RFP_FTB-2627-PW-066.docx

Franchise Tax Board

RFP#: RFP FTB-2627-PW-066

Request for Proposal (RFP) Exhibit G: Company Integrity and Compliance Certification

REQUEST FOR PROPOSAL (RFP)

Notice To Prospective Proposers

Real Estate Appraisal Consulting Services

# RFP FTB-2627-PW-066

September 1, 2026 You are invited to review and respond to the California Franchise Tax Board’s (FTB), Secondary Request for Proposal (RFP), entitled “Real Estate Appraisal Consulting Services” Bid Log Number # RFP FTB-2627-PW-066. The Franchise Tax Board requests that in submission of your Proposal, you comply with the following instructions:

Note that all Agreements entered into with the State of California will include by reference the State’s General Terms and Conditions (GTC 02/2025) which may be viewed and downloaded at the Internet site 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 person listed below.

Please note that for purposes of this solicitation, the Disabled Veteran Business Enterprises (DVBE) Participation Requirement has been waived.

In the opinion of the Franchise Tax Board, this RFP is complete and without need of explanation. However, if you have questions, or should you need any clarifying information, the contact person for this RFP is:

Doral Valley Procurement Official California Franchise Tax Board Phone: (916) 845-5283 E-mail: doral.valley@ftb.ca.gov, Cc sheri.birkmaier@ftb.ca.gov Please note that no verbal information given will be binding upon the Franchise Tax Board unless such information is issued in writing as an original solicitation or official addendum.

Proposals must be submitted electronically by email in accordance with Section B.1: Proposal Submission Instructions.

Notice to Prospective Proposers

TABLE OF CONTENTS

SECTION A: INTRODUCTION

A.1. PURPOSE AND DESCRIPTION OF SERVICES

The purpose of this Request for Proposal (hereinafter referred to as “RFP”) is to solicit proposals from qualified vendors (hereinafter referred to as “Proposer,” “Vendor,” or “Contractor”) to provide the Franchise Tax Board (hereinafter referred to as “FTB” or the “State”) with real estate appraisal consulting services including conservation easement and historic preservation easement cases (hereinafter referred to as “Real Estate Appraisal Consulting Services”) including any other items and incidentals necessary to accomplish the deliverables and associated tasks for such FTB consulting service requests as detailed in the attached Exhibit A: Scope of Work (SOW).

The resulting Agreement shall serve as an as-needed consulting service contract. The purpose of the Agreement is to establish a contract with a qualified real estate appraisal consultant firm to assist FTB in properly determining whether a taxpayer's appraisal(s) of the retrospective fair market value (FMV) of their respective parcel(s) for (1) donation purposes, and (2) upon disposal of real estate property, is/are reasonable and in accordance with statutory requirements. Additionally, FTB may request the Contractor render an expert consultant opinion of value of (a) subject property(ies). The awarded Contractor shall provide independent, professional real estate appraisal consulting services involving various real estate property types.

A.2. KEY ACTION DATES

All Proposers submitting proposals are hereby advised of the following schedule and will be expected to adhere to the required dates and times:

TABLE 1: Key Action Dates

by 10:00 AM Pacific Time (PT) (via email only)

by 12:00 PM Pacific Time (PT) (via email only)

Thursday, October 15, 2026

(estimated November 16, 2026 – November 15, 2029 )*

*This date is subject to change without notice or addendum to this RFP.

1The Notice of Intent to Award shall be published on Cal eProcure in the same location as the solicitation was published: Bid opportunities in the California State Contracts Register (CSCR).

SECTION B: PROPOSAL DELIVERY AND ADMINISTRATIVE CHECKLIST

B.1. PROPOSAL SUBMISSION INSTRUCTIONS

Proposers are required to submit an electronic bid response to the following e-mail addresses: doral.valley@ftb.ca.gov with a Cc to sheri.birkmaier@ftb.ca.gov by the due date and time identified in Section A.2. Key Action Dates of this solicitation. Proposals not received by the due date and time specified will be disqualified. Please maintain a record of your e-mailed response as proof of timely submittal. E-mailed RFP responses will be opened and reviewed during the evaluation phase; cost proposals are not announced or publicly read.

The subject line should read: “RFP FTB-2627-PW-066 (Your Company’s Name)”.

Proposals are to be sent electronically to the following addresses:

doral.valley@ftb.ca.gov and sheri.birkmaier@ftb.ca.gov

B.1.1. EMAILED RFP RESPONSES

The State reserves the right to consider authorized emailed RFP responses as properly “sealed” if received prior to the due date and time specified. Authorized emailed RFP responses will be considered only if they are sent to the email addresses listed in Section B.1. Proposal Submission Instructions above. RFP responses sent to any other email address (unless otherwise specified) will not be considered. To be considered, all pages of an emailed RFP response must be completely received prior to the RFP response due date and time specified in this RFP.

Proposals should include the following information on the cover page of the proposal:

Company Name Company Address RFP Title: Real Estate Appraisal Consulting Services Solicitation # RFP FTB-2627-PW-066 Note: It is the Proposer’s responsibility to provide all necessary information in the required format. Proposal email submission must include three (3) separate files as follows:

a. File #1 Attachment should include all mandatory Administrative information and documentation as specified within this RFP (reference Section D.2. Administrative Requirements and Section B.2. Administrative Requirements Checklist). File #1 should be labeled “Administrative Requirements_RFP FTB-2627-PW-066”, and

b. File #2 Attachment should include all mandatory Non-Cost information and documentation as specified within this RFP (reference Section D.3. Non-Cost Requirements). File #2 should be labeled “Non-Cost_RFP FTB-2627-PW-066” , and

c. File #3 Attachment should include both mandatory completed Cost Worksheets (Cost Worksheet #1 and Cost Worksheet #2) as specified within this RFP (reference Section D.4. Cost Requirements). File #3 should be labeled “Cost_RFP FTB-2627-PW-066”.

B.2. ADMINISTRATIVE REQUIREMENTS CHECKLIST

A complete and responsive Proposal Submission will consist of a completed Administrative Requirements Checklist (as identified below in Table 2: Administrative Requirements Checklist) in addition to the administrative documentation specified therein. Proposers should complete this checklist to confirm the items included in their Proposal Submission. Place an “X” in the “Yes” box next to each item included in your Proposal Submission. Attachments notated with an (M) are mandatory and required in your Proposal Submission. Attachments notated with an asterisk (*) are required in your Proposal Submission if applicable. Attachments notated with an (O) are optional and not required in your Proposal Submission. A Proposal Submission without a completed Administrative Requirements Checklist may be considered non-responsive.

TABLE 2: Administrative Requirements Checklist

Request for Proposal (RFP)

SECTION C: STANDARD CONDITIONS

PROPOSER RESPONSIBILITY

Proposers are cautioned not to rely on the State during the State’s evaluation to discover and report to the Proposer defects and errors in their Proposal Submission. If a prospective Proposer expects to be afforded the benefits of the steps included in this RFP, the prospective Proposer must take responsibility to:

a. Carefully read the RFP in its entirety.

b. Ask appropriate questions in a timely manner if clarification is necessary.

c. Submit all required responses by the required dates and times.

d. Ensure that all procedures and requirements of the RFP are accurately followed and appropriately addressed.

e. Carefully reread the entire RFP before submitting a proposal.

RFP ADDENDA

If revision of any part of this RFP becomes necessary, or if additional data is necessary to clarify any of its provisions, an addendum will be published on Cal eProcure in the same location as the solicitation was published. FTB reserves the right to amend, alter, or change the RFP at any time prior to the deadline for submission of proposals. It is the responsibility of the Proposer to access the Cal eProcure website for any changes or subsequent addenda that may be posted.

WRITTEN QUESTIONS

Every attempt has been made to produce complete specifications for the services requested as specified in this RFP. Should the Proposer discover any ambiguity, conflict, omission, or other error in this RFP, or have any questions concerning interpretation or clarification, the Proposer shall immediately notify the State of such in writing and request clarification or modification of the document.

All questions or concerns regarding this RFP must be sent in writing via email to the Procurement Official with a Cc to Sheri Birkmaier as listed on the first page of this RFP and the subject line should include “Questions Regarding RFP #RFP FTB-2627-PW-066 Real Estate Appraisal Consulting Services”. All questions must be received on or before the Final Date to Submit Written Questions for Clarification of RFP date and time specified in Section A.2. Key Action Dates and must include the Proposer Contact’s First and Last Name, the Company Name, Phone Number, and this RFP Name and Solicitation Number. Questions not submitted by the date and time specified in the Key Action Dates shall be answered at FTB’s discretion.

Upon FTB completion of review, all questions will be answered in writing and posted to the original advertisement on the Cal eProcure website by the estimated date and time specified in Section A.2. Key Action Dates. Question and Answer Set(s) will state each question, but not the source of the question, along with the State’s response. If there are any changes to the RFP as a result of any questions, there will be an RFP addendum that will become part of the RFP and posted to the original RFP advertisement on Cal eProcure. Only written responses shall be considered binding. Proposers should rely on written, rather than verbal, responses from the State.

BIDDER INSTRUCTIONS

Before submitting a response to this solicitation, Proposers should review, correct all known errors, and confirm compliance with the RFP requirements.

Review the Bidder Instructions (DGS PD 451) via the following link for additional information: https://www.documents.dgs.ca.gov/dgs/FMC/GS/PD/DGSPD%20451.pdf.

COSTS INCURRED

Costs incurred in developing the Proposal or in anticipation of award of the Agreement are entirely the responsibility of the Proposer and shall not be charged to the State of California.

GENERAL REQUIREMENTS

1. All information requested by FTB shall be provided by the Proposer in the format prescribed by FTB. Proposals are to be prepared in such a way as to provide straightforward, concise descriptions of the prospective Contractor’s capability to satisfy the requirements of this RFP. The State will accept only complete and accurate Proposals. Omissions, inaccuracies, or misstatements may be sufficient cause for disqualification of any proposal.

2. Any attempt by a Proposer to initiate contact with any FTB staff member, other than Procurement staff, regarding this RFP process may disqualify the Proposer from further consideration.

3. All documents submitted in response to this RFP will become the property of the State of California. The proposal shall remain the property of the State of California as a permanent record.

4. The State may disqualify Proposals from prospective Proposers who are not in compliance with the laws of the State of California.

5. Proposals must be submitted for the performance of all services described herein. FTB will not consider, and may disqualify, any Proposal that deviates from the Scope of Work.

6. All Proposals shall include the required documents. Proposals not including the required documents may be deemed non-responsive and cause for disqualification. A non-responsive Proposal is one that does not meet the basic solicitation requirements.

7. A Proposal may be disqualified if it is conditional or incomplete, if it contains any alterations of form or other irregularities of any kind, or if deviations are material. The State may disqualify any or all Proposals and may waive any immaterial deviation in a Proposal. The State's waiver of immaterial deviation(s) shall in no way modify the RFP document or excuse the Contractor from full compliance with all requirements if awarded the Agreement.

8. No oral agreements or understandings shall, in any manner or degree, modify or change the terms of this RFP, nor the resulting Agreement.

9. If a Proposal is accepted by the State, the Proposer agrees to enter into a written agreement with the State in conformity with the provisions of this RFP. The Proposer also agrees to enter into the aforementioned written agreement by completing the form(s) furnished by the State.

10. Irrevocable Offer: A Proposer’s Proposal Submission is an irrevocable offer for ninety (90) calendar days following the scheduled date for Proposal Submission Due Date and Time as specified in Section A.2. Key Action Dates. A Proposer may extend the offer in the event of a delay of contract award.

WORKSITE(S) EXAMINATION

Where applicable, the Proposer should carefully examine worksite(s) and specifications. The Proposer 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 inaccurate examination of worksite(s) and specifications.

PROPOSAL MODIFICATION OR WITHDRAWAL

A Proposer may modify or withdraw a Proposal after its submission by withdrawing its original Proposal and resubmitting a new Proposal prior to the Proposal Submission deadline as specified in Sections A.2. Key Action Dates and B: Proposal Delivery and Administrative Checklist of this RFP. Proposal modifications offered in any other manner, verbal or written, will not be considered. The withdrawal of a Proposal in its entirety without resubmitting a new Proposal prior to the Proposal Submission deadline requires written notification, which must be requested by an agent authorized in accordance with Section C.9. Authorized Signatures and submitted via email to the email addresses as specified in Section B.1. Proposal Submission Instructions of this RFP prior to the final Proposal Submission deadline.

AUTHORIZED SIGNATURES

All solicitation and Proposal documents requiring a signature must bear an original or electronic signature of a person authorized to contractually bind the proposing firm. An individual who is authorized to bind the firm contractually shall sign ATTACHMENT 1: Proposer Certification Sheet. The response should indicate the title or position that the individual holds in the firm. Unsigned solicitation and Proposal document(s) requiring a signature may be cause for Proposal to be disqualified.

DEVIATIONS

Errors or omissions in the Proposer’s Proposal Submission, if deemed material, will cause disqualification of the Proposal. However, the State may at its sole option retain the Proposal and correct certain immaterial errors, including obvious clerical errors.

DISQUALIFICATION OF PROPOSALS

Any Proposal that contains language purporting to render all or portions of the proposal confidential may not be accepted. Reference Section C.12. Confidentiality of Proposals.

The State does not accept alternate Agreement language from a prospective Proposer. A Proposal with such language will be considered a counterproposal and will be disqualified. The State’s General Terms and Conditions (GTC) are not negotiable.

It is the Proposer’s responsibility to review this solicitation thoroughly and in its entirety. This is necessary to identify and address all RFP requirements. Ensuring an accurate and complete Proposal Submission, free of errors and omissions, will help avoid the potential for disqualification of Proposal.

CONFIDENTIALITY OF PROPOSALS

After award of the Agreement or disqualification of Proposals, all responses will be regarded as public records under the California Public Records Act and will be subject to review by the public. (Government Code § 7920.000, et seq.). If material marked “confidential,” “proprietary,” or “trade secret” is requested pursuant to the Public Records Act, the State will make an independent assessment whether it is exempt from disclosure. If the State disagrees with the Proposer, the State will notify the Proposer and give them a reasonable opportunity to justify their position or obtain a court order protecting the material from disclosure. However, information pertaining to data security, system design or security controls whose public release could compromise the Proposer’s system security and data integrity should be clearly marked both in the Proposal and on the Proposal submittal outline.

NOTIFICATION OF INTENT TO AWARD AND PROTESTS

1. A Notification of Intent to Award shall be published on Cal eProcure in the same location as the solicitation was published for a period of at least five (5) working days prior to awarding an Agreement: Bid opportunities in the California State Contracts Register (CSCR). For the actual dates to the item listed above, refer to Section A.2. Key Action Dates.

2. Proposal evaluation materials become public to participating Proposers only after the posting of a Notice of Intent to Award. Reference Section C.12. Confidentiality of Proposals for additional information regarding confidentiality.

3. If, prior to the award of Agreement, any Proposer files a protest with FTB and the Department of General Services (DGS) against awarding of the Agreement on the grounds that the (protesting) Proposer is the highest scored responsive responsible Proposer meeting the specifications of the RFP, the Agreement shall not be awarded until either the protest has been withdrawn or DGS has decided the matter.

4. Within five (5) calendar days after filing the initial protest, the Protestant shall file with DGS and the awarding agency a full and complete written statement specifying the grounds for the protest. Protests shall be limited to the grounds as specified in California Code, Public Contract Code - PCC § 10345, subdivision (b)(2). The written statement of protest shall include the RFP number, the name of the State agency involved, and the agency contact person. It is suggested that Protestant submit any protest by certified or registered mail and the Statement of Protest should be submitted to the following:

Department of General Services Office of Legal Services Attention: Bid Protest Coordinator 707 Third Street, 7th Floor, Suite 7-330 West Sacramento, California 95605 Email: OLSProtests@dgs.ca.gov and Franchise Tax Board Procurement Bureau Attention: Doral Valley 9646 Butterfield Way, Sacramento, California 95827 Email: doral.valley@ftb.ca.gov, Cc sheri.birkmaier@ftb.ca.gov

AGREEMENT ACCEPTANCE

Any Proposer receiving an award is required to sign and return the Agreement, as provided herein, within ten (10) State business days after receipt of the Agreement for the Proposer’s signature. If the Agreement is not returned as stated, it will be just cause for the annulment of the Agreement award.

Prior to agreement award, and in accordance with Exhibit D: Non-IT FTB Special Provisions, 6. Information Security, Proposer shall complete FTB’s Security Questionnaire within ten (10) State business days from the date of FTB’s request.

AWARD OF AGREEMENT

Proposer is advised that should this solicitation result in award of an Agreement, the Agreement will not be enforced until it is approved and fully executed by the State of California.

The State reserves the right to disqualify any and all Proposals. Award of the Agreement, if awarded, will be to the Proposer with the highest score as described in California Public Contract Code §10344, subdivision (c).

If no Proposals are received offering a contract price that FTB believes is in the best interest of the State, the State is not required to award an Agreement.

Performance shall start no later than the date set by the awarding agency and the awarded Contractor, after all approvals have been obtained and the Agreement is fully executed. Should the Contractor fail to commence work at the agreed upon time, the awarding agency, upon five (5) State business 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.

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

TIE BREAK PROCESS

The award of the Agreement will be to the Proposer whose Proposal complies with all RFP requirements and standards and received the highest total score (sum of Non-Cost and Cost points). In the event of a tie, the Proposer who scored the highest points in the Non-Cost portion of the evaluation process will be awarded the Agreement. In the event of a precise tie for both the Non-Cost and the Cost portions, a witnessed drawing of lots will be conducted by the Procurement Official. If a drawing of lots is needed, the Procurement Official will schedule and arrange for the drawing and non-partisan witnesses, notifying the participating Proposers of the outcome of the drawing.

VERIFYING CORPORATE QUALIFICATION TO DO BUSINESS IN CALIFORNIA

To ensure that all obligations due to the State are fulfilled, when agreements are to be performed in the State by corporations, the contracting agencies are required to obtain verification that the Contractor is currently qualified to do business in the State of California.

"Doing business" is defined in the Revenue and Taxation Code (Section 23101) as actively engaging in any transaction for the purpose of financial or pecuniary gain or profit. While there are some statutory exceptions to taxation, it will be a rare instance when a corporate contractor performing within the State will not be subject to the franchise tax.

Both domestic and foreign corporations (those incorporated outside of California) must be in good standing in order to be qualified to do business in California.

If there is any question by any contractor as to their status relating to corporate qualification, we suggest they check with the Secretary of State, 1500 11th Street, Sacramento, CA 95814, or call for additional information at (916) 653-6814.

C.18. STATE RESERVATION OF RIGHTS

The State reserves the following rights:

a. To award if it is determined to be in the best interest of the State.

b. To waive any informality or irregularity in Proposals.

c. To amend or withdraw this RFP, in whole or in part, at any time prior to the signing of the Agreement if circumstances dictate such action.

SECTION D: PROPOSAL REQUIREMENTS

D.1. REQUIREMENTS OVERVIEW

Prospective Proposers must agree to all conditions contained in this RFP and must provide sufficient information in their Proposal Submission to fully establish the Proposer’s ability to satisfy all requirements described in this RFP and perform all of the services described in Exhibit A: Scope of Work. Sections of the Proposer’s Proposal Submission that address more than one requirement should be adequately cross-referenced. The Proposer must provide sufficient details to demonstrate they can meet all of the minimum mandatory requirements. Failure to do so may result in the Proposal being deemed non-responsive.

Reference the following Sections for complete descriptions of the minimum mandatory requirements:

· D.2. Administrative Requirements

· D.3. Non-Cost Requirements

· D.4. Cost Requirements

D.2. ADMINISTRATIVE REQUIREMENTS

This solicitation contains mandatory Administrative Requirements that must be met in order to be considered responsive to this solicitation. Unless designated otherwise, all of the requirements in this section are mandatory.

IMPORTANT: Proposers must provide all required administrative documentation as specified in Section B.2. Administrative Requirements Checklist and Section F. Attachments.

Required administrative documentation that must be submitted in the Proposer’s Proposal Submission are noted as “Mandatory” or “(M)” in the applicable subsection titles.

This solicitation contains mandatory requirements noted as “Required if Applicable” or “(*)” which shall require documentation be submitted in the Proposal Submission should the criteria for the requirement be applicable to the Proposer and/or Proposer’s subcontractor(s).

Additionally, this solicitation contains non-mandatory criteria noted as “Optional” or “(O)” which may require documentation be submitted in the Proposal Submission should Proposer exercise the option(s).

Administrative Requirements are denoted as follows:

1. (M) – All sections labeled as “Mandatory”, or “(M)” must be responded to in order to be considered responsive and responsible to these requirements. Responses will be evaluated in accordance with Section E: Evaluations.

2. (*) – All sections labeled as “Required if Applicable” or “(*)” are required only if applicable. If applicable, these sections must be responded to in order to be considered responsive and responsible to these requirements.

3. (O) – All sections labeled as “Optional”, or “(O)” are not required to be offered by the Proposer in order to be considered responsive and responsible to solicitation requirements. A Proposer may choose whether to meet Administrative Requirements labeled as (O) such as those relating to preference points, for example. However, if a Proposer offers any of these (O) requirements, the Proposer must meet the minimum requirements as stated in that section. The State will review responses to optional requirements and apply points, if applicable, per the criteria specified in Section E: Evaluations.

D.2.1. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PARTICIPATION REQUIREMENT

For the purposes of this solicitation, the DVBE Participation Requirement has been waived; however, the DVBE Incentive will still be applied, if applicable and claimed. Reference Section D.2.2. DVBE Incentive (O) below for details.

D.2.2. DVBE INCENTIVE (O)

In accordance with Military and Veterans Code (M&VC) § 999.5, subdivision (a), an incentive will be given to all Proposers who exceed three percent (3%) DVBE participation. For Contract award evaluation purposes only, the State shall apply the incentive amount based on the amount of DVBE participation obtained above three percent (3%). This incentive is only given to Proposers who propose DVBE participation in the resulting Contract that exceeds three percent (3%) and who are responsive to the DVBE incentive requirements. The maximum incentive for this procurement is five percent (5%) of the total Non-Cost and Cost maximum points possible, not including other Socio-Economic incentives, in accordance with the point allocations specified in Section E.2. Evaluation Process, Phase 4: Socioeconomic Programs Evaluation, TABLE 19: DVBE Participation Incentive Points.

Proposers claiming the DVBE Incentive:

1. Should certify commitment and claim credit on their completed Proposer Certification Sheet (reference Section F.1. Attachment 1) for achieving DVBE Participation of 3.1% or more (maximum incentive is five percent [5%]).

2. Should identify current DVBE certification for prime and/or subcontractor(s) on their completed Bidder Declaration (GSPD-05-105) form (reference Section F.8. Attachment 8).

3. Must complete the Commercially Useful Function (CUF) Certification for each DVBE and include in Proposal Submission (reference Section F.12. Attachment 12).

4. Must complete the Disabled Veteran Business Enterprise Declarations (STD. 843) form for each DVBE and include completed form(s) in Proposal Submission (reference Section D.2.3.).

Failure to complete items 1. – 4. above for Proposers claiming the DVBE Incentive may result in disqualification of the application of the DVBE Incentive.

D.2.3. DVBE DECLARATIONS (*)

Suppliers who are certified by the State of California as a Disabled Veteran Business Enterprise (DVBE) or who have obtained the participation of subcontractors certified by the State of California as a DVBE, must complete a Disabled Veteran Business Enterprise Declarations (STD. 843) form for each DVBE and include completed form(s) in their Proposal Submission. All disabled veteran owners and disabled veteran managers of the DVBE(s) must sign the respective STD. 843 form for their DVBE. Reference Section F.19. Attachment 19: Disabled Veteran Business Enterprise Declarations (STD. 843) for the link to the form.

D.2.4. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) SUBSTITUTION

Awarded Contractor understands and agrees that should award of this contract be based in part on their commitment to use the Disabled Veteran Business Enterprise (DVBE) subcontractor(s) identified in their bid or offer, per M&VC § 999.5, subdivision (e), a DVBE subcontractor may only be replaced by another DVBE subcontractor and must be approved by the Department of General Services (DGS). Changes to the scope of work that impact the DVBE subcontractor(s) identified in the proposal or offer, and approved DVBE substitutions, will be documented by contract amendment.

Failure of Contractor to seek substitution and adhere to the DVBE participation level identified in the proposal or offer may be cause for contract termination, recovery of damages under rights and remedies due to the State, and penalties as outlined in M&VC § 999.9; Public Contract Code (PCC) § 10115.10, or PCC § 4110 (applies to public works only).

D.2.5. SMALL BUSINESS CERTIFICATION (*)

Proposers not currently certified as a California Small Business, or Disabled Veteran Business Enterprise, can apply for certification if qualified. Completed Small Business certification applications and required support documents must be submitted to the Office of Small Business and DVBE Services (OSDS) no later than 5:00 p.m. PT on the proposal due date, and the OSDS must be able to approve the application as submitted.

Small business nonprofit veteran service agencies (SB/NVSA) claiming the small business preference must possess certification by California prior to the day and time proposals are due. Questions regarding certification should be directed to the OSDS at (916) 375-4940.

D.2.6. SMALL BUSINESS PREFERENCE (O)

California Government Code Section 14835 et seq. requires that a five percent (5%) preference be given to proposers who qualify as a small business or proposers who qualify as a non-small business claiming at least twenty-five (25%) California certified small business subcontractor participation. The rules and regulations of this law, including the definition of a small business, or qualifying non-small business, are contained in Title 2, California Code of Regulations (CCR), Section 1896 et seq. The definition of nonprofit veteran service agencies qualifying as a small business is contained in Section 999.50 et seq. of the Military and Veterans Code.

Proposers claiming the small business preference must be certified by California as a small business or must commit to subcontract at least twenty-five (25%) of the net proposal price with one or more California certified small businesses in accordance with the preference requirements. ATTACHMENT 1: Proposer Certification Sheet contains appropriate fields for indicating whether a Proposer is claiming the Small Business preference.

The Small Business regulations, located in the CCR (Title 2, Division 2, Chapter 3, Subchapter 8, section 1896 et. Seq.), concerning the application and calculation of the small business preference, small business certification, responsibilities of small business, department certification, and appeals are revised, effective 09/09/04. The new regulations can be viewed at SB_DVBE Best Practices for State Departments (ca.gov). For those without Internet access, a copy of the regulations can be obtained by calling the Office of Small Business and DVBE Services at (916) 375-4940.

Proposers qualified as a California certified small business and claiming the Small Business Preference:

1. Should complete Section # 14 of the Proposer Certification Sheet (reference Section F.1. Attachment 1) identifying as a Small Business, provide California certification ID number, and include a copy of approved and active certification in their Proposal Submission.

2. Should identify current California small business (SB) or microbusiness (MB) certification on the Bidder Declaration (GSPD-05-105) form (reference Section F.8. Attachment 8).

3. Must complete a Commercially Useful Function (CUF) Certification (reference Section F.12. Attachment 12).

Failure to complete items 1. – 3. above for Proposers claiming the Small Business Preference may result in disqualification of the application of the Small Business Preference.

D.2.7. NON-SMALL BUSINESS SUBCONTRACTOR PREFERENCE (O)

A five percent (5%) preference shall be offered to a non-small business that commits to subcontract at least twenty-five percent (25%) of its net proposal price to one (1) or more California certified small businesses (SB), or California certified microbusinesses (MB). If claiming the non-small business subcontractor preference, Proposer’s response to this Solicitation should list the California certified SB(s) or MB(s) on the mandatory Bidder Declaration (GSPD-05-105) with which the firm commits to subcontract an amount of at least twenty-five percent (25%) of the net proposal price with one (1) or more California certified SBs or MBs. Reference Section F.8. Attachment 8: Bidder Declaration (GSPD-05-105) for a link to the form. Each listed certified SB or MB must perform a “commercially useful function” in the performance of the Contract as defined in Government Code § 14838, subdivision (b)(1)(2).

A non-small business firm that commits to SB or MB subcontractor participation of twenty-five percent (25%) of its net proposal price shall be given a five percent (5%) preference. The five percent (5%) preference is calculated using the highest Total Evaluated Score (Non-Cost points and Cost Points) of the responsive, responsible firm that is not claiming the small business preference. A non-small business that qualifies for this preference may not take an award away from a certified SB or MB.

Proposers claiming the Non-Small Business Subcontractor preference proposing SB or MB subcontractor(s) participation:

1. Should certify commitment and claim credit in Section # 16. of the Proposer Certification Sheet (reference Section F.1. Attachment 1) to achieve a minimum of twenty-five percent (25%) SB subcontracting participation.

2. Should identify current SB or MB certification on their Bidder Declaration (GSPD-05-105) for all applicable subcontractors (reference Section F.8. Attachment 8),

3. Must complete a Commercially Useful Function (CUF) Certification for each SB or MB subcontractor proposed (reference Section F.12. Attachment 12).

Failure to complete items 1. – 3. above for Proposers claiming the Non-Small Business Subcontractor Preference may result in disqualification of the application of the Non-Small Business Subcontractor Preference.

D.2.8. SMALL BUSINESS NON-PROFIT VETERAN SERVICE AGENCY (SB/NVSA) (O)

SB/NVSA prime proposers meeting the requirements specified in the Military and Veterans Code Section 999.50 et seq. and obtaining a California certification as a small business are eligible for the five percent (5%) small business preference.

Proposers qualified as an SB/NVSA and claiming the Small Business Preference:

1. Should complete Section # 14 of Proposer Certification Sheet (reference Section F.1. Attachment 1) identifying as a Small Business, provide California certification ID number, and include a copy of approved and active certification in their Proposal Submission.

2. Should identify current California small business (SB) or microbusiness (MB) certification on completed Bidder Declaration (GSPD-05-105) form (reference Section F.8. Attachment 8).

3. Must complete a Commercially Useful Function (CUF) Certification (reference Section F.12. Attachment 12).

Failure to complete items 1. – 3. above for Proposers claiming the SB/NVSA Preference may result in disqualification of the application of the SB/NVSA Preference.

D.2.9. SMALL BUSINESS REPORTING REQUIREMENT (*)

If for the Agreement resulting from this bid, awarded Contractor made a commitment to achieve small business participation, then Contractor must within sixty-days (60) days of receiving final payment under this Agreement report to the FTB procurement contact the actual percentage of small business participation that was achieved (Gov. Code § 14841). The Prime Contractor's Certification - SB Subcontractor Report shall be sent via hard copy or sent electronically to the FTB procurement contact. It is incumbent on the Contractor to submit the subcontracting form within the specified timeframe.

D.2.10. DVBE PARTICIPATION REPORTING REQUIREMENT (*)

If for the Agreement resulting from this Proposal, awarded Contractor made a commitment to use a Disabled Veteran Business Enterprise (DVBE), then, pursuant to Military and Veterans Code § 999.5, subdivision (d), upon completion of this Agreement, and prior to the last payment being made by the awarding Department, the Department requires the Contractor to certify DVBE usage by completing and submitting the Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817) to the awarding Department. Failure to submit the certification will be cause for the awarding Department to withhold ten thousand dollars ($10,000) from the final payment, or the full final payment if less than ten thousand dollars ($10,000). It is incumbent on the Contractor to certify the following:

1. The total amount the prime Contractor received under the Agreement.

2. The name, address, Contract number and certification ID number of the DVBE(s) that participated in the performance of this Agreement;

3. The amount and percentage of work the prime Contractor committed to provide to one or more DVBE(s) under the requirements of the Agreement, and the total amount of payments each DVBE received from the prime Contractor;

4. That all payments under the Agreement have been made to the DVBE(s); and

5. The actual percentage of DVBE participation that was achieved.

Upon request, the prime Contractor shall provide proof of payment to the DVBE(s) for the work prior to the last contract payment being made to the prime Contractor by the awarding Department.

A prime Contractor that fails to comply with the certification requirement shall, after notice, be allowed to cure the defect. Notwithstanding any other law, if, after at least fifteen (15) calendar days but not more than thirty (30) calendar days from the date of notice, the prime Contractor refuses to comply with the certification requirements, the awarding Department shall permanently deduct ten thousand dollars ($10,000) from the final payment, or the full payment if less than ten thousand dollars ($10,000).

The Prime Contractor’s Certification – DVBE Subcontracting Report (STD 817) shall be sent electronically to the procurement contact stated in the Agreement. It is incumbent on the Contractor to submit the completed subcontracting report form timely at the end of the Agreement.

Link: File DVBE Subcontracting Report (ca.gov)

D.2.11. TARGET AREA CONTRACT PREFERENCE ACT (TACPA) (O)

Target Area Contract Preference Act (TACPA) will be granted to California-based firms in accordance with Government Code § 4530 whenever contracts for goods or services are in excess of $100,000 and the Proposer meets certain requirements as defined in Title 2, California Code of Regulations (CCR), Section 1896.30 et seq. regarding labor needed to produce the goods or provide the services being procured. The TACPA is optional on the part of the Proposer (not mandatory), is for proposal evaluation purposes only, and does not alter the amount of the awarded Contract.

Proposers are not required to apply for these preferences; The Proposer may omit these forms if there is no intention to claim this preference.

Proposers wishing to take advantage of this preference will need to review the website below and submit the appropriate response forms with their Proposal Submission.

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services-List-Folder/Request-a-Target-Area-Contract-Preference Please carefully review the forms and requirements. Denial of the TACPA preference request is not a basis for disqualification of the Proposal.

The required applications for claiming this preference are as follows:

a. TACPA Preference Request for Goods and Services Solicitations (STD 830): http://www.documents.dgs.ca.gov/dgs/fmc/pdf/std830.pdf

b. Manufacturer’s Summary of Contract Activities and Labor Hours (DGS/PD 525): https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd0525.pdf

c. Bidder’s Summary of Contract Activities and Labor Hours (DGS/PD 526): https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/gspd0526.pdf

Proposer’s questions regarding this preference are to be directed to the Department of General Services, Procurement Division, Dispute Resolution Unit, 707 Third Street, Second Floor, West Sacramento, CA 95605 or contact the TACPA Preference Program via email at TACPA@dgs.ca.gov, to determine if the worksite(s) is eligible.

The State as part of its evaluation process reserves the right to verify, validate, and clarify all information contained in the Proposal. This may include, but is not limited to, information from proposers, manufacturers, subcontractors and any other sources available at the time of the proposal evaluation. Proposer refusal to agree to and/or comply with these terms, or failure to provide additional supporting information at the State’s request may result in denial of preference requested.

Contracts awarded with applied preferences will be monitored throughout the life of the contract for compliance with statutory, regulatory, and contractual requirements. The State will take appropriate corrective action and apply sanctions as necessary to enforce preference programs.

D.2.12. COMMERCIALLY USEFUL FUNCTION (CUF) (*)

All California certified small business, micro business, and/or DVBE Contractors, subcontractors or suppliers must meet the commercially useful function requirements under Government Code Section 14837 (for SB), Military and Veterans Code Section 999 (for DVBE), and Title 2 CCR, Section 1896.4 and 1896.62.

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 the transaction, the awarded Contract, or project through which funds are passed to obtain the appearance of small business or micro business participation.

All Proposers and subcontractors identified in the Proposal response to fulfill the requirements for one (1) or more of the socio-economic programs (DVBE and small business) must perform a commercially useful function (CUF) in the resulting Contract. CUF is defined pursuant to Military and Veterans Code § 999, subdivision (b)(5)(B) and Government Code § 14837, subdivision (d)(4)(A) for the DVBE and small business programs, respectively.

Proposers who are a California certified SB,…