Section 1896.8 - Computing the Small Business and the Non-Small Business Preferences(a) Awards Made to the Lowest Responsive, Responsible Bidder(1) The five percent (5%) small business or non-small business subcontracting preferences are used for bid evaluation purposes when determining a contract award in the following situations:(A) There is at least one (1) small business competing, and award of the contract will be made to the lowest responsive, responsible bidder. The preference shall be computed as follows: 1. Five percent (5%) is computed from the lowest, responsive and responsible bid of a business that is not a small business. This results in the preference amount.2. The preference amount is subtracted from the small business' bid amount.(B) There is at least one (1) non-small business competing that is subcontracting at least twenty-five percent (25%) of its net price bid to one (1) or more small businesses, and award of the contract will be made to the lowest responsive, responsible bidder. The preference shall be computed as follows:1. Five percent (5%) is computed from the lowest, responsive and responsible bid of a business that is not a small business, or is not subcontracting to a small business. This results in the preference amount.2. The preference amount is subtracted from the bid of the non-small business that is subcontracting at least twenty-five percent (25%) of its net price bid to one or more small businesses.(b) Awards Based on Highest Scored Proposal (1) The five percent (5%) small business preference or non-small business subcontracting preferences are used for bid evaluation purposes when determining a contract award in the following situations:(A) There is at least one (1) small business competing, and award of the contract is to be made to the highest scored responsive bid submitted by a responsible bidder following an evaluation process that weighs factors other than price, together in a formula with price. The preference shall be computed as follows: 1. The awarding department shall specify the minimum number of points, if any, that a bid must receive in order to be deemed responsive and of acceptable quality. If a small business does not achieve the specified minimum number of points, it shall not be entitled to the five percent (5%) preference.2. Five percent (5%) of the score of the highest scored responsive bid submitted by a responsible non-small business is computed as specified in the solicitation. The result of the calculation is a number that represents the preference points.3. The preference points are then included in the formula as specified in the solicitation to determine the highest scored bidder.(B) There is at least one (1) non-small business competing that is subcontracting at least twenty-five percent (25%) of its net price bid to one (1) or more small businesses, and award of the contract is to be made to the highest scored responsive bid submitted by a responsible bidder following an evaluation process that weighs factors other than price, together in a formula with price. The preference shall be computed as follows:1. The awarding department shall specify the minimum number of points, if any, that a bid must receive in order to be deemed responsive and of acceptable quality. If a non-small business does not achieve the specified minimum number of points, it shall not be entitled to the five percent (5%) preference.2. If the non-small business achieves the specified minimum number of points, five percent (5%) of the score of the highest scored responsive bid submitted by a responsible non-small business that is not subcontracting a minimum of twenty-five percent (25%) of its net price bid to one (1) or more small businesses is computed as specified in the solicitation. The result of the calculation is a number that represents the preference points.3. The preference points are then included in the formula as specified in the solicitation to determine the highest scored bidder.(c) If, after application of the small business preference to the bid of a small business, that bid is equal to the lowest priced, responsive bid from a responsible non-small business, or equal to the highest scored bid offered by a responsible non-small business, as applicable, the contract shall be awarded to the small business for the amount of its bid.(d) If, after application of the non-small business subcontracting preference, a responsible non-small business that has submitted a responsive bid is the lowest bidder, and does not displace a small business from winning the award, the contract shall be awarded to the non-small business for the amount of its bid.(e) In no event shall the amount of the small business or non-small business subcontracting preferences awarded on a single bid exceed fifty thousand dollars ($50,000), and in no event shall the combined cost of the small business or non-small business subcontracting preference and preferences awarded pursuant to any other provision of law exceed one hundred thousand dollars ($100,000). In bids that the state has reserved the right to award by line item, or make multiple awards, the small business preference shall be applied to maximize the participation of small businesses.(f) In the event of a precise tie between the bid of a small business and the bid of a DVBE that is also a small business, the award shall go to the DVBE that is also a small business.Cal. Code Regs. Tit. 2, § 1896.8
1. New section filed 9-25-78; effective thirtieth day thereafter (Register 78, No. 39).
2. Editorial correction of NOTE filed 12-6-82 (Register 82, No. 50).
3. 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.
4. Certificate of Compliance transmitted to OAL 10-4-88 and filed 11-2-88 (Register 88, No. 46).
5. Change without regulatory effect amending section filed 3-30-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 14).
6. Repealer and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No. 33).
7. Amendment of section heading, section and NOTE filed 1-23-2017; operative 1-23-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 4). Note: Authority cited: Sections 14837 and 14843, Government Code. Reference: Sections 4535.2, 14838, 14839 and 14839.1, Government Code.
1. New section filed 9-25-78; effective thirtieth day thereafter (Register 78, No. 39).
2. Editorial correction of NOTE filed 12-6-82 (Register 82, No. 50).
3. 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.
4. Certificate of Compliance transmitted to OAL 10-4-88 and filed 11-2-88 (Register 88, No. 46).
5. Change without regulatory effect amending section filed 3-30-99 pursuant to section 100, title 1, California Code of Regulations (Register 99, No. 14).
6. Repealer and new section filed 8-10-2004; operative 9-9-2004 (Register 2004, No. 33).