I. INTRODUCTION

The purpose of this document is to provide information and guidance for implementing the interim Policy to Ensure Equal Opportunity in University Business Contracting. These guidelines supersede guidelines previously disseminated by the Office of Business and Employment Affirmative Action on February 28, 1992. They will be reviewed and updated as needed.

These guidelines supplement the following University policies and procedures:

Facilities Manual
Business and Finance Bulletin BUS 43 - Material Management
Business and Finance Bulletin BUS 34 - Securing the Services of Independent Consultants

II. UNIVERSITY OF CALIFORNIA POLICY TO ENSURE EQUAL OPPORTUNITY IN UNIVERSITY BUSINESS CONTRACTING [Interim Policy]

1. It is the policy of The Regents of the University of California that race, religion, sex, color, ethnicity, and national origin will not be used as criteria in its business contracting practices, except as provided in section B., below. Every effort will be made to ensure that all persons, regardless of race, religion, sex, color, ethnicity, and national origin have equal access to contracts and other business opportunities with the University.

2. Nothing in this policy shall prohibit any action which is necessary to comply with state and federal law, or to maintain eligibility for any federal or state funded program, where ineligibility would result in a loss of funds to the University. Example of program elements that may be required are:
   1. Establishment of annual goals for use of small, disadvantaged, women-owned, and disabled veteran business enterprises as appropriate; and

   2. Appropriate record-keeping and preparation of annual statistical reports on the participation of small, disadvantaged, women-owned, and disabled veteran business enterprises, as suppliers, general contractors, and subcontractors.

3. The University will establish outreach programs to assure equal opportunity in business contracting.

III. COMPLIANCE WITH STATE AND FEDERAL LAW OR REGULATION

Under the terms of certain extramural contracts or grants from the federal or state governments, the University may be required to take action regarding awards to disadvantaged and/or women-owned business enterprises. The provisions of contracts and grants can and do vary greatly and will require decisions and judgement on the proper applicability and implementation in each case. Your campus contract and grant officer should advise on any contracts or grants which have specific requirements regarding awards to disadvantaged or women-owned businesses. Questions regarding state or federal laws or regulations should be addressed to the Office of the General Counsel.

California Public Contract Code Section 10500.5 requests The Regents to adopt policies and procedures to facilitate the participation of small businesses, particularly small disadvantaged, women-owned, and disabled veteran business enterprises in business contracting with the University. Because Public Contract Code Section 10500.5 calls for voluntary action by The Regents, policies, programs, and activities using race, religion, sex, color, ethnicity, or national origin as criteria in business practices shall, except as described here, be discontinued. Pursuant to The Regents' Policy to Ensure Equal Opportunity in University Business Contracting [Interim policy], the University will continue to set goals and timetables for small disadvantaged [DBE], women-owned [WBE], and disabled veteran business enterprises [DVBE] where such goals and timetables are required as a condition of federal or state funded contracts or grants; maintain statistics on utilization of such businesses; and will return to self-certification. In addition, the University will continue to utilize outreach programs to assure equality of opportunity.

The definitions for DBE, WBE, and Socially and Economically Disadvantaged Individuals may be found in the Federal Acquisition Regulations, Section 19. The definition of a SBE for purchasing may be found in the Federal Acquisition Regulations, Section 19.102. For construction and design, the definition may be found in 13 CFR, Section 124.102. The definition of a DVBE may be found in the California Military and Veterans Code, Section 999(g). (See Attachment A for full text of the above definitions.)

[EDITOR'S NOTE: For purposes of the Facilities Manual, the definitions are found on the University of California Business Information Form UAA101, titled Attachment AB.]

IV. CERTIFICATION

For the purposes of statistical reporting, the University will return to a program of self-certification by businesses as to their status as SBE, DBE, WBE, or DVBE. The University Business Information Form UAA101 (see Attachment B) should be used to obtain such self-certification of status as well as to prequalify suppliers and contractors.

[EDITOR'S NOTE: For purposes of the Facilities Manual, the University of California Business Information Form UAA101 is titled Attachment AB.]

V. OUTREACH

1. Each University location should employ a broad range of outreach activities designed to improve the University's access to qualified small businesses, including D/W/DVBEs and to build goodwill in the community toward the University's contracting programs. Existing outreach programs should be continued, and new ones designed as needed. Such activities could include, for example:
   1. Publishing a brochure or other instructional material designed to convey information to all small businesses about the University's purchasing and contracting programs; the material may contain a directory of key personnel and information on how to access the University's purchasing and contacting systems;
   2. Participating in trade fairs for the purpose of enabling small businesses to demonstrate their abilities and meet potential buyers;
   3. Attending trade fairs and business opportunity events presented by others for the purpose of meeting new small businesses, including D/W/DVBEs and discussing common problems and solutions with the other organization's purchasing and contracting staffs;
   4. Presenting seminars for groups of small businesses, including D/W/DVBEs for the purpose of instructing them on how to do business with the University.
   5. Meeting small business salespeople on an individual basis to understand their capabilities and qualifications;
   6. Visiting small business locations for the purpose of inspecting their facilities, understanding their capabilities and prequalifying them as University suppliers and contractors; and
   7. Participating in local organizations which support small businesses, including groups oriented toward D/W/DVBEs.

2. Each University location should designate a coordinator(s) knowledgeable in its purchasing and/or facilities contracting systems who will be responsible for:
   1. Informing small businesses, including D/W/DVBEs, of appropriate purchasing or contracting procedures;
   2. Referring small businesses, including D/W/DVBEs, to appropriate business contracting staff;
   3. Coordinating outreach activities; and
   4. Maintaining statistical records.

3. Additional guidelines regarding outreach programs may be issued by the appropriate functional offices at the Office of the President.

VI. STATISTICAL RECORDS

1. As a federal contractor, the University is required, periodically, to produce statistics on its utilization of D/W/DVBEs. Each campus should maintain records containing, at a minimum:
   • Total dollars expended to all businesses.
   • Dollars expended, by category, to SBE, DBE, WBE, and DVBE firms.
   • Dollar expenditure expressed as a percentage of the total for each business category.

2. The above annual statistical information shall be submitted to the Office of the President not late than August 15 each year in the following form:
   • Total annual expenditure, by contracting category, for purchasing, construction, and design professionals.
   • The separate dollar expenditure in each contracting category for small, disadvantaged, women-owned, and disabled veteran business enterprises.
   • Construction contracts should be divided into those dollars expended on prime contracts and those dollars expended on subcontracts. Unless a change order significantly alters the percentage of awards to particular categories, it will not be necessary to track or adjust reporting on change orders.

The University of California Business Information Form (UAA101)

For a copy of this document, please consult your Facilities Manual. It is not available online.

Asian-Indian Americans - United States citizens whose origins are in India, Pakistan, or Bangladesh.

Asian-Pacific Americans - United States citizens whose origins are in Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, the U.S. Trust Territory of the Pacific Islands, the Northern Mariana Islands, Laos, Cambodia, or Taiwan.

Disabled Veteran - a veteran of the military, naval, or air service of the United States with a service connected disability who is a resident of the State of California. To qualify as a veteran with a service connected disability, the person must be currently declared by the United States Veterans Administration to be 10 percent (10%) or more disabled as a result of service in the armed forces.

Disabled Veteran Business Enterprise (DVBE) - a business that is at least fifty-one percent (51%) owned by one or more disabled veterans or, in the case of any publicly owned business, at least fifty-one percent (51%) of the stock of which is owned by such individuals: and whose management and daily business operations are controlled by one or more of such individuals.

Disadvantaged Business Enterprise (DBE) - a business concern which is at least fifty-one percent (51%) owned by one or more socially and economically disadvantaged individuals or, in the case of any publicly owned business, at least fifty-one percent (51%) of the stock of which is owned by such individuals and whose management and daily business operations are controlled by one or more of such individuals.

Economically Disadvantaged Individuals - those socially disadvantaged individuals whose ability to compete in the free private enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.

Native Americans - American Indians, Eskimos, Aleuts, and native Hawaiians.

Small Business Enterprise (SBE) - an independently owned and operated concern certified, or certifiable, as small business by the Federal Small Business Administration (SBA).

(A general rule of thumb is that a concern with not more than 500 employees may be considered small business. Size standards by Standard Industrial Classification codes may be found in the Federal Acquisition Regulations, Section 19.102. The University may rely on written representation by the vendors regarding their status.)

Socially Disadvantaged Individuals - those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a group without regard to their individual qualities.

Women-Owned Business Enterprise (WBE) - a business that is at least fifty-one percent (51%) owned by a woman or women who also control and operate it. "Control" in this context means exercising the power to make policy decisions. "Operate" in this context means being actively involved in the day-to-day management.

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