Plain English Breakdown
The exact date for the first review of the maximum contract value is not specified in the provided official source material.
Small Business Procurement Act
This act allows state agencies and universities to award contracts worth up to $350,000 to small businesses without following strict bidding rules.
What This Bill Does
- Allows state agencies and the California State University to award contracts between $5,000 and $350,000 to certified small businesses.
- Includes microbusinesses and disabled veteran business enterprises in the definition of eligible small businesses.
- Removes the need for competitive bidding requirements when giving these contracts to small businesses.
- Requires the Director of General Services to review and adjust the maximum contract value every two years based on changes in the California Consumer Price Index.
Who It Names or Affects
- State agencies
- California State University
- Certified small businesses, including microbusinesses and disabled veteran business enterprises
Terms To Know
- certified small business
- A business that meets specific criteria set by the state to qualify as a small business.
- microbusiness
- A very small business, often with fewer than 10 employees.
- disabled veteran business enterprise
- A business owned and controlled by veterans who have disabilities.
Limits and Unknowns
- The bill does not specify how the maximum contract value will be adjusted in the future.
- It is unclear what happens if a small business exceeds the new $350,000 limit but still wants to bid on contracts.