Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Awards Made to
the Lowest Responsive, Responsible Bidder
(1)
The five percent (5%) small business or non-small business subcontracting
preferences are used for bid evaluation purposes when determining a contract
award in the following situations:
(A) There
is at least one (1) small business competing, and award of the contract will be
made to the lowest responsive, responsible bidder. The preference shall be
computed as follows:
1. Five percent (5%) is
computed from the lowest, responsive and responsible bid of a business that is
not a small business. This results in the preference amount.
2. The preference amount is subtracted from
the small business' bid amount.
(B) There is at least one (1) non-small
business competing that is subcontracting at least twenty-five percent (25%) of
its net price bid to one (1) or more small businesses, and award of the
contract will be made to the lowest responsive, responsible bidder. The
preference shall be computed as follows:
1.
Five percent (5%) is computed from the lowest, responsive and responsible bid
of a business that is not a small business, or is not subcontracting to a small
business. This results in the preference amount.
2. The preference amount is subtracted from
the bid of the non-small business that is subcontracting at least twenty-five
percent (25%) of its net price bid to one or more small
businesses.
(b) Awards Based on Highest Scored Proposal
(1) The five percent (5%) small business
preference or non-small business subcontracting preferences are used for bid
evaluation purposes when determining a contract award in the following
situations:
(A) There is at least one (1)
small business competing, and award of the contract is to be made to the
highest scored responsive bid submitted by a responsible bidder following an
evaluation process that weighs factors other than price, together in a formula
with price. The preference shall be computed as follows:
1. The awarding department shall specify the
minimum number of points, if any, that a bid must receive in order to be deemed
responsive and of acceptable quality. If a small business does not achieve the
specified minimum number of points, it shall not be entitled to the five
percent (5%) preference.
2. Five
percent (5%) of the score of the highest scored responsive bid submitted by a
responsible non-small business is computed as specified in the solicitation.
The result of the calculation is a number that represents the preference
points.
3. The preference points
are then included in the formula as specified in the solicitation to determine
the highest scored bidder.
(B) There is at least one (1) non-small
business competing that is subcontracting at least twenty-five percent (25%) of
its net price bid to one (1) or more small businesses, and award of the
contract is to be made to the highest scored responsive bid submitted by a
responsible bidder following an evaluation process that weighs factors other
than price, together in a formula with price. The preference shall be computed
as follows:
1. The awarding department shall
specify the minimum number of points, if any, that a bid must receive in order
to be deemed responsive and of acceptable quality. If a non-small business does
not achieve the specified minimum number of points, it shall not be entitled to
the five percent (5%) preference.
2. If the non-small business achieves the
specified minimum number of points, five percent (5%) of the score of the
highest scored responsive bid submitted by a responsible non-small business
that is not subcontracting a minimum of twenty-five percent (25%) of its net
price bid to one (1) or more small businesses is computed as specified in the
solicitation. The result of the calculation is a number that represents the
preference points.
3. The
preference points are then included in the formula as specified in the
solicitation to determine the highest scored
bidder.
(c) If, after application of the small
business preference to the bid of a small business, that bid is equal to the
lowest priced, responsive bid from a responsible non-small business, or equal
to the highest scored bid offered by a responsible non-small business, as
applicable, the contract shall be awarded to the small business for the amount
of its bid.
(d) If, after
application of the non-small business subcontracting preference, a responsible
non-small business that has submitted a responsive bid is the lowest bidder,
and does not displace a small business from winning the award, the contract
shall be awarded to the non-small business for the amount of its bid.
(e) In no event shall the amount of the small
business or non-small business subcontracting preferences awarded on a single
bid exceed fifty thousand dollars ($50,000), and in no event shall the combined
cost of the small business or non-small business subcontracting preference and
preferences awarded pursuant to any other provision of law exceed one hundred
thousand dollars ($100,000). In bids that the state has reserved the right to
award by line item, or make multiple awards, the small business preference
shall be applied to maximize the participation of small businesses.
(f) In the event of a precise tie between the
bid of a small business and the bid of a DVBE that is also a small business,
the award shall go to the DVBE that is also a small business.
1. New
section filed 9-25-78; effective thirtieth day thereafter (Register 78, No.
39).
2. Editorial correction of NOTE filed 12-6-82 (Register 82, No.
50).
3. Amendment filed 6-6-88 as an emergency; operative 6-6-88
(Register 88, No. 25). A Certificate of Compliance must be transmitted to OAL
within 120 days or emergency language will be repealed on
10-4-88.
4. Certificate of Compliance transmitted to OAL 10-4-88 and
filed 11-2-88 (Register 88, No. 46).
5. Change without regulatory
effect amending section filed 3-30-99 pursuant to section 100, title 1,
California Code of Regulations (Register 99, No. 14).
6. Repealer
and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No.
33).
7. Amendment of section heading, section and NOTE filed
1-23-2017; operative 1-23-2017 pursuant to Government Code section
11343.4(b)(3)
(Register 2017, No. 4).
Note: Authority cited: Sections
14837 and
14843,
Government Code. Reference: Sections
4535.2,
14838,
14839 and
14839.1,
Government Code.
