Selling to the State of California

The California Department of General Services, Procurement Division provides 4 steps for doing business with the State of California.

1. Apply for certification as a Small Business or a Disabled Veteran Business Enterprise (DVBE). Do this online at http://www.pd.dgs.ca.gov/smbus or call (916) 375-4940. This places you on a centralized database and notifies you of new solicitations. To be certified, all the owners of the business must live in California and you must provide information from your business' tax returns and quarterly wage reports if you have employees.

   Certification makes you eligible for these benefits:

   • State agencies must award at least 25% to certified Small Businesses and 3% to certified DVBEs.
   • The State can give a 5% incentive to certified Small Businesses and a 10% incentive to DVBEs in the formal bid process.
   • State agencies may spend up to $100,000 ($131,000 for construction) if they get price quotes from at least two certified Small Businesses or DVBEs and award them to one of them.
   • You can use the State's "prompt payment stamp" on your invoices.

2. Use the California State Contracts Register to find solitation opportunities. Go to www.pd.dgs.ca.gov or call (916) 375-4583
3. For larger contract, consider becoming a Multiple Award Schedules (CMAS) contractor. Go to www.pd.dgs.ca.gov/cmas. Agencies can buy directly from CMAS contractors after getting three price quotes.
4. Market your company to state agencies. For information go to www.pd.dgs.ca.gov/smbus/advocate.
   • You can find a list of agencies with purchasing authorization at www.pd.dgs.ca.gov/deleg, click on Purchasing Authority, then Departments with Approved Purchasing Authority
   • Use the State Phone Book at www.cold.ca.gov
   • Contact local and industry partners that honor the State's certification. Go to www.pd.dgs.ca.gov/recipro
   • Accept the CAL-Card VISA and receive payment in 2 to 3 days.

If you operate in or next to a TACPA census tract, you can have up to a 9% preference when bidding on a state contract. This means that the State will compare your bid as if it was bid 9% less. If you are awarded the contract, your entire bid is paid. Click here for more information on TACPA.

Resources:

• Selling to State and Local Governments: Understanding the Government Buyer