U Integrated CSU Administrative Manual

CSU POLICY

--INACTIVE HISTORICAL 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:  
(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. The goal applies to the total contract dollars expended each year by all campuses.  This includes all contracts, purchase orders, and procurement card orders.

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

 

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.
  • 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 qualifications.
  • Evaluate requests for DVBE waivers for solicitations.

The DVBE participation requirement applies to competitive solicitations regardless of the solicitation format (RFQ, IFB, RFP) or dollar value.  Bidders must document at least one of the following two ways to comply with the DVBE program requirements:

  1. Commit to the required level of DVBE participation
  2. Provide an approved Business Utilization Plan (the Utilization Plan does not apply to Construction).

Bidders for EDP-related contract awards and for purchase order awards may opt to submit a "Utilization Plan" in lieu of meeting the 3 percent participation requirement. Utilization Plans are described in Section 10115.15 of the Public Contract Code.

 

300  DVBE Incentive

The DVBE Incentive is part of the standard DVBE solicitation language. Bidders may receive an incentive for exceeding the 3% participation requirement, making their bids more competitive.  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 a qualifying bidder can receive is 3%. The combination of preferences 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 preferences or incentive.

 

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 five thousand dollars ($5,000), but less than one hundred thousand dollars ($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, 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, 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 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.

 

APPLICABILITY AND AREAS OF RESPONSIBILITY

 

REVISION HISTORY

 

RESOURCES AND REFERENCE MATERIALS

Useful Guidelines:

 

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

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