Cal. Pub. Res. Code § 25620.5
(c) The commission may use a competitive negotiation process in any of the following circumstances:
(f) The commission, in accordance with subdivision (g) and in consultation with the Department of General Services, may provide awards on a sole source basis when the cost to the state is reasonable and the commission makes any of the following determinations:
(g) The commission may not use a sole source basis for an award pursuant to subdivision (f), unless both of the following conditions are met:
(i) The provisions of this section are severable. If any provision of this section or its application is held to be invalid, that invalidity does not affect other provisions or applications that can be given effect without the invalid provision or application.
For purposes of this Section and Section 25620, “California-based entity” means either of the following:
A corporation or other business form organized for the transaction of business that has its headquarters in California and manufactures in California the product that qualifies for the incentive or award, or a corporation or other business form organized for the transaction of business that has an office for the transaction of business in California and substantially manufactures in California the product that qualifies for the incentive or award, or substantially develops within California the research that qualifies for the incentive or award, as determined by the agency issuing the incentive or award.