Disabled Veteran Business Enterprise (DVBE) and Job Order Contracts Presenter: Suzanne LaCaro, Public Works Buyer/ DVBE Coordinator for SB/DVBE Cal Poly State University Contract, Procurement, and Risk Management November 4, 2009

Agenda What is a DVBE? Mandatory DVBE 3% Requirement Policy Change Forms Submitted with Proposals Resources and Information Implementation

What is a DVBE? How do you become a DVBE? A Disabled Veteran is: A veteran of the U.S. military, naval, or air service; The veteran must have a service-connected disability of at least 10%, which is determined by the Dept of Veterans Affairs, and The veteran must be domiciled in California. To be certified as a DVBE company, must meet the following requirements: Your business must be at least 51% owned by one or more certified disabled veterans; Your daily business operations must be managed and controlled by one or more certified disabled veterans  The disabled veteran who manages and controls the business is not required to be an owner of the applicant business; and Your home office must be located in the U.S. (the home office cannot be a branch or subsidiary of a foreign corporation, foreign firm, or other foreign based business).

Mandatory DVBE 3% Participation On July 28, 2009 Governor Schwarzenegger signed assembly bill. This bill eliminated the Good Faith Effort as a means for bidders to satisfy Disabled Veterans Business Enterprise (DVBE) contract participation requirements. Why has the State removed the Good Faith Effort (GFE)?  To increase DVBE participation in State contracts.  To enhance a State department’s ability to meet the legislatively mandated DVBE goal.

Policy Change JOC Supplementary General Conditions, rev 10/23/2009 Special Conditions, rev 10/23/2009 Required Documentation with each Proposal

Required DVBE Forms/ Documentation DVBE Compliance Form (DVBE-C) DVBE Transmittal Form (Attachment 0) Summary of DVBE Participation (Attachment 1) Bidders Certification (Attachment 2) Active/Diligent Effort documented by the Contractor

Resources and Information Bid Sync: Contract, Procurement, and Risk Management, Suzanne LaCaro, CA Small Business and DVBE Services – Compliance News Networking with DVBE commodity and service providers Vendor Conferences

Implementing a Process Upon review of the Scope of Work/Specification, Contractor, University Project Manager (PM) and DVBE Coordinator must evaluate where there is the most DVBE available… “bang for our buck”. Contractor meets with sub contractors and identify DVBE suppliers/service providers to solicit for quotes. Actively and diligently contact as many DVBE’s that fit the scope of work/specification in order to get competitive bids. Calculate proposals, submit to (PM) for review, submit all DVBE compliance documentation.

#1 Scenario First Job Order JOC – Roofing Estimated cost $ 45, $45, x 3%= $1, A minimum of $1, dollars need to be spent with DVBE supplier/service provider. Search Bid Sync, contact DVBE roofing material suppliers/service providers, actively and diligently request quotes, require sub contractors to use DVBE vendors. (Faxing does not constitute as an active and diligent effort.) Contractor was successful in obtaining material from DVBE. Total monies spent $1, = 3.07% per job order Result: Total monies spent to date = $45, Total aggregate of DVBE participation = 3.07% Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #2.

#2 – Scenario Second Job Order: JOC – Hazard Material Removal Estimated cost $ 140, $140, x 3% = $4, A minimum of $4, dollars need to be spent with DVBE supplier/service provider. JOC Contractor has an approved Haz Mat removal company, non-DVBE). Search Bid Sync, contact DVBE material suppliers/service providers, actively and diligently request quotes, require sub contractors to use DVBE vendors. (Faxing does not constitute as an active and diligent effort.) Contractor was not successful in getting DVBE participation. Result: Total monies spent to date = $185, Total aggregate DVBE percentage =.075%. Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #4.

#3 Scenario Third Job Order: JOC – Engineering Services Estimated cost $184, $184, x 3% = $5, A minimum of $5, dollars need to be spent with DVBE supplier/service provider. Search Bid Sync, contact DVBE material suppliers/service providers, actively and diligently request quotes, require sub contractors to use DVBE vendors. (Faxing does not constitute as an active and diligent effort.) Contractor was successful in obtaining material/service from DVBE. Cost $8, = 4.33% Result: Total monies spent to date = $370, Aggregate DVBE percentage 2.45%. Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #3.

#4 Scenario Fourth Job Order: JOC – Restroom Renovation Estimated cost $55, $55, x 3% = $1, A minimum of $1, dollars need to be spent with DVBE supplier/service provider. Search Bid Sync, contact DVBE material suppliers/service providers, actively and diligently request quotes, require sub contractors to use DVBE vendors. (Faxing does not constitute as an active and diligent effort.) Contractor was successful in obtaining material/service from DVBE. Cost $3, = 6.63% Result: Total monies spent to date = $425, Aggregate DVBE percentage 3.03%. Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #2.

In conclusion…. University and Contractor must work together Be pro-active, communication, and establishing “new relationships” are important elements in all successful programs. THANK YOU!!!