Attachment16-CA_DVBE_ProgramRequirements.pdf

California Department of Aging RFP Number: RFP-2425-01 No Wrong Door State Leadership Council

ATTACHMENT 16

CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE

PROGRAM REQUIREMENTS

(FOR NON-IT SERVICES)

1. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) PROGRAM

The Disabled Veteran Business Enterprise (DVBE) Participation Goal Program for State contracts are 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.

Information regarding the DVBE Program Requirements may be viewed at:

https://www.dgs.ca.gov/PD/Services/Page-Content/Procurement-Division-Services- List-Folder/Certify-or-Re-apply-as-Small-Business-Disabled-Veteran-Business- Enterprise

The Bidder who has been certified by California as a DVBE (or who has obtained the participation of subcontractors certified by California as a DVBE) must submit a completed form(s) STD.843 Disabled Veteran Business Declarations for each DVBE. All disabled veteran owners and disabled veteran managers of the DVBE(s) must sign a form for each DVBE and submit as ATTACHMENT 8: DVBE DECLARATIONS. The form is available at:

https://www.documents.dgs.ca.gov/dgs/fmc/gs/pd/pd_843.pdf

The Office of Small Business and DVBE Services offer program information and may be reached at:

Office of Small Business and DVBE Services 707 Third Street, 1st Floor, Room 400 West Sacramento, CA 95606 Receptionist: (916) 375-4940 Email: OSDSHelp@dgs.ca.gov

2. PROGRAM DEFINITIONS

A. COMMERCIALLY USEFUL FUNCTION (CALIFORNIA CODE OF

REGULATIONS, TITLE 2, SECTION 1896.61 (L))

Firms selected must perform a “commercially useful function” relevant to this contract. The term “DVBE contractor, subcontractor or supplier” means any person or entity that satisfies the ownership (or management) and control requirements of CCR 1896.61 (f); is certified in accordance with CCR 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 (B) (i) (ii), 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 performing, managing, or supervising the work involved.

Performs work that is normal for its business services and functions.

Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment.

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, subcontractors, or supplier’s role is limited to that of an extra participant in order to obtain the appearance of disabled veteran business participation.

B. DISABLED VETERAN

A disabled veteran, for purposes of DVBE certification eligibility, is defined as a veteran of the military, naval or air services of the United States, with at least a ten percent (10%) service-connected disability and who is a resident of the State of California.

C. DISABLED VETERAN BUSINESS ENTERPRISE (DVBE)

DVBE is a business enterprise certified by the Office of Small Business and DVBE Services (OSDS) as meeting all of the following criteria:

Sole proprietorship owned by a disabled veteran; or a firm or partnership, fifty-one percent (51%) of the stock or partnership interests of which are owned by one or more disabled veterans.

Managed by and with the daily business operations controlled by one or more disabled veterans.

Sole proprietorship, corporation or partnership with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm or other business.

D. DVBE INCENTIVE

An incentive offered to firms utilizing DVBE firms in their contract efforts. The incentive is equal to the participation level identified and may not exceed five percent (5%).

For contracts that include a minimum participation level of three percent, lowest level of incentive shall be three percent.

For contracts exempt from DVBE, but include the option of DVBE participation, the incentive shall begin at one percent (1%) and shall not be higher than five percent (5%). Application of the incentive may result in the award of a contract to a Proposer using DVBE subcontractors.

3. DVBE PROGRAM COMPLIANCE OPTIONS

Proposers responding to this solicitation must complete and fully document compliance with the following:

A. MEETING DVBE REQUIREMENTS

DVBE participation can be achieved by a certified DVBE firm bidding as a prime or when a non-DVBE firm identifies and makes a commitment to use identified and certified DVBE(s) to fulfill the solicitation’s stated DVBE participation goal.

A Proposer commits to meet or exceed the minimum DVBE participation requirement of three percent (3%), or as otherwise specified in the solicitation.

Proposer uses Option 1 – Proposer is a Certified DVBE, or Option 2 Non-DVBE Proposer. Failure to complete and submit the required forms as instructed will render the bid non-responsive and ineligible for award.

B. OPTION 1 – PROPOSER IS CERTIFIED DVBE

1) Proposer commits to performing at least 3% of the contract amount (unless specified otherwise) with the prime Proposer’s firm or in combination with other DVBE firms.

2) Proposer must document DVBE participation using the CDA 9526, Attachment 2

3) Proposer shall submit proof of its commitment by submitting written confirmation and acceptance from the identified DVBE subcontractor using forms contained within CDA 9526, Attachment 2.

4) Provide evidence of DVBE certification – obtained through the Office of Small Business and DVBE Services (OSDS).

C. OPTION 2 – NON-DVBE PROPOSER

1) Commit to using a certified DVBE firm for at least three percent (3%) (unless specified otherwise) of the bid amount.

2) Proposer must document DVBE participation using the CDA 9526, Attachment 2.

3) Proposer shall submit proof of its commitment by submitting written confirmation and acceptance from the identified DVBE subcontractor using forms contained within CDA 9526, Attachment 2.

4) Provide evidence of DVBE certification – obtained through the Office of Small Business and DVBE Services (OSDS).

4. CDA EXHIBIT E ADDITIONAL PROVISIONS - DVBE LANGUAGE

CDA Exhibit E “Additional Provisions” contains additional clauses related to the DVBE program and is relevant to the Proposer because language contained in Exhibit E defines contract and Contractor obligations related to the DVBE program that will be part in the final contract. Proposer is advised to carefully review Exhibit E, Additional Provisions to understand relevant obligations pertaining to the DVBE program:

A. CONTRACT AMENDMENTS – DVBE PROGRAM REQUIREMENTS

Explains the requirements and obligations of the Contractor and the DVBE program related to subsequent contract amendments.

B. CONTRACT AUDITS

Explains the requirements and obligations of the Contractor related to the review or copying of all records pertaining to the performance of its contract as pertains to the DVBE program.

C. DVBE QUARTERLY REPORTS

Explains the requirements and obligations of the Contractor related to reporting DVBE activity to identify and report the activity or non-activity within the period reported.

5. DVBE INCENTIVE

In accordance with Section 999.5(a) of Military and Veterans Code an incentive will be applied to Proposers who commit to DVBE participation unless stated elsewhere in the solicitation that the DVBE Incentive has been waived. For evaluation purposes only, the State shall apply an incentive to bids proposing California certified DVBE participation identified on CDA Form 9526 page 6, Attachment 1, Proposer Certification DVBE Participation. Participation commitment will be confirmed by the State. The incentive amount for awards based on low price will vary in conjunction with the proposed DVBE participation. Unless a table which replaces the following has been expressly established elsewhere within the solicitation, the following percentages will apply for awards based on low price:

A. AS APPLICABLE:

Awards based on low price: the net bid price of responsive bids will be reduced (for evaluation purposes only) by the amount of the DVBE incentive as applied to the lowest responsive net bid. If the #1 ranked responsive, responsible bid is from a California certified Small Business, the only Proposers eligible for the incentive will be California certified Small Businesses. The incentive adjustment for awards based on low price cannot exceed 5 percent or $100,000, whichever is less, of the #1 ranked net bid.

When used in combination with a preference adjustment (SB/TACPA), the cumulative adjustment amount is not to exceed $100,000.

Awards based on highest score: the solicitation shall include an individual requirement that identifies incentive points for DVBE participation. For further information regarding the incentive-based-points application process, please review Item 7. Evaluation and Selection Process of this solicitation.

ATTACHMENT 1 - DOCUMENTATION OF DVBE PROGRAM

REQUIREMENTS PROPOSER IS ADVISED TO READ INSTRUCTIONS

CAREFULLY.

Confirmed DVBE Participation DVBE Up to 3.99% 3%

4.0 up to 4.99% 4% 5% or Higher 5%

B. COMMERCIALLY USEFUL FUNCTION (CALIFORNIA CODE OF

REGULATIONS,

TITLE 2, SECTION 1896.61 (L))

DVBE firms must perform a “commercially useful function” relevant to this contract. The term “DVBE contractor, subcontractor or supplier” means any person or entity that satisfies the ownership (or management) and control requirements of CCR 1896.61 (f); is certified in accordance with CCR 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 performing, managing, or supervising the work involved

Performs work that is normal for its business services and functions

Is responsible, with respect to products, inventories, materials, and supplies required for the contract, for negotiating price, determining quality and quantity, ordering, installing, if applicable, and making payment.

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 order to obtain the appearance of disabled veteran business participation.

C. DVBE OPTION DESIGNATION –

Check the appropriate box to indicate the option you are choosing with which to meet your DVBE commitment. You are advised to read all instructions carefully prior to completing the forms.

OPTION 1: I am a certified DVBE firm bidding this solicitation as a prime firm and as such, my commitment is at least three percent (3%).

OPTION 2: I am not a certified Proposer, but I have committed to meeting DVBE participation of at least three percent (3%) or more.

D. DOCUMENTING DVBE PROGRAM REQUIRMENTS

Read document carefully. Failure to comply with DVBE program requirements may result in rejection of your bid.

1) ATTACHMENT 1 - “DOCUMENTATION OF DVBE PROGRAM

REQUIRMENTS”

a) Be sure to make the proper determination that the selected DVBE firm meets California CUF requirements.

b) Under “DVBE OPTION DESIGNATION” select the option appropriate for your firm’s commitment and complete Attachment 2, Proposer Certification of DVBE Participation.

c) For Option 1, complete Attachment 2, Sections 1 – 3 and include 9526, Attachments 1/ 2 and your DVBE certification with your bid response

d) For Option 2, see instructions below

2) ATTACHMENT 2 - PROPOSER CERTIFICATION OF DVBE PARTICIPATION

Proposers are required to complete ATTACHMENT 2 – PROPOSER CERTIFICATION OF DVBE PARTICIPATION to document their commitment to a DVBE firm or firms. A separate form is required for each DVBE commitment. Failure to submit this form with your bid will result in a determination of noncompliance and your bid will be rejected.

a) Section 1: Complete prime firm/Proposer business information

b) Section 2: Identify services or commodities to be provided by the DVBE subcontractor.

c) Section 3: Identify the commitment level your firm is making to the DVBE subcontractor; provide the printed and signed name of the legally authorized representative and sign/date the document.

d) Section 4: Is to be completed by the DVBE firm. Fax the completed/signed document to the DVBE. Provide the DVBE firm with instructions to:

Complete the form and include all information.

Sign and date the form.

Return the form via email or fax to you.

Include a current copy of their OSDS certification – available through OSDS eProcurement SB/DVBE Website

E. DISABLED VETERAN BUSINESS ENTERPRISE DECLARATIONS, STD. 843

Upon award of a contract the prime firm/Proposer shall forward a copy of the DVBE Declaration, Std. 843 to the DVBE subcontractor(s) for completion and return to the Proposer. Proposer must submit the completed document prior to execution of the final contract.

F. PROPOSER DECLARATION GSPD-05-105

All Proposers responding to this solicitation must complete the Proposer Declaration GSPD-05-105 and include it with their bid response. When completing the declaration, Proposers responding to the solicitation must identify all SB and or DVBE subcontractors proposed for participation in the contract.

Proposers awarded a contract are contractually obligated to use the SB or DVBE subcontractor for the work identified unless the State agrees to a substitution.

The Department must be notified in writing that a substitution is requested and any substitution from a Small Business or DVBE firm must be approved by the State.