Reference Publications and Forms

A Guide to Disabled Veteran Business Enterprises (DVBEs)

An Introduction to the DVBE Participation Program

DVBE Resources

• What's a DVBE Participation Goal?
• What Can a DVBE Do For Me?
• What's a "Certified" DVBE?

T he State of California acknowledges the service and sacrifice of its disabled veterans, in part, through the "Disabled Veteran Business Enterprise (DVBE) Participation Program." With the DVBE program, state agencies have a goal to award at least 3% of their annual contract dollars to certified DVBEs. The state agency decides whether or not to include the DVBE participation requirements in a particular solicitation and the percentage of the goal, if it is included. The result is that some contracts may have a goal of more than 3%, some may have a goal of less than 3%, and some contracts may have no DVBE participation goal.

Meeting DVBE Participation Program Requirements

When a firm bids on a state solicitation containing DVBE program requirements, the bid must addraess how the firm intends to meet the DVBE goal or document its "good faith effort" to obtain DVBE participation. If the bidder does not respond to the DVBE requirements, the bid will be considered "non-responsive" and ineligible for award.

Bidders have three options for meeting the DVBE requirements:
A. Commit to full DVBE participation. Locate and commit to using certified DVBE firms who will perform at least 3%, or the percent of work specified by the solicitation; or
B. Document your good faith effort to obtain DVBE participation; or
C. Reference a DGS-approved DVBE Utilization Plan.

What Role Can a DVBE Play in My Bid?

There are hundreds of certified DVBEs who provide a wide range of services and goods. These firms are composed of capable businesspeople who want to build business partnerships to help their businesses succeed and grow.

When you're deciding what portion of the contract can best be performed by a DVBE, think broadly about all the goods and services needed to complete the contract on which you are bidding.

If you are unable to identify a specific portion of the proposed contract to subcontract, the State encourages bidders to avoid making a predetermination that no DVBEs are able to perform without first contacting and soliciting participation from them. This allows DVBEs to respond whether they can or cannot provide any goods or perform services related to the solicitation, and provides a bidder with responses for consideration.

The California Code of Regulations state that the DVBE (or DVBEs) you choose must perform a "commercially useful function" in the state contract on which you are bidding. A DVBE contractor, subcontractor or supplier is considered performing a commercially useful function when it meets the following criterion:

(1) The business concern is: responsible for the execution of a distinct element of the work of the contract; carrying out its obligation by actually performing, managing or supervising the work involved; and performing work that is normal for its business services and function, and (2) the business concern is not further subcontracting a greater portion of the work than would be expected by normal industry practices.

Again, think broadly about how you can use a DVBE. For example:

• Can a DVBE supply a portion of the goods?
• Are there any special supplies needed to perform the contract?
• What about shipping or warehousing?
• Can a DVBE perform part of a study or survey?

You know the job best. Where do you think a DVBE fits in?

When a firm bids on a state contract that has a DVBE participation goal, the firm must address how it intends to comply with the goal. If the bidding firm does not address the DVBE participation goal, the bid will be considered "non-responsive."

What is a "Certified" DVBE?

A certified DVBE is a business currently certified by the State of California, (DGSPD) Office of Small Business and DVBE Certification (OSDC).
To receive DVBE certification, a business must:

1. Be at least 51% owned by one or more disabled veterans;
2. Have its daily business operations managed and controlled by one or more disabled veterans. The disabled veterans who exercise management
   and control are not required to be the same disabled veterans who own the  business; and
3. Have its home office located in the United States. The home office cannot be a branch or subsidiary of a foreign corporation, foreign firm, or other foreign-based business.

The law defines a disabled veteran as a United States military, naval or air service veteran with a service related disability of at least 10 percent and who is a resident of the State of California.

To receive an application for DVBE certification, contact OSDC at /smbus or (916) 375-4940.

California Department of Veterans Affairs Appoints DVBE Advocate

Assembly Bill 409, effective January 1, 2000, requires the California Department of Veterans Affairs to appoint a DVBE Advocate.

The advocate's primary responsibility is to work with state agencies and DVBEs to achieve the goals of the DVBE Participation Program. This includes disseminating information, promoting and coordinating DVBE outreach efforts, and coordinating report submittal.

Compliance Option A: Finding a DVBE
Compliance Option B: The "Good Faith Effort"

• State and  Federal Contacts

Compliance Option C: The DVBE Business Utilization Plan
Other DVBE Program Requirements