Report 2018-114 Recommendations

When an audit is completed and a report is issued, auditees must provide the State Auditor with information regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year. Additionally, Senate Bill 1452 (Chapter 452, Statutes of 2006), requires auditees who have not implemented recommendations after one year, to report to us and to the Legislature why they have not implemented them or to state when they intend to implement them. Below, is a listing of each recommendation the State Auditor made in the report referenced and a link to the most recent response from the auditee addressing their progress in implementing the recommendation and the State Auditor's assessment of auditee's response based on our review of the supporting documentation.

Recommendations in 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)

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Recommendations to Corrections and Rehabilitation, Department of
Number Recommendation Status
24

To ensure that DVBE participation data are reported accurately and consistently, Corrections should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

Fully Implemented
Recommendations to General Services, Department of
Number Recommendation Status
1

To increase the number of DVBE firms that awarding departments can contract with when required to use LPAs, General Services should develop and implement a plan to encourage DVBE firms to participate in LPAs.

Fully Implemented
2

To ensure that a greater number of DVBE firms benefit from the DVBE program, General Services should work with awarding departments to understand why only a few DVBE firms receive a large number of contract awards. Based on its findings, General Services should take the necessary steps to remedy this situation.

Pending
3

To ensure that awarding departments can effectively identify DVBE firms that provide needed products and services, General Services should work with these departments to continue to narrow the codes available to those commonly used by awarding departments to more precisely identify what the State purchases and streamline search criteria in Cal eProcure.

Fully Implemented
4

To ensure that awarding departments can effectively identify DVBE firms that provide needed products and services, General Services should ensure that by October 2019 departments identify their contracting needs and then post these needs prominently on their websites as a resource for DVBE firms.

Fully Implemented
5

To ensure that awarding departments can effectively identify DVBE firms that provide needed products and services, General Services should continue to provide outreach services to DVBE firms on how to create effective keywords and choose appropriate codes.

Fully Implemented
6

To ensure that awarding departments can effectively identify DVBE firms that provide needed products and services, General Services should explore other options for making the Cal eProcure search engine more effective for awarding departments.

Fully Implemented
10

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 assess, at least annually, the effectiveness of its past outreach efforts in increasing the number of DVBE firms that become certified.

Fully Implemented
12

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 work with awarding departments to identify the types of goods and services for which they struggle to find a DVBE contractor or subcontractor.

Fully Implemented
14

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 develop an outreach plan to include outreach activities found to be effective in the past based on its assessment. This plan should also emphasize outreach to increase the number of DVBE firms that provide the types of goods and services that awarding departments struggle to obtain from DVBE firms.

Fully Implemented
16

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 develop better tracking of the businesses owned by disabled veterans that attend its outreach events and review certification data to determine whether these businesses obtained their certifications.

Fully Implemented
18

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.

Fully Implemented
20

To minimize the occurrence of program abuse and ensure that program abuse cases are handled appropriately and consistently, General Services should remind the awarding departments about preventive measures, including contract award notification to all subcontractors listed on the winning contractor's bid and providing the subcontractors with the name of the prime contractor, the role of the DVBE firm in the contract, the amount of the contract dollars designated for each subcontractor, and contact information that subcontractors can use if they encounter any issues on the project.

Pending
21

To minimize the occurrence of program abuse and ensure that program abuse cases are handled appropriately and consistently, General Services should develop procedures for awarding departments to help them identify whether a complaint constitutes program abuse, document and track all complaints, and take appropriate steps when investigating program abuse complaints.

Fully Implemented
22

To strengthen the enforcement of DVBE laws, regulations, and guidelines, General Services should track program abuse complaints, including the type of program abuse, how it was reported or discovered, and the dates specific actions were taken on the case. This tracking will enable the awarding departments to identify weaknesses within their processes and provide insight into how to address these issues, improving the DVBE program overall.

Fully Implemented
26

To ensure that DVBE participation data are reported accurately and consistently, General Services should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

Fully Implemented
28

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.

Fully Implemented
29

To ensure that it can create accurate annual DVBE participation reports, General Services should complete the programming necessary to include DVBE subcontractor information by June 30, 2019.

Fully Implemented
Recommendations to Legislature
Number Recommendation Status
7

To ensure that awarding departments that fail to meet the 3 percent goal receive the assistance necessary to achieve the goal, the Legislature should amend state law to transfer the responsibility for monitoring and assisting underachieving departments from CalVet to General Services.

No Action Taken
8

To minimize the occurrence of program abuse involving DVBE subcontractors, the Legislature should amend state law to require awarding departments to notify those DVBE subcontractors when they are named on an awarded contract.

Legislation Proposed But Not Enacted
Recommendations to Motor Vehicles, Department of
Number Recommendation Status
25

To ensure that DVBE participation data are reported accurately and consistently, DMV should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

Fully Implemented
Recommendations to Public Health, Department of
Number Recommendation Status
27

To ensure that DVBE participation data are reported accurately and consistently, Public Health should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

Fully Implemented
Recommendations to Transportation, Department of
Number Recommendation Status
23

To ensure that DVBE participation data are reported accurately and consistently, Caltrans should implement or strengthen a review process to ensure that DVBE participation amounts entered into its data systems or FI$Cal are accurate. This review process should include verification, on a sample basis, of the amounts awarded to, and the certification status of, the DVBE contractor or subcontractor for high-value contracts that include DVBE participation.

Fully Implemented
Recommendations to Veterans Affairs, Department of
Number Recommendation Status
9

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, CalVet should assess, at least annually, the effectiveness of its past outreach efforts in increasing the number of DVBE firms that become certified.

Pending
11

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, CalVet should work with awarding departments to identify the types of goods and services for which they struggle to find a DVBE contractor or subcontractor.

Pending
13

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, CalVet should develop an outreach plan to include outreach activities found to be effective in the past based on its assessment. This plan should also emphasize outreach to increase the number of DVBE firms that provide the types of goods and services that awarding departments struggle to obtain from DVBE firms.

Pending
15

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, CalVet should develop better tracking of the businesses owned by disabled veterans that attend its outreach events and review certification data to determine whether these businesses obtained their certifications.

Pending
17

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, CalVet 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.

Pending
19

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.

Pending


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