3340-C4630108543_(IFB_Packet__2).pdf

INVITATION FOR BID

Notice To Prospective Bidders California Conservation Corps

CCC Placer Center 3710 Christian Valley Road, Auburn, CA 95602

Pre-Enrollment Physicals Contract # C4630-108543

Bid Opening Date: 10/17/2024 @ 2:00PM

You are invited to review and respond to this Invitation for Bid (IFB Event) 32708 for California

Conservation Corps, Pre-Enrollment Physicals.

The California Conservation Corps is committed to providing contracting opportunities to

California Certified Small Businesses and Disabled Veteran Business Enterprises (DVBE).

In submitting your bid, you must comply with the instructions and requirements found herein. In the opinion of the California Conservation Corps, this IFB is complete and without need of explanation. However, if you have questions or need any clarifying information, please direct all questions through email at bidquestions@ccc.ca.gov. Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

No questions will be addressed via phone calls or in person on or before the bid. All questions and answers must come through the above-mentioned email only.

Keeping the process fair for all. We will not accept questions via phone calls or in person.

Please be advised of Executive Order N-6-22 Russia Sanctions. On March 4, 2022, Governor Gavin

Newsom issued Executive Order (EO) N-6-22 regarding Economic Sanctions against Russia and

Russian entities and individuals. “Economic Sanctions” refers to sanctions imposed by the U.S.

government in response to Russia’s actions in Ukraine, as well as any sanctions imposed under state law. By submitting a bid, Bidder represents that it is not a target of Economic Sanctions.

Should the State determine Bidder is a target of Economic Sanctions or is conducting prohibited transactions with sanctioned individuals or entities, that shall be grounds for rejection of the

Bidder’s bid any time prior to contract execution, or, if determined after contract execution, shall be grounds for termination by the State.

mailto:bidquestions@ccc.ca.gov

GenAI Disclosure The State of California seeks to realize the potential benefits of GenAI, through the development and deployment of GenAI tools, while balancing the risks of these new technologies.

Bidder / Offeror / Contractor must notify the State in writing if their solution or service includes, or makes available, any GenAI, including GenAI from third parties or subcontractors.

The State has developed a GenAI Reporting and Factsheet (STD 1000) to be completed by the Bidder / Offeror / Contractor.

Failure to submit the GenAI Reporting and Factsheet (STD 1000) will result in disqualification of the Bidder / Offeror / Contractor.

Failure to report GenAI to the State may void any resulting contract. The State reserves its right to seek any and all relief it may be entitled to as a result of such non-disclosure.

Upon receipt of a Bidder / Offeror / Contractor GenAI Reporting and Factsheet (STD 1000), the state reserves the right to incorporate GenAI Special Provisions into the final contract or reject bids/offers that present an unacceptable level of risk to the state.

Armando Avila

Contracts Unit

Business Services and Contracts Unit

(916) 341-3233

Armando.Avila@ccc.ca.gov mailto:Armando.Avila@ccc.ca.gov

NOTICE TO CONTRACTORS .............................................................................................. 4-5

• Description and Location of Work

• Where to obtain bid package

• Estimated Cost

• Term of Agreement

• Bid Submission

• License Required

• Key Action Dates

• Payment Provisions

• Damage to State Property

Instructions to Bidders .................................................................................................... 6-18

• Submission of Bid

• Evaluation and Selection

• Award and Protest

• Disposition of Bids

• Agreement Execution and Performance

• Loss Leader

• Small Business

• Disabled Veterans Program

• Prompt Payment Frequently Answered Questions

NOTICE TO CONTRACTORS

A. Description and Location of Work

Contractor to provide all labor, materials, tools and incidentals necessary to provide physical examinations for Corpsmember Candidates of the California Conservation

Corps in accordance with the attached Scope of Work and specifications at:

CCC Placer Center

3710 Christian Valley Road, Auburn, CA 95602

B. Where to obtain bid package

Bid packages may be obtained electronically or by request in writing to California

Conservation Corps (CCC), 1719 24th Street, Sacramento, Attn: Business Services and Contracts Branch.

C. Estimated Cost

The estimated cost of this Agreement is $40,000.00

D. Term of Agreement

The term of this Agreement is upon approval through 6/30/2026

E. License Required:

All services must be performed by a physician who shall be properly licensed by the

Medical Board of California or the Osteopathic Medical Board of California as a Medical

Doctor; or by a contract nurse practitioner, who shall be properly licensed by the California

Board of Registered Nurses as a nurse practitioner; or a Physician’s Assistant currently licensed by the California Physician’s Assistant Committee

F. Bid Submission

All bids must be submitted via email to Armando.Avila@ccc.ca.gov

Email must read as follows:

Bid C4436-105892 DO NOT OPEN UNTIL 10/17/2024 @2:00PM

Email must also include the required attachment list mailto:Armando.Avila@ccc.ca.gov

G. Key Action Dates:

Event Date IFB available to prospective Bidders 10/03/2024 Deadline to ask Questions 10/09/2024 at 4:00PM Deadline to post Q&A to CaleProcure 10/11/2024 Final Date for Bid Submission 10/17/2024 at 2:00PM

Bid Opening 10/17/2024 at 2:00PM Anticipated Intent to Award 10/18/2024 Last (5) day protest period 10/25/2024 Anticipated Award Date 10/25/2024

H. Payment Provisions The contractor may invoice the center NO MORE frequently than monthly in arrears for services performed. Payments will be made in arrears on a monthly basis upon receipt of an itemized invoice. The contractor shall maintain accounting records and other evidence pertaining to costs incurred, with the provision that they shall be kept available by the contractor during the contract period and thereafter for three full years from the date of the final payment. The CCC or its designee must be permitted to audit, review, and inspect the contractor’s activities, books, documents, papers and records during the progress of the work and for three years following final payment.

I. Damage to State Property In the event that any State property is damaged as a result of the actions of the Contractor, or its employees, the Contractor shall repair, at its sole expense, the damage which has occurred during the removal or installation efforts. Repair efforts must be performed in a manner in which ensures all applicable warranties are maintained for any products damaged. Repair efforts shall include the full costs for all required labor and materials.

INSTRUCTIONS TO BIDDERS

1. Submission of Bid

a. All bids must be submitted under sealed cover and sent to California Conservation Corps by the dates and time shown in Section 1, Key Action Dates. Bids not submitted under sealed cover will be rejected.

b. All bids shall include the documents identified in Attachment 1, Required Attachment Checklist. Bids not including the proper “required attachments” shall be deemed non-responsive. A non-responsive bid is one that does not meet the basic bid requirements.

c. All documents requiring a signature must bear an original signature of a person authorized to bind the Bidder Contractually. The signature should indicate the title or position that the individual holds in the firm. That person shall sign the Bid/Bidder Certification Sheet. An unsigned Bid/Bidder Certification Sheet will be rejected.

d. Bids must be submitted for the performance of all the services described herein. Any deviation from the work specifications will not be considered and will cause a bid to be rejected.

e. A bid will be rejected if it is conditional, or if it contains any alterations of form or other irregularities of any kind. The State may reject any or all bids and may waive an immaterial deviation in a bid. The State’s waiver of an immaterial deviation shall in no way modify the IFB document or excuse the bidder for full compliance with all requirements if awarded the agreement.

f. Costs incurred for developing bids and in anticipation of award of the agreement are entirely the responsibility of the bidder and shall not be charged to the State of California.

g. A Bidder may modify a bid after its submission by withdrawing its original bid and resubmitting a new bid prior to the bid submission deadline. Bidder modifications offered in any other manner, oral or written, will not be considered.

h. A bidder may withdraw its bid by submitting a written withdrawal request to the State, signed by the bidder or an authorized agent. A bidder may thereafter submit a new bid prior to the bid submission deadline. Bids may not be withdrawn without cause subsequent to bid submission deadline.

i. The awarding agency may modify the IFB prior to the date fixed for submission of bids by the issuance of an addendum to all parties who received a bid package.

j. The awarding agency reserves the right to reject all bids. The agency is not required to award an agreement.

k. Before submitting a response to this solicitation, bidders should review, correct all errors and confirm compliance with the IFB requirements.

l. Where applicable, bidder should carefully examine work sites and specifications. Bidder shall investigate conditions, character, and quality of surface or subsurface materials or obstacles that might be encountered. No additions or increases to the agreement amount will be made due to a lack of careful examination of work sites and specifications.

m. The State does not accept alternate contract language from a prospective contractor.

A bid with such language will be considered a counter proposal and will be rejected.

The State’s General Terms and Conditions (GTC are not negotiable)

n. No oral understanding or agreement shall be binding on either party.

2. Evaluation and Selection

a. At the time of bid opening, each bid will be checked for the presence or absence of required information in conformance with the submission requirements of this IFB.

b. The State will evaluate each bid to determine its responsiveness to the published requirements.

c. Bids that contain false or misleading statements, or which provide references, which do not support an attribute or condition claimed by the bidder, will be rejected.

d. Award of made, will be the lowest responsive responsible bidders.

3. Award and Protest

a. Whenever an Agreement is awarded under a procedure, which provides for competitive bidding, but the Agreement is not to be awarded to the low bidder, the low bidder shall be notified by telegram, electronic facsimile transmission, overnight courier or personal delivery five (5) working days prior to the award of the agreement.

b. Upon written request by any bidder, notice of the proposed award shall be posted in a public place in the office of the awarding agency at least five (5) working days prior to awarding the agreement.

c. If any bidder, prior to the award of agreement files a written protest with the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, suite 7-330, West Sacramento, CA 95605 and the California Conservation Corps on the grounds that the (protesting) bidder is the lowest responsive responsible bidder, the agreement shall not be awarded until either the protest has been withdrawn or the Department of General Services has decided the matter.

d. Within five (5) days after filing the initial protest, the protesting bidder shall file with the Department of General Services and the awarding agency a detailed written statement specifying the grounds for the protest. The written protest must be sent to the Department of General Services, Office of Legal Services, 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, CA 95605. A copy of the detailed written statement should be mailed to the awarding agency. It is suggested that you submit any protest by certified or registered mail.

e. Upon resolution of the protest and award of this Agreement, Contractor must have sign and submitted to the CCC, page one (1) of the Contractor Certification Clauses (CCC- 4/2017), attached as Attachment 8.

4. Disposition of Bids

a. Bids shall remain valid for 120 calendar days after the bid opening date: The State will endeavor to execute a contract within 120 calendar days from the bid opening date.

The contract is not executed until the appropriate State agency has approved the contract. Bidders shall hold their bids for 120 calendar days after the bid opening date.

b. Upon expiration of 120 calendar days from the bid opening date, bidders may withdraw their bids. If bidder, after expiration of 120 calendar days from the bid opening date fails to withdraw its bid and a contract is subsequently approved by the appropriate State agency and executed, bidder shall have no claim for any reason to amend its bid.

c. If contract is awarded, the successful responsible low bidder will be required to execute and deliver to the State the required documents.

d. The apparent low bidder shall execute the required number of copies of the contract documents, (Payment and Performance Bonds, General and Automobile Liability Insurance, Workers Compensation and Employers’ Liability Insurance, and STD 213) and return them within twenty (20) working days after he/she has received notice that he/she is the apparent successful low bidder. Signature of the apparent successful low bidder on the contract documents will complete identification of these documents.

e. Failure to provide the required executed contract documents within the twenty (20) working days may be deemed refusal of an award which may be cause for forfeiture of bidder’s security.

f. The State may award to the next lowest responsible bidder and avail itself of all legal remedies provided by statue.

g. Proposed Award Date identified in G. Key Dates is based on accurate contract documents being returned within the set time as described in c) above. Documents not having the correct language or delays in receiving documents from the Contractor will delay the Proposed Award and Start of Construction Dates.

h. The contract shall be binding upon the State only after approval by the State. Should work begin in advance of receiving notice that the Contract is approved, that work shall be considered as having been done by a volunteer and Contractor shall go unpaid.

i. Contractor and subcontractor(s), regardless of tier must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement).

j. Upon bid opening all documents submitted in response to this IFB will become the property of the State of California and will be regarded as public records under the California Public Records Act (Government Code Section 6250 et seq.) and subject to review by the public.

k. Bid packages may be returned only at the bidder’s expense, unless such expense is waived by the awarding agency.

5. Agreement Execution and Performance

a. Execution of Performance shall start on the express date set by the awarding agency and the Contractor, after all approvals have been obtained and this Agreement is fully executed. Should the Contractor fail to commence work at the agreed upon time, the awarding agency, upon five (5) days written notice to the Contractor, reserves the right to terminate this Agreement. In addition, the Contractor shall be liable to the State for the difference between Contractor's bid price and the actual cost of performing work by the second lowest Bidder or by another Contractor.

b. All performance under this Agreement shall be completed on or before the termination date of this Agreement.

c. The resulting Contract will be of no force or effect until it is signed by both parties and approved by the Department General Services, if required. The Contractor is hereby advised not to commence performance until all approvals have been obtained. Should performance commence before all approvals are obtained, said services may be considered to have been volunteered if all approvals cannot be obtained.

6. Loss Leader It is unlawful for any person engaged in business within this state to sell or use any article or product as a “loss leader” as defined in Section 17030 of the Business and Professions

Code.

Preferences for Certified Small Business

(SB) &

Non-Certified Small Business Contractors

This is an overview showing the benefits of being a State certified Small Business or utilizing

Small Businesses in the construction, service, manufacturing and non- manufacturing fields.

Small Business Benefits:

State agencies should award at least 25% of their annual contracting dollars to certified Small Business.

The State gives a 5% preference to certified Small Businesses through the bidding process.

Government Code Section 14838.7 allows State agencies to solicit public works SB firms directly for projects up to $281,000 (effective 1/30/2014).

Agencies use the Department of General Service’s certified Small Business firm database to find suppliers, services, manufacturers and contractors.

Prompt payment.

Small Business Preferences:

The Small Business Procurement and Contract Act (Government Code, Section 14835) was enacted to afford small businesses which includes Microbusinesses (MB), the same opportunities as their non-SB competitors. A 5 % preference is offered during the bidding process. Under the Prompt Payment Act, the State must pay a certified SB higher interest penalties for late payment of an undisputed invoice.

Non-Small Business Subcontractor Preference

Departments offer a 5 % preference to businesses that commit 25 % of their bid to CA certified Small Businesses.

What is the 5% Preference? State law allows certified SB’s, certified MB’s, and businesses who subcontract with certified SB/MB firm(s) to receive a 5% bidding preference on Public Works projects. The preference is used only for computation purposes up to a maximum amount of $50,000, to determine the winning bidder. The contract is awarded at the actual bid amount.

Applying and Calculating the 5%Preference:

Take 5% of the lowest bid (Business A) and subtract that dollar amount from the bidder requesting the SB or non-SB preference (Business B). Compare the original bid of

Business A with Business B using the Preference. If the bid with the preference is less, Business B will be lower. But, if the bid with the preference is greater, Business A remains the lower.

Business A Business B with 5% preference

Low Bid $250,000 Preference Factor x5% $12,500

Bid $260,000 12,500 $247,500

Conclusion: After applying the 5% preference, Business B now falls into low bidder position with an adjusted bid below that of Business A. Therefore, the contract is awarded to Business B, but at the original bid amount of $260,000.

Small Business Requirements & Helpful Information

This information shows the certification requirements to be a State certified Small Business, access to publications, where to file and contracting opportunities for Public Works projects.

Small Business Certification Requirements:

o Must be independently owned and operated;

o Cannot be dominant in its field of operation;

o Must have its principal office located in California;

o Must have its owners, or officers in the case of a corporation, domiciled in California;

o Together with its affiliates, be either;

1. A business with 100 or fewer employees and an average annual gross receipts of $14 million or less over the last three tax years, or

2. A manufacturer with 100 fewer employees.

3. A microbusiness. A small business will automatically be designated as a microbusiness, if gross annual receipts are less than $3,500,000; or the small business is a manufacturer with 25 or fewer employees.

Reference Publications and Forms

Information can be found by linking to http://www.dgs.ca.gov/pd/Programs/OSDS/GetCertified.aspx

The certification application process requires the contractor to complete and submit a2-page application (with an original signature) along with supporting documents as specified in the “Required Support Documents” section of the certification application. The contractor may complete the application on line via a fill-in format or mail a hard copy to:

Department of General

Services Office of Small http://www.dgs.ca.gov/pd/Programs/OSDS/GetCertified.aspx

Business & DVBE

Services 707 Third

Street, 1st Floor, Room

400 West

Sacramento, CA 95605

Filing Time:

Applications are processed on a “first-in”, “first-out” basis. To meet certification needs, the

Office of Small Business and DVBE Services (OSDS) requests application packages a minimum of 5-10 working days prior to the bid due date. To be considered a valid certified small business participant in a bid competition; a complete certification application package must be received and deemed complete by OSDS. For help: email OSDSHelp@dgs.ca.gov or call (916) 375-4940.

Utilizing State Contracting Opportunities

Effective January 1, 2016, Cal eProcure is the new portal for the California State Contracts

Register (CSCR) and the online SB & DVBE queries. All contractors that wish to do business with the State via the Cal eProcure system must do a quick free registration using https://caleprocure.ca.gov/pages/CertificationProcess/sbdvbe-1.aspx to obtain a username and password. From that point forward, you will only need one user logon for all eProcurement functions. Some of the benefits of the free registration:

• Receive E-mail or Fax notifications regarding State business opportunities and other related Correspondence.

• View, download and/or electronically respond to solicitations posted in the CSCR and any other nationwide opportunities that are posted Cal eProcure.

• View the status of any non-confidential State procurement or contracting transaction Suppliers should receive bid notifications matching your preferences as soon as they become available in the system. Suppliers also have the option to opt out of receiving notifications; however, please note that the opt-out action removes you from all communications and notifications from the State's acquisition arena, including SB/DVBE certification, if applicable.

For more information go to https://caleprocure.ca.gov or call (916) 375-2000 mailto:OSDSHelp@dgs.ca.gov

CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE

(DVBE)

DVBE Incentive Information for Contracts

The California Conservation Corps (CCC) established a Disabled Veteran Business Enterprise

(DVBE) Incentive pursuant to a revision of the Military and Veterans Code § Sections 999.5(a)

& (d), California Code of Regulations §1896.98 et seq. and Government Codes §14600, §14615 & §14838(F).

DVBE has two inter-related aspects to the program:

1. The DVBE Participation Program – where bidders must meet or exceed the required participation goal percentage set for the solicitation.

2. The DVBE Incentive Program which gives bidders an opportunity to improve their bid status based on the participation percentage attained from the DVBE Participation Program.

The DVBE incentive is only used during the bid evaluation process and is applied by reducing the bid price by the amount of incentive as computed from the lowest responsive and responsible bid price.

The percentage of incentive given is equal to the percentage of DVBE participation achieved from a minimum of 1.00 % to a maximum of 5.00 % not to exceed a total of $500,000. The SB

Preference (5% up to $50,000) may be combined with the DVBE Incentive but will not exceed a combined total of $500,000.

Application of the incentive shall not displace an award to a certified Small Business by a non-small business.

Under the incentive program, a bidder claiming the “Non-Small Business preference “is considered a “non-small” business.

When a contractor achieves participation with a DVBE company, the contractor fulfills two needs:

1. It fulfills the required DVBE participation.

2. It gets an incentive to lower their competitive bid price for evaluation purposes only.

Application

Check the appropriate box in the Bid Form requesting the DVBE Incentive and also list the participating DVBE company(s) in the DVBE Summary giving the subcontractor’s monetary bid amount and the percentage of the Prime’s bid.

Examples of the DVBE Incentive program being applied as recommended above:

Example (1)

#1 Bidder A – (with 2.5% DVBE Participation) Less the incentive (2.5% of 1,270,000) Adjusted bid price of #1 low bid

$1,270,000

-31,750

$1,238,250

#2 Bidder B – (with 5% DVBE Participation) Less the incentive (5% of 1,270,000) Adjusted bid price of #2 bid

$1,300,00

-63,500

$1,236,500

Bidder A’s adjusted bid price of $1,238,250 is higher than Bidder B’s adjusted bid price of

$1,236,500. Award will be made to Bidder B for $1,300,000. Bidder B holds the low position with the additional DVBE Incentive.

Example (2)

#1 Bidder A – (with Small Business Preference) $1,250,000

#2 Bidder B – (with 5% DVBE participation) Less the incentive (5% of 1,250,000)

$1,300,000 $62,500 $1,237,500

Bidder A with a SB preference cannot be displaced by Bidder B utilizing only the incentive.

Bidder B would have had to have been a SB on order to displace Bidder A.

Example (3)

#1 Bidder A – (with 1.15% DVBE participation) Less the incentive (1.15% of $1,200,000) Adjusted bid for comparison

$1,200,000 -13,800

$1,186,200

#2 Bidder B – (with Non-Small Business Preference and 3.25% DVBE participation.

Less the preference (5% or $50,000 max) Less the incentive (3.25% of $1,200,000) Adjusted for bid comparison

$ 1,250,000 -50,000 -39,000

$1,161,000

#3 Bidder C – (with Small Business Preference and 15.89% DVBE participation) (5% max. incentive) Less the preference (5% or $50,000 max) Less the incentive (5% max of $1,200,000) Adjusted bid for comparison

$1,275,000 -50,000 -60,000

$1,165,000

Applying only the preference, Bidder A and Bidder B would have the same bid price of

$1,200,000, but Bidder B would have the lower bid because of the Non-Small Business Preference. Bidder B would thus be in the #1 position. But when adding in the incentive, calculations are based off the original low bid price of Bidder A. Thus, Bidder B has the lowest adjusted bid price at $1,161,000. Even though Bidder B claims a 3.25% incentive, Bidder B cannot displace Bidder C for the #1 position because Bidder C is a certified Small Business and cannot be replaced by a non-small business. The award would be made to Bidder C for $1,275,000. The order would be as follows: #1 - Bidder C, #2 - Bidder B, #3 - Bidder A.

Example (4)

#1 Bidder A – ( with 2.15% DVBE participation) Less the incentive (2.5% of $93,000)

Adjusted bid for comparison

$93,000

-1,999.50

$91,000.50

#2 Bidder B – (with 8.97% DVBE participation) Less the preference (5% of $93,000)

Adjusted bid for comparison

$94,600

-4,650

$89,950

#3 Bidder C – (with Small Business Preference) Less the preference (5% of $93,000)

Adjusted bid for comparison

$99,500

-4,650

$94,850

Adjusting bids for evaluation gives Bidder B, with a higher incentive than Bidder A, a lower adjusted bid. Even though SB preference can take precedence over the incentive program, Bidder C’s adjusted bid is still higher than Bidder B’s original bid before the incentive was applied. The award order would be as follows: #1 - Bidder B, #2 - Bidder C, #3 – Bidder A.

CALIFORNIA PROMPT PAYMENT ACT

Government Code, Section 927, et seq.

SUMMARY OF FREQUENTLY ASKED QUESTIONS

Updated: August 27, 2014

Frequently Asked Questions

Small Business

(Includes Non-Profits with Contracts <$500k)

All Other Businesses

When is payment due?

Specified contract term.

No date set forth in contract

Date set forth in contract [GC 927.1(a)] and within 45 calendar days [GC 927(b)]

Date set forth in contract [GC 927.1(a)] and within 45 calendar days [GC 927(b)]

When does payment clock start?

The date of receipt of an undisputed invoice by department personnel is equal to Day Zero [GC 927 & 927.4]

The date of receipt of an undisputed invoice by department personnel is equal to Day Zero [GC 927 & 927.4]

What if invoice is disputed (for good cause) within 15 working days?

Stops penalty clock until dispute resolved [GC 927.3]

Stops penalty clock until dispute resolved [GC 927.3]

When do penalties begin accruing?

(For the State agency)

The day after payment due date per contract; if no payment date in contract, on the 31st day after receipt of invoice (i.e., the day after the "required payment approval date")

(GC 927.4)

Example: An invoice received on March 1st would begin accruing interest on April 1st if not submitted to the State Controller on or before March 31st (Day Zero = March 1 plus 30 days = March 31)

The day after payment due date per contract; if no payment date in contract, on the 31st day after receipt of invoice (i.e., the day after the "required payment approval date")

[GC 927.4]

Example: An invoice received on March 1st would begin accruing interest on April 1st if not submitted to the State Controller on or before March 31st (Day Zero = March 1 plus 30 days = March 31.

When do penalties begin accruing?

(For the State Controller)

On the 16th day after receipt of the state agency claim [GC 927.4]

On the 16th day after receipt of the state agency claim [GC 927.4]

When do penalties stop accruing?

(For the State agency)

The day claim schedule is submitted to Controller [GC 927.6(a)] or check is issued from Revolving Fund

The day claim schedule is submitted to Controller [GC 927.6(a)] or check is issued from Revolving Fund

When do penalties stop accruing?

(For the State Controller)

The date warrant is issued

[GC 927.7]

The date warrant is issued

[GC 927.7]

What is the penalty rate? A. Penalties Incurred Rate during FY 14-15 is 13.25% annually [GC 926.6(a)], or

0.000363 per day, times the number of days late

Example: Under the new calculation, an invoice for $10,000 that is 90 days late would incur a penalty of $326.70, ($10,000X.000363) X 90.

A.. Penalties Incurred Rate during FY 14-15 is 1.233% annually [GC 926.6(b)], or

0.0000338 per day, times the number of days late

Example: Under the new calculation, an invoice for $10,000 that is 90 days late would incur a penalty of $30.420, ($10,000X.0000338) X 90.

Is a separate penalty invoice required?

No; State agencies must automatically calculate and pay penalties as incurred [GC 927(b) & 927.6(a)]

No; State agencies must automatically calculate and pay penalties as incurred [GC 927(b) & 927.6(a)]

Is there a minimum penalty payment?

Yes; State agencies make no penalty payment if the amount of the penalty is $10.00 or less [GC 927.6(a)]

Yes; State agencies make no penalty payment if the amount of the penalty is $100.00 or less [GC 927.6(b)]

Can penalties be waived? Yes; penalties are waived by the State agency or Controller if the amount of the penalty is $10.00 or less [GC 927.6(a)]. Penalties may not be waived, altered or limited by the State agency or the contractor [GC 927.1(b)]

Yes; penalties are waived by the State agency or Controller if the amount of the penalty is $100.00 or less [GC 927.6(b)]. Penalties may not be waived, altered, or limited by the State agency or the contractor [GC 927.1(b)] except for fire season emergency [GC 927.11(a)], and declaration of major disaster [GC 927.11(c)] What if there is no

Budget Act?

Penalties shall accrue to small businesses and nonprofit organizations until invoice are paid [GC 927.11(d)]

No penalties shall accrue for nonprofit public benefit corporations [GC 927.11(b)]

Penalties shall accrue until the invoice is paid [GC 927.11(d)]

No penalties shall accrue for refunds or other payment due to individuals [GC 927.13(d)]

Are penalties applicable to Medi-Cal Claims?

Yes [GC 927.5], when such small businesses are located in California [GC 927.2(m)]

Special provisions apply

[GC 927.5]

Are penalties applicable to advances?

The law makes no provisions for advances

The law makes no provisions for advances

Are penalties applicable to non-profit organizations?

Yes, if contract or grant

<$500,000 [GC 927.7]

No [GC 927(a)]

Are penalties applicable to local entities?

No, the law specifically refers to "contracts with a business" [GC 927.1] rather than with public entities as defined in

GC 811.2

No, the law specifically refers to "contracts with a business" [GC 927.1] rather than with public entities as defined in GC 811.2

Are subcontractors entitled to late payment penalties?

No, State agencies shall encourage contractors to promptly pay their subcontractors [GC 927.10]

No, State agencies shall encourage contractors to promptly pay their subcontractors [GC 927.10]

Are there any exceptions? No exceptions 1. 30-day payment extension in a declared fire season emergency [GC 927.11(a)];

2. In major calamity, disaster or criminal act, penalty suspended (until reinstated) by Director of Finance [GC 927.11(c)]

Are any reports required? Yes; an Annual Report separately identifying the total number and dollar amount of late payment penalties paid to small businesses. Submit to the Director of DGS 90 days after the end of the fiscal year [GC 927.9(a) & (b)]

Yes; an Annual Report separately identifying the total number of late penalties paid to other businesses and refunds or other payments to individuals. Submit to Director of DGS 90 days after the end of the fiscal year [GC 927.9(a) & (b)]

For additional information, visit Prompt Payment:

Use the Directory of State Payment Offices to locate the proper accounts payable telephone number and address of specific State offices.

View California Law, including Government Code (GC) and Public Contract Code (PCC).

Regarding Construction Contract Payments, please see. Public Contract Code

10261.5 California Certified Small Business contractors who have specific questions about invoice status: Please contact the Small Business Advocate for the awarding department. The Small Business/DVBE Advocates Directory is located at: Small Business/ Disabled Veterans Advocate Directory http://www.documents.dgs.ca.gov/pd/smallbus/DirectoryPaymentOffices.pdf