5211_-_Bid_Package_Documents.pdf

Administration Division, Office of Business and Acquisition Services | State of California | Government Operations Agency | 707 3rd Street, MS 508 | West Sacramento, CA 95605 | t 916.375-4958 f 916.376-1778

ADDITIONAL BID INFORMATION

Bidders are advised to read the Instructions to Bidders, Document 00 21 00 and the Supplementary Instruction to Bidders, Document 00 22 00, of the Project Manual.

YOUR CALIFORNIA STATE CONTRACTOR’S LICENSE HAS NOT BEEN VERIFIED BY THE

DEPARTMENT OF GENERAL SERVICES. YOUR BID IS SUBJECT TO REJECTION AT THE

TIME OF BID OPENING IF:

1. Your license does not meet the requirements as set forth in the project manual.

2. Your license is suspended.

3. Your license is expired.

4. Your license has been cancelled.

5. Your company or any listed subcontractor is not currently registered with the

Department of Industrial Relations (DIR).

6. Your company did not attend a mandatory pre-bid site inspection or meeting, if required.

BIDDING INSTRUCTIONS

REGISTRATION WITH THE DIR

1. ALL Contractors and subcontractors for public works projects must register with DIR.

Check out http://www.dir.ca.gov/Public-Works/PublicWorks.html for complete information and the online registration site.

2. Beginning March 1, 2015, any contractor is not qualified to bid, be listed in a bid or engage in the performance of any contract for public work if they are not registered. Refer to Instructions to Bidders (00 21 00), Article 2 for more information.

PROPOSAL FORM REQUIREMENTS

1. Submit bids on the enclosed Bid Form.

2. Present bids under sealed cover, clearly identifying the project.

3. The Bid Form is not transferable.

BIDDER’S NAME

1. Submit the Bid Form under the same name as licensed.

BIDDER’S SECURITY (Does not apply to solicitations pursuant to GC 14838.7)

1. Bid Security is not required for bids under ten thousand dollars ($10,000).

2. Bid Security shall be a minimum of ten percent (10%) of the bid.

3. Bid Security may be bidder’s bond, cashiers check, certified check or cash. Personal checks will not be accepted.

4. Bid Security shall be made payable to: The Department of General Services.

5. When a Bidder’s Bond is used, it is required to be on the DGS Bid Bond form attached to the Bid Form. Attach the power of attorney for the attorney-in-fact and the signature must be notarized. Contact this office if another copy of the form is needed.

SIGNATURE

1. The Bidder, or Bidder’s authorized representative, is required to sign the bid.

2. Include the address of the Bidder or the authorized representative.

3. If the Bidder is a corporation, affix the corporate seal.

4. Sign the Bidder’s Bond (Does not apply to solicitations pursuant to GC 14838.7).

5. Include applicable documentation; see Instructions to Bidders (00 21 00), Article 9.2.

Governor Gavin Newsom http://www.dir.ca.gov/Public-Works/PublicWorks.html

ADDENDUM

Refer to the Instructions to Bidders for addendum information. Acknowledge the addendum on the appropriate page of the Bid Form.

WITHDRAWAL OF BID

A written notice to withdraw a bid is required prior to the bid opening. A notice not bearing an original signature will not be accepted.

IRREGULARITIES

1. The Bid may be rejected if the bid form is altered. Alterations are, but not limited to:

a. Additions or erasures not requested or required.

b. An incomplete bid.

c. A conditioned bid.

d. Irregularities of any kind.

e. Use of the term “N/A”.

2. If the bid amount or other items including the subcontractors list are changed after being inserted on the bid form, initial or sign the change.

3. Avoid the acronym “N/A” or the term ‘not applicable’ when filling out the bid form.

PAYEE DATA RECORD

Bidders are requested to complete and return the State’s Payee Data Record form, Std.

204, included with the Bid Forms. The Payee Data Record form is required in lieu of IRS W-9 when doing business with the State of California, and will be used by the State to prepare tax information returns as stated on the form. Failures to submit the completed form with the Bid will not be cause for rejection of a Bid, but will be required prior to Award of Contract if not on file.

DVBE REQUIREMENTS (Does not apply to solicitations pursuant to GC 14838.7) DVBE Requirements have recently changed (July 2009). You must meet the required percentage of DVBE participation in order for your bid to be considered responsive.

Please refer to the Instructions to Bidders (00 21 00) and the DVBE Program Requirements (00 22 10) of the Project Manual for additional information.

BID RESULTS

Bid results, bid rejections, awards and project start dates shall be made available via email.

The preliminary bid tabulation will be made available immediately after the bid opening is completed and it will be emailed to bidders. A final bid tabulation will be emailed in about 2-8 business days after bidding requirements, such as bonds, DIR Registration and DVBE, have been verified.

Rev. February 2016 Adt’l Bid Info Page 2 https://caleprocure.ca.gov/pages/bidder-vendor.aspx

STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD

(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)

Section 1 – Payee Information NAME (This is required. Do not leave this line blank. Must match the payee’s federal tax return)

BUSINESS NAME, DBA NAME or DISREGARDED SINGLE MEMBER LLC NAME (If different from above)

MAILING ADDRESS (number, street, apt. or suite no.) (See instructions on Page 2)

CITY, STATE, ZIP CODE E-MAIL ADDRESS

Section 2 – Entity Type Check one (1) box only that matches the entity type of the Payee listed in Section 1 above. (See instructions on page 2)

CORPORATION (see instructions on page 2)SOLE PROPRIETOR / INDIVIDUAL MEDICAL (e.g., dentistry, chiropractic, etc.)SINGLE MEMBER LLC Disregarded Entity owned by an individual

PARTNERSHIP

ESTATE OR TRUST

LEGAL (e.g., attorney services)

EXEMPT (e.g., nonprofit)

ALL OTHERS

Section 3 – Tax Identification Number Enter your Tax Identification Number (TIN) in the appropriate box. The TIN must match the name given in Section 1 of this form. Do not provide more than one (1) TIN.

The TIN is a 9-digit number. Note: Payment will not be processed without a TIN.

For Individuals, enter SSN.

If you are a Resident Alien, and you do not have and are not eligible to get an SSN, enter your ITIN.

Grantor Trusts (such as a Revocable Living Trust while the grantors are alive) may not have a separate FEIN. Those trusts must enter the individual grantor’s SSN.

For Sole Proprietor or Single Member LLC (disregarded entity), in which the sole member is an individual, enter SSN (ITIN if applicable) or FEIN (FTB prefers SSN).

For Single Member LLC (disregarded entity), in which the sole member is a business entity, enter the owner entity’s FEIN. Do not use the disregarded entity’s FEIN.

For all other entities including LLC that is taxed as a corporation or partnership, estates/trusts (with FEINs), enter the entity’s FEIN.

Social Security Number (SSN) or Individual Tax Identification Number (ITIN)

OR

Federal Employer Identification Number

(FEIN)

Section 4 – Payee Residency Status (See instructions)

CALIFORNIA RESIDENT – Qualified to do business in California or maintains a permanent place of business in California.

CALIFORNIA NONRESIDENT – Payments to nonresidents for services may be subject to state income tax withholding.

No services performed in California

Copy of Franchise Tax Board waiver of state withholding is attached.

Section 5 – Certification I hereby certify under penalty of perjury that the information provided on this document is true and correct.

Should my residency status change, I will promptly notify the state agency below.

NAME OF AUTHORIZED PAYEE REPRESENTATIVE TITLE E-MAIL ADDRESS

SIGNATURE DATE TELEPHONE (include area code)

Section 6 – Paying State Agency Please return completed form to:

STATE AGENCY/DEPARTMENT OFFICE UNIT/SECTION

MAILING ADDRESS FAX TELEPHONE (include area code)

CITY STATE ZIP CODE E-MAIL ADDRESS

Print Form Reset Form

Department of General Services, Administration Division Office of Business Acquisition Services, Contract Services Section

707 Third Street, MS 508 n/a (916) 376-1768

West Sacramento CA 95605 n/a

STATE OF CALIFORNIA – DEPARTMENT OF FINANCE

PAYEE DATA RECORD

(Required when receiving payment from the State of California in lieu of IRS W-9 or W-7) STD 204 (Rev. 03/2021)

GENERAL INSTRUCTIONS

Type or print the information on the Payee Data Record, STD 204 form. Sign, date, and return to the state agency/department office address shown in Section 6.

Prompt return of this fully completed form will prevent delays when processing payments.

Information provided in this form will be used by California state agencies/departments to prepare Information Returns (Form1099).

NOTE: Completion of this form is optional for Government entities, i.e. federal, state, local, and special districts.

A completed Payee Data Record, STD 204 form, is required for all payees (non-governmental entities or individuals) entering into a transaction that may lead to a payment from the state. Each state agency requires a completed, signed, and dated STD 204 on file; therefore, it is possible for you to receive this form from multiple state agencies with which you do business.

Payees who do not wish to complete the STD 204 may elect not to do business with the state. If the payee does not complete the STD 204 and the required payee data is not otherwise provided, payment may be reduced for federal and state backup withholding. Amounts reported on Information Returns (Form 1099) are in accordance with the Internal Revenue Code (IRC) and the California Revenue and Taxation Code (R&TC).

Section 1 – Payee Information Name – Enter the name that appears on the payee's federal tax return. The name provided shall be the tax liable party and is subject to IRS TIN matching (when applicable).

Sole Proprietor/Individual/Revocable Trusts – enter the name shown on your federal tax return.

Single Member Limited Liability Companies (LLCs) that is disregarded as an entity separate from its owner for federal tax purposes - enter the name of the individual or business entity that is tax liable for the business in section 1. Enter the DBA, LLC name, trade, or fictitious name under Business Name.

Note: for the State of California tax purposes, a Single Member LLC is not disregarded from its owner, even if they may be disregarded at the Federal level.

Partnerships, Estates/Trusts, or Corporations – enter the entity name as shown on the entity’s federal tax return. The name provided in Section 1 must match to the TIN provided in section 3. Enter any DBA, trade, or fictitious business names under Business Name.

Business Name – Enter the business name, DBA name, trade or fictitious name, or disregarded LLC name.

Mailing Address – The mailing address is the address where the payee will receive information returns. Use form STD 205, Payee Data Record Supplement to provide a remittance address if different from the mailing address for information returns, or make subsequent changes to the remittance address.

Section 2 – Entity Type If the Payee in Section 1 is a(n)… THEN Select the Box for…

Grantor (Revocable Living) Trust disregarded for federal tax purposes Sole Proprietor/Individual Limited Liability Company (LLC) owned by an individual and is disregarded for federal tax purposes Single Member LLC-owned by an individual Partnerships Limited Liability Partnerships (LLP) and, LLC treated as a Partnership Partnerships Estate Trust (other than disregarded Grantor Trust) Estate or Trust Corporation that is medical in nature (e.g., medical and healthcare services, physician care, nursery care, dentistry, etc. LLC that is to be taxed like a Corporation and is medical in nature

Corporation-Medical

Corporation that is legal in nature (e.g., services of attorneys, arbitrators, notary publics involving legal or law related matters, etc.) LLC that is to be taxed like a Corporation and is legal in nature

Corporation-Legal

Corporation that qualifies for an Exempt status, including 501(c) 3 and domestic non-profit corporations. Corporation-Exempt Corporation that does not meet the qualifications of any of the other corporation types listed above LLC that is to be taxed as a Corporation and does not meet any of the other corporation types listed above

Corporation-All Other

Section 3 – Tax Identification Number The State of California requires that all parties entering into business transactions that may lead to payment(s) from the state provide their Taxpayer Identification Number (TIN). The TIN is required by R&TC sections 18646 and 18661 to facilitate tax compliance enforcement activities and preparation of Form 1099 and other information returns as required by the IRC section 6109(a) and R&TC section 18662 and its regulations.

Section 4 – Payee Residency Status Are you a California resident or nonresident?

A corporation will be defined as a "resident" if it has a permanent place of business in California or is qualified through the Secretary of State to do business in California.

A partnership is considered a resident partnership if it has a permanent place of business in California.

An estate is a resident if the decedent was a California resident at time of death.

A trust is a resident if at least one trustee is a California resident.

o For individuals and sole proprietors, the term "resident" includes every individual who is in California for other than a temporary or transitory purpose and any individual domiciled in California who is absent for a temporary or transitory purpose. Generally, an individual who comes to California for a purpose that will extend over a long or indefinite period will be considered a resident. However, an individual who comes to perform a particular contract of short duration will be considered a nonresident.

For information on Nonresident Withholding, contact the Franchise Tax Board at the numbers listed below:

Withholding Services and Compliance Section: 1-888-792-4900 E-mail address: wscs.gen@ftb.ca.gov For hearing impaired with TDD, call: 1-800-822-6268 Website: www.ftb.ca.gov

Section 5 – Certification Provide the name, title, email address, signature, and telephone number of individual completing this form and date completed. In the event that a SSN or ITIN is provided, the individual identified as the tax liable party must certify the form. Note: the signee may differ from the tax liable party in this situation if the signee can provide a power of attorney documented for the individual.

Section 6 – Paying State Agency This section must be completed by the state agency/department requesting the STD 204.

Privacy Statement Section 7(b) of the Privacy Act of 1974 (Public Law 93-579) requires that any federal, state, or local governmental agency, which requests an individual to disclose their social security account number, shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited, and what uses will be made of it. It is mandatory to furnish the information requested. Federal law requires that payment for which the requested information is not provided is subject to federal backup withholding and state law imposes noncompliance penalties of up to $20,000. You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business services unit or the accounts payable unit of the state agency(ies) with which you transact that business.

All questions should be referred to the requesting state agency listed on the bottom front of this form.

STATE OF CALIFORNIA – STATE CONTROLLERS OFFICE

PAYEE DATA RECORD SUPPLEMENT

(This form is optional. Form is used to provide remittance address information if different than the mailing address on the STD 204 – Payee Data Record.

Use this form to provide additional remittance addresses and additional Authorized Representatives of the Payee not identified on the STD 204.)

Payee Information (must match the STD 204) NAME (Required. Do not leave blank.)

BUSINESS NAME, DBA NAME or DISREGARDED SINGLE MEMBER LLC NAME (If different from above)

TAX ID NUMBER (Required)

SSN, ITIN, or FEIN that matches Tax ID number provided on STD 204

Additional Remittance Address Information Use the fields below to provide remittance addresses for payee if different from the mailing address on the STD 204.

The addresses provided below are for remittance purposes only. 1099 information returns will be sent to the mailing address specified on the STD 204.

REMITTANCE ADDRESS (number, street, apt or suite no.)

CITY STATE ZIP CODE

REMITTANCE ADDRESS

CITY STATE ZIP CODE

REMITTANCE ADDRESS

CITY STATE ZIP CODE

REMITTANCE ADDRESS

CITY STATE ZIP CODE

REMITTANCE ADDRESS

CITY STATE ZIP CODE

Additional Contact Information Use the fields below to provide additional Authorized Representatives for the Payee if applicable.

CONTACT NAME

TELEPHONE (Include area code) EMAIL

CONTACT NAME

TELEPHONE EMAIL

CONTACT NAME

TELEPHONE EMAIL

Certification I hereby certify under penalty of perjury that the information provided on this supplemental document is true and correct.

By signing this document, I authorize the State of California to remit payment to the addresses specified on this supplemental form (STD 205) and certify that all persons identified on this form are authorized representatives of this payee. Payments remitted to any of the listed addresses may be reported on 1099 information returns to the tax liable entity identified on the accompanying Payee Data Record - STD 204.

NAME OF AUTHORIZED PAYEE REPRESENTATIVE

(Print or Type name)

TITLE E-MAIL ADDRESS

SIGNATURE

X___________________________________________

DATE TELEPHONE (Include area code)

Print Form Reset Form

STATE OF CALIFORNIA – STATE CONTROLLERS OFFICE

PAYEE DATA RECORD SUPPLEMENT

(This form is optional. Form is used to provide remittance address information if different than the mailing address on the STD 204 – Payee Data Record.

Use this form to provide additional remittance addresses and additional Authorized Representatives of the Payee not identified on the STD 204.)

GENERAL INSTRUCTIONS

Type or print the information on the Payee Data Record Supplement, STD 205. Sign, date, and return to the state agency/department with a completed STD 204. Prompt return of the fully completed forms will prevent delays when processing payments.

Purpose – Completion of this form (STD 205) is optional. Payees may use this form to provide remittance addresses or contact information in addition to the 1099 information return mailing address provided on the STD 204. This form shall only be used in conjunction with the STD 204, and will not be accepted without a STD 204.

Please note: The State of California Government will issue 1099 information returns to the mailing address provided on the most recently dated form STD 204 validated by the Payee. Addresses provided on this form (STD 205) will be used for remittance purposes only. If the payee would like to update the address for receiving 1099 information returns, please complete the STD 204.

Payee Information: The Payee’s Tax ID number (TIN) and Name (including any Business, DBA, or Disregarded LLC names) are required. This information is subject to TIN matching via the IRS database for validation. Payee Information provided in this section must clearly match the STD 204. Any discrepancies may result in delays of payment, up to and including denial of the request.

Name – Enter the name of the Payee. The name provided shall be the tax liable party and is subject to IRS TIN matching (when applicable).

Business Name – Enter the business name, DBA name, trade or fictitious name, or disregarded LLC name.

Tax ID Number-The State of California requires that all parties entering into business transactions that may lead to payment(s) from the state provide their Taxpayer Identification Number (TIN). The TIN is required by R&TC sections 18646 and 18661 to facilitate tax compliance enforcement activities and preparation of Form 1099 and other information returns as required by the IRC section 6109(a) and R&TC section 18662 and its regulations.

Additional Remittance Address Information - Enter the Payee’s additional remittance address(s) that are not listed on STD 204. Up to five (5) addresses may be provided on this form. The Payee may provide additional remittance addresses on a second STD 205 form if needed.

Additional Contact Information - Enter the Payee’s additional or updated contact information. Up to three contacts may be identified on this form. Payee may provide additional contacts on a second STD 205 if needed.

PRIVACY STATEMENT

Section 7(b) of the Privacy Act of 1974 (Public Law 93-579) requires that any federal, state, or local governmental agency, which requests an individual to disclose their social security account number, shall inform that individual whether that disclosure is mandatory or voluntary, by which statutory or other authority such number is solicited, and what uses will be made of it.

It is mandatory to furnish the information requested. Federal law requires that payment for which the requested information is not provided is subject to federal backup withholding and state law imposes noncompliance penalties of up to $20,000.

You have the right to access records containing your personal information, such as your SSN. To exercise that right, please contact the business services unit or the accounts payable unit of the state agency(ies) with which you transact that business.

All questions should be referred to the requesting state agency listed on the bottom front of the STD 204 form.

Locate certified Small Business and Disabled Veteran Business Enterprises firms on the new Cal eProcure System

Search the new Cal eProcure website to locate certified Small Business (SB) and Disabled Veterans Business Enterprise (DVBE) firms. No registration or log in is required.

• Go to https://caleprocure.ca.gov/

• Click on Small Business / Disabled Veteran Business Enterprise

• Click on Search for Certified SB/DVBE Firms

Rev. February 2016 https://caleprocure.ca.gov/

The system allows you to customize your search and target your specific needs.

Search by Business Name, Certification Type, Business Type, Keywords, Zip Code, Service Area ID, UNSPC Classifications, NAICS Classifications or License Code.

Bidders may consider trade subcontractors with a Contractor’s license, but are reminded to also consider services, and/or material suppliers whose business functions may be relevant to the project’s scope of work (commercially useful function, CCR, Title 2, Section 1896.6).

For Small Business and Disabled Veteran Business Enterprise certification program related inquiries:

Office of Small Business & Disabled Veteran Business Enterprise Services (OSDS) Email: OSDSHelp@dgs.ca.gov

Phone: 916-375-4940

Rev. February 2016 mailto:OSDSHelp@dgs.ca.gov tel:19163754940

DVBE Incentive Information for RESD Construction Contracts

The Department of General Services (DGS) 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 and 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

$1,300,000

- 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 Bid position with the additional DVBE Incentive.

-1- Rev. November 2010

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)

Adjusted bid for comparison

$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 in 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 bid for 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 (2.15% of $93,000) Adjusted bid for comparison

$93,000.00

- 1,999.50

$91,000.50

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

Adjusted bid for comparison

$94,600.00

- 4,650.00

$89,950.00

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

Adjusted bid for comparison

$99,500.00

- 4,650.00

$94,850.00

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.

-2-Rev. November 2010

OBAS CSS: February 2016

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.

Example:

Business A Business B with 5% preference

Low Bid $250,000 x 5 %

Preference Factor $12,500

Bid $260,000 Preference Factor - 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.

OBAS CSS: February 2016

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:

• Must be independently owned and operated;

• Cannot be dominant in its field of operation;

• Must have its principal office located in California;

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

• 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 a 2-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 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 user name 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.

http://www.dgs.ca.gov/pd/Programs/OSDS/GetCertified.aspx mailto:OSDSHelp@dgs.ca.gov https://caleprocure.ca.gov/pages/CertificationProcess/sbdvbe-1.aspx https://caleprocure.ca.gov/