California Assembly Bill AB1568 Amended / Bill

 BILL NUMBER: AB 1568AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 18, 2014 INTRODUCED BY Assembly Member Grove JANUARY 30, 2014 An act to amend  Sections 14838.5 and 14838.64   Section 14838.5  of the Government Code,  and to amend Sections 10508.5 and 20651.2 of the Public Contract Code,  relating to public contracts. LEGISLATIVE COUNSEL'S DIGEST AB 1568, as amended, Grove. Public contracts: direct quotes. Existing law authorizes a state  agency, the University of California, the California State University, and a community college district   agency, notwithstanding certain advertising, bidding, and protest provisions,  to award a contract for goods, services, or information technology with a value between $5,000 and $250,000  or $100,000 and $250,000, as applicable,  to a certified small business, including a microbusiness  and   , or to  a disabled veteran business enterprise, if that agency obtains price quotations from 2 or more certified small businesses  or disabled veteran business enterprises  , as specified.  This bill would require these agencies to directly obtain the price quotations from 2 or more certified small businesses, as specified.   This bill would, as provided, require a state agency to contact at least one additional certified small business or disabled veteran business enterprise, if that agency does not otherwise obtain more than the 2 required price quotations.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION 1.   The Legislature finds and declares the following:   (a) On February 18, 2014, the California State Auditor released a report finding that in the 2012-13 fiscal year, 83 percent of contract award amounts awarded to disabled veteran business enterprises (DVBEs) went to only 30 DVBE firms. This represents just 2 percent of the state's DVBEs.   (b) According to the California State Auditor, one DVBE firm entered into 922 contracts with six different awarding departments, while 81 percent of DVBEs did not receive a single contract.   (c) In this report, the California State Auditor makes the following recommendation to the Legislature: "For the DVBE program to benefit a broad base of disabled veteran-owned businesses financially, the Legislature should enact legislation aimed at increasing the number of DVBEs that contract with the State." It is the intent of the Legislature to help implement this recommendation by encouraging agencies exercising the small business option to "cold call" small businesses and DVBEs that have not previously contracted with that agency.   (d) Expanding the number of bids solicited from small businesses and DVBEs will increase competition and provide greater opportunities for participation in the program.   SECTION 1.   SEC. 2.  Section 14838.5 of the Government Code is amended to read: 14838.5. (a)  (1)    Notwithstanding the advertising, bidding, and protest provisions of Chapter 6 (commencing with Section 14825) of this part and Chapter 2 (commencing with Section 10290) and Chapter 3 (commencing with Section 12100) of Part 2 of Division 2 of the Public Contract Code, a state agency may award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than five thousand dollars ($5,000), but less than two hundred fifty thousand dollars ($250,000), to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, as long as the agency obtains price quotations  directly  from two or more certified small businesses, including microbusinesses, or  directly  from two or more disabled  veterans   veteran  business enterprises.  (2) If the agency does not otherwise obtain more than two price quotations from either certified small businesses, including microbusinesses, or disabled veteran business enterprises, the agency shall contact at least one additional certified small business, including a microbusiness, or at least one additional disabled veteran business enterprise, and provide a reasonable opportunity for the additionally contacted business or businesses to submit a price quotation. If the additionally contacted business or businesses decline to submit a price quotation, the agency may proceed with the two quotations it has obtained.   (A) The agency may contact a business of a type described in this paragraph at any time and nothing in this paragraph shall be construed to delay the award of a contract by requiring that the agency first obtain the two price quotations required in paragraph (1) before initiating an additional contact with a business of a type described in this paragraph.   (B) It is the intent of this subdivision to encourage an agency to award a contract to a business that has not previously contracted with the agency within the prior 12 months.  (b) In carrying out subdivision (a), a state agency shall consider a responsive offer timely received from a responsible certified small business, including a microbusiness, or from a disabled veteran business enterprise. (c) If the estimated cost to the state is less than five thousand dollars ($5,000) for the acquisition of goods, services, or information technology, or a greater amount as administratively established by the director, a state agency shall obtain at least two price quotations  directly  from responsible suppliers whenever there is reason to believe a response from a single source is not a fair and reasonable price.  SEC. 2.   Section 14838.64 of the Government Code is amended to read: 14838.64. (a) Notwithstanding any other law, including, but not limited to, the advertising, bidding, and protest provisions of Chapter 6 (commencing with Section 14825) of this part and Chapter 2.5 (commencing with Section 10700) and Chapter 3 (commencing with Section 12100) of Part 2 of Division 2 of the Public Contract Code, the California State University may award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than five thousand dollars ($5,000), but less than two hundred fifty thousand dollars ($250,000), to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, if the California State University directly obtains price quotations from two or more certified small businesses, including microbusinesses, or directly from two or more disabled veteran business enterprises. (b) In carrying out subdivision (a), the California State University shall consider a responsive offer timely received from a responsible certified small business, including a microbusiness, or from a disabled veteran business enterprise.   SEC. 3.   Section 10508.5 of the Public Contract Code is amended to read: 10508.5. (a) Notwithstanding any other law, including, but not limited to, the advertising, bidding, and protest provisions of Chapter 2.1 (commencing with Section 10500), the University of California may award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than one hundred thousand dollars ($100,000), but less than two hundred fifty thousand dollars ($250,000), to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, if the University of California directly obtains price quotations from two or more certified small businesses, including microbusinesses, or directly from two or more disabled veteran business enterprises. (b) In carrying out subdivision (a), the University of California shall consider a responsive offer timely received from a responsible certified small business, including a microbusiness, or from a disabled veteran business enterprise. (c) No provision of this section shall apply to the University of California except to the extent that the Regents of the University of California, by appropriate resolution, make that provision applicable.   SEC. 4.   Section 20651.2 of the Public Contract Code is amended to read: 20651.2. (a) Notwithstanding any other law, including, but not limited to, the advertising, bidding, and protest provisions of this article and Division 7 (commencing with Section 70900) of Title 3 of the Education Code, but subject to Section 88003.1, the governing board of a community college district may award a contract for the acquisition of goods, services, or information technology that has an estimated value of greater than five thousand dollars ($5,000), but less than two hundred fifty thousand dollars ($250,000), to a certified small business, including a microbusiness, or to a disabled veteran business enterprise, if the community college district directly obtains price quotations from two or more certified small businesses, including microbusinesses, or directly from two or more disabled veteran business enterprises. (b) In carrying out subdivision (a), a community college district shall consider a responsive offer timely received from a responsible certified small business, including a microbusiness, or from a disabled veteran business enterprise. (c) The definitions set forth in Section 14837 of the Government Code apply to this section.