The State of California usually awards contracts to the low bidder, except for using "Best Value" techniques to determine Information Technology (IT) suppliers for large-scale systems integration projects and IT services. The State's procurement procedures are designed to produce maximum competition, although the procedures vary with the size and type of procurement. California statutes are designed to make it easy for potential suppliers to submit competitive bids.
For Materials, Supplies and equipment -- if the estimated value of the procurement is under $25,000, the procuring agency may accept bids by telephone or in writing. If the estimated value is $25,000 or more, the procuring agency must solicit sealed bids or proposals. The solicitation includes bid package forms that the bidder must complete, sign and submit with the bid. The solicitation also specifies the address to which the sealed bid is submitted and the deadline by which it must be submitted.
For Information Technology Goods and Services -- if the anticipated value of the procurement exceeds $500,000, the procuring agency must solicit sealed bids.
State agencies and departments apply various techniques to determine "Best Value" in evaluating bids, including competitive negotiation, alternative procurement methods and performance-based contracting. In such instances, the award is made, not to the "low bidder", but to the supplier whose proposal represents the best value for the State of California.
