DGS Small Business Council Meeting - March 22, 2006

Statewide SB Advocate:  Mr. Dennis Trinidad, Office of the Governor, thanked the Council for the invitation to speak and highlighted several issues of interest to SBs:

• The Governor will fill positions on the Business, Transportation & Housing Agency's Small Business Board and Mr. Trinidad will serve as chairman of the board.
• Mr. Trinidad relayed that the Governor has been very pro-business and he wants to reaffirm his interest in small business by re-issuing an Executive Order on participation of small businesses.
• An upcoming Memorandum of Understanding (MOU) with the Small Business Administration will proclaim May 17th as Small Business Day.  The Governor has confirmed he will be the keynote speaker at the conference.  GTC will partner on the event and have a small business pavilion exposition in order to attract 2000-3000 small businesses.  More information will follow.  Jaime Rojas, California Hispanic Chamber, is on the committee.  The California Black Chamber has been invited to participate and attend.  Please contact Dennis Trinidad if anyone has an interest in participating.  Betty Jo Toccoli and Mariel Dennis are also involved.  The Council members will be receiving an invitation.  ACTION:  Mariel to advise Mr. Trinidad of details of DGS and National Contract Management Association's "Partners in Learning" session that will focus on recent legislation with an emphasis on the State's SB and DVBE programs and recent legislation.
• Mr. Trinidad is also involved in creating a State business portal that will link all business websites for more timely information.
• Comments:  Ms. Brinton inquired about the Governor's priorities with the various initiatives.  The discussion suggested consideration of an annual meeting for the various internal state stakeholders with interest in SB to enhance coordination of efforts and share best practices.

• Reviewed current contract status and estimated savings on 29 CSSI contracts in place as well as the newest contracts.  A chart was shared to show spend statistics, including very positive SB participation.  The chart is posted on the SBC web site. Ms. Hamilton pointed out that the CSSI contracts will save more than $180 million through 2007.
• Office supplies contract with OfficeMax expires on July 18, 2006.  A new contract needs to be in place by June 1, 2006.  DGS representatives met with many potential prime bidders about possible improvements to enhance participation of SB/DVBEs. A Request for Proposal (RFP) will be released around March 31, 2006.  Two Bidder's Conferences will be held; one in Sacramento and one in Southern California.  It is the goal of DGS for businesses to be successful in responding to the bid and provide a commercially useful function.   The office supplies contract is an opportunity to apply incentives and best value in the use of the State's buying power.  It is our goal to get qualified suppliers, quickly and with a service-minded model.  Ms. Hamilton mentioned there is a brochure on how to purchase office supplies using SB/DVBE "off-ramps".
• Ms. Brinton asked what the Procurement Division (PD) is doing in terms of contract compliance.  Ms. Voss stated PD reviews usage reports from suppliers.  The Outreach group goes to departments with User Instructions that outline how agencies may use the contracts, and the terms and conditions for the contracts.  For more information see website or call (866) 885-8344.

• AB 2098 (Liu) - Would require Dept. of Technology Services to design and implement a comprehensive electronic payment system that would allow all State agencies to receive and make payments through electronic funds transfers, credit cards, and automated clearinghouse debits and credits.
• AB 2330 (Arambula) - Would require the Office of Small Business advocate to commission a study of the costs of State regulations on small businesses that is parallel to the study on the impact of regulatory costs on small firms conducted by the federal Small Business Administration.
• AB 2683 (Negrete McLeod) - Among other things, increases the late payment penalty.

• Mr. Mandell provided a handout that detailed 26 events.  C&O anticipates handling 45 events by year-end.
• DGS held a Customer Forum on March 8th, for 160 department procurement staff. 
• Will re-initiate the Resource Exchange events as an ongoing effort. 
• Website improvements: Mr. Mandell shared when he started at PD there were 60,000 pages on our website.  He and staff are working diligently to make it more user-friendly.
• In addition to the State Agency Recognition Awards (SARA), a Governor's Award will be added to raise the profile of small business.  More information to follow.
• The PD's E-Newsletter, Golden Opportunities, has been circulated.  The staff person responsible for this has left PD; he is recruiting to fill the position and will continue the newsletter.
• James Brady offered Ron Joseph an engagement on the radio, which is scheduled on May 19th between 11:00 - 11:30 a.m.  More information to follow.
• A Request for Offer (RFO) is out for a qualified SB/DVBE contractor to review the user-friendliness of our materials and coordinate high-level events.  ACTION:  Email information to Council members. 

• 05-07 - Do not close.  Processes committee remains concerned over bonding issues.
• 05-14 -- IT hardware repair bids: Closed with Janet DeZonia
• 05-17 - Improve Processes: Recommendation to delete approved
• 05-21 - Performance-based specifications:  PD uses a mix ofdesign/performance specs; will continue to evaluate best approach.
• 05-34 - Raise SB Ceiling Amount:  In Legal review.  ACTION:  Rita to follow up and advise status.
• 05-38 - Certified Firms Notified of Council meetings, Council members and contact information.  Has been incorporated into standard Council meeting announcement.
• 05-48 - CSSI office supply information provided.
• 05-51 - Post award "partnering workshops" will be held at Resource Exchanges
• 05-52 - Bidder's Conferences in Northern and Southern California on large procurements:  incorporated into PD process.
• 05-53/55 - Will use CSCR to advertise bids (these items combined and closed)
• 05-54 - Expand partnering workshops:  will include in more Bidder Conferences.
• 05-61 - Action list sorted by committee (also on Web)
• 05-62 - Revised Charter with committee guidelines
• 05-63 - Customer/Supplier Advocate:  Eric Mandell
• 05-66 - BIS2SOS communication plan completed
• 05-67 - Telecommunications lawsuit:  funds unsuitable for State use. 
• 05-68 - Federal "Talent Amendment" for SBA program: not applicable to California SB program.
• 05-69 - Federal SBA now accepting MB certification.
• 05-70 - CSSI Office Supply communication plan completed.
• 05-71 - Legislation Committee dissolved; combined with Outreach.
• 05-72 - RESD report on McClellan construction project provided to committee chair.  ACTION: May be closed following confirmation with Mr. Guerrero.

•  Priorities identified were bonding (issue 05-07) which will continue in 2006.
• A new issue is follow-on contracting.  There is an issue of consistency and how rules are applied (No. 06-01).  A second related issue (No. 06-02) concerns strategic sourcing and whether IT contractors that participate as CSSI contract holders are precluded from other projects under the Bowen Act.
• Action item 05-65, regarding SB 954 is a very important issue for small business.  First meetings will be scheduled in April; Ms. Brinton is on the committee; public hearings will be scheduled.  Susan Chan has been selected as Manager of Policy and Procedures and will be attending future committee meetings as the DGS Liaison.  She will also have primary responsibility for SB 954 implementation.

• 05-16 - TACPA demo from DGS' web site (related web sites; a direct link to the map of zones).  The TACPA web site was changed to include a direct link.  Judy Heringer and Renata Rasberry were introduced.  Ms. Heringer stated the STD 831 needed the link corrected.  Item is considered closed and the web site will be updated.
• 05-22 - Improve Financial Assistance links on DGS web site.  DGS demonstrated improvements.  The California Gold site (CalGOLD - permits made simple) has proven to be a very useful web site.  Ms. Brinton mentioned the State portal that Mr. Trinidad discussed earlier.  It will be added to a formal action item.  ACTION (06-03):  Work with BT&H portal efforts to coordinate DGS web resources
• 05-25 - Vendor Fair/spot buying - DGS still evaluating; will work with our consultant.
• 05-31 - Goods/services list on web; completed from DGS perspective; item closed.
• 05-35 - Reviewed the new brochure, "You're certified - Now What?" - will keep as an open action item until copies provided to the Council.
• 05-36 - BIS2SOS Project - PD automatically enrolled all certified firms with valid e-mail and fax numbers into the California State Contracts Register - Subscription Outreach Service (CSCR-SOS).  Approximately 11,000 firms were enrolled, bringing the total to 17,000.  Thanks to the BIS2SOS Team, Ms. Hamilton, OTR, and staff.  Council members were asked to convey through their organizations the importance of certified firms keeping their correct e-mail addresses and fax numbers so they get access to more contract opportunities.  Ms. Brinton recommended that DGS send a letter to the Governor celebrating the 2005/2006 Council accomplishments to date.  ACTION 06-04 (C&O)
• 05-38 - Advise certified firm of Council meetings, members -- completed
• 05-46(e) - PD report under consideration; still pending item and will advise
• 05-59 - Develop meet and greet events -- completed with Resource Exchanges, planned quarterly
• 05-12 - Certified Firm Web Search enhancements.  Rather than enhancing current application, a search tool as easy to use as Google was suggested; Ms. Hamilton commented we want to make things as user-friendly and easy as possible.  Mr. Porter suggested there may be an off-the-shelf product that may provide a solution; or perhaps it's too much money.  Ms. Hamilton stated we can also consider Office of Technology Resources (OTR).  ACTION:  DGS to study alternatives/costs and return with a recommendation to improve the search tool.  Members stressed the importance of not eliminating the current tool until a new one was in place.

• Small Business Council Charter Revisions - Tabled to next meeting due to lack of a quorum.
• Race Neutral - discussion topic received from Stephen McGlover tabled in his absence.  Mr. McGlover can add it to the next agenda if he still wants to open the topic for discussion.
• Ms. Brinton stated that the Processes committee is concerned with solicitation requirements for financial statements.  Requiring "audited" financial statements is prohibitively expensive for SBs and a barrier to participation.  CPAs may "compile" or "review" but "audit" has a much higher standard Further, the required CPA attestation does not conform to current CPA code of ethics that prohibit addressing governance and forecasts following the Sarbanes-Oxley Act.  Mr. Porter stated businesses usually submit a compilation; but if State has requested audited financials, they are very expensive, particularly on small transactions (under $25,000).  ACTION (06-06): Discuss at next committee meeting and report recommendations.

Public Comment

Steve Ike, representing Delphi Computer in San Francisco wanted to commend the Council on their efforts; he heard about the meeting on the DGS website.  He is attending to better understand the process and will pass the word on that the Council needs support.  He has some ideas on the search problem, and would be happy to offer his assistance.

Closing Comments

• Please schedule committee meetings and notify Rose Schembri at least 14 days in advance so that the 10-day notice can be posted on the web as required by the Bagley-Keene Act.
• Members were reminded of the importance of attending Committee meetings and Council meetings.  Ms. Brinton echoed Ms. Hamilton's hopes to have more Council members present and provide committee reports.  Ms. Brinton and Mr. Porter offered to contact other Council members from a peer perspective to stress the importance of participation. They inquired how much preparation in staff time was required to plan and present the meetings.  Ms. Dennis responded that hundreds of hours of staff time go into following up on action items, preparing materials and coordinating the meetings.  Mr. Porter stated that these meetings are vital to the success of the Council. 
• If an alternate has not been identified, please provide a name of one by the next meeting.
• If any member knows of someone interested in joining as a potential Council member, please let the Chair know.
• The next SBC meeting is Wednesday, June 29, 2006, at the DGS Headquarters, the Ziggurat Executive Dining Room, 707 3rd Street, from 10:00 a.m. to 4:00 p.m.