To sell to California government, register on Cal eProcure. Out-of-state vendors allowed but CA gives 5% preference to state-based in distressed areas. State spends $310 billion annually with massive tech buying through Caltrans, Department of Technology, health, and General Services.
Who Can Sell to California?
Any business can bid. Out-of-state vendors compete equally except in distressed areas (5% CA preference). Certified SB receives 5% bid preference statewide. DVBE receives strongest preferences. Your business needs valid legal structure and federal EIN.
How to Register as a Vendor
Register on Cal eProcure. Create account with business information, federal UEI, and contact details. Enter NAICS codes, commodity codes, and service categories. Upload W-9 and business license. If applying for SB, MB, or DVBE, complete certification questions. Registration is free, takes 3-7 days. Cal eProcure auto-alerts matching opportunities.
State Certifications That Help You Win
DVBE: 51% disabled veteran (20%+ disability) ownership. CA residency required. 3% procurement goal and strongest preferences. SB (Small Business): ≤100 employees AND ≤$14M revenue. 5% bid preference statewide and set-asides. Free certification, annual renewal. MB (Minority Business): 51% socially/economically disadvantaged ownership. Preferences and set-asides.
Contract Thresholds and Bidding Rules
Under $100K: SB can win sole-source (no competition). $100K-$250K: set-aside for certified SB with SB-only competition. Over $250K: open to all, competitive. California uses best-value selection (cost is one factor). Technical capability, past performance, and sustainability heavily weighted. Prevailing wage applies to most service/construction contracts. Set-aside contracts common.
Top Agencies Buying Technology
Caltrans manages nation's largest state transportation system. Procures traffic management, fleet software, structural monitoring technology, IT infrastructure. CA Department of Technology purchases enterprise software, cybersecurity, cloud services, IT staffing. Department of Health Care Services procures health information systems. Department of General Services manages procurement for all agencies, buys office technology, software licenses, IT services.
How State Contracting Differs from Federal
CA state contracts often larger than federal. More negotiation on pricing/terms than FAR allows. Payment Net 30-60 (similar federal). However, CA prevailing wage, apprenticeship, sustainable procurement requirements add complexity. State emphasizes environmental sustainability—consider green solutions in proposals.
Frequently Asked Questions
Q: 5% CA preference cost?
On $100K contract: ~$5K if out-of-state. Overcome with superior technical capability or savings exceeding 5%.
Q: California SB vs federal 8(a)?
CA SB state-specific (≤100 employees, ≤$14M). Federal 8(a) different. Can hold both; check both requirements.
Q: Prevailing wage calculation?
Rates published by county. Add 20-40% to standard labor costs on construction/service contracts. Check solicitation wage schedule.
Q: Win without certification?
Yes. Uncertified vendors can bid/win. Certified have 5-10% advantages. Focus on technical superiority and strong references.
Q: Competition level?
Very competitive. CA attracts national and innovative vendors. However, abundant opportunities. Focus on agency priorities (sustainability, modernization, transportation).