
any other provision of law.
Existing law, the Small Business Procurement and Contract Act,
provides for various programs to encourage the participation of small
businesses, as certified by the Department of General Services, in
state agency contracts, including a microbusiness and a disabled
veteran business enterprise. Existing law requires directors of state
agencies, in awarding prescribed contracts, to provide a 5%
preference to small businesses and microbusinesses, and a preference
of up to 5% to a nonsmall business that provides for small business
or microbusiness subcontractor participation, not to exceed
prescribed amounts. Existing law provides, in solicitations where an
award is made to the lowest responsible bidder, that the preferences
shall not exceed $50,000 for any bid and that the combined cost of
preferences granted shall not exceed $100,000. Existing law provides
that, in bids in which the state has reserved the right to make
multiple awards, the $50,000 maximum preference cost shall be
applied.
This bill would provide, in solicitations where an award is made
to the lowest responsible bidder, that the preference to small
business and microbusiness be 5% of the lowest responsible nonsmall
business bidder meeting specifications and that the preference to
nonsmall business bidders that provide for small business or
microbusiness subcontractor participation be up to a maximum of 5% of
the lowest responsible nonsmall business bidder. This bill also
would provide that the preference not exceed $350,000 for any
contract award and that the combined cost of preferences granted not
exceed $400,000. This bill would require that the $350,000 maximum
preference cost be applied in multiple contract awards.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 4535.2 of the
Government Code is amended to read:
4535.2. (a) The maximum preference and incentive a bidder may be
awarded pursuant to this chapter and any other provision of law shall
be 15 percent. However, in no case shall the maximum preference and
incentive cost under this chapter exceed fifty thousand
dollars ($50,000) three hundred fifty thousand dollars
($350,000) for any bid, nor shall the combined cost of
preferences and incentives granted pursuant to this chapter and any
other provision of law exceed one hundred thousand dollars
($100,000). four hundred thousand dollars ($400,000).
In those cases where the 15-percent cumulated preference and
incentive cost would exceed the one hundred thousand dollar
($100,000) four-hundred-thousand- dollar
($400,000) maximum preference and incentive cost limit, the
one hundred thousand dollar ($100,000)
four-hundred-thousand- dollar ($400,000) maximum
preference and incentive cost limit shall apply.
(b) Notwithstanding the provisions of this chapter, small business
bidders qualified in accordance with Section 14838 shall have
precedence over nonsmall business bidders in that the application of
any bidder preference for which nonsmall business bidders may be
eligible, including the preference contained in this chapter, shall
not result in the denial of the award to a small business bidder.
This subdivision shall apply to those cases where the small business
bidder is the lowest responsible bidder, as well as to those cases
where the small business bidder is eligible for award as the result
of application of the 5-percent small business bidder preference and
incentive.
SECTION 1. SEC. 2. Section 14838 of
the Government Code is amended to read:
14838. In order to facilitate the participation of small
business, including microbusiness, in the provision of goods,
information technology, and services to the state, and in the
construction (including alteration, demolition, repair, or
improvement) of state facilities, the directors of the department and
other state agencies that enter those contracts, each within their
respective areas of responsibility, shall do all of the following:
(a) Establish goals, consistent with those established by the
Office of Small Business Certification and Resources, for the extent
of participation of small businesses, including microbusinesses, in
the provision of goods, information technology, and services to the
state, and in the construction of state facilities.
(b) Provide for small business preference, or nonsmall business
preference for bidders that provide for small business and
microbusiness subcontractor participation, in the award of contracts
for goods, information technology, services, and construction, as
follows:
(1) In solicitations where an award is to be made to the lowest
responsible bidder meeting specifications, the preference to small
business and microbusiness shall be 5 percent of the lowest
responsible nonsmall business bidder meeting specifications. The
preference to nonsmall business bidders that provide for small
business or microbusiness subcontractor participation shall be, up to
a maximum of 5 percent of the lowest responsible nonsmall business
bidder meeting specifications, determined according to rules and
regulations established by the Department of General Services.
(2) In solicitations where an award is to be made to the highest
scored bidder based on evaluation factors in addition to price, the
preference to small business or microbusiness shall be 5 percent of
the highest responsible bidder's total score. The preference to
nonsmall business bidders that provide for small business or
microbusiness subcontractor participation shall be up to a maximum 5
percent of the highest responsible bidder's total score, determined
according to rules and regulations established by the Department of
General Services.
(3) The preferences under paragraphs (1) and (2) shall not be
awarded to a noncompliant bidder and shall not be used to achieve any
applicable minimum requirements.
(4) The preference under paragraph (1) shall not exceed three
hundred fifty thousand dollars ($350,000) for any contract award, and
the combined cost of preferences granted pursuant to paragraph (1)
and any other provision of law shall not exceed four hundred thousand
dollars ($400,000). For contract awards in which the state has
reserved the right to make multiple awards, this three hundred fifty
thousand dollar ($350,000) maximum preference cost shall be applied,
to the extent possible, so as to maximize the dollar participation of
small businesses, including microbusinesses, in the contract award.
(c) Give special consideration to small businesses and
microbusinesses by both:
(1) Reducing the experience required.
(2) Reducing the level of inventory normally required.
(d) Give special assistance to small businesses and
microbusinesses in the preparation and submission of the information
requested in Section 14310.
(e) Under the authorization granted in Section 10163 of the Public
Contract Code, make awards, whenever feasible, to small business and
microbusiness bidders for each project bid upon within their
prequalification rating. This may be accomplished by dividing major
projects into subprojects so as to allow a small business or
microbusiness contractor to qualify to bid on these subprojects.
(f) Small business and microbusiness bidders qualified in
accordance with this chapter shall have precedence over nonsmall
business bidders in that the application of a bidder preference for
which nonsmall business bidders may be eligible under this section or
any other provision of law shall not result in the denial of the
award to a small business or microbusiness bidder. In the event of a
precise tie between the low responsible bid of a bidder meeting
specifications of a small business or microbusiness, and the low
responsible bid of a bidder meeting the specifications of a disabled
veteran-owned small business or microbusiness, the contract shall be
awarded to the disabled veteran-owned small business or
microbusiness. This provision applies if the small business or
microbusiness bidder is the lowest responsible bidder, as well as if
the small business or microbusiness bidder is eligible for award as
the result of application of the small business and microbusiness
bidder preference granted by subdivision (b).
