California’s DVBE Program is a Success Story

California’s Disabled Veteran Business Enterprise (DVBE) program stands out as a beacon of success at a time when veteran-owned businesses often struggle to gain a foothold in state government-funded contracting.

Source : Pexels

November 15, 2024

Author : Alex Bustillos

While the federal government’s Small Business Administration operates a Service-Disabled Veteran-Owned Small Business (SDVOSB) program, very few U.S. states have their own disabled veteran business programs. 

Only a small number of states, Florida, Massachusetts, and Ohio, have successful VBE (Veteran business enterprise) programs.

Some cities such as Chicago and Indianapolis have their own disabled veteran programs. Las Vegas also has its own DVBE program, and pressure has grown on officials in Carson City to expand disabled veteran participation across Nevada.

California has led the pack though with its DVBE program by the number of jobs and the amount of participation that disabled veteran owned firms have had on state funded projects.

State officials in Sacramento have established a framework that demonstrably benefits disabled veteran owned businesses.  Bidding contractors using DVBEs can receive a bid advantage, helping them to win publicly funded projects, and thus encouraging them to hire DVBE firms.

California’s Department of General Services (DGS) meanwhile administers the program, handling the certification of DVBE firms, and compiling annual reports on participation rates. It is DGS that handles the certification of DVBE firms and compiles annual reports on participation rates.

The DVBE program mandates that awarding agencies across the state strive to award at least 3% of their total contract value to DVBE firms. The commitment has largely yielded positive results. California has consistently met or exceeded the goal in recent years. This unambiguous benchmark allows for tracking progress and holding awarding departments accountable.

This centralized approach ensures consistency and facilitates communication between awarding departments such as with cities and school and utility districts.

Prime contractors bidding on state funded construction projects in the state are also often required by awarding agencies to show that they have undertaken good faith effort outreach, meaning that they document efforts at contacting and advertising bid notices aimed at DVBE subcontractors and suppliers. 

Caltrans, the state’s DOT, does have a program that officially promotes DVBE participation in services, goods, information technology, and public works projects, but has come under criticism for not using enough local veteran firms in its projects.

While some prime contractors do often struggle to find DVBE firms qualified for specific subcontracted services they need, DVBE suppliers have filled the gap, selling a variety of construction materials and other products to prime contractors up and down California. 

California has demonstrated that a well-structured disabled veteran program can create significant participation for veterans while bolstering the state’s economy.

The complexity of the procurement system though can make it difficult for firms to identify suitable DVBE firms and being certain that the DVBE will be efficient and on time, especially with the large amount of paperwork involved.

One example of a DVBE firm working across the state is PN Supply, known for its efficiency and rapid response to customers - it functions as a strategic partner that gets firms the best prices for material supply, extends lines of credit, and even offers compliance advice for both government and commercial projects. 

Founded in 2014 by a disabled veteran with more than 30 years under his belt as a contractor - PN Supply knows the construction and aggregates industry. From hvac, steel, aggregates (concrete/asphalt), to drywall and electrical, they do it all. The founder is a disabled veteran who served in the U.S. military during the Vietnam war,  and his nephew is also a disabled veteran who was in the U.S. Army in Kosovo and Iraq. 

With a team of estimators, project coordinators, and purchasers - PN Supply has successfully delivered construction materials to more than 100 contractors on nearly 1,000 projects, these include working recently on the Sacramento Capitol Annex Building, the LAX People Mover and Airplane Terminal upgrades for the 2028 olympic games, and the new San Diego International Airport Terminal.

It’s safe to say that California’s DVBE program offers a compelling case study of how states can empower disabled veterans through targeted government contracting initiatives. By establishing clear goals, encouraging collaboration, and prioritizing outreach, California has created a program that benefits veterans, strengthens the economy, and paves the way for a more inclusive future.

For more visit on PN Supply visit:  https://www.pnsupply.com/

Category : Disabled Veteran Businesses Veteran Business State Government Procurement

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