Disabled Veteran Business Enterprise (DVBE) and Job Order Contracts

1. 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

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

3. 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).

4. 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.

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

6. 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

7. Resources and Information • Bid Sync: http://www.bidsync.com/DPXBisCASB • Contract, Procurement, and Risk Management, Suzanne LaCaro, slacaro@calpoly.edu 805-756-5190. • CA Small Business and DVBE Serviceswww.dgs.ca.gov – 916-375-4940 • Compliance News www.compliancenews.com • Networking with DVBE commodity and service providers • Vendor Conferences

8. 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.

9. #1 Scenario • First Job Order JOC 09-019.001.00 – Roofing • Estimated cost $ 45,500.00. $45,500.00 x 3%= $1,365.00 • A minimum of $1,365.00 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 $1,400.00 = 3.07% per job order • Result: Total monies spent to date = $45,500.00. Total aggregate of DVBE participation = 3.07% • Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #2.

10. #2 – Scenario • Second Job Order: JOC 09-019.002.00 – Hazard Material Removal • Estimated cost $ 140,000.00. $140,000.00 x 3% = $4,200.00. • A minimum of $4,200.00 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 = $185,500.00. Total aggregate DVBE percentage = .075%. • Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #4.

11. #3 Scenario • Third Job Order: JOC 09-019.003.00 – Engineering Services • Estimated cost $184,542.00. $184,542.00 x 3% = $5,536.26 • A minimum of $5,536.26 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 $8,000.00 = 4.33% • Result: Total monies spent to date = $370,042.00 Aggregate DVBE percentage 2.45%. • Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #3.

12. #4 Scenario • Fourth Job Order: JOC 09-019.004.00 – Restroom Renovation • Estimated cost $55,000.00. $55,000.00 x 3% = $1,650.00 • A minimum of $1,650.00 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 $3,500.00 = 6.63% • Result: Total monies spent to date = $425,042.00 Aggregate DVBE percentage 3.03%. • Proposal Submittal: Complete DVBE Compliance Form, follow instruction on #2.

13. 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!!!