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Q: What is the DVBE Program?
The Disabled Veteran Business Enterprise (DVBE) program, administered by the California Department of General Services (DGS), is designed to assist disabled veteran-owned small businesses in California. Through the program, the state assists DVBEs by requiring that companies bidding on taxpayer funded projects and contracts in California give a portion of that contract to a DVBE firm to provide labor or supplies necessary for the its completion. The state has established a DVBE participation goal of at least 3% of the total project dollars spent on each project. Each state agency in California must attempt to reach this goal on projects that are put out to bid. The individual agencies decide which projects will include DVBE goals. Prime contractor's bidding projects and contracts with DVBE goals must hire enough certified DVBE firms to meet the project's stated goal or they must demonstrate that they made a "Good Faith Effort" to solicit DVBEs to meet the goal.
For more information about the program visit the DGS at:
http://www.pd.dgs.ca.gov/dvbe/default.htm
Q: Why should I become a certified DVBE?
Upon meeting eligibility requirements, certified DVBEs are entitled to the following:
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State-certified DVBEs are eligible for the state's DVBE Participation Program. The program sets the goal to use DVBEs in at least 3% of the state's overall annual contract dollars.
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State agencies may use a streamlined process known as the "SB/DVBE Option" by contracting directly with a California-certified DVBE for goods, services, and information technology valued between $5,001 and $99,999 after obtaining price quotes from at least two California-certified DVBEs. For public works projects, the contract value can be up to $131,000.
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Certified DVBEs increase their visibility and expand their business networking opportunities by being automatically listed in the state's online list of certified firms.
See information on the Department of General Services website to certify as a DVBE:
http://www.pd.dgs.ca.gov/smbus/getcertified.htm
Q: I am a certified DVBE and my phone has been ringing off the hook with calls from bidders on a lot of different projects. Why is this happening?
There is currently an enormous demand for DVBE firms that is straining California's procurement system. This demand primarily due to three reasons.
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Any projects with state funding - which are almost all of them - are required to stipulate in the bid that companies interested in bidding the project must attempt to hire and utilize DVBE firms. Contractors that bid on these projects must hire - or at least attempt to hire - a DVBE firm for that project or risk having their bid rejected by the awarding agency. As a result, all of those companies, from the largest multinational construction firm that wants to build the Bay Bridge to the smallest mom-and-pop bidding to install tile for a school must try to find and hire a DVBE firm to provide labor and/or supplies for the job. Tens of thousands of companies bid on projects every year, but the supply of state-certified disabled veteran firms is very small - totaling less than 900 in the state of California. There are only 240 registered disabled veteran firms that work in construction, which is the procurement market with 95% of the demand.
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The Disadvantaged Business Enterprise (DBE) program is only beginning to re-emerge in California. Most contracts used to be directed to these firms, which number in the thousands. In 2005, however, a federal court ordered that the DBE program be suspended in all states under the 9th Circuit Court's jurisdiction until studies could determine the program's necessity. After an Availability and Disparity report justified the continued implementation of a DBE program in California, State agencies are beginning to re-implement the DBE requirements.
And if you think that all this attention is crazy now, just wait until all the Proposition 1B bond money for all the California projects kicks in over the next few years! There is nearly 100 billion dollars worth of projects that are going to bid over the next several years to rebuild California. If you do the math, that’s 3 billion dollars of projects that California wants to direct to DVBE firms. Unfortunately for the DVBE community as a whole, there are very few DVBE firms in California that are geared to take advantage of all this activity.
Q: How do I take advantage of all this state money and get in on some of these projects?
There is a very high demand for DVBE firms in the state of California, and DVBE firms that perform certain types of work will be able to take advantage of the current climate. If you are a disabled veteran that owns a construction, contracting, or construction supply business in California and not certified as a DVBE, you should seriously consider registering as a Disabled Veteran Business Enterprise.
If you are already a registered DVBE, we suggest you expand your business to include the sectors of the construction industry in the highest demand.
Q: I receive a lot of solicitations to bid, and most of the projects are too far away or they are asking me to perform work that my company does not do. What can I do about this?
First of all, if you are a registered DVBE in the State of California consider yourself lucky that all this attention is coming your way!In business, it is better that the phone rings too much than not at all. Your firm is being contacted from bidding companies with projects all over the state, and they must try to find a DVBE firm to participate. The reason that many of the calls are regarding projects so far away is because there are so few DVBE firms in the state of California that perform the type of work that many primes are looking for. In other words, prime contractors must cast a wider net to try to find firms that do that type of work.
Q: What can I do to help guide prime contractors to my business with the projects we want?
1. Check your work code listings with DGS to confirm its accuracy. When you first applied for DVBE certification, you filled out forms indicating the type of work performed by your company. You may have accidentally selected incorrect types of work on that form. If, for example, the prime is soliciting you to perform Pipeline and Underground work even though you only do Plumbing, this is because you are incorrectly listed under Pipeline and Underground in the DVBE database. Double-check your listing in the database on the DGS website to be sure that you are listed correctly. Your business may also be listed under a general work category such as General Building Contractor, General Engineering, or Limited Specialty, or you may have selected too many types of work when completing the forms and getting called under all those categories.
To check the DVBE database, visit: http://www.bidsync.com/DPXBisCASB
* Type in for company name and click on the result that comes up to see which work codes your company is listed under.
* Contact DGS to make any necessary corrections to your information.
2. Start performing work in areas that are in the highest demand. Road construction always receives the bulk of the state's money. There is also a substantial amount of money for construction of schools, low-income housing, and flood control projects.
3. Be willing to travel if the price is right. Gear up to travel if the type of work you do is portable. If the work you perform is a specialty that few others can do, you are likely to get your price - especially if you are helping the prime contractor complete one of the required bid items.
4. Set up a specific telephone number for incoming DVBE calls. If you are getting too many calls, connect your telephone to an answering machine or a voicemail service. You can always go back and listen to the messages. This allows you to pick and choose the projects that you want to bid. If you get 50 phone calls, and one of those calls turns into a $100,000 contract, then the time and money was well spent.
5. Be sure to have a working fax machine. Primes are required by the state to contact you in writing with information about their project. Most of the time, the solicitations are by fax.
6. Be sure to call the prime if you are interested. Do not wait for them to call you, the project estimator will be busy focusing on their bid.
7. Don't become discouraged. You have have indicated interest on many projects that did not bear fruit. On some of these projects, the prime elected not to bid after all or they lost the bid to another competitor. The more bids that you can participate in, the more likely your firm will be able to pick up a lucrative contract.
If you have questions or comments about any of the information above, email us at comments@dbegoodfaith.com. |