SB/DVBE Resources and Best Practices for State Departments

This webpage provides resources and best practices for buyers and advocates to support the inclusion of Small Businesses (SB) and Disabled Veteran Business Enterprises (DVBE) in procurement.

Best Practices Library

Best Practices are innovative ways buyers throughout the state improve and simplify their procurement process to increase their department's SB/DVBE participation numbers.

Access the State Agencies Best Practices Library

The SB/DVBE Buying Guide is a tool to help locate potential SB/DVBEs for procurement opportunities. The guide will ask a series of questions to direct you to the appropriate resource(s).

Access the SB/DVBE Buying Guide


SB/DVBE First Policy

Departments can adopt a SB/DVBE First policy to support procurement with SBs and DVBEs. A SB/DVBE First Policy helps departments streamline the procurement processes for buyers. Each policy varies from one department to the next, but all have a common theme. The policies strongly requires procurement opportunities be fulfilled by a SB/DVBE. Check out the policies for each department below.

List of Departments with a SB/DVBE First Policy

Government Codes and Directives

This page lists directives  that support state agencies in their advocacy, outreach, and contract participation with certified small businesses and disabled veteran business enterprises.


Government Code Chapter 6.5. Small Business Procurement and Contract Act [14835 - 14847]

This chapter shall be known and may be cited as the Small Business Procurement and Contract Act.

 Government Code 14836. (a) The Legislature hereby declares that it serves a public purpose, and it is of benefit to the state, to promote and facilitate the fullest possible participation by all citizens in the affairs of the State of California in every possible way. It is also essential that opportunity is provided for full participation in our free enterprise system by small business enterprises.


Government Code ARTICLE 2. Small Business Advocacy [14845 - 14847] Provides the state authority to conduct outreach and education to assist certified Small Businesses and Disabled Veteran Business Enterprise suppliers.  

Government Code 14846 (3) Agencies shall identify a Small Business Advocate and encourage them to develop and share innovative procurement and contracting practices to increase opportunities for small businesses who have expenditures exceed $100,000.

Assembly Bill 657 Small Business Liaison Clarifies actions for state agencies that are required to designate at least one person as a small business liaison.


Government Code 14836 (a) (1) Using existing resources, each state agency shall consolidate its existing staff functions that relate to contract opportunities for small business into a single point of contact for small businesses and designate a small business advocate as a liaison to small business suppliers.



Small Business Contract Participation

Executive Order S-02-06 Establishes a 25% small business participation goal in state contracts


Disabled Veteran Business Enterprise Contract Participation

Executive Order D-43-01 and Military and Veteran Code (MVC) 999-999.13 Article 6 (a) Mandates a 3% goal award to certified Disabled Veteran Business Enterprise firms in all state contracts (where permissible) Military and Veteran Code Div. 4 Chapter 6 990-999.80



Permissible Diversity Outreach

Senate Bill 1045 (Polanco) Public Employment and Contracting was signed into law in 2001 and updated by Senate Bill 1442 (Liu) in 2016. The bill authorizes focused outreach activities in addition to general outreach for the purposes of increasing diversity in the state’s contracting and procurement activities in a post Proposition 209 environment.

Specifically, Senate Bill 1045, while granting that existing provisions of the California Constitution prohibit discrimination or preferential treatment based on race, ethnicity, and gender in the operation of public employment, public education, and public contracting, declares the intent of the Legislature to reaffirm diversity as a public policy goal in public employment and public contracting.

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Links for various resources and websites.