Minority Business Participation in State Procurement

California’s Public Contract Code, in Division 2, Part 2, Chapter 2, Article 12 requires certain minority business participation.

Section 10470 provides definitions for the following terms: “awarding department,” “contract,” “contractor,” “goal,” “minority business enterprise,” and “women business enterprise.”

Section 10471 states that all specified contracts awarded by any state agency, department, officer, or governmental entity for construction, professional services, materials, supplies, equipment, alteration, repair, or improvement are required to have statewide participation goals of not less than 15% for minority business enterprises, and not less than 5% for women business enterprises. These goals are also applicable to the overall dollar amount expended each year by the awarding department designated for those purposes.

Section 10472 requires, in awarding contracts to the lowest responsible bidder, the awarding department to consider the responsiveness of a bidder to minority business enterprise and women business enterprise goals.

Section 10473 requires each awarding department to establish a method for monitoring compliance with the minority business enterprise and women business enterprise goals required. Each awarding department has to adopt regulations for the purpose of implementing this article. 

Section 10474 requires, on January 1st of each year, each awarding department to submit a report to the Legislature and the Governor on the level of participation by minority or women business enterprises in contracts identified. In addition, if the established goals are not being met, the awarding department must then report the reasons for its inability to achieve these goals and identify remedial steps to be undertaken.