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Compliance Option C:
Referencing an Approved DVBE Business Utilization Plan
The following paragraphs provide an overview of the DVBE Business Utilization Plan option. If you think this option might work for your business, request a DVBE Utilization Plan application by calling (916) 375-4400.
What is a DVBE Business Utilization Plan?
A DVBE Business Utilization Plan is a written commitment to contract with certified DVBEs for at least 3% of your firm's anticipated cost of doing business over the next year (includes subcontracts and some operating expenses excluding rent, employee salaries, wages, etc.). This 3% applies to all business conducted by your firm in the State—not just contracts with the State of California.
State agencies accept approved utilization plans when awarding contracts for goods and information technology (IT) goods and services only. Utilization plans do not apply toward non-IT services and all other types of contracts. Contracts with DVBE Business Utilization Plan holders are not applicable for state agencies' annual DVBE participation goal reports unless the bid specifically commits to subcontracting a specified percentage or dollar amount of the contract to a DVBE.
Who Can Submit a DVBE Business Utilization Plan?
Any firm that intends to bid on state contracts for goods (also described as "materials, supplies or equipment") and IT goods and services (also described as "electronic data processing and telecommunications goods and services") may apply for a utilization plan. However, each firm should decide if a utilization plan is the best method for achieving the DVBE participation goal. This decision requires an evaluation of your firm's total California expenses versus the value of state contracts you anticipate being awarded. The more overall business conducted with DVBEs and the higher the percentage of state contracts you anticipate being awarded, the more sense it makes to consider the utilization plan option.
Some things to consider:
- A utilization plan is a commitment to contract with DVBEs at least 3% of your firm's total anticipated cost of doing business during the next year. If you fail to meet that commitment, you may be prevented from doing future business with the state for up to two years.
- The preparation of a utilization plan and the subsequent reporting requirements take time and commitment. If you only bid on a few state contracts each year, it may be easier to simply fulfill the DVBE requirements each time you bid.
Submit Your DVBE Business Utilization Plan Early
If you are submitting a plan that is intended to satisfy DVBE goals for a particular state agency solicitation, the plan must be approved by the Department of General Services prior to the bid opening date.
Public Contract Code states that a DVBE Business Utilization Plan shall be considered approved "as of the date submitted . . . so long as the plan meets the minimum criteria." So, technically, your plan may be submitted the same day of the bid due date, and if you've done everything correctly, your plan will be approved and will satisfy the DVBE requirements of the solicitation on which you are bidding.
However, waiting until the last day to submit your plan is risky because any errors or omissions must be corrected before the plan can be approved.
If you plan to submit a DVBE Business Utilization Plan and application, submit it as early as possible to allow time for revisions.
To Request a DVBE Business Utilization Plan Application
The DVBE Business Utilization Plan application is available online at:
www.pd.dgs.ca.gov
Go to: Featured Links
Select: DVBE Program
Select: Business Utilization Plan
You may also request a DVBE Business Utilization Plan application by calling the DGS at (916) 375-4400 or (800) 559-5529. An application will be mailed to you.
Active DVBE Business Utilization Plans (as of 12/19/02)
- GovStor
1319 20th Street
Sacramento, CA 95814
Phone: (916) 446-3232
FAX: (916) 313-3426
Approved: 09/06/02
Expires: 08/31/03
- The Very Last Word
50 East Hamilton Ave., Ste. 280
Campbell, CA 95008
Phone: (408) 341-8805
FAX: (408) 341-8808
Approved: 07/25/02
Expires: 05/31/03 |
