Report 2018-114 Recommendation 17 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 #17 To: Veterans Affairs, 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, 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.

Annual Follow-Up Agency Response From October 2022

In an additional effort to measure the effectiveness of our outreach efforts, CalVet developed and implemented a Veteran Owned Business survey to better understand veteran owned businesses that do not have a DVBE certification, and assist with targeted outreach efforts to appeal to the benefits of DVBE certification. CalVet gathered and analyzed data sets through the U.S. Small Business Administration and other community-based organizations to gain greater access to California veteran business owners. Upon access to the data sets, CalVet released a survey to 1699 Non-DVBE veteran owned businesses to determine the reason they chose not to become certified. CalVet additionally offered multiple avenues of assistance in becoming a certified DVBE, as well as assistance with any presumed barriers in that process. Survey results indicated a strong need to continue to educate veterans on the DVBE program, the state contracting process, and to continue our concentrated outreach efforts on the procurement of goods and services. In addition, CalVet and DGS have reoccurring monthly meetings wherein the DGS Certification Unit cross references CalVet's outreach registration list to determine if business owners do in fact become certified after attended CalVet's outreach events.

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

Annual Follow-Up Agency Response From October 2021

Through the executed interagency agreement with DGS, CalVet has gained greater access to certification and procurement data. Although this has allowed for greater resolution toward the impact of DVBEs who are newly certified, it does not provide the necessary information to discover disabled veteran business owners who did not become certified DVBEs. Due to this, CalVet has implemented additional avenues through the Request for Response as well as a foundation for data collection through post event surveys. Despite these efforts, veterans meeting the criteria indicated in this recommendation have not provided adequate responses to allow for meaningful program development. CalVet will continue to explore data sets through the U.S. Small Business Administration, the Governor's Office of Business and Economic Development, and other community based organizations to gain greater access to this population to improve its outreach processes.

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

Annual Follow-Up Agency Response From October 2020

The new IA does include the necessary data sharing to allow CalVet to perform surveys and analysis as recommended through this audit. Due to constraints related to COVID-19, CalVet will begin receiving this data no earlier than November 01, 2020. The agreement also provides the resources necessary to disseminate efforts down to the DVBE community through a revamped DVBE Advisory Council that will act as bridge between DGS/CalVet and the DVBE community as a whole. Key areas of investigation for the Council will included topics such as DVBE certification challenges and process improvements affecting DVBE recruitment.

Documented Evidence:

1) Interagency Agreement (executed)

2) CalVet Advisory Council Process Draft

3) DVBE AC Process Flow Draft

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

1-Year Agency Response

The new IA will include the necessary data sharing to allow CalVet to perform surveys and analysis as recommended through this audit. CalVet currently receives no DVBE certification or procurement data from DGS. The agreement will also provide the resources to disseminate research efforts down to the DVBE community through the DVBE Advisory Council. The Council will consist of DVBE-focused organizations and other veteran services groups that will act as bridge between DGS/CalVet and the DVBE community as a whole. Standing agenda items for the Council will includes topics such as DVBE certification challenges and process improvements affecting DVBE recruitment.

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

6-Month Agency Response

CalVet surveys the outreach event attendees to evaluate the efficacy of the event. In particular, CalVet asks whether business owners applied for DVBE certification. CalVet is still evaluating the responses and intends to follow up with business owners deciding not apply for certification. CalVet will track the reasons cited by these attendees for not pursuing a DVBE certification and will use this information to improve future outreach events.

CalVet continues to evaluate survey responses. However, based on feedback during the events, two barriers to DVBE certification were immediately identified:

-First, some disabled veterans had not yet filed a disability claim with the VA. In response, CalVet now has a County Veteran Service Office representative present at all outreach events to assist veterans with claims.

-Second, attendees identified a need for more accessible websites with a clear process for becoming a DVBE. In response, CalVet updated our website to include new user-friendly links to a master contact list of all awarding agency DVBE advocates, upcoming procurement opportunities, and a guide on "How to do Business with the State of California."

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

60-Day Agency Response

CalVet agrees with this recommendation. CalVet reviewed past outreach events to learn why veteran-owned business chose not to be DVBE certified. The feedback noted that DGS and CalVet resources and websites were confusing. CalVet's updated website has new DGS information, improved links, and contact information. CalVet has been tracking DVBE calls and requests since March and is now better able to help the veteran population get DVBE certified.

The next focus will measure outreach to veteran businesses that opt out of DVBE certification. The outreach survey will be developed to cover questions on veterans' past state contract history, the challenges in obtaining a DVBE certification, whether DVBE certification is beneficial and whether CalVet outreach events are effective. A report will be generated for those attendees that are not DVBE certified. A 30/60/90-day report will be developed to survey the reasoning for not obtaining a DVBE certification. These findings will help determine future outreach methods.

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

All Recommendations in 2018-114

Agency responses received are posted verbatim.