Report 2013-115 Recommendation 7 Responses

Report 2013-115: Disabled Veteran Business Enterprise Program: Meaningful Performance Standards and Better Guidance by the California Departments of General Services and Veterans Affairs Would Strengthen the Program (Release Date: February 2014)

Recommendation #7 To: General Services, Department of

To help ensure that General Services does not incorrectly report businesses that are not certified DVBEs, it should verify, at least on a sample basis for high-value contracts, the certification status of the DVBE firms before submitting their DVBE activity reports to General Services.

1-Year Agency Response

DGS has consolidated its purchasing and contracting functions in a new office within its Administration Division, the Office of Business and Acquisition Services (OBAS). To assist in ensuring the accurate reporting of Disabled Veteran Business Enterprise (DVBE) usage data, OBAS has implemented policies and procedures that provide for the verification of the certification status of DVBE firms awarded state contracts. As part of that process, a copy of the DVBE's certification status database printout is maintained in the procurement file.

On August 11, 2014, OBAS' Small Business/Disabled Veteran Business Enterprise Advocate reminded all acquisitions staff of the requirement to maintain DVBE certification verification documentation in applicable procurement files.

As a final step, the Advocate implemented policies and procedures that provide for the verification, at least on a sample basis, of the certification status of DVBE firms that have high-value contracts. The verification process was implemented as part of DGS' Fiscal Year 2013/14 contracting activity reporting process.

California State Auditor's Assessment of 1-Year Status: Fully Implemented

6-Month Agency Response

DGS has consolidated its purchasing and contracting functions in a new office within its Administration Division, the Office of Business and Acquisition Services (OBAS). To assist in ensuring the accurate reporting of Disabled Veteran Business Enterprise (DVBE) usage data, OBAS has implemented policies and procedures that provide for the verification of the certification status of DVBE firms awarded state contracts. As part of this process, a copy of the DVBE's certification status database printout is maintained in the procurement file.

On August 11, 2014, OBAS' Small Business/Disabled Veteran Business Enterprise Advocate (Advocate) reminded all acquisitions staff of the requirement to maintain DVBE certification verification documentation in applicable procurement files.

As a final step, the Advocate is in the final stages of implementing policies and procedures that provide for the verification, at least on a sample basis, of the certification status of DVBE firms that have high-value contracts. The verification process will be implemented as part of DGS' Fiscal Year 2013/14 contracting activity report activity.

California State Auditor's Assessment of 6-Month Status: Pending

60-Day Agency Response

DGS has consolidated its purchasing and contracting functions in a new office within its Administration Division, the Office of Business and Acquisition Services (OBAS). Recently, OBAS hired a new Small Business/Disabled Veteran Business Enterprise Advocate. To assist in ensuring the accurate reporting of Disabled Veteran Business Enterprise (DVBE) usage data, the Advocate will be implementing policies and procedures that provide for the verification of the certification status of DVBE firms awarded state contracts. As part of this process, a copy of the DVBEs certification status database printout will be maintained in the procurement file.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2013-115

Agency responses received are posted verbatim.