For the ninth year in a row, the Department of FISCal (FI$Cal), has exceeded state procurement goals. Each year, the state of California sets goals to procure goods and services from Small and Micro Businesses (SB) and Disabled Veteran Business Enterprises (DVBE).
The statewide goal for each department is 25 percent for SB participation and three percent for DVBEs. For the latest reporting period, Fiscal Year 2021/22, FI$Cal reported 44.03 percent of their contracting dollars to SBs and 5.25 percent to DVBEs.
Procurements Unit Supervisor Chad Adams attributes the department’s success in this area to the ongoing diligence of the procurement team, “Our team makes it a priority to align with the state’s goal of supporting small businesses and our veteran community.” Said Adams, “We keep this goal at the forefront of our approach; it’s never far from our mind as we enter into the procurement process.”
An important part of exceeding these goals is the role of the SB/DVBE advocate. Recently the procurements unit welcomed Ruben Arocan as the department’s new designated SB/DVBE advocate. Arocan replaced longtime advocate Norma Miranda, who retired last year. The SB/DVBE advocate’s role includes identifying potential SB/DVBE contractors or subcontractors and potential contracting opportunities; making information about solicitations available to, and consider offers from, certified SB and DVBE firms; and ensuring payments due on purchase documents with SB suppliers are made promptly. In addition to these activities, Arocan and Adams continue to strategize on new outreach techniques. Said Adams, “We are excited to continue coming up with innovative ways to engage with these groups, in order to continue to meet and exceed the statewide goals.”
Small businesses employ around 48 percent of California’s workforce. The state strives to support these businesses through the SB/DVBE goals. Likewise, the DVBE program facilitates the integration of disabled veteran owned businesses into California’s entrepreneurial economy, recognizing their service and expertise. In order to qualify, businesses must be certified by the Department of General Services and must fulfill the following requirements.
Small Businesses:
- Must be independently owned and operated
- Must not be dominant in their field of operation
- The principal office must be located in California
- Owners must live in California
- Must have 100 or fewer employees and an average annual gross receipts of $15 million or less over the last three tax years. (There may also be other size standard restrictions from the Small Business Administration that are applicable)
- Small Business will automatically be designated a Microbusiness if gross annual receipts are less than $3.5 million or if it is a manufacturer with 25 employees or less
Disabled Veteran Business Enterprise:
- At least 51 percent owned by one or more disabled veterans
- Veteran(s) must reside in California
- Daily business operations must be managed and controlled by one or more disabled veterans
- Home office must be located in the U.S.
- “Disabled Veteran” means a veteran of the U.S. military, naval, or air service and has a service-connected disability of 10 percent or more
- DVBE certification is good for 1 year and must be renewed annually. (If also certified as a SB/MB, then certification is good for 2 years)
The department is proud to maintain a history of alignment with the statewide procurement goals. These goals also align with our organizational values, which include equity, diversity and inclusion.
Congratulations once again to the FI$Cal procurement team!