MANAGEMENT OF DVBE CONTRACT REQUIREMENTS - 1203

(Revised: 02/2022)

Compliance

The awarding agency shall establish a method of monitoring adherence to the goals. Examples of monitoring methods include:

1. Random verification of contacts made, either for federal, state or local organization contacts, or for DVBE solicitations or bid consideration.
2. Review of multiple bids submitted by the same vendor to verify independent effort and documentation. Evidence of insincere efforts may include:
   • Repeating unsuccessful contacts rather than trying a new contact.
   • Use of contacts that are out of business.
   • Business solicitations not relevant to the contract.
   • Copying of identical DVBE documentation packages.

Post Award Audits

Awarding agencies must investigate and report allegations of program violations as follows to DGS/OSDS. Upon receipt of the awarding department’s report OSDS will conduct its own review, which may result in suspension. If finding sufficient grounds, OSDS may forward the investigative report to the Attorney General for possible action. It is unlawful for a person or firm to:

• Knowingly and with intent to defraud, fraudulently obtain or retain certification as a DVBE.  Willfully and knowingly make a false statement with the intent to defraud, to influence certification of any entity as a DVBE.  Willfully and knowingly obstruct an investigation regarding DVBE certification.  Knowingly and with intent to defraud, obtaining or attempting to obtain public moneys to which the person is not entitled under the DVBE Participation Program.
• Knowingly and with intent to defraud, fraudulently represent DVBE participation in order to obtain or retain a bid preference or state contract.
• Willfully and knowingly make a statement, declaration or other document, which is false as to any material matter.
• Willfully and knowingly aid or assist in the preparation or presentation of a false document. Willfully and knowingly fail to file any declaration or notice required by M&VC, Section 999.2.
• Establish or cooperate in the establishment of, or exercise control over, a firm found to have violated the above. Violators are guilty of a misdemeanor and may also be liable for a civil penalty. Additionally, violators shall be suspended from bidding on, or participating as a contractor, subcontractor, or supplier in any state contract or project.

Prepare Written Report

Prior to reporting an alleged violation of PCC, Section 10115.10 to DGS/OSDS awarding agencies must investigate the alleged violation and must prepare a written report of their findings. The written report must also include a recommendation for action to be taken commensurate with the awarding agency's findings and must be submitted to DGS/OSDS within 60 days of notification to the awarding agency of the alleged violation.

For contracts with DVBE goals, agencies should include the following language to assist in verifying compliance:

"Contractor agrees to provide verification, in a form agreed to by the state, that DVBE subcontractor participation under this agreement is in compliance with the goals specified at the time of award of contract, or with any subsequent amendment."