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Small Businesses Getting a Portion of California Computer/Photocopier Business
DEC 2005
New
contracts for computer goods and copy machines reached through the
California Strategic Sourcing Initiative are resulting in strong
participation from small businesses and disabled veteran businesses,
the Department of General Services announced yesterday.
Reports to
date show that more than 43 percent of purchases under the new
photocopier contract with Sharp Corp. are being subcontracted to
California small businesses, up from 19 percent in this category before
strategic sourcing. Likewise, more than 27 percent of purchases under
new contracts for computer goods with Gateway and the team of
Hewlett-Packard, Western Blue and Insight Enterprises are being
subcontracted to California small businesses, compared with 11.4
percent in this category before strategic sourcing. In addition, 8.4
percent of the computer purchases and 1.7 percent of the copier
purchases are being subcontracted to disabled veteran business
enterprises (DVBEs), up from 1.2 percent and 1.07 percent, respectively.
“From
the outset of the Strategic Sourcing Initiative, we have focused on
creating opportunities for small businesses and disabled veteran
businesses to grow and prosper,” said Fred Aguiar, Secretary of the
State and Consumer Services Agency, which oversees DGS. “These
contracts are outstanding examples of what strategic sourcing can
achieve.”
The contracts with Sharp, Gateway and the HP-Western
Blue-Insight team were reached this summer. In addition to providing
savings of 18 to 45 percent over the average prices previously paid by
the State, all three contractors committed to subcontract at least 25
percent of the dollar value of the contracts to California small
businesses. In addition, Gateway and the HP-Western Blue-Insight team
committed to subcontract at least 3 percent of the dollar value to
DVBEs.
All three contractors won their contracts based in part on
their commitment to meet the State’s goal for small business
participation. A fourth vendor, IBM, won a contract for notebook
computers but did not commit to meet the goal. Since July, several more
contracts for computer servers and storage devices have been awarded to
vendors that have committed to meet the State’s goals for small
businesses and DVBEs. In addition, West Sacramento-based GovStor, a
certified California small business, won an exclusive contract to
provide Sun Microsystems servers to the State of California.
“We are
excited to be working with so many small businesses and DVBEs as part
of the Strategic Sourcing Initiative,” said DGS Director Ron Joseph.
“Our commitment to these businesses goes beyond achieving a numerical
goal. It reflects our experience that they create tremendous value for
the State through their innovation and commitment to customer service.
We continue to work with the vendor community to increase small
business and DVBE participation in all categories of purchasing, and we
look forward to even greater participation in the future.”
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