What Role Can a DVBE Play in my Bid?

There are hundreds of certified DVBEs who provide a wide range of services and goods. These firms are composed of capable businesspeople who want to build business partnerships to help their businesses succeed and grow.

When you’re deciding what portion of the contract can best be performed by a DVBE, think broadly about all the goods and services needed to complete the contract on which you are bidding.

If you are unable to identify a specific portion of the proposed contract to subcontract, the State encourages bidders to avoid making a predetermination that no DVBEs are able to perform without first contracting and soliciting participation from them. This allows DVBEs to respond whether they can or cannot provide any goods or perform services related to the solicitation, and provides bidder with responses for consideration.

The California Code of Regulations state that the DVBE you choose must perform a “commercially useful function” in the state contract on which you are bidding. A DVBE contractor, subcontractor or supplier is considered performing a commercially useful function when it meets the following criterion:

  1. The business concern is: responsible for the execution of a distinct element of the work of the contract; carrying out its obligation by actually performing, managing or supervising the work involved; and performing the work that is normal for its business services and function, and

  2. The business concern is not further subcontracting a greater portion of the work than would be expected by normal industry practices.

Again, think broadly about how you can use a DVBE. For example:

  • Can a DVBE supply a portion of the goods?

  • Are there any special supplies needed to perform the contract?

  • What about shipping or warehousing?

  • Can a DVBE perform part of a study or survey?

You know the job best. Where do you think a DVBE fits in?

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