U Integrated CSU Administrative Manual

CSU POLICY

Section:   CSU POLICY MANUAL FOR CONTRACTING & PROCUREMENT

Section 5000 Policies

Policy Number:  5215.0

Policy Title: Disabled Veteran Business Enterprise (DVBE) Participation Goals

Policy Effective Date:  October 22, 2009

Last Revision Date:  December 14, 2011
(see revision history)

POLICY OBJECTIVE

To establish system wide contracting and procurement policy as required by Education Code 89036.

POLICY STATEMENT


100  Goal

The Disabled Veteran Business Enterprise (DVBE) Participation Program was established to acknowledge disabled veterans for their service and to further DVBE participation in state contracting, promote competition and encourage greater economic opportunity.

The state established a DVBE contracting participation goal of at least three percent (3%). The goal applies to the total contract dollars expended each year by all campuses.  This includes all contracts, purchase orders, and procurement card orders.

200  Requirements

Disabled Veteran (DVBE) Advocate:  The CSU has established, within the Chancellor’s Office Department of Contracts and Procurement a DVBE Advocate and at each campus a DVBE Coordinator, consistent with the provisions of 999.12 of the Military and Veterans Code, to do all of the following:

  • Assist certified DVBE firms to participate in the agency’s contracting process. 
  • Assist contract officers in seeking DVBE firms to participate in the agency’s contract and procurement activities.
  • Disseminate information to the agency’s contracts and procurement office: e.g. New policies, procedures, laws. SB/DVBE bid procedures;
  • Serve as an advocate for the DVBE firms that are utilized as the agency’s contractors or subcontractors.
  • Report to the Office of Small Business and DVBE Services (OSDS) regarding any violation of this article.
  • Coordinate with the state DVBE advocate at the Department of Veterans Affairs in an effort to meet the statewide 3 percent goal provided for in section 999 of the Military and Veterans Code.

In addition to the above program responsibilities, the DVBE advocate, Campus DVBE Coordinator, or designee has the following responsibilities:

  • Determine if and when the level of DVBE participation for individual solicitation should be greater than 3%.
  • Evaluate the participation compliance in proposals and bids, including verification of DVBE certifications. Determine if a commercially useful function (CUF) is being provided by all DVBE primes and subcontractors.
  • Evaluate requests for DVBE waivers for solicitations.

The DVBE participation requirement applies to all advertised competitive solicitations regardless of the solicitation format (RFQ, IFB, RFP) or dollar value.  Bidders must document their compliance with the DVBE program requirements.

In the effort to reach or exceed the annual DVBE goal, campuses may specify an amount of DVBE participation greater than 3% for an individual solicitation.

If 1) the DVBE requirement is waived, or 2) the DVBE requirement is reduced, or 3) the incentive or other portion of the standard DVBE solicitation requirement is not included in a bid, then a completed and approved waiver form shall be included in the solicitation file, justifying the change.

 

300  DVBE Incentive

The DVBE Incentive is required as part of the standard DVBE solicitation language unless waived. Bidders may receive an incentive for exceeding the 3% participation requirement.  Campuses have the ability to determine the level of DVBE incentive they will offer for corresponding levels of participation, i.e., the more DVBE participation they propose, the higher the incentive.  This information must be included in the solicitation.  The minimum incentive level a qualifying bidder can receive is 1%. The combination of all preferences (i.e., TACPA, LAMBRA, SB, EZA, Recycled Products) with a DVBE incentive cannot exceed 10% or $100,000, whichever is less.  A non-small business cannot displace a California certified small business from the top-ranked position because of application of the above preferences or DVBE incentive.

The DVBE incentive is a method that provides an advantage to certain bidders. The incentive is applied during the evaluation process for bids proposing participation of California certified DVBEs. The application of an incentive varies from that of a preference both in when it is incorporated into competitive solicitations and how incentive percentages are determined and calculated. Unlike preferences in which the inclusion is standardized in competitive solicitations and a standard percentage is stipulated, discretion is left to campuses to determine incentive percentages for a particular transaction based upon a business strategy to achieve their overall annual goal.

400  SB/DVBE Option

A campus may award a contract for the acquisition of goods, services or information technology that has an estimated value of greater than $5,000, but less than $250,000 to a certified small business or disabled veteran business enterprise, as long as the campus obtains price quotations from two or more certified small business or disabled veteran business enterprises as referenced in Government Code Section 14838.5.

For construction contracts, as covered in ICSUAM 9000, campuses may award a contract that has an estimated value of greater than $5,000, but less than $250,000, the cost limit as identified in Public Contract Code Section 10105, notwithstanding advertising or bidding requirements, to a certified small business, including a micro-business, or to a disabled veteran business enterprise, as long as written bids are obtained from two or more certified small businesses, including micro-businesses, or from two or more disabled veteran business enterprises. In implementing this provision, the Trustees shall consider a responsive offer timely received from a responsible certified small business, including a micro-business, or from a disabled veteran business enterprise as referenced in Government Code Section 14838.7 (The high-end cost limit as identified above is currently $250,000--this number is periodically adjusted by the CA Dept. of Finance.)

500  Reporting

Activity reports shall be prepared and submitted annually by each campus to the Department of General Services. A copy of activity reports shall be sent to the Chancellor’s Office, Department of Contract Services and Procurement in order to consolidate activity for the CSU system.  Campuses shall submit reports in accordance with due dates specified at: http://www.calstate.edu/CSP/reports.shtml.

Benjamin F. Quillian
Executive Vice-Chancellor/Chief Financial Officer

Approved: December 14, 2011

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

October 22, 2009

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

How to assist certified DVBE firms to participate in the agency’s contracting process:

  • Establish the campus point of contact for DVBE firms;
  • Provide potential DVBE help in becoming certified with the State;
  • Add DVBE to bidders lists for both prime and sub opportunities.
  • Search DGS site for DVBE for business opportunities;
  • Network with campuses and state agencies to find qualified DVBE.

How to assist contract officers in seeking DVBE firms to participate in the agency’s contract and procurement activities:

How to serve as an advocate for the DVBE firms that are utilized as the agency’s contractors or subcontractors:

  • Communicate to DVBEs about Job walks;
  • Consider lowering insurance requirements for DVBE and SB;
  • Share SB/DVBE contact information with other campuses;
  • Establishing prompt payment for DVBE and SB.

How to report DVBE/SB program violations:

Commercially Useful Function (CUF) Definition:

A certified SB/MB or DVBE is deemed to perform a commercially useful function if the business does all of the following:

  • Is responsible for the execution of a distinct element of the work of the contract.
  • Carries out its obligation by actually performing, managing, or supervising the work involved.
  • Performs work that is normal for its business services and functions.
  • Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.

Procedure to determine if opportunity exists for DVBE participation in a procurement:

To determine if opportunity exists for DVBE as prime bidders, use the DVBE search methods below. To determine if opportunity exists for DVBE as subcontractors, make a list of all significant parts of the deliverables that might be sub-contracted and check for interested DVBE’s using the search methods below:

    • Check previous contract for DVBE participation.
    • Check previous solicitation for interested DVBE bidders or proposed subs from winning and losing bids.
    • Utilize the DVBE Business Organizations websites:
    • Check registered DVBE suppliers with the campus.
    • Search DGS Leveraged Procurement Agreements (LPAs) database for DVBE suppliers. http://www.eprocure.dgs.ca.gov/default.htm
    • Search DGS SB/DVBE database for DVBE’s.  http://www.bidsync.com/DPXBisCASB 
    • Send inquiry to the systemwide “csubuyer” or “advocates” email lists.
      • Ask DVBE Advocate for interested vendors.

    Related Principles:

     

    Sound Business Practices:

     

    Laws, State Codes, Regulations and Mandates:

    Reference: Public Contract Code Section 10111, 10115 et seq.; CCR Title 5 Section 43870 et seq., Military and Veterans Code, Sections 999.2, 999.5, 999.7, 999.11 and 999.12, Government Code Section 14838.5

    COGNIZANT OFFICE(S)

    CO Manager:

    Tom Roberts
    Director, Contract Services & Procurement
    CSU Office of the Chancellor
    troberts@calstate.edu

    Subject Expert:

    Tom Roberts
    Director, Contract Services & Procurement
    CSU Office of the Chancellor
    troberts@calstate.edu

    Affinity Group:

    Procurement and Support Services Officers

    Feedback/Questions/Comments