Date: August 24, 2026

REQUEST FOR PROPOSAL (RFP)

Secondary Method

RFP No.: 26-001 Title: Economic Impact Assessment Services Type of Contract: Consulting

NOTICE TO PROSPECTIVE PROPOSERS:

You are invited to review and respond to this Request for Proposal (RFP). In submission of your proposal, you must comply with the instructions and requirements found herein.

Note that all agreements entered into with the State of California will include by reference General Terms and Conditions that may be viewed at:

https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources- List-Folder/Standard-Contract-Language.

If you do not have Internet access, a hard copy can be provided by contacting the Acquisitions Office.

In the opinion of the California Department of Cannabis Control (DCC), this RFP is complete and without need of explanation. However, if you have questions or need any clarifying information, please contact the Acquisitions Office.

Please note that no verbal information given will be binding upon the State unless such information is issued in writing as an official addendum.

Questions regarding this RFP must be submitted via email to the Acquisitions Office at acquisitions@cannabis.ca.gov. Question submissions are due no later than September 2, 2026 at 4:00 PM PT. Questions submitted will be answered via an addendum to the solicitation.

Sincerely, Acquisitions Office Operations Branch Administrative Services Division acquisitions@cannabis.ca.gov https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language https://www.dgs.ca.gov/OLS/Resources/Page-Content/Office-of-Legal-Services-Resources-List-Folder/Standard-Contract-Language mailto:acquisitions@cannabis.ca.gov

Table of Contents

SECTION PAGE(S)

Key Action Dates 3 Submission of Proposal 3 Service Overview 4 Service Location 4 Service Hours 4 Progress Reports or Meetings 5 Services to be Performed 5-10

Purpose 5 Required Services 5-6 Method and Approach 6-8 Deliverables 8-9 Responsibilities of the Parties 9

Work Order Authorization (WOA) Process 9-10 Term of Contract 10 Option to Renew 10 Evaluation and Scoring 11-16 Award and Protest 17 Disposition of Bids 17 Agreement Execution and Performance 17 Preference and Incentive Programs 18-19 California Disabled Veteran Business Enterprise (DVBE) Program Requirements 20-24

Required Documents 25

A - Cost Proposal Worksheet 26-31

B - CCC-4/2017 32-34

C - Disabled Veteran Business Enterprise Declarations, Std. 843 35-40 D - Bidder Declaration, GSPD-05-105 41-43 E - Commercially Useful Function 44-45 F - Postconsumer-Content Certification 46-47 G - Darfur Contracting Act Certification 48 H - California Civil Rights Laws Attachment 49 I - Payee Data Record, Std. 204 50-51

Sample Contract Package 52-77 Attachments

1 – Work Order Authorization

Key Action Dates

All proposers are hereby advised of the following schedule and will be expected to adhere to the required dates and times.

RFP available to prospective bidders ........................................... August 24, 2026 Written questions must be received by 4:00 PM PT ................. September 2, 2026 Questions and Answers will be posted by 5:00 PM PT .......... September 21, 2026 Emailed proposals must be complete and received no later than 2:00 PM PT ........................................................ September 30, 2026 Estimated date of team evaluations ................................ Week of October 2, 2026 Anticipated start date ................................................... Week of November 2, 2026

Partial submission of proposal is unacceptable.

Submission of Proposal

1. Proposals must be submitted via email to acquisitions@cannabis.ca.gov. The subject line of the email must read as follows: Proposal Number, Your Organization’s Name. All Proposal documents must be in PDF format. As the identified point of contact, please obtain acceptable e-signature(s) from your company’s authorized representative.

Acceptable forms of e-signature include:

a. Scanned “Wet” Signature: Print and sign document(s) in ink, then scan an electronic copy in PDF format.

b. “Typed” Signature: If the signature field of the document is editable (e.g., the signature feature in Adobe Acrobat), then a typed signature is acceptable.

2. Proposals will not be accepted from Expatriate Corporations, and proposals from primes subcontracting with Expatriate Corporations will not be accepted.

3. If the proposal is made under a fictitious name or business title, the actual legal name of the proposer must be provided.

4. All proposals shall include the documents identified on the checklist entitled “Required

Documents” on page 26. Proposals not including the required documents shall be deemed non-responsive.

5. All proposals 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 proposal to be rejected.

6. Questions regarding this RFP must be submitted to the Acquisitions Office at acquistions@cannabis.ca.gov mailto:acquistions@cannabis.ca.gov

1) Service Overview

a) Contractor agrees to provide to the Department of Cannabis Control (DCC) the services described herein.

The Department of Cannabis Control (Department or DCC) is requesting proposals from vendors who can provide Standardized Regulatory Impact Assessments (SRIA) with detailed analysis on the economic impact of major regulations to meet the requirements under the California Administrative Procedures Act. The successful contractor shall perform economic impact assessments on behalf of the Department for any adoption, amendment, or repeal of Department regulations to assess the potential for an adverse economic impact on California businesses and individuals. In addition, the Contractor shall, upon direction from the Department, perform an economic impact assessment for proposed regulations developed in response to proposed legislation carrying a significant economic and fiscal impact on the cannabis industry. Such assessments shall include, as appropriate, the preparation of detailed analyses of relevant cannabis market indicators.

2) Service Location

a) Contractor shall perform the Services remotely or at Contractor’s facilities. No on-site performance at DCC premises is required unless expressly authorized in writing by the Department.

b) Delivery Point. All Deliverables (reports, memoranda, presentations, and forms including, as applicable, STD. 399 and SRIA materials) shall be submitted electronically to the Department’s designated Project Representative or as specified in the Work Order Authorization. Upon request, Contractor shall provide one hard-copy set to:

Department of Cannabis Control, 2920 Kilgore Road, Rancho Cordova, CA 95670.

c) Upon request by the Department, the Contractor shall prepare and deliver a presentation of analytical findings, economic impact assessments, or other required deliverables at a location designated by the Department which may be at DCC headquarters or another location selected by the Department.

3) Service Hours

a) The Contractor may perform analytical and development work at its discretion and is not required to perform such work during State business hours. However, the Contractor shall make key personnel reasonably available for scheduled meetings, status updates, and other communications during the Department’s standard business hours from 8:00 a.m. to 5:00 p.m., Monday through Friday, excluding State official holidays, unless otherwise authorized in writing by the Department.

4) Progress Reports or Meetings

a) Contractor shall provide regular updates to the Department or attend meetings with designated personnel to share progress on assigned work including to communicate the scope of services to be performed by the Contractor, whether the assigned work is on schedule, interim findings, and a timetable to convey work related difficulties so that remedies can be developed quickly between the parties. Meetings will generally occur on a biweekly basis; however, DCC may adjust the meeting interval as project needs dictate.

5) Services to be Performed

a) Purpose

The Contractor shall provide economic analysis and related advisory services to support the DCC in evaluating the economic impacts of regulatory actions, legislation, market conditions and cannabis tax structures.

b) Required Services

i) Economic Impact Assessments for Regulations (Ad hoc)

The Contractor shall, upon request by DCC:

(1) Perform and prepare approximately ten-to-twelve economic impact assessments annually, for proposed adoption, amendment, or repeal of Department regulations to analyze and estimate the economic impact on California businesses and individuals.

(2) Ensure all assessments meet the statutory requirements of Government Code sections 11346.3 and 11346.36.

(3) The assessment should set forth specific data, as needed, to quantify and assess the economic and fiscal impacts of the proposed regulation changes.

(4) Prepare all documentation required by the Department of Finance (DOF) and Office of Administrative Law (OAL) to evaluate the anticipated economic impacts as required by statute.

(5) Prepare written responses and make any necessary revisions or updates to assessments or supporting documents, as requested by DCC, to address comments from DOF, the public, and other governmental agencies.

ii) Economic Impact Assessments for Legislation (Ad hoc)

The Contractor shall, upon request by DCC, analyze the economic impact of potential statutory changes to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and other state and federal legislation impacting DCC.

iii) Market Assessments (Annually)

Prior to December 31 of each calendar year, the Contractor shall annually provide an assessment of the California cannabis market addressing economic indicators for California cannabis that quantifies factors such as supply, demand, market conditions, economic drivers and trends. This may include memos for segments of the cannabis supply chain, overall market dynamics and comparative assessments with other state cannabis programs or comparable markets.

The Contractor shall also provide detailed analytical reports and/or technical memos that assess market dynamics and forecast economic outcomes related to cannabis industry policies at the request of DCC. These expert assessments will help inform the Department in making effective, evidence-based policy decisions that promote industry compliance and support a safer, sustainable, and well-regulated cannabis market that benefits all Californians.

iv) Cannabis Tax Report (One-time)

The Contractor shall provide a one-time report that satisfies the requirements of

Chapter 127, Statutes of 2025 (AB 564, Haney) This shall include consultation with the DCC, the Department of Tax and Fee Administration, and the Legislative Analyst’s Office. The Contractor shall prepare a comprehensive report that analyzes the effects of and recommends updates to cannabis tax law that would support a well-regulated, sustainable cannabis market that benefits all Californians.

v) Fee Assessment (Ad hoc)

The Contractor may be asked to prepare a fee assessment pursuant to Business and Professions Code section 26180. Such fee assessment may be requested when necessary to ensure that licensing and renewal fees remain aligned with DCC’s actual regulatory and enforcement costs, consistent with Business and Professions Code section 26180.

c) Method and Approach

The Contractor’s method and approach for economic analysis must, at a minimum, have the following capabilities:

i) The Contractor must be familiar with the statutory requirements applicable to successful completion of this work including cannabis laws enumerated in the MAUCRSA (Business and Professions Code section 26000 et seq.); the Administrative Procedures Act for Regulations and Rulemaking (Government Code section 11340 et seq.); and DOF’s Standardized Regulatory Impact Assessment for

Major Regulations (1 CCR sections 2000-2004). The Contractor must be familiar with existing DCC regulations (4 CCR section 15000 et seq.).

ii) Use appropriate modeling techniques for the task: econometric modeling (e.g., supply/demand modeling, elasticity estimation, time-series analysis), mixed-methods integration if qualitative and quantitative data are used, and scenario modeling aligned with DOF’s requirement for alternatives.

iii) Demonstrate the ability to develop and maintain an economic model to comprehensively assess cannabis market dynamics, including regulated and unregulated sectors.

iv) Validate models using independent or historical data, as applicable.

v) Demonstrate familiarity with the cannabis market, the rules governing it, and related issues including agricultural and natural resource economics

vi) Report findings to the Department upon request using a variety of mediums including long-form reports, short-form memos, and presentations, as appropriate;

describe trends and make projections; clearly document modeling assumptions, parameters, data inputs, confidence intervals and limitations of current knowledge;

and provide recommendations for future data collection or knowledge expansion.

vii) Design and conduct surveys, including potential participation in academic survey efforts as identified by the Department as necessary to inform economic assessments and understand the impact of regulatory and legislative policy changes. Make recommendations on data that could be collected by the department, through the licensing or track and trace systems, or other resources as appropriate to inform the market reports or economic assessments of policy changes.

viii)Capabilities

(1) Estimate total economic effects of regulatory changes over a multi-year time period

(2) Generate economic variable estimates for:

(a) California statewide metrics, including personal income, employment by sector, exports and imports, and gross state product

(b) Cannabis industry metrics for both the regulated and unregulated markets and for each aspect of the supply chain (cultivation, manufacturing, distribution, retail, testing, events), including market size, production, consumption, employment, and costs

(3) Analyze large data sets, including data provided by DCC and external data sources, and produce summaries, trends, and estimates

(4) Perform data cleaning and statistical analysis to assess the quality and reliability of a given data source

(5) Produce (to the extent possible) quantitative estimates of the following:

(a) The creation or elimination of jobs within the state

(b) The creation of new businesses or the elimination of existing businesses within the state.

(c) The competitive advantages or disadvantages of businesses currently doing business within the state

(d) The increase or decrease of investment in the state

(e) The incentives for innovation in products, materials, or processes; and

(f) The benefits of the regulations, including but not limited to, benefits to the health, safety and welfare of California residents, worker safety, and the state’s environment and quality of life, among any other benefits identified by the agency

d) Deliverables

Contractor shall fulfill the services outlined above and provide the following tangible items as evidence thereof:

i) Prepare and complete approximately ten-to-twelve economic impact assessments per year, which may include two to four major regulations per year (economic impact greater than $50 million), as well as approximately ten-to-twelve regulatory packages over the course of the contract term, for cannabis regulations and legislation as requested by the Department, including evaluation of fees necessary to support the proposed program, and re-evaluation of overall licensing fees

ii) A series of draft analyses, which will be submitted to DCC for review and discussion, and which will result in completion of the following documents suitable for release to the public, DOF and OAL:

(1) Revised Standard Regulatory Impact Assessment (if required by DOF)

(2) Economic Impact Statements (STD. 399); and

(3) Statement of the results of the assessment of the economic impacts pursuant to

Government Code sections 11346.2 and 11346.3

iii) The regulatory analyses must contain all information required by OAL and DOF, be indexed and arranged in a well-organized manner, and shall include a description and explanation of each of the following:

(1) The method and approach for assessing economic impact

(2) The specific categories of businesses and individuals who would be affected by the proposed regulation

(3) Specific inputs into and outputs from the assessments, with supporting data as applicable

iv) Written responses to comments received regarding the assessment of economic impacts

v) A plan and timeline for preparing and completing economic impact assessments for cannabis regulations and legislation, including market impacts, evaluation of workload costs and potential fees necessary to support the proposed program

vi) Virtual or in-person presentations at the request of the Department of Cannabis

Control to provide timely analytical information to inform decision-making and policy development.

vii) A report that meets the requirements of Chapter 127, Statutes of 2025 (AB 564, Haney), including consultation with the DCC, Department of Tax and Fee Administration and the Legislative Analyst’s Office and preparation of a report that analyzes the effects of and recommends updates to cannabis tax law that would support a well-regulated, sustainable cannabis market that benefits all Californians.

e) Responsibilities of the Parties

i) DCC

(1) The Department is responsible for providing required information, data held by DCC or that DCC has access to (e.g. track and trace data, workload, market, licensing, compliance, enforcement, and California demographic information), and documentation to facilitate the Contractor’s performance of the work and will provide additional assistance and services as necessary.

(2) The Department is responsible for identifying appropriate contacts from other state agencies or departments to participate in discussions on the issues.

ii) Contractor

(1) Should the Contractor determine that a delay exists, or is probable due to failure of the Department, the Contractor will notify the DCC in writing immediately.

6) Work Order Authorization (WOA) Process

a) Under this Agreement, the Contract Manager will issue WOAs to the Contractor.

b) The Contract Manager will identify on each WOA the required services and completion criteria, and work locations consistent with this Agreement. All deliverables will be completed, delivered, and accepted pursuant to the completion criteria specified in each WOA. A sample WOA is shown in Attachment 1.

c) The Contractor will include on each WOA a list of staff, estimated timeline, and a not-to-exceed cost estimate, and return WOA to the Contract Manager.

d) The Contractor will commence authorized work only after receiving an approved WOA from the Contract Manager.

Term of Contract

The term of this contract is November 2, 2026, or upon final/DGS approval, whichever is later, through June 30, 2029.

Option to Renew

DCC reserves the right to amend the resulting agreement for not more than one (1) year and add not more than thirty (30%) of the original value. Consistent with the terms and conditions of the original solicitation, and upon mutual consent, DCC and the Contractor may execute written amendments to this Agreement. The resulting contract will be of no force or effect until it is signed by both parties and approved by DGS, if required. The Contractor is hereby advised not to commence performance until all approvals have been obtained. If performance commences before all approvals are obtained, said services may be considered to have been volunteered if all approvals are not obtained.

Evaluation and Scoring

EVALUATION SCORE SHEET

The proposals that meet the minimum qualifications will be evaluated and scored according to the Evaluation Criteria in this RFP and the Evaluation Score Sheet.

CATEGORY MAXIMUM

POINTS SCORE

1. REGULATORY AND STATUTORY ASSESSMENTS (50

points)

a. Quality and extent of experience conducting economic assessments of California state regulatory policies.

b. Quality and extent of experience developing rulemaking documents required by the California Administrative Procedure Act (APA), including Standard Regulatory Impact Assessments (SRIA), Economic Impact Statements (STD. 399), evaluations of alternatives, and responses to relevant public comments and inquiries from the Department of Finance and Office of Administrative Law.

c. Quality of experience analyzing the economic impact of potential changes to California statutes.

2. DATA COLLECTION AND ANALYSIS (20 points)

a. Quality and extent of experience in survey design and administration, data collection, addressing data gaps, and managing data integrity.

b. Quality and extent of experience in developing econometric models and applying scientific, statistical, and econometric research methods to analyze and interpret data to inform policy decisions.

3. MARKET ASSESSMENTS (40 points)

a. Quality and extent of experience in providing written reports discussing analysis and assessment of economic indicators, market conditions, economic drivers and trends, offering comparisons with similar markets, and offering insights to inform policy decisions.

4. COMMUNICATION (20 points)

a. Demonstrated ability to clearly articulate economic data and analysis in a variety of formats, including long-form reports, short-form memos, presentations, and visual communications (charts, graphs, infographics, or other similar documents).

b. Availability of the contractor to respond to inquiries from DCC staff and key stakeholders, including personnel from the Office of Administrative Law and Department of Finance.

5. KNOWLEDGE OF CANNABIS INDUSTRY (20 points)

a. Demonstrated working experience with cannabis laws and regulations and with analysis of the California cannabis industry.

CATEGORIES 1 – 5 TOTAL SCORE 150 _____

COST is 70 points of the total possible 220 points. The Contracts office will calculate the final score taking Certified Small Business preference points into consideration.

70 _____

TOTAL SCORE 220 _____

Score Evaluation Criteria

Rating Criteria

Excellent

An excellent response will be a highly comprehensive, exemplary reply that meets all of the requirements of the areas within that category. In addition, the response covers areas not originally addressed within the RFP category and includes additional information and recommendations that would prove both valuable and beneficial to the Department. For a response to be considered excellent, the proposer must clearly demonstrate their authoritative knowledge and understanding of the project.

Very Good

A very good response will provide useful information, while showing experience and knowledge within the category. The proposal is well thought out and addresses all requirements set forth in the RFP. The proposer must provide insight into their expertise, knowledge, and understanding of the subject matter.

Above Average

An above average response meets all the requirements and has demonstrated in a clear and concise manner a thorough knowledge and understanding of the subject matter and project. This response demonstrates an above average performance with no apparent deficiencies noted.

Average

An average response meets the requirements in an adequate manner.

This response demonstrates an ability to comply with guidelines, parameters, and requirements with no additional information put forth by the proposer.

Poor A poor response minimally meets most requirements set forth in the RFP.

The proposer has demonstrated knowledge of the subject matter only.

Unacceptable An unacceptable response does not meet the requirements set forth in the RFP. The proposer has not demonstrated knowledge of the subject matter.

SCORING

1. REGULATORY AND STATUTORY ASSESSMENTS (50 points)

a. Quality and extent of experience conducting economic assessments of California state regulatory policies. (20 points) Scoring will be based on the proposer providing examples of experience with conducting economic assessments of state regulatory policies.

Unacceptable 0-2 points Poor 3-6 points Average 7-10 points Above Average 11-14 points Very Good 15-18 points Excellent 20 points

b. Quality and extent of experience developing rulemaking documents required by the California Administrative Procedure Act (APA), including Standard Regulatory Impact Assessments (SRIA), Economic Impact Statements (STD. 399), evaluations of alternatives, and responses to relevant public comments and inquiries from the Department of Finance and Office of Administrative Law. (20 points) Scoring will be based on the proposer providing examples & presenting their experience with rulemaking documents.

Unacceptable 0-2 points Poor 3-6 points Average 7-10 points Above Average 11-14 points Very Good 15-18 points Excellent 20 points

c. Quality of experience analyzing the economic impact of potential changes to California statutes. (10 points) Unacceptable 0 points Poor 2 points Average 4 points Above Average 6 points Very Good 8 points Excellent 10 points

2. DATA COLLECTION AND ANALYSIS (20 points)

a. Quality and extent of experience in survey design and administration, data collection, addressing data gaps, and managing data integrity. (10 points) Unacceptable 0 points Poor 2 points Average 4 points Above Average 6 points Very Good 8 points Excellent 10 points

b. Quality and extent of experience in developing econometric models and applying scientific, statistical, and econometric research methods to analyze and interpret data to inform policy decisions. (10 points) Unacceptable 0 points Poor 2 points

Average 4 points Above Average 6 points Very Good 8 points Excellent 10 points

3. MARKET ASSESSMENTS (40 points)

a. Quality and extent of experience in providing written reports discussing analysis and assessment of economic indicators, market conditions, economic drivers and trends, offering comparisons with similar markets, and offering insights to inform policy decisions. (40 points) Scoring will be based on the proposer providing examples & presenting their experience with economic assessments.

Unacceptable 0-6 points Poor 7-12 points Average 13-20 points Above Average 21-26 points Very Good 27-32 points Excellent 33-40 points

4. COMMUNICATION (20 points)

a. Demonstrated ability to clearly articulate economic data and analysis in a variety of formats, including long-form reports, short-form memos, presentations, and visual communications (charts, graphs, infographics, or other similar documents).

(10 points) Scoring will be based on the proposer providing examples of similarly prepared documents and the level to which those documents are well-organized, clearly articulated, and understandable to a lay audience.

Unacceptable 0 points Poor 2 points Average 4 points Above Average 6 points Very Good 8 points Excellent 10 points

b. Availability of the contractor to respond to inquiries from DCC staff and key stakeholders, including personnel from the Office of Administrative Law and Department of Finance. (10 points) Scoring will be based on the proposer providing their ability to meet and confer with DCC and key stakeholders as necessary.

Unacceptable 0 points Poor 2 points Average 4 points Above Average 6 points Very Good 8 points Excellent 10 points

5. KNOWLEDGE OF CANNABIS INDUSTRY (20 points)

a. Demonstrated working experience with cannabis laws and regulations and with analysis of the California cannabis industry. (20 points) Scoring will be based on the proposer’s experience or familiarity with the cannabis industry, demonstrated by prior cannabis related work.

Unacceptable 0-2 points

Poor 3-6 points Average 7-10 points Above Average 11-14 points Very Good 15-18 points Excellent 20 points

Award and Protest

1. Notice of the proposed award shall be sent to all proposers and posted in the lobby of DCC Headquarters at least five (5) working days prior to awarding the agreement.

2. If any proposer, prior to the award of agreement, files a protest with the Department of

General Services (DGS), Office of Legal Services, and the DCC on the grounds that the Department failed to follow procedures under Public Contract Code §10344(c), the agreement shall not be awarded until either the protest has been withdrawn or the DGS has decided the matter.

3. Within five (5) days after filing the initial protest, the protesting proposer shall file with the

DGS and the DCC a detailed written statement specifying the grounds for the protest. The written protest must be sent to:

Department of General Services Office of Legal Services Attention Bid Protest Coordinator 707 Third Street, 7th Floor, Suite 7-330, West Sacramento, California 95605 Or via email to: OLSProtests@dgs.ca.gov

A copy of the detailed written protest should be mailed to DCC, Acquisitions Office, 2920 Kilgore Road, Rancho Cordova, California 95670 or via email to acquisitions@cannabis.ca.gov. If mailing, it is suggested that proposers submit any protest by certified or registered mail.

Disposition of Bids

Upon proposal evaluation, all documents submitted in response to the RFP 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 Public Contract Code §10344(c)(2) and subject to review by the public.

Agreement Execution and Performance

1. Performance shall start no later than thirty (30) days, or on the expressed date set by the

DCC and the Contractor, after all approvals have been obtained and the Agreement is fully executed. Should the Contractor, after all approvals have been obtained and the Agreement is fully executed, fail to commence work at the agreed upon time, the DCC, upon five (5) days written notice to the Contractor, reserves the right to terminate the agreement. In addition, the Contractor shall be liable to the State for the difference between Contractor’s proposal price and the actual cost of performing work by another contractor.

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

http://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PCC&sectionNum=10344.

mailto:OLSProtests@dgs.ca.gov mailto:acquisitions@cannabis.ca.gov http://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=GOV&division=7.&title=1.&part=&chapter=3.5.&article=1.

Preference and Incentive Programs

Information, requirements, and forms for the preference programs listed below can be found at the Internet websites listed.

Note: These documents may not be required in all bid packages. Refer to Required Documents for documentation required by this RFP.

1. Certified Small Businesses and Microbusinesses Certification Benefits

Certified Small Businesses or Microbusinesses can claim the five percent (5%) preference when submitting a proposal on a state contract. You must provide a copy of the official Certification letter along with your proposal.

For information on small business and microbusiness certification benefits refer to the following DGS Website – https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement- Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran- Business-Enterprise

2. Target Area Contract Preference Act (TACPA)

3. Recycled Content Certification

The State of California is required to purchase recycled content products (RCPs) rather than non-recycled products whenever price, quality, and availability are comparable.

Furthermore, each state agency is required to purchase RCPs in sufficient quantities to ensure that mandated RCP procurement goals are attained within eleven product categories. If two bidders quote the same bid cost amount for services, the State will award the contract to the RCP certified contractor.

In order to help state agencies identify all reportable purchases and all the reportable RCP purchases, suppliers are mandated by the Public Contract Codes to certify the minimum, if not the exact, recycled content, both secondary and postconsumer material, in the products, materials, goods, and supplies offered or sold to the State. The Public Contract Codes require every supplier to certify the minimum, if not the exact recycled content, both secondary and postconsumer material, in the products, materials, goods, and supplies offered or sold to the State. Additional information regarding this program can be obtained at the following web site: https://www.calrecycle.ca.gov/StateAgency/.

4. DVBE Participation

Please look carefully at box (a) in this section. If the box is checked, you must respond accordingly to the instructions outlined in “California Disabled Veteran Business Enterprise (DVBE) Program Requirements – for Non-IT Services” on the following page for your bid to be considered responsive.

a. Participation Requirements https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business-Enterprise https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Request-a-Target-Area-Contract-Preference https://www.calrecycle.ca.gov/StateAgency/

This RFP has participation goals for the Disabled Veteran Business Enterprise (DVBE) Program of three (3%) percent of the total bid cost. Bidders must meet the DVBE requirements in order to be considered a responsive bidder and be considered for contract award. Failure to meet the three (3%) percent minimum will result in your bid being rejected. A copy of the DGS DVBE Certification letter must be included with your bid.

5. Gen AI

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

Bidder/Offeror must notify the State in writing if it: (1) intends to provide GenAI as a deliverable to the State; or (2), intends to utilize GenAI, including GenAI from third parties, to complete all or a portion of any deliverable that materially impacts: (i) functionality of a State system, (ii) risk to the State, or (iii) Contract performance. For avoidance of doubt, the term "materially impacts" shall have the meaning set forth in State Administrative Manual (SAM) 4986.2.

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

Upon notification by a Bidder/Offeror of GenAI as required, 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.

Government Code 11549.64 defines “Generative Artificial Intelligence (GenAI)” as an artificial intelligence system that can generate derived synthetic content, including text, images, video, and audio that emulates the structure and characteristics of the system’s training data.

CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

PROGRAM REQUIREMENTS –FOR NON-IT SERVICES

(Revision Date 1-2022)

Please read the requirements and instructions carefully.

AUTHORITY

The Disabled Veteran Business Enterprise (DVBE) Participation Goal Program for State contracts is established in Public Contract Code (PCC), §10115 et seq., Military and Veterans Code (MVC), §999 et seq., and California Code of Regulations (CCR), Title 2, §1896.61 et seq.

DVBE PARTICIPATION

The minimum DVBE participation is 3% for this solicitation unless another percentage is specified in the solicitation, or the solicitation is exempt from DVBE participation.

DVBE INCENTIVE

An incentive will be given to bidders who provide DVBE participation, unless stated elsewhere in the solicitation that the DVBE Incentive has been waived.

INTRODUCTION

The bidder must complete the identified form(s) and fully document that the mandatory minimum percent of DVBE participation will be met in order to comply with this solicitation’s DVBE program requirement or the bid may be considered non-responsive.

Information submitted by the Bidder to comply with this solicitation’s DVBE requirements will be verified by the State. If evidence of an alleged violation is found during the verification process, the State shall initiate an investigation, in accordance with the requirements of PCC §10115 et seq. and MVC §999 et seq., and follow the investigatory procedures required by 2 CCR §1896.91. Contractors found to be in violation of these provisions may be subject to suspension from doing business with the State of California, contract termination, civil penalties, and loss of State certifications.

Only State of California, Office of Small Business and DVBE Services (OSDS), certified Veteran Business Enterprises (hereafter called “DVBE”) shall be used to satisfy the DVBE requirements. The term “DVBE contractor, subcontractor or supplier” means any person or entity that satisfies the ownership (or management) and control requirements of 2 CCR §1896.1, is certified in accordance with 2 CCR §1896.84, and provides services or goods that contribute to the fulfillment of the contract requirements by performing a commercially useful function as required in MVC §999(B). Bidders must verify each DVBE subcontractor’s certification status with OSDS to ensure participation eligibility prior to submitting bids. A DVBE that is not certified at the time of award or does not meet and maintain certification cannot count towards an awarding department’s three (3) percent goal (MVC §999.5(c)).

COMMERCIALLY USEFUL FUNCTION DEFINITION

As defined in MVC $999(B), a person or an entity is deemed to perform a “commercially useful function” if a person or entity does all of the following:

• Is responsible for the execution of a distinct element of the work of the contract.

• Carries out the obligation by performing, managing, or supervising the work involved.

• Performs work that is normal for its business services and functions.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PCC&division=2.&title=&part=2.&chapter=1.&article=1.5.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

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https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

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• Is responsible, with respect to products, inventions, materials, and supplies required for the contract, price negotiation, determining quality and quantity, or ordering, installing, if applicable, and making payment.

• Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

A contractor, subcontractor, or supplier will not be considered to perform a “commercially useful function” if the contractor’s, subcontractor’s, or supplier’s role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of DVBE participation.

DVBE SUBSTITUTION

Bidders must use the DVBE subcontractors or suppliers proposed in the proposal. Any substitutions must be requested in writing to the awarding department and approved by the awarding department and OSDS in writing prior to the commencement of any work by the proposed DVBE. The substitution must be to perform the same work and shall maintain the minimum level of DVBE participation stated in original bid (MVC §999.5(g)).

DVBE SUBCONTRACTOR REPORTING

Bidders awarded a contract with a commitment to use DVBE subcontractors must certify, upon completion of contract, that all payments have been made to the DVBE subcontractors by submitting the Prime Contractor’s DVBE Subcontracting Report (STD 817). For such contractors awarded on or after January 1, 2021, the department will withhold $10,000 from the final payment, or the full payment if the final payment is less than $10,000 from prime contractors, until the complete and accurate STD 817 is received. Failure to submit this certification after given the opportunity to cure, will result in the department permanently deducting $10,000 from the final payment or the full payment if less than $10,000 (MVC §999.7).

Prime contractor shall provide proof of payments made to DVBE subcontractors at the request of the department. The department shall keep all information provided by the prime contractor regarding the DVBE program requirements in the procurement file for six (6) years (MVC §999.55).

PLEASE READ ALL INSTRUCTIONS CAREFULLY

These instructions contain information about the DVBE program requirements, bidder responsibilities, and the DVBE Bid Incentive. Bidders are responsible for thorough review and compliance with these instructions.

To meet the DVBE program requirements, bidders must complete and fully document compliance with the following:

PARTICIPATION COMMITMENT

Bidders must commit to meet or exceed the DVBE participation requirement in this solicitation by either Method A1 (bidder is a California certified DVBE) or A2 (bidder is not a California certified DVBE). Bidders must document DVBE participation commitment by completing and submitting all forms and documentation necessary to support meeting CUF.

Forms include the Bidder Declaration (DGS PD-05-105) and DVBE Declarations (DGS PD 843), and the Confirmation Letter/Form as described below, and any other requested https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://www.documents.dgs.ca.gov/dgs/fmc/pdf/std817.pdf https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd05-105.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf documentation. Failure to complete and submit the required form(s) as instructed will render the proposal non-responsive.

Method A1. Certified DVBE bidder:

A. Commit to perform the participation goal percentage of the contract bid amount with its own resources or in combination with another DVBE(s).

B. Document DVBE participation on the Bidder Declaration DGS PD-05-105 for the Prime and all subcontractors (any person, firm, and/or corporation that will participate in fulfilling any part of the contract).

C. Submit a written Confirmation Letter/Form from each DVBE subcontractor identified on the Bidder Declaration. The written confirmation must include the solicitation number and be signed by the Bidder and the DVBE subcontractor(s). The written confirmation shall include, but is not limited to, the DVBE scope of work, work to be performed by the DVBE, term of the intended subcontract with the DVBE, anticipated dates the DVBE will perform required work, rate and conditions of payment and total amount to be paid to the DVBE. Failure to submit signed confirmations with the bid may render the bid non-responsive. If further verification is necessary, the State will obtain additional information to verify compliance with the above requirements.

D. Submit DVBE Declarations Form, DGS PD 843, for all DVBE participants (prime or sub).

Method A2. Non-DVBE bidder:

A. Commit to using DVBE(s) to perform the participation goal percentage of the contract bid amount.

B. Document DVBE participation on the Bidder Declaration, DGS PD-05-105.

C. A Submit a written Confirmation Letter/Form from each DVBE subcontractor identified on the Bidder Declaration. The written confirmation must include the solicitation number and be signed by the Bidder and the DVBE subcontractor(s). The written confirmation shall include, but is not limited to, the DVBE scope of work, work to be performed by the DVBE, term of the intended subcontract with the DVBE, anticipated dates the DVBE will perform required work, rate and conditions of payment and total amount to be paid to the DVBE. Failure to submit signed confirmations with the bid may render the bid non-responsive. If further verification is necessary, the State will obtain additional information to verify compliance with the above requirements.

D. Submit DGS PD 843, DVBE Declarations Form, for all DVBE participants (prime or sub).

DVBE BID INCENTIVE

Unless stated elsewhere in the solicitation that the DVBE incentive has been waived, in accordance with Section 999.5(a) of the Military and Veterans Code an incentive will be given to bidders who provide DVBE participation. For evaluation purposes only, the State shall apply an incentive to bids that propose California certified participation as identified on the Bidder Declaration, DGS PD-05-105, and confirmed by the State. The incentive amount for awards based on highest score will vary in conjunction with the percentage of DVBE participation.

Awards based on highest score – Incentive points will be applied (for evaluation purposes only) by the amount of DVBE percentage commitment. If the #1 ranked responsive, https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd05-105.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd05-105.pdf https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=MVC&division=4.&title=&part=&chapter=6.&article=6.

https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd05-105.pdf responsible bid is a California certified small business, the only bidders eligible for the incentive will be California certified small businesses. The incentive adjustment for awards based on highest score cannot exceed 10 points.

The following points shall apply for awards based on highest score:

Confirmed DVBE Participation of: DVBE Incentive Points 5% or Over 10 pts

4% to 4.99% inclusive 8 pts 3% to 3.99% inclusive 6 pts

RESOURCES AND INFORMATION TO LOCATE DVBE SUPPLIERS

Awarding Department Contact the department at acquisitions@cannabis.ca.gov for any DVBE suppliers who may have identified themselves as potential subcontractors, and to obtain suggestions for search criteria to possibly identify DVBE suppliers for the solicitation. You may also contact the department’s SB/DVBE Advocate for assistance.

Department of General Services, Procurement Division (DGS-PD) OFFICE OF SMALL

BUSINESS AND DVBE SERVICES (OSDS)

The department’s Small Business (SB/DVBE) Advocate can also provide assistance with identifying DVBEs. For a directory of SB/DVBE Advocates for each department go to Find-a-SB_DVBE-Advocate.

For assistance with this directory, contact the DGS-PD SB/DVBE Advocate at 916-375-4940 or Advocate@dgs.ca.gov.

For assistance with SB/DVBE search, certification applications and information, certification information, certification status or concerns and general DVBE program info, you may use any of the following methods:

1. From 8:00 a.m. – 5:00 p.m., Monday through Friday: Call OSDS at (916) 375-4940

2. Visit the DGS website at: Apply For or Re-apply as Small Business, Disabled Veteran

Business Enterprise (ca.gov); or

3. Email: OSDSHelp@dgs.ca.gov

DGS PD E-Procurement Access the list of all certified DVBEs by using the DGS-PD online certified firm database at www.caleprocure.ca.gov. To begin your search, click on “Quicklinks” and then click on “Find Certified Firms (SB/DVBE). Search by one “keyword” or “United Nations Standard Products and Services Code (UNSPSC)” at a time that apply to the elements of work you want to subcontract.

Check for subcontractor ads that may be placed on the California State Contracts Register (CSCR) for this solicitation prior to the closing date.