How California agencies buy software

Most software purchases in California follow one of a handful of paths. Which one applies is driven mainly by dollar value and whether an existing statewide agreement already covers the product.

1. SB/DVBE Option — under $250,000

State departments may contract directly with a certified small business or DVBE for goods, services, and IT valued between $5,000.01 and $249,999.99, after obtaining quotes from two certified businesses. No advertising required. This is generally the fastest route. Full detail.

2. Leveraged procurement agreements

DGS establishes statewide agreements that departments and, in many cases, local agencies can order against without running their own solicitation. The most relevant for software are the California Multiple Award Schedules (CMAS) and the Software Licensing Program.

CMAS agreements are built on an existing competitively awarded base contract — most often a federal GSA Schedule — with California terms layered on. An important detail for buyers: only the prime CMAS contractor and resellers explicitly listed in the CMAS contract may sell under it. If a vendor claims CMAS availability, confirm they appear on the agreement.

3. Competitive solicitation

Above the SB/DVBE Option ceiling and outside an existing agreement, the purchase runs as a formal solicitation through Cal eProcure. These typically carry small business and DVBE participation requirements, and many include a DVBE incentive applied during bid evaluation.

4. Local agency purchasing

Cities, counties, and special districts set their own rules. Informal quote thresholds vary widely, and local preference programs are separate from the state DVBE program. If you are a local agency, your own purchasing ordinance governs — not Government Code 14838.5.

Practical guidance

• Establish the dollar value first. It determines the available paths more than anything else.
• Check for an existing agreement before soliciting. If the product is already on a leveraged agreement your department must use, that generally settles it.
• Confirm reseller authorization. For any vehicle, verify the vendor is authorized for the specific manufacturer and listed on the agreement being cited.
• Verify certifications independently. Cal eProcure for California certifications, SAM.gov for federal registration. Do not rely on a vendor's own website — including this one.

General information summarizing publicly available DGS guidance. Confirm current thresholds and procedures with your procurement office.

Common questions

Do I need my own CMAS contract to sell software to California?

Not necessarily. Only the prime CMAS contractor and resellers explicitly listed in the CMAS contract may sell under it, so being listed as an authorized reseller on a prime's agreement is an alternative to holding your own.

What is the fastest way for a California department to buy software?

For purchases between $5,000.01 and $249,999.99, the SB/DVBE Option is generally fastest — direct contracting with a certified small business or DVBE after two quotes, with no advertising required.