Upon meeting eligibility requirements, certified small businesses (SBs) and micro businesses (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 separately under Public Contract Code, Section 10261.5). 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 micro business 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.)
As a certified small business you are eligible for the state's Small Business Participation Program. The program sets a goal for the use of small businesses in at least 25% of the state's overall annual contract dollars. Certified small businesses increase their visibility and expand their business networking opportunities by being automatically listed in the online Certified Firm and Application Status Search.
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