California Code of Regulations › Title 2 - Administration › Division 2 - Financial Operations › Chapter 3 - Department of General Services › Subchapter 10.5 - Disabled Veteran Business Enterprise Participation Goal Program for State Contracts › Article 2 - DVBE Participation in State Contracting › Section 1896.73 - Substitution of a DVBE Subcontractor

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any substitution of a DVBE subcontractor
					 shall be by another DVBE subcontractor. The substitution shall be to perform
					 work stated in the original bid and can occur only if approved by OSDS in
					 writing prior to the commencement of any work by another DVBE subcontractor.
					 The substitution shall maintain, at minimum, the level of DVBE participation
					 stated in the original bid.
(b) The
					 contractor shall concurrently by certified mail notify in writing both the
					 original DVBE and the proposed replacement DVBE, along with the awarding
					 department, of the intended substitution and the reasons for the substitution.
					 The awarding agency will provide written notice of the DVBE substitution
					 request to both the original and proposed replacement, including instructions
					 for objecting to the substitution.
(c) The contractor shall provide the awarding
					 department a copy of the written notice issued to the original DVBE, specifying
					 the situation or situations justifying replacement, with proof of delivery. In
					 the absence of a proof of delivery, the applicable certified mail receipt will
					 be sufficient proof of attempted delivery for documentation purposes.
(d) The DVBE subject to replacement shall
					 have up to five business days from receipt of the notice to express their
					 consent or opposition to the substitution. The DVBE's reply shall be sent
					 simultaneously by certified mail to the contractor and awarding department. In
					 the absence of a consent or opposition reply, the returned and unopened
					 certified mail from the contractor will be sufficient documentation.
(e) When a written opposition to a
					 substitution is filed, the DVBE subject to substitution is entitled to a
					 hearing, to be conducted by the awarding department. The hearing notice shall
					 be issued by the awarding department within five business days from the
					 awarding department's receipt of the written opposition and shall provide the
					 DVBE subject to replacement a minimum of five business days' notice prior to
					 the hearing. All essential hearing time and place details will be provided to
					 the applicable DVBE, including the reasons for the hearing, the name of the
					 person hearing the issue, and applicable accessibility information.
(f) Upon the awarding department's
					 determination that there are legitimate reasons for a DVBE subcontractor
					 replacement, the awarding department shall submit a substitution request to the
					 OSDS:
(1) The request must satisfy the
					 criteria subdivision (g) specifies.
(2) The substitution request shall be
					 accompanied by any hearing decision, including the name and certification
					 number of the business being substituted and the name and certification number
					 of the proposed replacement along with the contract number, contract amount,
					 amount of the original DVBE commitment, the amount of the new DVBE commitment,
					 the justification for the substitution, and the date written objection was
					 received, if applicable.
(3) If a
					 DVBE cannot be identified as a replacement, the contractor shall document the
					 absence of DVBEs as subdivisions (f)(3)(A) through (E) set forth and include
					 the applicable contract modifications section
					 1896.76 requires under such
					 circumstances.
(A) Confirmation of the
					 absence of DVBEs to perform the work specified obtained from SB/DVBE Advocates
					 from the awarding department and the Department of Veterans Affairs.
(B) Results of a search of the OSDS statewide
					 directory database for DVBEs in that line of business.
(C) Evidence of communication with DVBE
					 community organizations nearest the worksite regarding the absence of DVBEs, if
					 relevant.
(D) Documentation of
					 communication with DVBEs describing the work to be performed, its percentage of
					 the overall contract, the corresponding dollar amount, and their responses to
					 the request.
(E) Email
					 documentation of steps (A) through (D) is acceptable. In such instances, proof
					 of non-delivery shall be the printed "undeliverable" messages received when
					 emails are returned to the sender's inbox.