TACPA COMPETITIVE SOLICITATIONS - 1207

(Revised: 09/2022)

Policy

The Department of General Services, Procurement Division, (DGS-PD) Dispute Resolution Unit (DRU) administers the Target Area Contract Preference Act (TACPA) program.

Pursuant to the TACPA, the state shall award workplace and workforce preferences to eligible California-based companies for state solicitations exceeding $100,000.00 for the purchase of goods and services, including Information Technology goods and services, except a contract in which the worksite is fixed by the provisions of the contract.  (See Government Code (GC) §§ 4530 – 4535.3)

Departments are required to designate a TACPA liaison.  See Chapter 2, Section 210 for further information.

Solicitations expected to exceed $100,000.00 must contain the TACPA provision applying workplace and workforce preferences, as applicable, to eligible California-based companies.

Preference Amounts Specific to Solicitations for GOODS

• A workplace preference of 5 percent to California-based companies who demonstrate and certify under penalty of perjury that of the total labor hours required to manufacture the goods and perform the contract, at least 50 percent of the hours shall be accomplished at an identified worksite or worksites located in a distressed area.

• A workforce preference, as specified in GC Section 4533.1, to California-based companies who demonstrate and certify, under penalty of perjury, that the workforce completing those labor hours are persons with a high risk of unemployment, as defined in GC Section 4532.  GC Section 4533.1 specifies workforce preferences from 1 percent to 4 percent depending on the percentage of a bidder’s workforce required to perform the contract who are persons with high risk of unemployment as committed to and certified by the bidder. 

Preference Amounts Specific to Solicitations for SERVICES

• A workplace preference of 5 percent to California-based companies who demonstrate and certify under penalty of perjury that not less than 90 percent of the total labor hours required to perform the contract shall be accomplished at an identified worksite or worksites located in a distressed area
• A workforce preference, as specified in GC Section 4533.1, to California-based companies that demonstrate and certify, under penalty of perjury, that the workforce completing those labor hours are persons with a high risk of unemployment, as defined in GC Section 4532. Section 4533.1 specifies workforce preferences from 1 percent to 4 percent depending on the percentage of a bidder’s workforce required to perform the contract who are persons with high risk of unemployment as committed to and certified by the bidder. 

Preference Maximum Amounts

1. The maximum preference cost for the workplace preference cannot exceed $50,000.00.
2. The maximum preference cost for the workforce preference cannot exceed $50,000.00.
3. The maximum combined preferences and incentives resulting from a workplace preference, workforce preference, and other preferences or incentives provided under any other provision of law shall be 15% but may not in any case exceed $100,000.00 in total. 

Preference Precedence

California certified small business bidders qualified in accordance with GC 14838 shall have precedence over non-small business bidders in that the application of any bidder preference for which non-small business bidders may be eligible, including the workplace and workforce preferences under TACPA, shall not result in the denial of the award to a small business bidder. This shall apply to those cases where the small business bidder is the lowest responsible bidder, as well as to those cases where the small business bidder is eligible for award as the result of application of the 5-percent small business bidder preference and incentive.

Assistance to Bidders & Distressed Area Map

The Department of General Services, with the cooperation of the Governor's Office of Planning and Research, shall assist prospective bidders in identifying those areas of the state which qualify as distressed areas for purposes of the TACPA preferences (Title 2 California Code of Regulations (CCR) 1896.38).

The following webpage contains an interactive map to determine if a business is located within a TACPA qualified zone: Request-a-Target-Area-Contract-Preference.

For assistance, bidders may contact DGS-PD DRU at: TACPA@dgs.ca.gov

The Employment Development Department (EDD) shall assist bidders seeking to certify that they will employ persons with high risk of unemployment in recruiting eligible job applicants and shall certify such applicants, except youths participating in qualified cooperative education programs who shall otherwise be certified (2 CCR 1896.39).

Procedure

Step 1 - The Solicitation

State solicitations where the worksite is fixed are not eligible for application of TACPA preferences and therefore TACPA language must not be included.(i.e. Public Works contract with a fixed construction site)

For state solicitations where the worksite is not fixed and the dollar value is anticipated to exceed $100,000.00 for the purchase of goods and/or services, the solicitation must include language indicating that the two TACPA preferences (workplace and workforce) are available.  Below is sample solicitation language that each department is encouraged to use to ensure compliance with statutory and regulatory requirements in addition to effective contract management:

This solicitation provides for the optional TACPA preference. Bidders are not required to apply for this preference.  Denial of the TACPA preference request is not a basis for rejection of the bid/offer.

The TACPA workplace and workforce preferences will be evaluated for this solicitation. California-based companies seeking TACPA preferences will need to complete and submit preference request forms with the bid/offer. The following webpage contains required preference request forms and an interactive map to determine if a business is located within a TACPA qualified zone: Request-a Target-Area-Contract-Preference

By submitting TACPA forms, a bidder given a TACPA preference agrees to the TACPA contract provisions required by Government Code section 4535 and provided in section 1896.40 of Title 2 of the California Code of Regulations (CCR) in addition to requirements specified on the TACPA form STD 830.

If, based on the responsive proposals/bids/offers received, it is anticipated that the value of the resulting contract will exceed $100,000 and the TACPA preference requirements were not included in the solicitation, then the awarding department must ensure compliance with the TACPA statutory requirements.

Any sample contract attached to a solicitation where TACPA applies is to include, either expressly or by reference, the provisions specified in section 2 CCR 1896.40.

Step 2 – Before Evaluating Proposals/Bids/Offers

Awarding departments must pay close attention to solicitation responses to determine if a TACPA preference has been requested.  If so, confirm receipt of the following required preference request forms from California-based companies requesting TACPA preferences, as applicable:

1. TACPA form STD 830 is the application to apply for TACPA preferences for contracts involving the purchase of goods and/or services.
2. Manufacturer's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 525 is used for contracts involving the purchase of goods manufactured under the contract.
3. Bidder's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 526 is used for contracts involving the purchase of services.

Prior to evaluating proposals/bids/offers that are seeking any TACPA preferences, the DGS-PD, DRU must review the TACPA preference request(s).

Step 3 – Submitting TACPA Preference Requests to the DGS-PD DRU

Awarding departments must submit, as applicable, the following preference request forms and documents to the DGS-PD DRU via email to TACPA@dgs.ca.gov:

1. TACPA form STD 830
2. Manufacturer's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 525
3. Bidder's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 526
4. Copy of solicitation and any addendums
5. Bidder’s response to the solicitation in its entirety
6. Delivery schedule (if applicable)

Step 4 – DGS-PD DRU’s Evaluation of TACPA Preference Requests

Preference requests are typically reviewed and processed within five (5) business days and a recommendation memo (approval/denial) will be sent via email to the awarding department requestor with a copy to the Procurement and Contracting Officer (PCO).

Requests that do not contain the items noted in Step 3, as required, or otherwise contain insufficient information may be denied.

Step 5 – Evaluating Proposals/Bids/Offers & Contract Award

After receipt of a recommendation memo from DGS-PD DRU for a TACPA preference request, the awarding department may complete the evaluation of proposals/bids/offers pursuant to GC sections 4530 - 4535.3 and 2 CCR 1896.33 (for goods contracts) or 2 CCR 1896.36 (for services contracts); then award the contract as appropriate.

Step 6 – Contract Award

When the contract award is based on approved TACPA preference(s), the awarding department must include the contract provisions required by 2 CCR 1896.40 as noted above.

The awarding department must notify the DGS-PD DRU if an award is made based on the approved preference so the DGS-PD DRU can monitor the contract for compliance.

A copy of the executed contract must be emailed with the notification to DGS-PD DRU at: TACPA@dgs.ca.gov.

Step 7 – Monitoring Compliance and False Certifications

DGS-PD DRU monitors TACPA compliance directly with the contractor and will notify the awarding department if any issues arise.

Awarding departments may report allegations of a contractor’s non-compliance with TACPA commitments to DGS-PD DRU at: TACPA@dgs.ca.gov.

Step 8 – Non-Compliance Sanctions

Pursuant to Government Code (GC) 4535.1, a business that requests and is given a TACPA preference by reason of having furnished a false certification, and which by reason of that certification has been awarded a contract to which it would not otherwise have been entitled, shall be subject to all of the following:

1. Pay to the state any difference between the contract amount and what the state’s cost would have been if the contract had been properly awarded.
2. In addition to the amount specified above, be assessed a penalty in an amount of not more than 10 percent of the amount of the contract involved.
3. Be ineligible to directly or indirectly transact any business with the state for a period of not less than six months and not more than 36 months.

Prior to the imposition of any of the above sanctions, the contractor or vendor shall be entitled to a public hearing and to five days’ notice of the time and place thereof. The notice shall state the reasons for the hearing.

The awarding department shall be responsible for conducting hearings authorized by Government Code Section 4535.1 relative to contract awards obtained due to the furnishing of a false certification. The awarding department may enter into an agreement for the purpose of having another state agency or office conduct such hearings and to furnish the awarding department with a report of findings and a recommendation (2 CCR 1896.41). 

Legal Reference

Government Code (GC) Sections 4530 - 4535.3

Government Code (GC) Section 13073.5

Unemployment Insurance Code - UIC § 14005

California Code of Regulations (CCR) - 2 CCR §§ 1896.30 through 1896.41

Related Policy, Procedures & Resources

Broadcast Bulletin, Target Area Contract Preference Act (TACPA) - Program Changes

State Contracting Manual (SCM) Volume 1, Sections 5.30(A)(10) and 8.30

Attachments

TACPA form STD 830

Manufacturer's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 525

Bidder's Summary – TACPA (Contract Activities and Labor Hours) form DGS PD 526