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The Disabled Veteran Business Enterprise (DVBE) Participation Program was established to acknowledge disabled veterans for their service and to further DVBE participation in state contracting, promote competition and encourage greater economic opportunity.
The state established a DVBE participation goal of at least three percent. The goal applies to the total contract dollars expended each year by an awarding department. Each state agency establishes their own method for attaining the goal and they have the discretion to include the program goal within individual contracts. Every year, state agencies must also report to the governor and the legislature their total DVBE contracting participation. If the minimum three percent goal is not met, the state agency must provide their reasons for not meeting the goal and an implementation plan for future DVBE participation improvement. They may also be required to stand before a legislative panel to further clarify their results and efforts.
Added DVBE Substitution Changes, Effective 1/1/10
The Department of General Services (DGS) must approve all DVBE subcontractor substitutions and a DVBE subcontrator may only be replaced by another DVBE subcontractor. Solicitations issued on or after January 1, 2010 (Implementation Date) must adhere to provisions of the law regarding DVBE subcontractor substitutions. After award of a contract, the successful bidder/contractor must use the DVBE subcontractor(s) and/or supplier(s) proposed in their bid or offer to the State unless a substitution is requested and is approved by the awarding department and the DGS. See Senate Bill 548, Chapter 595, Statutes of 2009, which amended § 999.5 of the Military and Veterans Code.
See DVBE Substitution Form and Instructions to submit requests for approval to replace a DVBE subcontractor.
The "Good Faith Effort," Effective 7/28/09
The Good Faith Effort (GFE) provision no longer applies to State contracts with a DVBE participation goal. If a solicitation contains a DVBE participation goal, then the awarding department must award the contract to the lowest responsible bidder who meets the goal. Solicitations issued after 11:15 a.m. on July 28, 2009 (Implementation Date) must adhere to provisions of the law and must not contain a GFE option. See ABX4 21 to view Assembly Bill4X 21, §§ 1, 2 and 4, which amended §§ 10115.2, 10115.15 and 10472 of the Public Contract Code. For additional information see the AB4X 21 FAQ's.
See Narrative for more details and assistance to State agencies, departments, boards, and commissions to comply with the new provisions.
Added DVBE Incentive, Effective 10/09/07
The Department of General Services (DGS) established a DVBE incentive pursuant to Senate Bill 115 chaptered October 3, 2005 and the Military and Veterans Code section 999.5(a). The new regulations apply to all competitive solicitations for public works, services, goods, and information technology goods and services posted or released after October 09, 2007. The DVBE incentive is required in solicitations that include DVBE program requirements and may be offered in other competitive solicitations.
The DVBE incentive offers state agencies a tool to increase their DVBE participation while still allowing the flexibility to exempt a contract from the participation requirement should the department deem it necessary. Each state agency should incorporate the use of the DVBE incentive into their plan or strategy to ensure achievement of at least three percent DVBE participation on their total contract dollars.
Added DVBE Participation Requirements, Effective 1/1/04
- DVBEs must perform a commercially useful function related to the contract's specifications.
- A DVBE that rents equipment to an awarding department is considered an equipment broker, unless one or more disabled veterans own 51% of the equipment with evidence to support the fact. This includes submitting to the Office of Small Business and DVBE Services (OSDS), a copy of the complete personal federal income tax return for each of the disabled veteran owners.
- DVBE brokers awarded a contract under the 3% goal provisions must disclose their broker status prior to contract performance.
- Equipment rented from DVBE equipment brokers cannot be credited towards the 3% participation goal.
- State agencies must not use a DVBE if the agency knows that the DVBE does not maintain certification requirements.
See DVBE Program Changes and AB 669 Impact on Small Businesses & DVBEs & SB 1008 Impact on DVBEs.
Authority
Public Contract Code, Section 10115
Military and Veterans Code, Section 999-999.13
California Code of Regulations, Sections 1896.60-1896.67 and 1896.90-1896.98
Need Help? Contact Us
Email OSDSHelp@dgs.ca.gov or call (916) 375-4940. |
