BENEFITS TO SMALL BUSINESS CERTIFICATION

Certified small businesses are entitled to the application of the Small Business five (5) percent preference calculation if they are not the lowest responsive bidder when bids are evaluated. This preference calculation helps the certified small business owner remain competitive and provides a greater opportunity for bid award.

The Prompt Payment Act was enacted with the implementation of AB 2275 and became effective January 1, 1999. This Act entitles businesses and recognized nonprofit organizations to collect penalties from state agencies if an undisputed invoice is not paid within 45 days of the invoice receipt date.

If a small business contractor has difficulty obtaining payment for an undisputed invoice, please notify the Department's Small Business Advocate using the Small Business Comment/Complaint Form. The form may be filled out and electronically submitted, or printed and mailed to the attention of the Advocate. You will get a return call within one business day of the form's receipt.

AB 1084 encourages non-small businesses to partner with certified small business when providing services to the State. Enacted January 1, 2002, state agencies began applying five (5) percent preference calculation during bid evaluations for non-small business contractors meeting solicitation requirements to subcontract a minimum of 25% with a certified small business. Responding non-small business bidders may have their bids evaluated with five percent preference calculation when they are not the lowest bidder and do not displace a certified small business in the bidding process.

The Subscription Outreach Service (SOS) is offered on the California State Contracts Register website and provides another link to business opportunity for small business firms. SOS is accessed through the CSCR and is a notification vehicle that automatically delivers contract opportunity advertisements from CSCR to your desktop or fax. The contractor registers and creates a profile online, and then specifies the contract opportunity advertisements they want to receive.

CSCR Contractor Advertisements provides additional opportunity for small businesses to partner with prime contractors. This feature allows the small business owner an opportunity to attach their advertisement to an existing contractor advertisement announcing their availability to sub-contract and to contribute to a project.

If you are not already certified and think you meet the definition of small business, DWR encourages you to seek certification.

Additional Small Business Resources
Small Business Regulations
About the Five Percent Small Business Preference
Achieving Small Business Participation
Contact the Office of Small Business and DVBE Services