SMALL BUSINESS/NONPROFIT VETERAN SERVICE AGENCIES AND COMPETITIVE SOLICITATIONS - 1206

Preference Amount

Nonprofit veteran service agencies (NVSA) that have been CA certified as a SB nonprofit veteran service agency are eligible to claim the 5% SB preference when responding to competitive solicitations.

Eligibility

Nonprofit veteran service agencies (NVSA) suppliers will be designated as SB/NVSA in FI$Cal. A NVSA must already possess a valid CA certification prior to submitting a response to a competitive solicitation.

Verifying Certification Status 

As with other certifications, buyers shall verify CA SB/NVSA certification status by accessing the SB and DVBE Services certified firm inquiry database.

The database printout in support of the SB/NVSA must be maintained in the procurement file.

Click here to access the SB and DVBE Outreach Program.

Applying the Preference for Awards based on Low Price

The application of the SB preference is only allowed when an NVSA is acting as the prime bidder.  To apply the preference:

1. If the NVSA is claiming an SB preference, it shall be 5% of the lowest responsible bidder meeting specifications.

Note: Net bid price of the bid that does not qualify for the SB preference” is the value of the offer excluding sales and use tax, finance charges, postage and handling charges.  Shipping charges are also excluded from the net cost unless the shipping charge is included in the evaluation such as FOB Origin, Freight Collect or FOB Destination. The net bid price includes any evaluation corrections and applicable discounts.

2. Subtract this amount from all qualifying bids.
3. If no other preferences or the NVSAs are applicable, re-rank bids to determine which bidder has the low responsive bid.

Note: Applying the SB preference formula is for evaluation purposes only and does not change the actual bids offered by any suppliers.

Documenting the file includes recording the SB preference calculations.

Example:

Bidder A – Business that does not quality for SB preference:  Multiplied low net bid price by the preference factor.
($12,500 x .05 = $625)

Bidder B – Certified SB:  Subtract $625 from the net bid price.
($13,000 - $625 = $12,375)

Results:  Since $12,375 is less than $12,500 the award is made to the certified SB (assuming all other conditions of the solicitation were met).

SB or DVBE Option 

Buyers may solicit CA certified SB/NVSA when conducting a SB/DVBE Option solicitation in accordance with Government Code, Section 14838.5(a).

Notification of Ineligibility

A SB/NVSA is required to provide social security and unemployment and disability benefits for its employees. In the event that the SB/NVSA ceases to be compliant with these requirements, any existing contract awarded as a result of the application of the SB preference must be terminated and the SB/NVSA will be ineligible to contract with the state for two (2) years.

Notification of ineligibility will be disseminated to departments through the DGS/PD broadcast bulletins and the information posted to the OSDS website.

Click here to access the DVBE and Small Business Program Violations and Sanctions web page.

NVSA Reporting

Contract awards to SB/NVSAs shall be included with the count of SB participation as part of the annual reporting requirements.

Please refer to the reporting requirements section for further information.