DVBE Incentive Program

Senate Bill 115 (The California DVBE Program, Chapter 451, Statutes of 2005) mandates a new incentive program to help state agencies meet their annual DVBE participation goals.

The Department of General Service’s policy implements this program by rewarding prime bidders for increased DVBE participation:

The more DVBE participation,
the greater the incentive.

For example:

1. SJSU posts a RFB that requires a DVBE participation of 3%.
2. Bidder A responds with a $100,000 bid and 7% DVBE participation.
3. Bidder B responds with a $92,000 bid and 3% DVBE participation.
4. Bidder A is granted a 10% bid incentive, wins the award, and is paid $100,000 for the project.

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San José, CA 95192-0041
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