California Small Business and Disabled Veteran Business Enterprise (SB/DVBE) First Policy is sponsored by California Department of General Services (DGS). This policy encourages state departments to utilize the SB/DVBE Option for contracts with certified small businesses and Disabled Veteran Business Enterprises, promoting participation in state contracting opportunities.

Apply For or Re-apply as Small Business, Disabled Veteran Business Enterprise Apply for or Re-Apply for Certification as a Small Business and/or Disabled Veteran Business Enterprise Suppliers interested in Small Business (SB), Small Business for the Purpose of Public Works (SB-PW) and/or Disabled Veteran Business Enterprise (DVBE) certification can apply, re-apply or access their profiles.

The Office of Small Business and DVBE Services (OSDS) is the state's certifying agency that administers the small business, small business for the purpose of public works, and DVBE certification programs. We commit to helping small and disabled veteran businesses thrive.

Small Business (SB) Certification Eligibility Requirements and Benefits In order for a small business to be eligible for certification, the small business must meet the following requirements: Be independently owned and operated; Not dominant in field of operation; Principal office located in California; Owners (officers, if a corporation) domiciled in California; and, Including affiliates, be either: A business that, together with all affiliates, has one hundred (100) or fewer employees, and annual gross receipts of nineteen million dollars ($19,000,000) or less as averaged for the previous three (3) tax years, as biennially adjusted by the Department in accordance with Government Code section 14837, subdivision (d)(3).

If the business or its affiliate(s) has been in existence for less than three (3) tax years, then the GAR will be based upon the number of years in existence. A manufacturer* with 100 or fewer employees; or, A small business will automatically be designated as a micro business if gross annual receipts are $6,000,000 or less or the small business is a manufacturer with 25 or fewer employees.

*For Small Business Certification purposes, a manufacturer is a business that is both the following: (1) Whether the business, with its own facilities, performs the primary activities in transforming inorganic or organic substances into the end item being acquired, and is not a packager or, in the case of kits, a final assembler.

The end item must possess characteristics that did not exist, before the original substances, parts, or components were assembled or transformed, as a result of mechanical, chemical, or human action.

The end item may be finished and ready for utilization or consumption, or it may be semi-finished as a raw material to be used in further manufacturing, and (2) Whether more than fifty percent (50%) of its annual gross receipts, as determined by the Department, result from the manufacture and sale of products manufactured by the business.

Small Business Certification Benefits Upon meeting the Small Business Certification eligibility requirements, certified small business (SBs) and micro businesses (MBs) are entitled to the following benefits: A 5 percent bid preference on applicable State solicitations; As a certified small business/micro business, you are eligible for the State's Small Business Participation Program.

This program sets a goal for the use of small businesses in at least 25 percent of the State's overall annual contract dollars; Under the Prompt Payment Act, the State must pay a certified SB/MB higher interest penalties for late payment of an undisputed invoice. Prompt payment penalties for construction firms are addressed separately under Public Contract Code, Section 10261.

5); State agencies may use a streamlined process, known as the SB/DVBE Option, by contracting directly with a California certified small business/micro business for goods, services, information technology and Public Works projects.

The solicitation must be valued at more than $5,000 and the State agency must obtain price quotes from at least two California certified small business/micro business; Effective Febr uary 22 , 2018, the maximum thresholds are: Goods, Services, or Information Technology - $249,999. 99 Public Works - $314,000.

00 (Effective 2/22/18: BL 18-03) Effective Febr uary 4 , 2020, the maximum thresholds are: Goods, Services, or Information Technology - $249,999. 99 Public Works - $388,000. 00 (Effective 2/4/20: BL 04-20) Effective February 1, 2024, the maximum thresholds are: Goods, Services, or Information Technology - $249,999.

99 Public Works - $461,000. 00 (Effective 2/1/24: BL 24-04) The Department of General Services, Procurement Division (DGS-PD) charges State and local agencies an administrative fee, when contracting with a California Multiple Award Schedules (CMAS) vendor.

As an incentive, the fee is waived, if the CMAS vendor is a certified small business/micro business; As an incentive, a non-small business prime contractor, who uses certified small business/micro business subcontractors for at least 25 percent of its net bid price, is eligible for a bid preference of 5 percent of the lowest responsible bid, when competing against another non-small business; and, when applying bidder preferences, in which non-small business bidders may be eligible, certified small business/micro business bidders have precedence over non-small business bidders.

NOTE : Small business/micro business bids cannot be displaced by non-small business/micro business bids, when applying any applicable lawful preferences. You can now become a certified SB/DVBE online! Go to Cal eProcure to register your business .

Also view online certification instructions . If you have any questions regarding the Small Business Certification eligibility requirements and benefits, please contact Certification at (916) 375-4940 or by email . Small Business for THE PURPOSE of Public Works Small Business for the Purpose of Public Works (SB-PW) Certification This certification type is solely for the purpose of Public Works contracts and/or projects.

SB-PW expands the opportunities for small businesses to compete in the public works arena. For the purpose of this certification, public works is defined as in Public Contract Code 1101: An agreement for the erection, construction, alteration, repair, or improvement of any public structure, building, road, or other public improvement of any kind.

SB-PW Eligibility Requirements In order for a firm to be eligible for the SB-PW certification, the applicant firm including manufacturers must meet the following requirements: Be independently owned and operated; Not dominant in field of operation; Principal office located in California; Owners, Officers, Members/Managers, Partners must be domiciled in California; Average annual gross receipts of forty-six million dollars ($46,000,000) or less over the previous three (3) tax years, as biennially adjusted in accordance with Government Code section 14837, subdivision (d)(3).

If the business or its affiliate(s) has been in existence for less than three (3) tax years, then the GAR will be based upon the number of years in existence); and A business with 200 or fewer employees (including affiliates) Senate Bill 605 (SB 605) (Galgiani) Government Code 14837 (B) Public Contract Code 1011 Public Contract Code 10261. 5 Code of Civil Procedure-Section 685.

010-Chapter 5 If you have any questions regarding the SB-PW Certification eligibility requirements and benefits, please contact Certification at (916) 375-4940 or Certification@dgs. ca. gov .

Disabled Veteran Business Enterprise Disabled Veteran Business Enterprise (DVBE) Certification Eligibility Requirements and Benefits For DVBE certification purposes, a "disabled veteran" is: A veteran of the U.S. military, naval, or air service; The veteran must have a service-connected disability of at least 10 percent or more; and The veteran must reside in California.

To be certified as a DVBE, your firm must meet the following requirements: Your business must be at least 51 percent owned by one or more disabled veterans; Effective 1/1/2004, per Public Contract Code – DVBE limited liability companies must be wholly owned by one or more disabled veterans.

Your daily business operations must be managed and controlled by one or more disabled veterans The disabled veteran who manages and controls the business is not required to be an owner of the applicant business; and Your home office must be located in the U.S. (the home office cannot be a branch or subsidiary of a foreign corporation, foreign firm, or other foreign based business).

All existing and all new DVBE applicants must submit to the Office of Small Business and DVBE Services (OSDS) complete copies of the DVBE's federal income tax returns for the previous three years. DVBEs who have been in business for less than three years shall submit the federal tax returns for each year they've been in business.

A DVBE applicant that is not a sole proprietorship and rents equipment to the state must provide the federal income tax returns for each of their disabled veteran owners or your firm will be deemed to be an equipment broker. DVBE limited liability companies must be wholly owned by one or more disabled veterans.

DVBE Certification Benefits Upon meeting eligibility requirements, certified DVBEs are entitled to the following: State-certified DVBEs are eligible for the state's DVBE Participation Program. The program sets the goal to use DVBEs in at least 3 percent of the state's overall annual contract dollars.

State agencies may use a streamlined process known as the "SB/DVBE Option" by contracting directly with a California certified DVBE business for goods, services, information technology and public works projects. The solicitation must be valued at more than $5,000, and the State agency must obtain price quotes from at least two California certified DVBE businesses. For more information, see Government Code Sections 14838.

5 and 14838. 7. Effective February 22, 2018 , the maximum thresholds are: Goods, Services, or Information Technology - $249,999.

99 Public Works - $314,000. 00 (Effective 2/22/18: BL 18-03) Effective February 4, 2020, the maximum thresholds are: Goods, Services, or Information Technology - $249,999. 99 Public Works - $333,000.

00 (Effective 2/4/20: BL 04-20) Effective January 26, 2022, the maximum thresholds are: Good, Services or Information Technology - $249,999. 99 Public Works - $388,000. 00 (Effective 1/26/22: BL 20-02) Effective February 1, 2024, the maximum thresholds are: Good, Services or Information Technology - $249,999.

99 Public Works - $461,000. 00 (Effective 2/1/24: BL 24-04) If you have any questions regarding the DVBE Certification eligibility requirements and benefits, please contact Certification at (916) 375-4940 or by email .

The Certification Unit collaborates with various community-based organizations, local government, and municipalities to proactively provide resources, education, support, and guidance to Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) firms through hands-on workshops.

This collaborative effort aims to review specific requirements that must be met for both SB and DVBE certifications, including factors like ownership, location, employee count, and annual gross receipts.

The Certification team provides businesses with practical information and direction regarding the SB/DVBE program, registration, and the certification process by facilitating a step by step walk through of the Cal eProcure registration process, a review of program requirements, and hands-on assistance with the certification application.

Request a Certification Workshop A California community-based organization, local government, municipality, or California State Department or Agency that is willing to host a hands-on workshop should contact Certification@dgs. ca. gov .

When doing so, please provide a venue, date, time, and adverting/marketing for the event. OSDS Outreach and Certification Events You can find a list of upcoming OSDS Outreach and Certification events by visiting our Events page.

Registration Instructions for the Cal eProcurement (Cal eProcure) System (PDF) Small Business (SB), Small-Business for the Purpose of Public Works (SB-PW) and Disabled Veteran Business Enterprise (DVBE) certification instructions (PDF) Register your firm to do business with California state government.

Complete & submit the online application along with all requested supporting documents If you need assistance logging into your Cal eProcure Profile, contact the FI$Cal Service Center at (855) 421-6355.

Certification Expedite Procedure Certification Support Documents How to Establish DVBE Ownership Additional Support Documents Request for Certification Application (DGS PD 812) Affiliate Information Sheet Affidavit of Income Statement DVBE Service-Connected Disability Renewal Statement (DGS PD 812B) Online Application Instructions (YouTube) Cal eProcure Certified Firm Search CalTrans Certified Firm Search CPUC Certified Firm Search Frequently Asked Questions Certification Status Definitions Commercially Useful Function Information SB/DVBE Best Practices for State Department SB/DVBE Violations and Sanctions Small Business California Code of Regulations Section 1896-1896.

2 DVBE California Code of Regulations Section 1896. 80-1896. 88 Government Code (GC) 14837-14838 Military & Veterans Code (M&VC) 999-999.

13 Office of Small Business and DVBE Services Department of General Services West Sacramento, CA 95670 Email: Certification@dgs. ca. gov