State agency contracts: small business.

Existing law, the Target Area Contract Preference Act, provides, except as specified, that the state shall award preferences to California-based companies submitting bids or proposals for state contracts who demonstrate and certify under penalty of perjury that of the total labor hours required to manufacture the goods and perform the contract, at least 50 percent of the hours shall be accomplished at an identified worksite or worksites located in a distressed area by persons with a high risk of unemployment if the contract is for goods or services in excess of $100,000. Existing law also provides that the maximum preference and incentive a bidder may be awarded pursuant to these provisions is $50,000 for any bid, and $100,000 for the combined cost of these preferences and incentives and those provided pursuant to any other provision of law. This bill would instead provide that the maximum preference and incentive a bidder may be awarded pursuant to these provisions shall not exceed $350,000 for any bid, and $400,000 for the combined cost of these preferences and incentives and those provided pursuant to any other provision of law. Existing law, the Small Business Procurement and Contract Act, provides for various programs to encourage the participation of small businesses, as certified by the Department of General Services, in state agency contracts, including a microbusiness and a disabled veteran business enterprise. Existing law requires directors of state agencies, in awarding prescribed contracts, to provide a 5% preference to small businesses and microbusinesses, and a preference of up to 5% to a nonsmall business that provides for small business or microbusiness subcontractor participation, not to exceed prescribed amounts. Existing law provides, in solicitations where an award is made to the lowest responsible bidder, that the preferences shall not exceed $50,000 for any bid and that the combined cost of preferences granted shall not exceed $100,000. Existing law provides that, in bids in which the state has reserved the right to make multiple awards, the $50,000 maximum preference cost shall be applied. This bill would provide, in solicitations where an award is made to the lowest responsible bidder, that the preference to small business and microbusiness be 5% of the lowest responsible nonsmall business bidder meeting specifications and that the preference to nonsmall business bidders that provide for small business or microbusiness subcontractor participation be up to a maximum of 5% of the lowest responsible nonsmall business bidder. This bill also would provide that the preference not exceed $350,000 for any contract award and that the combined cost of preferences granted not exceed $400,000. This bill would require that the $350,000 maximum preference cost be applied in multiple contract awards.