Most businesses picture state contracting as a long formal bid against dozens of competitors. For certified firms, there’s a faster route. The SB/DVBE Option lets California state agencies award contracts directly to a certified Small Business (SB), Micro Business (MB) or Disabled Veteran Business Enterprise (DVBE) after comparing just two quotes.
How the SB/DVBE Option works
When a purchase falls within the Option’s dollar limits, a state agency can skip the formal competitive solicitation. It gets price quotes from at least two California-certified SB/MB or DVBE firms, then awards the contract to one of them, usually the lowest responsible quote.
Dollar limits
- Goods, services and IT: up to $249,999.99
- Public works: up to $461,000
These are the limits Caltrans currently publishes, effective February 1, 2024. Limits are adjusted periodically, so check the current figure with the buying agency.
Why it matters
- Less competition. You’re one of two or a few certified firms asked to quote, not one of dozens of bidders.
- Faster awards. Agencies use the Option because it saves them weeks of formal solicitation work.
- Repeat business. Buyers who have a good experience with a certified firm tend to come back.
- Only certified firms qualify. An uncertified business can’t be awarded a contract under the Option, however competitive its price.
How to get on a buyer’s shortlist
- Get certified. Apply for California Small Business certification or DVBE certification through Cal eProcure. It’s free.
- Choose the right commodity codes in your Cal eProcure profile, since buyers search by code.
- Write a clear profile description that names your services the way a buyer would search for them.
- Introduce yourself to agency small business advocates and buyers. Send them your one-page capability statement.
- Keep your certification current. A lapsed certification removes you from buyers’ searches immediately.
- Respond fast and quote cleanly. Buyers using the Option want a quick, complete quote they can process easily.
What about the 5% preference?
The SB/DVBE Option is separate from the 5% small business bid preference. On a formal state solicitation, certified SB and Micro Businesses receive a 5% preference in the price evaluation. Certification gives you both advantages. See how to start government contracting in California for the full picture.
Frequently asked questions
What is the SB/DVBE Option in California?
It lets a state agency award a contract directly to a certified Small Business, Micro Business or DVBE after getting price quotes from at least two certified firms, without running a full competitive solicitation.
How much can a state agency award under the SB/DVBE Option?
Up to $249,999.99 for goods, services and IT, and up to $461,000 for public works, according to current Caltrans guidance effective February 1, 2024.
Do I have to be certified to use the SB/DVBE Option?
Yes. Only California-certified SB, Micro Business or DVBE firms can receive contracts under the Option.
How do I get a state agency to ask me for a quote?
Keep your certification and Cal eProcure profile current with the right commodity codes, then introduce your firm directly to agency buyers and small business advocates.
Work with GERC
We handle California SB, Micro Business, SB-PW and DVBE certification, set up and optimize Cal eProcure profiles, and help firms get in front of state buyers. GERC is a woman-owned firm in San Bernardino, registered in SAM.gov under CAGE code 11SD2 and certified by the State of California as a Small Business (Micro) and a Small Business for Public Works (SB-PW). Book a consultation or see our capability statement.