If I am the monetary low bidder and claim the non-small business preference, can I be displaced by a lower ranked bidder claiming the small business preference?
Yes. The California Code of Regulations Section 1896.8 states: a. If, after application of the small business preference to the bid of a small business, that bid is equal to the lowest priced, responsive bid from a responsible non-small business, or equal to the highest scored bid offered by a responsible non-small business, as applicable, the contract shall be awarded to the small business for the amount of its bid. b. If, after application of the non-small business subcontractor preference, a responsible non-small business that has submitted a responsive bid is the lowest bidder, and does not displace a small business from winning the award (emphasis added), the contract shall be awarded to the non-small business for the amount of its bid. Accordingly, the Department applies the small business preference to eligible firms first, then applies the non-small business preference if doing so would not displace a small business from winning the award.
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