1. (a) A small business will be granted the five percent (5%) small business preference on a bid evaluation by an awarding department when a responsible non-small business has submitted the lowest-priced, responsive bid or a bid that has been ranked as the highest scored bid pursuant to a solicitation evaluation method described in section 1896.8, and when the small business does all of the following:

   1. (1) Has included in its bid a notification to the awarding department that it is a small business or that it has submitted to OSDS a complete application pursuant to section 1896.14, subdivision (a) no later than the end of the bid due date, and is subsequently certified by OSDS as a small business; and
   2. (2) Has submitted a timely, responsive bid; and
   3. (3) Is determined to be a responsible bidder.

2. (b) Non-small business bidders will be granted a five percent (5%) non-small business subcontracting preference on a bid evaluation by an awarding department when a responsible non-small business has submitted the lowest-priced responsive bid or a bid that has been ranked as the highest scored bid pursuant to a solicitation evaluation method described in section 1896.8, and when the non-small business bidder:

   1. (1) Has included in its bid a notification to the awarding department that it commits to subcontract with at least twenty-five percent (25%) of its net bid price with one (1) or more small business; and
   2. (2) Has submitted a timely, responsive bid; and
   3. (3) Is determined to be a responsible bidder; and
   4. (4) Submits a list of the small business(es) it commits to subcontract with for a commercially useful function in the performance of the contract. The list of subcontractors shall include their name, address, phone number, small business certification number (if applicable), a description of the work to be performed, and the dollar amount or percentage per subcontractor as specified in the solicitation.

Note: Authority cited: Sections 14837 and 14843, Government Code. Reference: Sections 14838, 14839, 14839.1 and 14840, Government Code; and Section 4113, Public Contract Code.

History

1. New section filed 9-25-78; effective thirtieth day thereafter (Register 78, No. 39).

2. Amendment filed 6-6-88 as an emergency; operative 6-6-88 (Register 88, No. 25). A Certificate of Compliance must be transmitted to OAL within 120 days or emergency language will be repealed on 10-4-88.

3. Certificate of Compliance transmitted to OAL 10-4-88 and filed 11-2-88 (Register 88, No. 46).

4. New article 2 heading and repealer and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No. 33).

5. Amendment of section heading and subsections (a)(1), (b)-(b)(1) and (b)(4) and amendment of Note filed 1-23-2017; operative 1-23-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 4).

6. Amendment of subsections (a)-(a)(1), (b) and (b)(4) filed 6-29-2023; operative 6-29-2023 pursuant to Government Code section 11343.4(b)(3) (Register 2023, No. 26).