A bill to require the government to receive price quotes from businesses run by disabled veterans when they consider new IT projects is winding its way through the state Legislature, in an attempt to get state government to invest in more small businesses.
AB 1568’s author, Shannon Grove (R-Bakersfield), wrote the bill to increase the number of disabled veteran business enterprises (DVBE) firms contracting with the state, rather than focusing on a very small number of businesses and neglecting the others.
Existing law requires that state agencies must obtain price quotations from two or more certified businesses. This new bill would require a state agency considering a new IT project worth between $5,000 and $250,000 to solicit at least three price quotations and receive at least two price quotations from certified small businesses or DVBEs.
According to a report by the state auditor released on Feb. 18, 2014, 83 percent of contract award amounts given to DVBEs went to only 30 DVBE firms, which is just 2 percent of California’s DVBEs.
"For the DVBE program to benefit a broad base of disabled veteran-owned businesses financially, the Legislature should enact legislation aimed at increasing the number of DVBEs that contract with the state," the state auditor recommended to the legislature.
The Assembly Appropriations Committee passed the bill in a vote of 17-0 on May 23. AB 1568 was approved by the assembly on Wednesday and is now awaiting action by the senate.
Photo from Shutterstock
