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    Supplementary General Conditions to

    Contract General Conditions for Job Order Contracts

?Article 2.04-C-4, Adjustment Factors, add the following paragraph:

    Each adjustment factor is independent of the other. Bidder shall not specify adjustment factors for Nighttime working hours and Premium working hours that are less than the specified adjustment factor for Daytime working hours.

?Article 2.06-G, Basis of Award, delete and replace with the following:

    Basis of Award. The bid proposal package contains a standard proposal form that shall be used for bidder’s proposal. In its bid proposal, the Bidder shall specify each of three adjustment factors to four decimal places. Each adjustment factor is independent of the other. Bidder shall not specify adjustment factors for Nighttime working hours and Premium working hours that are less than the specified adjustment factor for Daytime working hours. The University shall assign weight to each of these factors, in order to calculate a composite score for each bidder. Refer to the Special Conditions of the Contract. If the University awards a contract, it will be awarded to the bidder with the lowest composite score.

?2.12 Disabled Veteran Business Enterprise Participation Requirement

    California state law requires that its state agencies achieve a goal of at least three (3) percent participation for disabled veteran business enterprises (DVBE) in state contracts. Under the Job Order Contracting system it is not feasible to identify potential DVBE subcontractors at time of bidding, since the individual jobs are not known. However, the successful low bidder will be required to meet or exceed DVBE participation goals, by identifying DVBEs to be utilized on each Job Order during the job order proposal submission phase after Contract award. Failure of the Job Order Contractor to comply with the DVBE requirement may cause individual proposals to be rejected, thereby endangering the potential for a Contractor to receive any further work under the Contract. The procedure for complying with this requirement is described in Article 5.05, Preparation of the Proposal, subdivision A.5.

? Article 5.05, Preparation of the Proposal, subdivision A.5

    Delete and replace with the following:

5. The Contractor‟s proposal shall include compliance with the disabled veteran business enterprises (DVBE)

    participation requirement, which is to achieve a goal of three (3) percent participation for DVBEs. Following

    are the requirements to meet the participation goals:

    a. Special Definitions

    (1) „Disabled veteran‟ as used herein, means a veteran of the military, naval or air services of the

    United States with at least a ten (10) percent service-connected disability who is a resident of

    the State of California.

    (2) “Disabled veteran business enterprise contractor, subcontractor, or supplier” means any person

    or entity that has been certified by the Office of Small Business & DVBE Services and that

    performs a “commercially useful function,” as defined below, in providing services or goods

    that contribute to the fulfillment of the Contract requirements:

    (a) A person or an entity is deemed to perform a “commercially useful function” if a person

    or entity does all of the following:

    (i) (A) is responsible for the execution of a distinct element of the work of the job

    order;

    (B) carries out the obligation by actually performing, managing, or supervising

    the work involved;

    (C) performs work that is normal for its business services and functions.

    (ii) is not further subcontracting a portion of the work that is greater than that expected

    to be subcontracted by normal industry practices.

    (b) A contractor, subcontractor, or supplier will not be considered to perform a commercially useful

    function if the contractor‟s, subcontractor‟s, or supplier‟s role is limited to that of an extra

    participant in a transaction, contract, or project through which funds are passed in order to

    obtain the appearance of disabled veteran business enterprise participation.

    10/20/2009

    (3) (a) „Disabled veteran business enterprise‟ (DVBE) as used herein, means a business concern

    certified by the Small Business & DVBE Services as meeting all of the following:

    (i) The business is at least 51 percent owned by one or more disabled veterans, or in

    the case of a publicly owned business, at least 51 percent of its stock is owned by

    one or more disabled veterans; a subsidiary which is wholly owned by a parent

    corporation, but only if at least 51 percent of the voting stock of the parent

    corporation is owned by one or more disabled veterans; or a joint venture in which

    at least 51 percent of the joint venture‟s management and control and earnings are

    held by one or more disabled veterans.

    (ii) One or more disabled veterans manage and control the daily business operations.

    The disabled veterans who exercise management and control are not required to be

    the same disabled veterans as the owners of the business concern.

    (iii) A sole proprietorship, corporation, or partnership with its home office located in

    the United States, which is not a branch or subsidiary of a foreign corporation,

    foreign firm, or other foreign-based business.

    (b) Notwithstanding subdivision (3)(a), after the death or the certification of a permanent

    medical disability of a disabled veteran who is a majority owner of a business that

    qualified as a disabled veteran business enterprise prior to that death or certification of a

    permanent disability, and solely for purposes of any contact entered into before that death

    or certification, that business shall be deemed to be a disabled veteran business enterprise

    for a period not to exceed three years after the date of that death or certification of a

    permanent medical disability, if the business is inherited or controlled by the spouse or

    child of that majority owner, or by both of those persons.

    b. Goal Attainment

     In order to satisfy and be responsive to this requirement, the Contractor must meet the DVBE Participation Goal , and the three (3) percent DVBE Participation Goal is attained when:

    (1) The Contractor is not a DVBE and is committed to use DVBEs for not less than three (3)

    percent of the Contract dollar amount; or

    (2) The Contractor is a DVBE and committed to performing not less than three (3) percent of

    the Contract dollar amount with its own forces or in combination with those of other

    DVBEs.

    c. Documentation Requirements

     The successful Contractor must document its satisfaction of the DVBE participation goal requirement. Final determination of DVBE Participation Goal Attainment by the Contractor shall be at the Trustees‟ sole discretion. If the Contractor meets or exceeds the three percent DVBE Participation Goal for the maximum Contract value before the expiration of the Contract term, the Trustees may waive the DVBE Participation Goal Attainment for subsequent job orders. Contractor shall continue to satisfy the DVBE participation goal requirement until the Trustees shall waive this requirement in writing. (1) Required Documentation

     The DVBE documentation forms that must be completed are as follows, and instructions for

    completing the required forms correctly are included to assist the bidder.

    (a) DVBE Transmittal Form

    Contractors must fill out and attach the DVBE transmittal form as a cover sheet to the

    required documents and submit it and the additional required documentation along with

    all other required submissions in the proposal packages for each Job Order. All requested

    DVBE documentation must be completed on the forms provided and submitted with the

    DVBE Transmittal Form.

     Supplementary General Conditions 2 10/20/2009

    (b) Summary of Disabled Veteran Owned Business Participation (Attachment 1)

    Summary of Disabled Veteran Owned Business Participation, Attachment 1, must be

    completed showing the type of work and company proposed for DVBE participation,

    their subcontractors (if any), and other related information. Complete the form providing

    the information as follows:

    (i) Company Name - list the name of the company proposed for DVBE participation.

    If the prime Contractor is a DVBE, its name must also be listed to receive

    participation credit.

    (ii) Nature of work - identify the proposed work or service to be provided by the listed

    company.

    (iii) Contracting With - list the name of the department or company with which the

    company listed is contracting.

    (iv) Tier - the contracting tier should be indicated with the following level designations:

    0 = Prime Contractor;

    1 = First tier subcontractor/supplier;

    2 = Second tier subcontractor/supplier of first tier subcontractor/supplier;

    3 = Third tier subcontractor/supplier of second tier subcontractor/supplier;

    (v) Claimed DVBE Value - the total dollar amount of the value claimed by a disabled

    veteran business enterprise..

    (vi) Percentage of Contract - compute the percentage (%) of the total claimed DVBE

    value of the total Job Order dollar amount.

    (vii) DVBE Certification - The Contractor must include one copy of the DVBE

    certification letter from the Small Business & DVBE Services for each DVBE firm

    listed on the Summary of Disabled Veteran Owned Business Participation.

    (c) Contractor‟s Certification (Attachment 2)

     The Contractor must sign and include the DVBE Certification, certifying that each firm

    listed on the Summary of Disabled Veteran Owned Business Participation (Attachment 1)

    complies with the legal definition of DVBE.

    (2) Time Frame for Submitting Documentation

     The DVBE participation documentation must be submitted with each discrete Job Order,

    throughout the life of the contract.

    d. Use of Proposed DVBE

     If awarded the Job Order, the successful Contractor must use the DVBE subcontractors and/or suppliers listed in its Job Order proposal unless it has requested substitution and has received approval of the Trustees in compliance with the Subletting and Subcontracting Fair Practices Act.

    e. Trustees‟ Reporting of DVBE Participation. Responsive to direction from the State Legislature, the Trustees are seeking to report increased statewide participation of disabled veteran business enterprises in contract awards. To this end, the successful Contractor shall inform the Trustees of any contractual

    arrangements with subcontractors, consultants or suppliers that are certified disabled veteran business enterprises.

    f. Additional DVBE Information Sources

     For more information regarding DVBE certification, copies of directories or for general DVBE information, contact:

    State of California, Department of General Services

    Small Business & DVBE Services Branch

    P.O. Box 989052, West Sacramento, California, 95798-9052 (mailing address)

    707 Third Street, First Floor, Room 400, West Sacramento, California 95605 (physical address)

    Telephone number: (800) 559-5529 or (916) 375-4940; Fax number: (916) 375-4950

    Email: oskchelp@dgs.ca.gov , or, via the Internet at www.pd.dgs.ca.gov/smbus .

     Supplementary General Conditions 3 10/20/2009

?4.04 Substitution of Subcontractors

    Add new subsection „c‟ as follows:

    c. Substitution of a Disabled Veteran Business Enterprise. After award of the job order, the Contractor shall

    use the Disabled Veteran Business Enterprise (DVBE) subcontractor(s) and/or suppliers listed in its job

    order proposal unless a substitution is requested in writing to the Trustees, and the Trustees approve the

    substitution in writing before the commencement of any work. The substitution request must include at

    least the following:

    (1) An explanation of the reason for the substitution.

    (2) A written description of the business enterprise to be substituted, including its business status as a

    sole proprietorship, partnership, corporation or other entity, and the DVBE certification status of

    the firm, if any.

    (3) The Contractor must substitute a DVBE with another DVBE. If the DVBE substitution cannot

    occur, the Contractor must include a written justification and the steps that were taken to try to

    acquire a new DVBE subcontractor and how that portion of the contract will be fulfilled.

    (4) A description of the work to be performed, identified both as a task(s) and as a dollar amount or

    percentage of the overall contract that the substituted business will perform.

    The request for substitution of a DVBE and the Trustees‟ approval or disapproval cannot be used as an

    excuse for noncompliance with any other provision of law, including, but not limited to, the Subletting and

    Subcontracting Fair Practices Act (Sections 4100 et seq., Public Contract Code) or any other contract

    requirements relating to substitution of subcontractors.

    Note to Campuses: The following two amendments to Article 4.02-c of the Contract General Conditions are to be used only for projects utilizing any funds from the Kindergarten-University Public Education Facilities Bond Act of 2002 or 2004. If not funded through these bond acts, delete.

    ?Article 4.02-c, add the following:

    In accordance with Labor Code Section 1771.7, the Trustees have established a labor compliance program for all contracts that commence on or after April 1, 2003, that are partially or wholly funded by the Kindergarten-University Public Education Facilities Bond Act of 2002 or 2004. For these projects only, the Trustees have been empowered to assume the role of the Labor Commissioner in the Department of Industrial Relations. Any questions regarding the payment of prevailing wages, or enforcement thereof, should be directed to the Trustees‟ Chief of

    Construction Management at the CSU Chancellor‟s Office, Capital Planning, Design and Construction, 401 Golden Shore, Long Beach, CA 90802-4210.

?Article 4.02-c (6), delete and replace with the following:

    Contractor shall submit all certified payroll records along with the following documents described and contained in the Labor Compliance Checklist, form CSU-LC-00: a signed Certification/Acknowledgement of Checklist, Statements of Compliance, Authorization to Certify, Fringe Benefit Statements, Non-Performance Payroll Reports, Employee Deduction Authorization Forms, Public Works Contract Award Information (DAS 140), Request for Dispatch of an Apprentice (DAS 142), California Apprenticeship Council-Training Fund Contributions (CAC 2). Contractor shall also submit the Hourly Labor Rate Worksheets and any other Trustees-requested documentation for its workers and those of all subcontractors. Contractor shall electronically submit these records to the Trustees at www.LCPTracker.com, or as otherwise instructed by the Trustees. Additionally, Contractor shall submit a copy of the Hourly Labor Rate Worksheet for its workers and those of all subcontractors to the Construction Administrator.

    End of Supplementary General Conditions

     Supplementary General Conditions 4 10/20/2009

Supplementary General Conditions 5 10/20/2009

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