CALIFORNIA DISABLED VETERAN BUSINESS ENTERPRISE (DVBE) BID INCENTIVE INSTRUCTIONS

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).

This solicitation does not include a minimum DVBE participation percentage or goal.
DVBE BID INCENTIVE. A DVBE incentive will be given to bidders who provide DVBE participation. For
evaluation purposes only, the State shall apply a DVBE Bid incentive to bids that propose California
certified DVBE participation as identified on the Bidder Declaration, GSPD-05-105, (located elsewhere
within the solicitation document) and confirmed by the State. The DVBE 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:          DVBE Incentive:
5% or Over                                                 5%
4% to 4.99% inclusive                                 4%
3% to 3.99% inclusive                                 3%
2% to 2.99% inclusive                                 2%
1% to 1.99% inclusive                                 1%

As applicable: (1) 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.

(2) Awards based on highest score – the solicitation shall include an individual
requirement that identifies incentive points for DVBE participation.

INTRODUCTION. Bidders must document DVBE participation commitment by completing and
submitting a Bidder Declaration, GSPD-05-105, (located elsewhere within the solicitation document).
Bids or proposals (hereafter called “bids”) that fail to submit the required form to confirm the level of
DVBE participation will not be eligible to receive the DVBE incentive.

Information submitted by the intended awardee to claim the DVBE incentive(s) 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 qualify for a DVBE incentive(s). 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.

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.

THE DVBE BUSINESS UTILIZATION PLAN (BUP): DVBE BUPs are a company’s commitment to
expend a minimum of 3% of its total statewide contract dollars with DVBEs — this percentage is based on
all of its contracts held in California, not just those with the State. A DVBE BUP does not qualify a firm
for a DVBE incentive. Bidders with a BUP, must submit a Bidders Declaration (GSPD-05-105) to confirm
the DVBE participation for an element of work on this solicitation in order to claim a DVBE incentive(s).

THE FOLLOWING MAY BE USED TO LOCATE DVBE SUPPLIERS:

Awarding Department: Contact the department’s contracting official named in this solicitation for any
DVBE suppliers who may have identified themselves as potential subcontractors, and to obtain
suggestions for search criteria to possibly identify DVBE suppliers for the solicitation. You may also
contact the department’s SB/DVBE Advocate for assistance.

Other State and Federal Agencies, and Local Organizations:

STATE: Access the list of all certified DVBEs by using the Department of General Services,
Procurement Division (DGS-PD), online certified firm database at www.eprocure.dgs.ca.gov
To begin your search, click on “SB/DVBE Search.” Search by “Keywords” or “United Nations Standard
Products and Services Codes (UNSPSC) that apply to the elements of work you want to subcontract to a
DVBE. Check for subcontractor ads that may be placed on the California State Contracts Register
(CSCR) for this solicitation prior to the closing date. You may access the CSCR at:
www.eprocure.dgs.ca.gov. For questions regarding the online certified firm database and the CSCR,
please call the OSDS at (916) 375-4940 or send an email to: OSDCHelp@dgs.ca.gov.

FEDERAL: Search the U.S. Small Business Administration’s (SBA) Central Contractor Registration
(CCR) on-line database at www.ccr.gov/ to identify potential DVBEs and click on the “Dynamic Small
Business Search” button. Search options and information are provided on the CCR Dynamic Small
Business Search site. First time users should click on the “help” button for detailed instructions.
Remember to verify each firm’s status as a California certified DVBE.

LOCAL: Contact local DVBE organization to identify DVBEs. For a list of local organizations, go to
www.pd.dgs.ca.gov/smbus and select: DVBE Local Contacts (New 02/09) (pdf).

For questions regarding bid documentation requirements, contact the contracting official at the awarding
department for this solicitation. For a directory of SB/DVBE Advocates for each department go to:

http://www.pd.dgs.ca.gov/smbus/advocate.htm.

The Department of General Services, Procurement Division (DGS-PD) publishes a list of trade and focus publications
to assist bidders in locating DVBEs for a fee. To obtain this list, please go to www.pd.dgs.ca.gov/smbus and select:
• DVBE Trade Paper Listing (New 02/09) (pdf)
• DVBE Focus Paper Listing (New 02/09) (pdf)

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:

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