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COUNTY OF SACRAMENTO

PROCUREMENT OPPORTUNITIES PROGRAM

July 2002

Introduction

The County of Sacramento believes in, and encourages, the use of small business
enterprises in its contracting and procurement activities at all times. The County believes

that inclusion - not exclusion - of any interested business enterprise in its contracting and

procurement activities is healthy for both the business community as well as the County of

Sacramento.

 

The purpose of the Procurement Opportunities Program is to provide contracting and

procurement information or assistance to any business enterprise desiring to do business

with the County of Sacramento. The County wishes to enhance economic growth in the

Sacramento Regional Market Area by increasing the use of small business enterprises in the

County’s procurement and contracting activities.

The information portion of the program is designed for any business enterprise wishing

information about doing business with Sacramento County. This information focuses

primarily on advertising contracting opportunities and addressing ways to overcome

procedural barriers encountered in the procurement process. By providing this information to

as many businesses as possible, it should increase the number of potential bidders and thus

increase competition.

The assistance portion of the program includes education and training for any interested

business enterprise, and it includes economic assistance for business enterprises that meet

certain standards. Under this program, the County will offer an economic price preference

on supply contracts, issued through the Department of General Services, Contract and

Purchasing Services Division, if:  

 

 the bidder is a State certified micro-business enterprise,
 is located within the Sacramento Regional Market Area, and

 the lowest responsive bid is less than $100,000.

For the purpose of this program, the Sacramento Regional Market Area is defined as

Sacramento, El Dorado, Placer, Sutter, Yolo and Yuba counties.

Due to restrictions imposed by the Public Contract Code or by delegated contracting

authority, economic assistance (preferences) will only be applicable on contracts issued by

the Department of General Services, Contract and Purchasing Services Division in which

cost is the basic award determination. Preferences will not be applicable to:

·         Professional service contracts and other service contracts issued by the Department of General Services.

        Department Field Orders, Limited Purchase Orders, or procurement card transactions.

·         Contracts issued by County departments under their delegated contracting authority.

·         Contracts departments take directly to the Board of Supervisors for approval. This

includes construction contracts, professional service contracts, and architectural and

engineering professional service contracts.

 

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Policy

It is the intent and policy of the County of Sacramento to institute and maintain a

Procurement Opportunities Program which provides for:

 

·         Equitable utilization of small business enterprises in the County's contracting and

·         procurement activities.

·         Identifying and eliminating any institutional barriers that would restrict active participation

by any business enterprise in the County's contracting and procurement activities.

·         Partnering with business and community groups and organizations to provide assistance

and training to any business enterprise on contracting and procurement with the County.

 

What is the Procurement Opportunities Program?

 

The Procurement Opportunities Program is a race- and gender-neutral program designed to

promote contracting and procurement opportunities for small and local business enterprises

located in the Sacramento Regional Market Area. The program is designed to foster

inclusiveness within the County's contracting and procurement activities with an overall goal

to provide more opportunities for small business enterprises to participate in the process.

 

What is the purpose of the Procurement Opportunities Program?

The purpose of the Procurement Opportunities Program is to provide contracting and

procurement information or assistance to any business enterprise desiring to do business

with the County of Sacramento. The County desires to enhance economic growth in the

Sacramento Regional Market Area by increasing the use of small business enterprises in the

County's procurement and contracting activities.

 

What are the program components?

 

Goal

 

The County's goal is to spend twenty-five (25%) of its contracting and procurement dollars

with certified or self-declared small businesses located within the Sacramento Regional

Market Area. (This goal matches that of the State of California in its small business

program).

 

Preference

 

Provide a five percent (5%) price preference on supply contracts of less than $100,000

issued through the Department of General Services, Contract and Purchasing Services

Division to certified micro-business enterprises located in the Sacramento Regional Market

Area.

 

Solicitation

 

For all invitations for bid, quote, or proposal issued through the Department of General

Services, not less than one-third of the invitations will be to small business enterprises, when

available. If staff is not able to find sufficient small businesses to achieve the one-third

standard, staff will search available vendor databases (e.g., COMPASS, the State) in an

attempt to find additional small business enterprises.

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Outreach

 

·         The Department of General Services advertises currently available contracting

opportunities on its web site and 24-hour telephone bidline. The General Services web

site can be reached from the County portal page. The web site and 24-hour bidline is

available for any department to use to advertise their contracting opportunities. Or, as an

alternative, the Department of General Services will provide a link to other County

department web sites to advertise bidding opportunities.

·         Through collaboration with other governmental agencies, community groups, and local

business information centers, the County will provide education and training to assist

business owners to better understand the County's contracting and procurement process.

·         Partner with the Alliance for Business and Community to maximize available resources to advertise and promote contracting and procurement opportunities with the County.

 

Certification

 

·         The County will utilize the State of California, Office of Small Business Certification and

Resource (OSBCR), for small business certification.

·         The County will allow a business enterprise to self-declare that it meets the County's

definition of a small business but it can not participate in the benefits provided for certified

small businesses.

·         The County will accept certifications from any governmental agency that has a reciprocal

agreement with the OSBCR, such as the City of Sacramento.

 

Job Order Contracting

 

Require sub-contractor participation by certified small business enterprises of not less than

25%. Good faith efforts will not be required.

 

Who benefits from the Procurement Opportunities Program?

 

Businesses

 

The benefits of the Procurement Opportunities Program for small business enterprises is the

opportunity to compete with the larger, more established businesses, an opportunity for

business growth, and an opportunity to participate in the County's contracting and

procurement process.

 

Small business enterprises, certified as a micro-business by the State of California and

located in the Sacramento Regional Market Area, are eligible for a five percent (5%) price

preference, if the lowest responsive bid is less than $100,000.

 

Business certified by the State of California, Office of Small Business Certification and

Resource are included in the State's database of certified small businesses. Other state and

local agencies utilize this database, thus expanding the potential for contracting and

procurement opportunities throughout the state.

 

 

Community

 

By including more businesses in the County's contracting and procurement activities,

competition is enhanced. Enhanced competition leads to a healthier business environment,

higher regional employment and a higher quality of life for County residents and neighbors.

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County

The County benefits from increased competition in the bidding process. Increased

competition allows the County's contracting professionals to procure the highest quality

product at the lowest possible cost to the County.

What County departments and agencies are involved in the Procurement

Opportunities Program?

Only the Department of General Services, Contract and Purchasing Services Division is

directly involved in the Procurement Opportunities Program.

Because the Public Contract Code does not permit price preferences, construction contracts

are not included in the program. In addition, due to the fact that the award determination for

architectural and engineering professional service contracts, professional service contracts

and other service contracts is not necessarily lowest cost, these types of contracts are also

excluded from preferences.

When other departments and agencies procure materials and supplies, they are encouraged

to utilize certified micro- or small business enterprises whenever possible. This includes

purchases made using department field orders, limited purchase orders and procurement

cards. The absence of a preference does not mean micro- or small business enterprises

should not be used.

For purchases made with department field orders, any purchase of $3,000 or more requires

three quotes of which one must be from a small business enterprise. The small business

must meet the County's definition of a small business (see following section).

What are the County's definitions of micro- and small business enterprises?

Small business enterprise

The County's definition of a small business enterprise is:

· It is independently owned and operated.

· It is not dominant in its field of operation.

· Its principal office is located in the Sacramento Regional Market Area (Sacramento, El

Dorado, Placer, Sutter, Yolo and Yuba counties), and

· Together with its affiliates, it is either:

? A service, construction, or non-manufacturing firm with 50 or fewer employees and

average annual gross receipts of five million dollars ($5,000,000) or less over the

previous three years, or

? A manufacturing firm with 50 or fewer employees.

Manufacturer

A manufacturer is a business that meets both of the following standards:

· It is primarily engaged in the chemical or mechanical transformation of raw materials or

processes substances into new products.

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· It is classified between Codes 2000 to 3999, inclusive, of the Standard Industrial

Classification (SIC) Manual published by the United States Office of Management and

Budget, 1987 edition.

Micro-business enterprise (preference eligible)

The County's definition of a micro-business enterprise is:

· It is independently owned and operated.

· It is not dominant in its field of operation.

· Its principal office is located in the Sacramento Regional Market Area (Sacramento, El

Dorado, Placer, Sutter, Yolo and Yuba counties), and

· Together with its affiliates, it is either:

? A service, construction, or non-manufacturing firm with 25 or fewer employees and

average annual gross receipts of two million, five hundred thousand dollars

($2,500,000) or less over the previous three years, or

? A manufacturing firm with 25 or fewer employees.

Self-declared business enterprise

A self-declared business enterprise is one in which the ownership has chosen not to formally

certify as a small business but wishes to be tracked as a small business. The County

encourages any business that does not wish to formally certify as a small- or micro-business

to self-declare if they fit the County's size and ownership standards. Business owners may

be required to provide supporting documentation to substantiate their claim.

Any business that self-declares itself as a micro-business will not be eligible to receive a

preference, and it is possible for it to lose an award to another micro-business due to a

preference.

The County encourages businesses to certify with the State of California, Office of Small

Business Certification and Resource in order to maximize the allowable program benefits.

What does certification mean and self-declaration mean?

Certification:

Certification means that the business enterprise has established the fact that it meets the

size and ownership standards of the small business program. This ensures both the

business enterprise and the County that any benefits guaranteed under the program are

provided to business enterprises that have met program standards. The level to which a

business is certified - micro-business or small business - determine its eligibility for the

County's economic price preference.

Certification also means that a business may receive solicitations to bid on contracting

opportunities from other state and local agencies. A business enterprise does not have to

respond to any or all of the solicitations, but the certification process enhances the potential

for solicitations from a number of governmental agencies.

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Self-declaration

The County will accept an affidavit or declaration that a business enterprise meets the

County's size and ownership standards. The County may request additional information from

the business enterprise to support its claim for self-declaration. The County will accept selfdeclarations

as a means to help it track dollars spent. The County will also encourage any

business that has self-declared to formally certify with the State of California as a small or

micro-business. Program incentives will not be available to business enterprises that are

not formally certified with the State or a reciprocal agency.

How does the price preference work?

The example below demonstrates the method used to determine the successful bidder on

contracts of less than $100,000 when micro-businesses are involved.

Bidders Bid Amount

Bidder A (Formally certified micro-business - Sacramento) $22,179

Bidder B (Formally certified micro-business - Los Angeles) $21,983

Bidder C (Uncertified business, large or small, self-declared small or

micro-business)

$21,356

In this example,

· Bidder C, an uncertified business enterprise or self-declared small or micro-business

enterprise, is the lowest responsive bidder.

· Bidder A is a formally certified micro-business located within the Sacramento Regional

Market Area and is eligible for the 5% price preference based on Bidder C's bid.

· Bidder B is a formally certified micro-business located outside of the Sacramento

Regional Market Area and is not eligible for the 5% price preference.

The preference is calculated as follows:

· $21,356 (Bidder C) x .05 = $1,067.80. The result of this calculation is used to reduce the

lowest responsive bid of the formally certified micro-business enterprise (Bidder A).

· $22,179 (Bidder A) - $1,067.80 = $21,111.20. Bidder A, with the 5% price preference

becomes the lowest responsive bidder, but the bid award amount is $22,179.

The five-percent price preference is used as a calculation for determining the lowest bidder,

and does not affect the actual bid amount. In this example, the award would go to Bidder A

(the formally certified micro-business located in Sacramento) for $22,179. The actual

preference amount in this example is $823 (the difference between Bidder A and Bidder C's

actual bids).

The preference amount is the additional amount the County is willing to pay to do business

with certified micro-businesses located in the Sacramento Regional Market Area. Because

the price preference is applicable to bids of less than $100,000, a preference will not exceed

$5,000 on any one bid.

Frequently Asked Questions

Question: Does the County of Sacramento have a small business program?

Answer: Yes, the County has a program to provide outreach and information

to any business that wishes to do business with the County,

including small business enterprises (SBE) and micro-business

enterprises (MBE).

Question: What are the key elements of the program?

Answer: 1. To spend 25 percent of our total contracting dollars with small

business enterprises.

2. To allow a five percent price preference on material and

supply contracts of less than $100,000 issued through the

Department of General Services to businesses that are

certified as a micro-business enterprises.

3. One-third of invitations to bid will be to SBEs and MBEs,

when available.

4. To form collaborative partnerships with business and

community groups to provide outreach and contracting

information.

5. To accept certification from the State of California, Office of

Small Business Certification and Resource or other reciprocal

agency (formal), or, for tracking purposes only, selfdeclaration

(informal).

Question: What is the County’s definition of a small business?

Answer: The business must be:

1. Independently owned and operated;

2. Not dominant in its field;

3. Located in the Sacramento Regional Market Area

(Sacramento, El Dorado, Placer, Sutter, Yolo and Yuba

counties); and

4. Together with its affiliates, it is either:

· A service, construction or non-manufacturing firm with

50 or fewer employees and average annual gross

receipts of five million dollars or less over the three

previous years, or

· A manufacturing firm with 50 or fewer employees.

Question: What is the County’s definition of a micro-business?

Answer: The business must be:

1. Independently owned and operated;

2. Not dominant in its field;

3. Located in the Sacramento Regional Market Area; and

4. Together with its affiliates, it is either:

· A service, construction or non-manufacturing firm with

25 or fewer employees and average annual gross

receipts of two million, five hundred thousand

dollars over the three previous years, or

· A manufacturing firm with 25 or fewer employees.

Question: Does the program provide preferences to SBEs/MBEs?

Answer: The County will offer a price preference to only certified microbusiness

enterprises that are located in the Sacramento Regional

Market Area. At this time, preferences will only be applicable on

material and supply contracts of less than $100,000 awarded by the

Department of General Services. Preferences will not be applicable

for construction contracts, professional and other service contracts,

or architectural and engineering professional service contracts.

Question: Are self-declared small business enterprises eligible for program

preferences?

Answer: No. Self-declaration is only used to track dollars spent with small

businesses. When you self-declare your business, we will

encourage you formally certify with the State of California in order to

receive maximum program benefits.

Question: Why should I get certified?

Answer: Only certified micro-businesses can participate in the preference

portion of the County’s program. Certified small business

enterprises, although not able to receive a preference in our

program, are included in the State’s Small Business Vendor

Database and may receive invitations to bid from many other state

and local agencies that use the State’s database.

Question: How do I get certified?

Answer: The County’s primary certification agency is the State of California,

Office of Small Business Certification and Resource. We will also

accept certifications from any other state agency that has reciprocity

with the State, such as the City of Sacramento.

For certification information, online registration or to request a

certification packet, you can go to the State’s web site at

www.dgs.ca.gov.

If you do not wish to formally certify but you would like to be counted

as a small business, you may self-declare with the County’s

Department of General Services that your business meets the

County’s definition of a small business. You may be required to

show proof that you meet the County’s definition of a small

business.

Question: How do I find out more information about the County’s program?

Answer: Call our Administrative staff at (916) 876-6360, or contact Howard

Seaton, Procurement Opportunities Program Administrator at (916)

876-6378, or by e-mail, seatonh@saccounty.net.

Last updated 7/16/02

 

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