Section 1896.5 - Small Business Participation GoalsFor the purposes of Government Code section 14838(f), all state agencies shall implement internal procedures on how to regularly search for, identify, contact, and include in solicitations certified firms that either have not previously done business with or that are not regularly used by the awarding department and other state agencies, and how to document these actions in the procurement/contract files.
(a) In order to achieve the overall required twenty-five (25%) small business participation goal on the total awarded contracts, departments may set contract-specific small business participation goal requirements. When setting contract-specific small business participation goals, for each specific solicitation leading to a contract award, the highest ranking executive or designee of an awarding department shall establish an appropriate small business participation requirement. Determining factors for setting an appropriate level of small business participation, as either a prime contractor, subcontractor, or supplier, include but are not limited to: (1) The elements of work reasonably support the specified level of small business participation.(2) A search of the OSDS certification database indicates sufficient small businesses to perform the work.(3) Small business prime contractors, subcontractors, or suppliers have performed elements of the work on similar contracts.(4) Bidders historically have achieved or have not achieved small business participation on similar contracts.(b) To qualify as a responsive bidder for contracts requiring small business participation, a bidder shall document at or prior to the time of bid opening a commitment to fulfill the participation requirement, in addition to meeting all other requirements.(c) The commitment to achieve the participation requirement is satisfied when the awarding department determines that the bidder is either: (1) A small business who performs a Commercially Useful Function (CUF), as section 1896.15 requires, and meets or exceeds the participation requirement stated in the solicitation; or(2) A non-small business that uses one or more small businesses to perform a CUF and who meets or exceeds the participation requirement stated in the solicitation.(d) In a joint bid situation, the small business participation requirement is deemed to have been met if the joint bidders satisfy all of the following conditions: (1) At least one partner is a small business; and(2) At least one small business partner is responsible for a clearly defined portion of the work. The work shall be identified as a task, as a percentage, and as a dollar amount of the overall bid.(e) The bidder's authorized representative shall include the following: (1) The name of each small business proposed for use in the contract;(2) The dollar amount and percentage each small business shall perform in comparison to the total contract dollar amount; and(3) A description of the tasks each small business will perform.(f) Upon completion of an awarded contract with small business participation, the prime contractor shall report to the awarding department the percentage of small business participation achieved.Cal. Code Regs. Tit. 2, § 1896.5
1. Amendment of article 2 heading and new section filed 6-29-2023; operative 6-29-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 26). Note: Authority cited: Sections 14836, 14837, 14838 and 14843, Government Code. References: Sections 14110.3, 14835, 14838, 14838.5, 14838.7, 14839, 14839.1 and 14841, Government Code.
1. Amendment of article 2 heading and new section filed 6-29-2023; operative 6/29/2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 26).