Report 2018-114 Recommendation 28 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 #28 To: General Services, Department of

Until it begins generating DVBE activity reports using FI$Cal, General Services should issue a policy to require awarding departments to implement or strengthen a secondary review process to ensure that the DVBE activity reports are accurate and supported by departments' data systems.

1-Year Agency Response

DGS updated the State Contracting Manual (SCM) with the policy described below and issued Broadcast Bulletin #P 13-19 on December 20, 2019 to notify state departments of the new policy.

The revised SCM policy and procedures require state agencies to:

- Implement a review process to ensure that the Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) participation data, including for Microbusiness (SB/MB), Small Business for the purpose of Public Works (SB-PW) and Nonprofit Veteran Services Agency (NVSA), is accurate.

- Verify on a sample basis, the amounts awarded to and the certification status of the SB, SB/MB, SB-PW, DVBE or the NVSA contractor or subcontractors for high value contracts that included SB or DVBE participation.

- Provide by request a written statement signed by the Procurement and Contracting Officer (PCO) confirming completion of the review of the CAR.

Broadcast Bulletins are published on DGS website at:

https://www.dgs.ca.gov/PD/Resources/Page-Content/Procurement-Division-Resources-List-Folder/Broadcast-Bulletins#@ViewBag.JumpTo

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

6-Month Agency Response

DGS incorporated into all eight CAR training sessions held between February and May 2019 (February 26, March 6, 13 and 20, April 23 and 24, May 3 and 8), information requiring awarding departments to do the following:

- Develop, implement or strengthen a secondary review process to ensure that the DVBE activity reports prepared by staff are accurate and supported by documentation.

- Verify on a sample basis, the amount awarded to and the certification status of the DVBE contractor or subcontractor on a contract that includes DVBE participation.

In addition, DGS will update the reporting sections of the State Contracting Manuals (SCM) to include these reporting requirements by September 2019.

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

60-Day Agency Response

On February 6, 2019, DGS issued Broadcast Bulletin E-03-19 for training on reporting Consolidated Annual Report (CAR) in FI$Cal. DGS incorporated in its February-March 2019 (CAR) training the requirements for departments to develop and strengthen a secondary review process of their reports, and to verify on a sample basis the amount awarded to and the certification status of the DVBE contractor or subcontractor. Training session are scheduled to begin in February 2019 and end in May 2019.

In addition, DGS is in the process of updating the State Contracting Manuals (SCM) to include these reporting requirements. Once the updates are completed by May 2019, DGS will notify state departments through a broadcast bulletin.

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

All Recommendations in 2018-114

Agency responses received are posted verbatim.