1. DVBE BEST PRACTICES Thomas J. Johnson, C.P.M. Tjohnson@cslanet.calstatela.edu March 22, 2006

2. DVBE GOAL 3%

3. DIFFICULT GOAL MANY PLACES TO STUMBLE Large Construction Contracts System Wide Contracts MEAs Contracts with large Suppliers such as Dell & HP Commodities without DVBEs Laws do not help much Workload Priorities-expedite

4. What do we do? 1) Change “have” to “get” 2) Outreach 3) Relationship/Networking 4) Use the laws 5) Strategy 6) Continuous Improvement—Feedback 7) Make it easy for DVBE 8) Team CSU

5. Change “have” to “get” This is an opportunity Win-Win: CSU meets goals; Suppliers are developed

6. Outreach DVBEs are small businesses. Promoted by state 1) Need to locate DVBEs 2) Determine their skills & products 3) Develop them as CSU suppliers

7. Relationships System tends to discourage relationships Develop relationships. Use knowledge of suppliers in creating strategy Also, DVBEs are well organized—great networking opportunity Use DVBEs as resources to find and develop other DVBEs

8. Use the Laws Everyone is familiar with 5% SB preference SB115 adds a DVBE incentive of 15% up to $100,000 It may be possible to make 3% DVBE participation mandatory It may be possible to set participation goal higher than 3% and mandatory

9. Strategy Need to create a procurement strategy Where will DVBE participation come from? Construction? Commodities? Services? In what percentages?

10. Continuous Improvement Look at strategy. Is it working? Did you make goal? Where did you succeed? Why? Where did you miss? Why? What adjustments are needed? Review periodically and when starting new year

11. Make it Easy for DVBE Our campuses are tough to crack Need to open our doors to them Help them to help us

12. Team CSU My experience is that we’re fragmented Share successful DVBEs with other campuses Include commodities bought, contacts, experiences

13. Best Practices Areas: 1) Commodities/Services 2) Public Works 3) PCARD

14. Commodities/Services Opportunities:???? Computers Hospitality Peripherals Office Supplies Consultant Service—Peoplesoft Paper Products Janitorial

15. Target Target commodities/services that offer best reward

16. Methods Award under $50,000 bid limit Bid DVBE against DVBE When unable to find DVBE, use DVBE flowdowns on Bids Use DVBE as a minor partner on contracts such as Office Max—Also use off ramp

17. Public Works Public works is critical to DVBE results: 1) Large Contracts without DVBE destroys any chances of meeting goals 2) Large Contracts with excess DVBE can make your year 3) Meet DVBE requirements on contract Must ensure meet either 2 or 3

18. Public Works Procedures Advertisement Invite DVBEs to Job Walk; contact them personally—don’t trust the mail to convey you interest Where to find them: 1) Log of DVBEs from previous bids (DVBEs who have bid or are subs on bids—look at winners and losers) 2) Review DGS for potential DVBEs

19. Public Works Procedures Advertisement Advertise with DVBE Alliance Contact Rich Dryden, 916 446-3510 or www.CADVBE.org

20. Public Works Procedures Walk Through Hand Out and Read DVBE Warning Letter

21. Public Works Procedures DVBE Warning Letter Disabled Veteran Business Enterprise (DVBE) Participation Requirement Project TJ050088, Hydrogen Fueling Station Irrigation & Fencing Project California State University, Los Angeles 5151 State University Drive Los Angeles, California 90032 VERY IMPORTANT NOTICE! In order to satisfy and be responsive to the DVBE requirement, the bidders must either meet the three (3%) percent DVBE Participation Goal or document a “Good Faith Effort” to meet that goal.

22. Public Works Procedures DVBE Warning Letter Disabled Veteran Business Enterprise (DVBE) Participation Requirement Project TJ050088, Hydrogen Fueling Station Irrigation & Fencing Project California State University, Los Angeles 5151 State University Drive Los Angeles, California 90032

23. Public Works Procedures DVBE Warning Letter VERY IMPORTANT NOTICE! In order to satisfy and be responsive to the DVBE requirement, the bidders must either meet the three (3%) percent DVBE Participation Goal or document a “Good Faith Effort” to meet that goal. DVBE Participation Goal Attainment

24. Public Works Procedures DVBE Warning Letter As an example, if the apparent low bidder bid the Architect’s construction estimate amount of $49,000.00 the firm could be responsive to the DVBE requirement by achieving the three (3%) percent DVBE Participation Goal with a minimum of $1,470.00 in DVBE subcontractor and/or supplier participation in the project. Or

25. Public Works Procedures DVBE Warning Letter Good Faith Effort A “Good Faith Effort” to meet the DVBE goal is achieved by doing all of the following five items prior to the final bid due date. The bidder shall: 1.Contact the Trustees’ DVBE Coordinator, telephone (323) 343-3488, to identify potential DVBEs. This telephone call will initiate the provision of information to the bidder;

26. Public Works Procedures DVBE Warning Letter 2.Contact other state and federal government agencies and local DVBE organizations to identify potential DVBEs for this contract; 3.Advertise in trade paper and papers focusing on DVBEs. Advertisement must have appeared in publications at least ten (10) calendar days prior to the bid due date, unless time limits imposed by the Trustees do not permit that advertising;

27. Public Works Procedures DVBE Warning Letter 4.Send solicitation to potential DVBE subcontractors and suppliers for this contract with sufficient lead time to fully entertain and consider responding bids; and 5.Consider responding DVBEs for participation in this contract.

28. Public Works Procedures Walk Through Suggest Mandatory Walk throughs Introduce DVBEs Discuss costs to losers of using good faith Use a DVBE: Avoid Protests, reduce costs State that we have had great success with DVBE utilization and we will challenge any Good Faith effort

29. Public Works Procedures Opportunities/Problems Campus Architects Design Build

30. PCARD Flowdown DVBE requirements to campus when performing trainings When auditing, when DVBE alternates are available, suggest to campus user

31. SUMMARY Excellent DVBE Results are possible when Campus has a plan and executes it Commitment and belief in the program will yield results

32. DVBE BEST PRACTICES Thomas J. Johnson, C.P.M. Tjohnson@cslanet.calstatela.edu March 22, 2006