Small businesses play a significant role in the California economy, but they face major challenges. Targeted procurement efforts like the new University of California (UC) Small Business First (SB1st) program can help small businesses mitigate or minimize these difficulties.
Kicking off September 1, 2020, with full implementation by March 1, 2021, the SB1st program requires UC contracts and procurements between $10,000 to $250,000 to be awarded to a Small Business (SB) or a Disabled Veterans Business Enterprise (DVBE), wherever practicable. The program's informal solicitation process requires only one quote for purchases below $100,000, and only two quotes for procurements above $100,000, with some waivers and exemptions allowed.
Small businesses already face many uphill battles, but the pandemic has been especially devastating. UC spends billions in procurement every year so a program like Small Business First can have a measurable impact on California small and diverse businesses.
Bill Cooper, Associate Vice President (AVP) & Chief Procurement Officer (CPO), University of California (UC)
The program is modeled on other similar small business "set-aside programs" like the State of California SB/DVBE Option program and the LA Metro Small Business Prime program. These programs set aside purchases and/or agreements for award to small businesses to help them more effectively compete for goods and services procured by the organization. Set-asides are awarded across a variety of commodities, and different categories of disadvantaged businesses may be given special consideration.
The SB1st program is also consistent with UC's ongoing commitment to sustainable procurement practices. The UC Sustainable Practices Policy establishes an annual goal of awarding 25% Economically and Socially Responsible (EaSR) spend to small and diverse owned businesses.
Not only does implementing this program help UC accomplish overall sustainability goals, the informal solicitation process makes the procurement process faster and easier, while empowering small businesses. It's a true win-win!
Bill Cooper, UC AVC & CPO
Overall benefits of the Small Business First program include: ease of implementation as UC can use the State of California eProcure system to identify certified SBs and DVBEs, cost reduction and time savings for purchases valued between $100,000 – $250,000 through the informal bid process, and support of the University's EaSR spend sustainability goals.
The program is consistent with California Public Contract Code Section 10508.5, which allows the University to award purchase agreements valued up to $250,000 to a certified small business or disabled veteran-owned business without being competitively bid, so long as the UC obtains price quotations from two or more certified businesses.
Small businesses are the economic engine of California's economy and supporting small businesses creates and sustains jobs that strengthen our state. The Small Business First program is an effective way to leverage the University's vast purchasing power to directly help the people of California.
Bill Cooper, UC AVP & CPO