“Attachment 3, California Disabled Veteran Business Enterprise (DVBE) Program Requirements – For Non-IT Services Only (Revised September 2009)” Shall be deleted in its entirety and replaced with the following:
“Attachment 3, California Disabled Veteran Business Enterprise (DVBE) Program Requirements – For Non-IT Services Only (July 2011)” which is attached to this Errata and by this reference is incorporated into the RFP
Please use this erratum to update your copy of the RFP.
Solicitation Number CN110174
CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PROGRAM
REQUIREMENTS – FOR NON-IT SERVICES ONLY
(Revised July 2011)
Please read the requirements and instructions carefully before you begin.
AUTHORITY. The Disabled Veteran Business Enterprise (DVBE) Participation Goal Program for State contracts is established in Public Contract Code (PCC), §10115 et seq., Military and Veterans Code (MVC), §999 et seq., and California Code of Regulations (CCR), Title 2, §1896.60 et seq. Recent legislation has modified the program significantly in that a bidder may no longer demonstrate compliance with program requirements by performing a “good faith effort” (GFE).
The minimum DVBE participation percentage (goal) is three percent for this solicitation unless another percentage is specified in the solicitation. A DVBE incentive will be given to bidders who provide DVBE participation, unless stated elsewhere in the solicitation that the DVBE incentive has been waived.
INTRODUCTION. The bidder must complete the identified form to comply with this solicitation’s DVBE program requirements. Bids or proposals (hereafter called “bids”) that fail to submit the required form and fully document and meet the DVBE program requirement shall be considered non-responsive.
Information submitted by the intended awardee to comply with this solicitation’s DVBE requirements will be verified by the State. If evidence of an alleged violation is found during the verification process, the State shall initiate an investigation, in accordance with the requirements of the PCC §10115, et seq., and MVC §999 et seq., and follow the investigatory procedures required by the 2 CCR §1896.80. Contractors found to be in violation of certain provisions may be subject to loss of certification, penalties and/or contract termination.
Only State of California, Office of Small Business and DVBE Services (OSDS), certified DVBEs (hereafter called “DVBE”) who perform a commercially useful function relevant to this solicitation, may be used to satisfy the DVBE program requirements. The criteria and definition for performing a commercially useful function are contained herein on the page entitled Resources & Information. Bidders are to verify each DVBE subcontractor’s certification with OSDS to ensure DVBE eligibility.
PLEASE READ ALL INSTRUCTIONS CAREFULLY. These instructions contain information about the DVBE program requirements, bidder responsibilities, and the DVBE Bid Incentive. Bidders are responsible for thorough review and compliance with these instructions.
To meet the DVBE program requirements, bidders must complete and fully document compliance with the following:
Commitment to full DVBE participation - For a bidder who is a DVBE or who is able to meet the commitment to use identified certified DVBE(s) to fulfill the full DVBE participation goal.
COMMITMENT -- Commit to meet or exceed the DVBE participation requirement in this solicitation by either Method A1 (bidder is a California certified DVBE) or A2 (bidder is not a California certified DVBE). Bidders must document DVBE participation commitment by completing and submitting the Bidder Declaration (GSPD-05-105 form) located elsewhere within the solicitation document and can be found at http://www.documents.dgs.ca.gov/pd/delegations/GSPD105.pdf (PDF) . Failure to complete and submit the required form as instructed shall render the bid non-responsive.
At the State’s option prior to award of the contract, a written confirmation from each DVBE subcontractor identified on the Bidder Declaration must be provided. As directed by the State, the written confirmation must be signed by the bidder and/or the DVBE subcontractor(s). The written confirmation may request information that includes but is not limited to the DVBE scope of work, work to be performed by the DVBE, term of intended subcontract with the DVBE, anticipated dates the DVBE will perform required work, rate and conditions of payment, and total amount to be paid to the DVBE. If further verification is necessary, the State will obtain additional information to verify compliance with the above requirements.
Method A1. Certified DVBE bidder:
- Commit to performing at least three percent of the contract bid amount (unless otherwise specified) with the prime bidder’s firm or in combination with another DVBE(s).
- Document DVBE participation on the Bidder Declaration GSPD-05-105 form.
- c. At the State’s option a DVBE bidder working in combination with other DVBEs shall submit proof of its commitment by submitting a written confirmation from the DVBE(s) identified as a subcontractor on the Bidder Declaration. When requested, the document must be submitted to the address or facsimile number specified and within the timeframe identified in the notification. Failure to submit the written confirmation as specified may be grounds for bid rejection.
Method A2. Non-DVBE bidder:
- Commit to using certified DVBE(s) for at least three percent (unless otherwise specified) of the bid amount.
- Document DVBE participation on the Bidder Declaration GSPD-05-105 form.
- At the State’s option prior to contract award, a bidder shall submit proof of its commitment by submitting a written confirmation from each DVBE identified as a subcontractor on the Bidder Declaration GSPD-05-105 form. The awarding department contracting official named in the solicitation may contact each listed DVBE, by mail, fax or telephone, for verification of the bidder’s submitted DVBE information. When requested, the document must be submitted to the address or facsimile number specified and within the timeframe identified in the notification. Failure to submit the written confirmation as specified may be grounds for bid rejection.
TO LOCATE DVBE SUPPLIERS:
To search for a California certified DVBE, go to the California Department of General Services Web site at http://www.bidsync.com/DPXBisCASB .You may also contact the CDE’s DVBE Advocate for assistance. The CDE’s DVBE Advocate contact information is listed in the solicitation document.
DVBE BID INCENTIVE. Unless stated elsewhere in the solicitation that the DVBE incentive has been waived, in accordance with Section 999.5(a) of the Military and Veterans Code an incentive will be given to bidders who provide DVBE participation. For evaluation purposes only, the State shall apply an incentive to bids that propose California certified DVBE participation as identified on the Bidder Declaration GSPD-05-105 form and confirmed by the State. The incentive amount for awards based on low price will vary in conjunction with the percentage of DVBE participation. Unless a table that replaces the one below has been expressly established elsewhere within the solicitation, the following percentages will apply for awards based on low price.
Confirmed DVBE Participation of:
5% or Over
4% to 4.99% inclusive
3% to 3.99% inclusive
- Awards based on low price - the net bid price of responsive bids will be reduced (for evaluation purposes only) by the amount of DVBE incentive as applied to the lowest responsive net bid price. If the #1 ranked responsive, responsible bid is a California certified small business, the only bidders eligible for the incentive will be California certified small businesses. The incentive adjustment for awards based on low price cannot exceed 5% or $100,000, whichever is less, of the #1 ranked net bid price. When used in combination with a preference adjustment, the cumulative adjustment amount cannot exceed $100,000.
- Awards based on highest score - the solicitation shall include an individual requirement that identifies incentive points for DVBE participation.
A DVBE Business Utilization Plan (BUP) does not qualify a firm for a DVBE incentive. Bidders with a BUP, must submit a Bidders Declaration (GSPD-05-105 form) to confirm the DVBE participation for an element of work on this solicitation in order to claim a DVBE incentive(s).
Commercially Useful Function Definition
California Code of Regulations, Title 2, §1896.61(l):
The term "DVBE contractor, subcontractor or supplier" means any person or entity that satisfies the ownership (or management) and control requirements of §§1896.61(f); is certified in accordance with §1896.70; and provides services or goods that contribute to the fulfillment of the contract requirements by performing a commercially useful function.
As defined in MVC §999, a person or an entity is deemed to perform a "commercially useful function" if a person or entity does all of the following:
- Is responsible for the execution of a distinct element of the work of the contract.
- Carries out the obligation by actually performing, managing, or supervising the work involved.
- Performs work that is normal for its business services and functions.
- Is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practices.
A contractor, subcontractor, or supplier will not be considered to perform a commercially useful function if the contractor's, subcontractor's, or supplier's role is limited to that of an extra participant in a transaction, contract, or project through which funds are passed in order to obtain the appearance of disabled veteran business enterprise participation.
DVBE Program Requirements Checklist:
- Commitment letter to using certified DVBE(s) for at least three percent (unless otherwise specified of the bid amount). The inclusion of cost information on the DVBE commitment letter may disqualify the proposal from consideration.
- Document DVBE participation on the Bidder Declaration GSPD-05-105 form. Please read the GSPD-05-105 form instructions carefully.
- Written confirmation from each DVBE identified as a subcontractor on the GSPD-05-105 form. The inclusion of cost information on the DVBE confirmation letter may disqualify the proposal from consideration.