Report 2018-114 Recommendation 19 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 #19 To: Veterans Affairs, Department of

Until the Legislature amends the law to transfer its responsibility for assisting underachieving departments to General Services, CalVet should develop and follow policies and procedures to identify and assist awarding departments that fail to meet, or are at risk of not meeting, the 3 percent DVBE participation goal.

Annual Follow-Up Agency Response From October 2021

CalVet has developed and implemented policies and procedures to identify and assist awarding departments that fail to meet, or at risk of not meeting the 3 percent DVBE goal. These procedures will be followed on an established periodic basis until the legislature amends the law to transfer responsibility for assisting underachieving departments to the DGS.

California State Auditor's Assessment of Annual Follow-Up Status: Fully Implemented

Annual Follow-Up Agency Response From October 2020

With the full staffing of the two DVBE staff members on October 1, 2020, and the recent release of the DGS Consolidated Annual Report FY18-19, CalVet will begin the process of developing process and procedures to identify and assist awarding departments who fail to meet their DVBE goal.

Documented Evidence:

Duty Statements (signed) for the two DVBE employees

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

The establishment of an IA with DGS will provide CalVet the means to develop and follow policies and procedures to identify and assist awarding departments who fail to meet their DVBE goal. CalVet wants to reiterate that our internal audits and review team will be an integral part in ensuring full and timely implementation of the recommendations provided by the California State Auditor.

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

6-Month Agency Response

AB 1809 (Cervantes, 2019), which is moving through the legislative process, would transfer responsibility for assisting underachieving departments to DGS. Meanwhile, CalVet continues to work with underperforming departments, as recommended.

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

60-Day Agency Response

CalVet agrees with this recommendation. CalVet agrees with the auditor's report that states on page 27: "Considering its expertise, resources, and role in the DVBE program, General Services is better suited than CalVet to assist underachieving departments. General Services agreed with this assessment. Such a shift in the departments' responsibilities would also allow CalVet to focus primarily on outreach activities."

Meanwhile, CalVet is in the developmental phase of drafting policies and procedures to identify and assist awarding departments that fail to meet, or are at risk of not meeting, the 3 percent DVBE participation goal. Upon completion of drafting the policies and procedures, CalVet intends to develop Standard Operating Procedures (SOP) for the Awarding Departments. The SOP will outline checks and balances for awarding departments that will include a survey sampling process to evaluate DVBE subcontractors and evaluate prime contractors' DVBE usage performance.

Additionally, CalVet will take an active role to assist DGS to identify and investigate DVBE program abuse. CalVet has taken measures to update our website to include a "DVBE Fraud and Abuse" intake process and has adopted an internal tracking system to ensure that DVBEs receive a response. The updated website has contact information for both CalVet and DGS. Both departments will collaborate in tracking the calls and emails on DVBE program abuse.

Supporting documents will be made available upon request.

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

All Recommendations in 2018-114

Agency responses received are posted verbatim.