Report 2018-114 Recommendation 18 Responses

Report 2018-114: Disabled Veteran Business Enterprise Program: The Departments of General Services and Veterans Affairs Have Failed to Maximize Participation and to Accurately Measure Program Success (Release Date: February 2019)

Recommendation #18 To: General Services, Department of

To ensure that its outreach efforts are effective and result in a greater number of DVBE firms available that can provide the necessary goods and services awarding departments are seeking, General Services should conduct periodic surveys of businesses owned by disabled veterans that attended its outreach events but chose not to become DVBE certified to determine the reasons for not applying for the certification. The department should use this information to improve its outreach and any other areas of the program.

1-Year Agency Response

Since January 2019, Outreach has collected a list of disabled veteran owned businesses at each outreach event. In May 2019, Outreach cross referenced the list of disabled veteran owned businesses with certification data and compiled a list of all firms that had not yet obtained their certification. In June 2019, Outreach sent out a survey to determine the reasons why these firms had not yet attained their DVBE certification.

As of July 2019, minimal survey responses have been received. Of the responses submitted, over half of respondents indicated that they had applied for DVBE certification, but had not yet been approved or were planning on applying soon.

Roughly a quarter of respondents indicated their firm does not meet DVBE eligibility requirements and the remaining quarter indicated they felt there was too much paperwork required to complete the application.

Additional feedback indicates the majority of respondents believe the best way to improve the program would be to simplify the application process. The results of the survey provide Outreach with information to be used in future outreach change efforts in training, education and information sharing with the DVBE community.

To address the survey responses and suggestions we received, the following actions have been taken:

- DVBE marketing materials and How to do Business with the State brochure have been updated and provide additional resources to simplify the certification process as well as clarify eligibility requirements.

- Continued our participation at DVBE outreach events, giving overviews and one-on-one guidance to potential DVBE firms.

- Continued to partner with DVBE-focused strategic partners to strengthen knowledge in local communities about the DVBE program.

- Corrected broken web links and system defects that are encountered.

- Outreach continues to monitor the number of pending DVBE applications and the number of DVBE firms newly certified.

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

6-Month Agency Response

Since January 2019, Outreach has collected a list of disabled veteran owned businesses at each outreach event. In May 2019, Outreach cross referenced the list of disabled veteran owned businesses with current certification data and compiled a list of all firms that had not yet obtained their certification. To date Outreach has collected data from 159 potential suppliers of which 74 are not certified. In May 2019, Outreach developed a survey to determine the reasons why these firms had not yet attained their DVBE certification. The survey was out in June 2019 to those not certified.

As of July 2019, minimal survey responses have been received. Of the responses submitted, over half of respondents indicated that they had applied for DVBE certification, but had not yet been approved or were planning on applying soon.

Outreach continues to monitor the number of pending DVBE applications and the number of DVBE firms newly certified.

Roughly a quarter of respondents indicated their firm does not meet DVBE eligibility requirements and the remaining quarter indicated they felt there was too much paperwork required to complete the application.

Additional feedback indicates the majority of respondents believe the best way to improve the program would be to simplify the application process. The results of the survey provide Outreach with information to be used in future outreach change efforts in training, education and information sharing with the DVBE community.

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

General Services provided documentation that it surveyed businesses that attended its outreach events but chose not to become DVBE certified. However, it did not provide any documentation demonstrating that it has taken steps to improve its outreach and any other areas of the program based on the survey responses. Until it provides such documentation, we will report the status of this recommendation as partially implemented.

60-Day Agency Response

At each outreach event OSDS attends, the Outreach Team requests all potential or current DVBE firms to provide their contact information, so that this information can be tracked in our internal DVBE database. By October 1, 2019, all DVBE attendees who provided contact information at an outreach event will be sent a survey that will assist in analyzing the goals of DVBE firms. All survey responses will be gathered and analyzed, allowing the Outreach Team to identify any reasons why DVBEs choose not to get certified, or possible motivations for getting certified without a desire to contract with the state. The Outreach Team will use this information to adjust strategies for reaching DVBE firms in the 2020 Outreach Plan which will be completed by January 1, 2020.

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

All Recommendations in 2018-114

Agency responses received are posted verbatim.