Enterprise Zone Preference

The following information is provided by the Office of Small Business and DVBE Certification of the Department of General Services. Additional information may be found on their Website.

Enterprise Zone Act (EZA)

The Office of Small Business and DVBE Certification (OSDC) is the review agency for the EZA bid preference program which promotes economic development and employment opportunities in designated enterprise zones, by offering bidding preferences in specified State contracts.

Bidding Preferences

The EZA provides a 5 percent bid preference on service and commodity contracts valued at more than $100,000, if the business work site is located in an enterprise zone as designated by the State Trade and Commerce Agency. EZA bid preferences do not apply to construction or other contracts where the provisions of the contract fix the work site.

The EZA allows State contracting officials to give California-based companies the bid preference when:

  • 50 percent of the labor required to perform a commodities contract is performed at the approved EZA work site; and
  • 90 percent of the labor for a service contract is performed at the approved EZA work site.

To receive a contract award based on this preference, you must certify under penalty of perjury that the required contract labor will be accomplished at the approved work site.

Companies qualifying for the 5 percent work site preference may request an additional 1 to 4 percent workforce preference by certifying to hire a specified percent of their contract workforce labor hours from a targeted employment area or from enterprise zone eligible employees.

You must also demonstrate, and certify, that work is accomplished at the identified work site. Penalties may be assessed for non-compliance.

Dated: 03-16-2006