California Governor Issues Order to Establish Small Business Participation Goal of 25%
Published on 11/30/-0001
On March 29th 2006, California Governor Arnold Schwarzenegger issued executive order S-02-06 requiring state agencies to meet or exceed a 25% participation goal for small business participation in state procurements and contracts. The order also requires that each agency or department head shall identify a small business advocate who will help develop innovative procurement practices and increase opportunities for small business.
All state agencies and departments are instructed to use informal bidding to contract with small businesses for goods and services contracts under $100,000 and for construction contracts under $120,000.
The Department of General Services has been designated to monitor the progress of all agencies to meet or exceed the participation goal. The DGS is also to actively promote small business certification and help small businesses in their marketing efforts to sell their goods and services to the State.
This order, in our opinion, will likely expend the SBE (Small Business Enterprise) program to possibly fill in the opportunity gaps left by the diminished DBE program in California. Only time will tell.
