INSERT DEPARTMENT NAME California Disabled Veteran Business Enterprise Program DATE

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(INSERT DEPARTMENT NAME) California
Disabled Veteran Business Enterprise
Program(DATE)
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(Name) DVBE Program Advocate Division
Name Department Name Room Number Phone/Fax
Numbers Email Address
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Todays Training Objective

• Raise awareness for the California Disabled
  Veteran Business Enterprise (DVBE) Program
• Provide tools to assist the department staff
  increase DVBE businesses in their overall
  procurements and contract efforts
• Provide DVBE Resource Information

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Disabled Veteran Business Enterprise Program
OverviewCA Military and Veterans Code 999 et
al PCC 10115

• Legislative and Executive Mandates
• Military and Veterans Code 999 et al
• Public Contract Code 10115
• Executive Order D-43-01
• Purpose
• Recognize CA Service Disabled Veterans for their
  contribution and sacrifice
• Provide CA veterans greater opportunity to
  compete for the billions of dollars awarded
  annually
• Requires
• State agencies/departments to meet annual
  participation goal of 3 percent
• Annual report of Departments DVBE participation
  level
• Explanation why goals were not met and plan for
  achieving goals in the forthcoming FY.
• DVBE program be included in all contract efforts
  over 5,000 unless specifically exempt

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DVBE Defined A Disabled Veteran Business
Enterprise

• Must be 51 owned by at least one disabled
  veteran
• Owner has at least 10 service-connected
  disability
• Owner must be a veteran of the U.S. Military
  service
• Owner must be a California resident
• Home office must be located within the United
  States
• Must be certified by the DGS-Procurement
  Division, Office of Small Business and DVBE
  Services (OSDS)

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Preference Program or Participation Goal?

• The DVBE Participation program is not a
  preference program
• No preference calculation is applied
• The DVBE program is a mandated participation
  program
• Participation goals shall be 3 percent of a
  departments overall contracting dollars spent on
  personal services, IT goods and services,
  commodities and construction services

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DVBE Program Compliance

• Bidders/Contractors achieve compliance in one of
  three ways
• Subcontract with a certified DVBE for at least 3
  of the total contract bid (DGS Option A)
• Complete the Five Steps of the Good Faith
  Effort (DGS Option B)
• Have an approved DGS Utilization Plan on file
  (DGS Option C)

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HOW DO I KNOW IF DVBE PROGRAM REQUIREMENTSSHOULD
BE PART OF MY CONTRACT EFFORT?

• What kind of contract is it - private or public
  entity?
• Does the S.C.M. exempt the contract service from
  DVBE program requirements?
• What services are being requested?
• Are there sub-contractible services or
  commodities?
• Are services of a consulting nature?
• Are there sub-contractible tasks relevant to the
  consulting services?
• Are the services a product of the mind or
  solely reliant upon the contractors education
  with no opportunity to subcontract?
• Are there available DVBE sub-contractors able to
  provide a commercially useful functions or
  commodities?

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CONTRACTS EXEMPT FROM DVBE PROGRAM GOALS

• Interagency Agreements
• Federally funded contracts
• Joint Power Agreements
• Contracts with Colleges
• University Contracts

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When DVBE Program Requirements are Waived for a
Specific Contract

• Insert Bulleted Items or Narrative for your
  Departments DVBE waiver or exemption process

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WHEN DVBE IS PART OF A SOLICITATION

• Does your IFB or RFP include
• IFB/RFP general DVBE program information in the
  solicitation
• DVBE Reporting and Amendment Language
• DVBE Subcontractor Substitution Language
• DVBE Commercially Useful Function definition and
  requirements language
• Std. 840 (or Department developed) DVBE IFB/RFP
  Program Requirement Language
• Std. 840 (or Department developed) DVBE
  Documentation of Disabled Veteran Business
  Enterprise Program Requirements
• Std. 843 Disabled Veteran Business Enterprise
  Declarations
• RFQ
• Insert DVBE program procedures for your
  department
• All of the above language and forms

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DGS DVBE Program Forms/Resources

• Std. 840,California Disabled Veteran Business
  Enterprise Participation Requirements
• Std. 843, Disabled Veteran Business Enterprise
  Declaration Form
• DGS Resource Packet

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Evaluating a Prime Bidders DVBE
Sub-Contractor Selection

• Verify -
• Bidder has completed DGS Form Std. 840,
  Documentation of DVBE Program requirements
• Bidder has included Std. 843, Disabled Veteran
  Business Enterprise Declarations
• At least 3 of contract value is designated
• DVBE OSDS Certification is current
• DVBE is providing Commercially Useful Function
  

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When Primes Comply through a Good Faith
Effort

• Required GFE documents include
• Completed Std. 840 Documentation of Disabled
  Veteran Business Enterprise Program Requirements
• Completed Std. 840A - additional contacts - when
  applicable
• Associated Documentation
• Evidence of State or Local/County Contacts
• Evidence of Contractor Advertisement
• Evidence of Consideration of DVBE Businesses
  Contacted
• Evidence of Federal Contact
• Results of Efforts

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Evaluating GFE Steps

• Verify the GFE includes
• Documentation of Contact with Department
  (contracting official or other designated person)
• Documentation of Contact with Local Agency
• Documentation of Contact with State Agencies
• Documentation of Federal Agency contact
  (SBA/Pro-Net/CCR)
• Documentation of Advertisement posted at least 14
  days before bid submission date
• Advertisement includes Department Name, Bid
  Number and Due Date, services or commodities
  requested, region/location, DVBE response due
  date, Bidder contact information.
• Advertisement was placed in DGS identified trade
  and focus, or dual purpose publication
• Documentation that DVBE companies contacted were
  considered
• Documentation for not selecting contacted DVBE
  companies

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Deal Breakers

• Designated Department, or DGS Std. 840, DVBE
  Forms not used
• DVBE does not provide commercially useful
  function i.e. commodities/services
• Advertisement not posted at least 14 days before
  bid submission
• Advertisement not posted in DGS authorized Trade
  and Focus, or Dual Purpose publication
• Bidder did not provide documentation of contact
  with DVBE contractors
• DVBE suppliers/contractors identified were not
  considered
• No documented Federal contact
• No documented State or Local contact
• Selected DVBE is not currently certified through
  DGS/OSDS

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A Word about Commercially UsefulCalifornia
Code of Regulations, Title 2, Sec. 1896.61(l) and
Military and Veterans Code 999(e)(2)

• New law AB 669, Statutes 2003, Chapter 623
• Applies to DVBE prime and subcontractor
  services/commodities.
• Services/commodities must fulfill a
  commercially useful function.
• Consequences failure to provide a CUF
  jeopardizes the businesses certification
• What is a commercially useful function?

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Definition of Commercially Useful Function

• A Business serves a Commercially Useful
  Function when it
• Is responsible for the execution of a distinct
  element of the contract work
• Carries out the obligation by actually
  performing, managing or supervising the work
  involved
• Performs work that is normal for its business
  services and function
• Is not further subcontracting a portion to the
  work that is greater than expected by normal
  industry practices.
• Not CUF when
• Contractor, subcontractor or suppliers role is
  that of an extra participant in a transaction,
  contract, or project through which funds are
  passed in order to obtain the appearance of DVBE
  participation.
• Example of pass through equipment rental
  contractors who dont own the equipment they are
  providing, but going to outside source.

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DGS Std. 843 Disabled Veteran Business
Enterprise Declaration

• To be included in all solicitations
• Must be completed by DVBE owners and DVBE
  managers providing services or commodities
  through subcontracting
• Must declare the ownership or brokering of rented
  or the that the DVBE firm is acting as a broker
  agent
• State funds expended for equipment rented from
  equipment brokers pursuant to contracts awarded
  under Military and Veterans Code, Section 999.2
  (f) shall not be credited toward the 3-percent
  participation goal

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Increasing Department DVBE Business
Opportunities

• SB/DVBE Bid Option (Government Code 14838.5)
• FEATURES -
• Applies to personal services and commodity
  purchases gt5,000 and lt 100,000
• Applies to Public Works contracts lt120,000
• Allows the direct solicitation within the DGS
  Certified DVBE community
• Requires a minimum of two quote responses from
  DGS Certified DVBE companies
• BENEFITS -
• Immediately increases department participation
  levels
• Boosts DVBE business opportunity
• Encourages certification within the DVBE business
  community

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How Do I find DVBE Firms?

• To locate certified DVBE Businesses, visit
• www.pd.dgs.ca.gov/smbus/default.htm
• Contact the advocate for assistance
• Develop your own list of DVBE companies for
  frequently used services or commodities

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DVBE Advocate Responsibilities

• Monitor DVBE legislation/regulations
• Implement DVBE program changes
• Provide staff with DVBE program training
• Assist prime bidders to comply with DVBE program
  requirements
• Facilitate prime bidder/DVBE business
  partnerships
• Participate in state and business community
  outreach events
• Prepare annual DVBE participation reports

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How You Can Assist the Advocate

• Include the Advocate early in the contract/bid
  process
• Include appropriate DVBE language and forms in
  the bid or contract package
• Actively ensure Prime remains DVBE compliant
• Forward Prime/DVBE reports to the Advocate
• Notify the Advocate if a DVBE substitution is
  requested
• Notify the Advocate if there is suspected DVBE
  fraud

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DVBE RESOURCES AND INFORMATION

• (Department Name) SB/DVBE Advocate
• (Department Name) SB/DVBE Homepage
• Web-links
• Publications
• Forms
• DGS/Office of Small Business and DVBE Services
  (OSDS)
• DGS Publications
• DGS Resource Information Packet
• OSDS Certified Firm Search
• California Military and Veterans Code 999 et al
• Public Contract Code 10115
• State Contract Manual (SCM), Chapter 8
• Business Participation Program Requirements