PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Consumer Service and Information Division |
RESOLUTION CSID-001 |
Information and Analysis Branch |
January 11, 2007 |
R E S O L U T I O N
Resolution CSID - 001. Adopting Proposal of the Joint Utilities to Operate the Clearinghouse of Woman- Minority- and Disabled Veteran-Owned Suppliers for Utilities Subject to the General Order 156 as Revised in (D).06-08-031.
_________________________________________________________________
Summary
This Resolution adopts the proposal by the Joint Utilities (JU)1 to operate the Clearinghouse of woman-, minority-, and disabled veteran-owned suppliers for utilities subject to the General Order 156. Decision (D).06-08-031 revised certain rules that allow for a utility-formed entity to operate (or contract for the service) to certify businesses to supply goods and services to California's regulated utilities. The Commission maintains oversight of the rules that govern these processes and is the venue for suppliers to appeal Clearinghouse or JU decisions.
Background
The Legislature passed Assembly Bill 3678, which requires California regulated utilities with $25 million in annual revenues to establish a program to procure goods and services from woman- and minority-owned business enterprises. In response to Assembly Bill 3678, the Commission issued General Order 156 (GO 156), which established guidelines for the utilities to follow in meeting these requirements.
In GO 156, the Commission established procurement goals of 5% for woman-, 15% for minority-, and 1.5% for disabled veteran-owned business enterprises. The utilities are required to report annually on their expenditures with women-, minority-, and disabled veteran-owned business enterprises (WMDVBEs), and their progress in meeting the procurement goals. GO 156 also required participating utilities to establish a joint clearinghouse to certify women and minority vendors. A vendor who is not certified may not receive credit for their expenditures by the
utilities toward their annual goal nor be included in the expenditures listed in the utilities' annual reports to the Commission.
For several years, the Commission has used a contractor to operate the Clearinghouse and perform the verification services. Operational costs for the Clearinghouse are billed to the Commission and reimbursed by the participating utilities. In 2005, the Department of General Services (DGS) informed the Commission that this arrangement was no longer acceptable. To address these concerns, the Commission considered several options and determined the most feasible was to have the utilities pay the operational costs of the Clearinghouse directly.
An Order Instituting Rulemaking (R.06-04-011) was issued to accomplish this goal. Comments were received from interested parties, and those deemed meritorious were included in the Proposed Decision. The Decision called upon the utilities to offer a proposal to accomplish the goals of removing the CPUC from the Clearinghouse payment process, while still maintaining the CPUC's mandated oversight role. The Joint Utilities offered a proposal to accomplish the transfer of the funding mechanism and related administrative functions. The proposal is based on the contract the CPUC uses with the Clearinghouse.
Notice
All parties in R.06-04-011 were timely served with D.06-08-031 and the public was timely noticed in the Commission's Daily Calendar. The JU submitted timely comments and a proposal for Clearinghouse operation on September 25, 2006.
Discussion
The proposal submitted on September 25, 2006 clearly outlines a process whereby the utilities form an entity known as the "Joint Utilities" or JU that will contract for the operation of the Clearinghouse, thereby removing the Commission from the day-to-day administration and payment functions. The Commission does however maintain its mandated oversight role. The JU proposal is comprised of a Master Services Agreement and a Statement of Work. (See Attachment 1 for Statement of Work) Each member of the JU must execute the Agreement with the extant Clearinghouse and/or any successor.2
The Commission's Consumer Service and Information Division staff has reviewed the Master Services Agreement and Statement of Work. The Statement of Work clearly details the processes that will be used within the new JU approach. Staff's analysis supports the processes defined in the Statement of Work as they are very similar to the existing Scope of Work in the State's existing contract with the Clearinghouse. There are two areas that merit further discussion. They are amendments to GO 156 regarding appeal processes within the certification process and the JU's access to and use of the Clearinghouse-complied database of verified WMDVBEs
The Statement of Work requires the Clearinghouse to review complaints concerning Clearinghouse verification decisions, as outlined in GO 156 Section 7, and properly notes that the Commission shall have final jurisdiction on any appeal after a final decision has been rendered by the Clearinghouse. Although the JU will have contractual relationships with the Clearinghouse, the JU are not in any way responsible for verification decisions made by the Clearinghouse, or by the Commission, in response to complaints concerning such verification decisions. The Commission has always been the ultimate arbiter of verification status, and will remain so.
As part of the verification process, the Clearinghouse develops and maintains information regarding applicants. Certain information regarding applicants verified by the Clearinghouse, or Disabled Business Enterprises verified by the California State Department of General Services Office of Small and Minority Business, is transmitted to the Commission as part of the Clearinghouse data base that will be a major product of the contract between the Clearinghouse and the JU. Most of this database information is non-confidential and has long been made available to the Commission, utilities, and the public. Portions of the database information, however, are confidential, and provided only to the Commission, and to participating utilities whose procurement employees sign appropriate confidentiality agreements.
The Clearinghouse, participating utilities, and the Commission are each subject to certain legal restrictions on the disclosure of confidential and sensitive information regarding applicants. (See, e.g., Civil Code Sections 1798 et seq.; Government Code Section 11019.9.) The Statement of Work sets forth requirements the Contractor must follow to ensure the security and integrity of confidential and sensitive Clearinghouse information in its possession. To the extent that confidential and sensitive information will be transmitted by the Clearinghouse to the Commission, such information must be protected against inappropriate disclosure by the Commission, pursuant to the requirements of Civil Code Section 1798 et seq.; Government Code Section 11019.9, and other authorities. The Commission will, of course, be solely responsible for the actions of its employees. Any effort to hold the JU legally responsible for the actions of Commission employees relating to the implementation of Commission responsibilities under Public Utilities Code Sections 8281-8286, simply because of contractual relationships between the JU and the Clearinghouse, will be viewed by the Commission as an inappropriate attempt to interfere with the Commission in its performance of its official duties, in violation of Public Utilities Code Section 1759.
Similarly, utilities which receive confidential and sensitive information from the Clearinghouse directly or from the Commission, after their employees execute appropriate confidentiality agreements, must comply with all relevant laws and Commission determinations regarding the security and integrity of such information, and must take full responsibility for the actions of their employees. Any effort to hold the Commission responsible for inappropriate information disclosures by utility employees will be similarly viewed as interference with Commission's performance of its responsibilities. The Consumer Services and Information Division may, if necessary or desirable, enter into a memorandum of understanding or other agreement memorializing specific responsibilities for maintaining the security and integrity of confidential and sensitive information developed and transmitted during the performance of the contract and implementation of GO 156.
In order to ensure the transition to this new Clearinghouse arrangement is smooth and efficient, we direct CSID to monitor and evaluate the performance of the Clearinghouse contract (including audits of revenues and expenditures associated with the verification program) on a periodic basis. As we noted in D.06-08-031, the JU may assist staff by proposing appropriate criteria and methods for such performance reviews. (D.06-08-031, at p. 13.) CSID should, no later than 6 months from now, provide us with a brief report summarizing the findings of its initial findings. If CSID identifies significant problems earlier, it should, of course, bring these matters to our attention. If staff's monitoring and evaluation concludes that the contractor is performing unsatisfactorily, the JU will be directed to terminate the contract. Additionally, while the JU proposal to enter into a one year contract with the existing Clearinghouse operator, subject to extension, is acceptable, we recognize that the JU may in the future place the contract out for competitive bidding. We authorize CSID to veto the selection of any future bidder it finds unacceptable. (Id., at p. 12.)
Furthermore, we place the Clearinghouse operator and JU on notice that, notwithstanding the adoption of this Resolution, we intend to continue our role of assuring that the Clearinghouse functions in an efficient and effective manner.
Comments
This draft resolution was mailed on December 14, 2006, two days after the 30-day comment period required under Pub. Util. Code Sec. 311(g)(1). Pursuant to Sec. 311 (g)(3) and Rule 14.6(c)(9), the Commission may determine on its own motion that public necessity requires the reduction or waiver of the 30-day period for public review and comment. Here, we reduce the review period to 28 days. The public interest in having the Commission consider this resolution regarding the disposition of the Clearinghouse function of the Commission's Utility Supplier Diversity Program before the expiration of the 30-day review and comment period clearly outweighs the public interest in having the full 30-day review period, because it is important to ensure that the transfer of the operations of the Clearinghouse from the Commission to an alternative operating entity be considered well before the contract with the Clearinghouse expires on January 30, 2007.
In accordance with P.U. Code Section 311 (g) CSID mailed a copy of the original draft resolution on December 14, 2006 to the Service List in R.06-04-011. Comments were timely filed by December 29, 2006, by Pacific Bell/AT&T California, Verizon California and San Diego Gas & Electric/Southern California Gas Company (Commentors).
Commentors assert that Section A-2 of the JU's proposed Statement of Work would reduce options for verification by reducing the number of recognized comparable verifying agencies to three, and limiting the time from three years to one year that the clearinghouse can recognize comparable agency verifications. These utilities further stated that the Commission should retain the approach to comparable verification taken in D.06-08-031. D.06-08-031 addressed a proposal by the "San Diego Group" (San Diego Gas & Electric Company, Southern California Gas Company, Pacific Gas & Electric Company, and Southwest Gas Corporation ) that "custody and control of the database should be placed with the Commission. Verifications by other `equivalent agencies,' which meet the Commission's rigorous certification standards, should be recognized" (D.06-08-031, page 10) as follows:
The San Diego Group's proposed arrangement also contains positive features that we will carefully review if formally proposed to us. We reiterate that general oversight must remain with us. While other verifying agencies and organizations may provide excellent services, we do believe that unbridled comparable verification will lead to a lack of uniformity and a general weakening in our rigorous standards. Comparable verifications should be allowed for the limited period now allowed.
The last sentence of our response to the San Diego Group refers to the Commission's informal practice of permitting utilities to count contracts with business verified by any of a number of specific "comparable agencies" on a one-time only basis, for a period that terminates on the earlier of the date the comparable agency verification terminates under the rules of that agency or the end of the three year verification period that would have applied had the business been originally verified by the Clearinghouse. Once this initial one-time comparable agency verification period terminates, the business would need to be re-verified by the Commission's Clearinghouse.
As a practical matter, the majority of the comparable agency verifications received by the Clearinghouse over the past three years have involved verifications by the National Minority Supplier Development Council (NMSDC) and the Women's Business Enterprise National Council (WBENC), both of which have one year verification periods. The one-year maximum comparable agency verification period in the JU proposal adopted in this Resolution would not limit the verification period for any business verified by one of these two entities. Nor do we believe that adopting a standard one year period during which businesses verified by other comparable agencies could be counted under our program before being re-verified by the Clearinghouse would seriously disrupt utility WMDVBE programs.
The one year period during which utilities may count transactions with businesses verified by comparable agencies is an element of the JU's proposal, not a creature of the Commission. The JU's one year comparable agency verification period is consistent with the intent we expressed in D.06-08-031 regarding comparable agency verifications: "We share the Edison Group's concern about `forum shopping' for less rigorous verification agencies. At the present, we do accept comparable verifications from other agencies, but this is only for a short time and the firm must be verified under our program within three years." (Id., at page 10.) The JU's proposal presents us with a very useful and comprehensive approach to Clearinghouse administration and verification that is consistent with our longstanding desire for uniform and rigorous verifications. The incorporation of the one year maximum comparable agency verification adds, rather than subtracts, from the desired rigor of our verification program. In the future, we may revisit the use of comparable agency verifications. However, at this time, we decline to adopt the recommendations of Commentors.
Findings
1. The Joint Utilities' proposal complies with General Order 156 as amended in D.06-08-031 regarding establishment of an entity to fund and administer Clearinghouse functions.
2. Public Utilities Code Sections 8281-8286, GO 156, D.06-08-031 and other authorities require the Commission to adopt criteria for verifying and determining the eligibility of WMDVBEs for procurement contracts, and to oversee the implementation of the verification process adopted in this Resolution.
3. The Commission, through its Administrative Law Judges, will adjudicate any appeals of Clearinghouse decisions pursuant to GO 156 Section 7 and the Commission's Rules of Practice and Procedure.
THEREFORE, IT IS ORDERED THAT:
1. The Joint Utilities Proposal is adopted, in order to allow the Joint Utilities (JU) to initiate payments and assume administrative functions for the WMDVBE Clearinghouse on or before January 31, 2007.
2. The Commission review periodically the performance of the JU entity and its administration of Clearinghouse function of the WMDVBE program in GO 156.
3. The Consumer Services and Information Division (CSID) may, if necessary or desirable, enter into a memorandum of understanding or other agreement memorializing specific responsibilities for maintaining the security and integrity of confidential and sensitive information developed and transmitted during the performance of the contract and implementation of GO 156.
4. CSID shall monitor and evaluate the performance of the Clearinghouse contract (including audits of revenues and expenditures associated with the verification program) on a periodic basis. CSID shall, no later than 6 months from now, provide us with a brief report summarizing the findings of its initial findings. If CSID identifies significant problems earlier, it should, of course, bring these matters to our attention. If staff's monitoring and evaluation concludes that the contractor is performing unsatisfactorily, the JU will be directed to terminate the contract.
5. CSID will maintain oversight of the process whereby business are verified as WMDVBEs under the requirements of Public Utilities Code Sections 8281-8286, GO 156, and other appropriate Commission authority.
6. If in the future the JU seek competitive bids for the Clearinghouse contract, CSID is authorized to veto the selection of any bidder(s) its finds unacceptable.
This Resolution is effective today.
I hereby certify that this Resolution was adopted by the Public Utilities Commission at its regular meeting on January 11, 2007. The following Commissioners approved it:
/s/ STEVE LARSON
________________________
STEVE LARSON
Executive Director
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
Commissioners
Attachment
Statement of Work
STATEMENT OF WORK
1. In accordance with the Agreement that incorporates this Scope of Work, Contractor agrees to operate a Supplier Clearinghouse (Clearinghouse) of woman-, minority- and disabled veteran-owned suppliers for utilities (Utilities) subject to the California Public Utilities Commission's (CPUC) General Order (GO) 156, as authorized by, Decision No. 06-08-031. The following entities comprise the Utilities:
a. Verizon California
b. AT&T
c. Pacific Gas and Electric Company
d. Southern California Gas Company
e. Southwest Gas Corporation
f. Citizens Communications
g. SureWest
h. Sprint Communications Company
i. Sierra Pacific Power Company
j. Pacific Power and Light Company
k. Southern California Edison Company
l. San Diego Gas and Electric Company
Each of the Utilities will appoint a Contract Manager to undertake the responsibilities described herein.
The following Utilities comprise the Joint Utilities (JU):
a. Verizon California
b. AT&T
c. Pacific Gas and Electric Company
d. Southern California Gas Company and San Diego Gas and Electric Company
e. Southern California Edison Company
f. A Representative for the remaining utilities, to be designated annually commencing on or about February 1, 2007 by the remaining Utilities.
2. The Utilities intend that the data warehouse for the Clearinghouse (System) will reside at the CPUC and be accessed via the Web. At a time determined by the CPUC, the Contractor shall provide all data from the vendor that is required by the CPUC for the data base, as advised by the CPUC from time to time.
3. All Utilities shall have access to all non-confidential data in the System and any information provided by women-, minority-, and disabled veteran-owned suppliers to the Clearinghouse. The Contractor shall adhere to the existing standard of access to confidential data, which shall remain in effect until revised by the CPUC.
4. The Contractor shall track the revenue that may be provided by each WMBE applicant and provide such revenue-related data to any Utility subject to mandatory or voluntary GO 156 reporting requirements when requested by that Utility, to the extent necessary to allow Utilities to timely comply with reporting requirements set forth in GO 156 and other Commission Orders.
5. The Services shall be provided during mutually agreed upon working hours.
6. The project representatives during the term of this Agreement will be:
Agency: Joint Utilities |
Contractor: Asian, Inc. |
Name: Joseph Alderete |
Name: Michael Chan, President |
Phone: (626) 302-4892 |
Phone: (415) 928-5910 |
Fax: (626-302-4410 |
Fax: (415) 921-0182 |
Direct all inquiries to:
Joint Utilities |
Contractor: Asian, Inc. |
Section/Unit: Supplier Diversity |
Section/Unit: Supplier Clearinghouse |
Attention: Joseph Alderete |
Attention: David Moulton, Project Director |
Address: 2244 Walnut Grove Avenue Rosemead, CA 91770 |
Address: 1670 Pine Street San Francisco, CA 94109 |
Phone: (626) 302-4892 |
Phone: (415) 928-6892 |
Fax: (626) 302-4410 |
Fax: (415) 921-0182 |
7. Contractor will perform and document the following procedures (Services) on an ongoing basis as determined to be necessary by the JU and the JU project representative:
7-A VERIFY SUPPLIERS
A-1) New Applications
A-2) Comparable Agency Verifications
A-3) Reverifications
A-4) Protests
A. Verify Suppliers
There may be a new Clearinghouse System, which may result in modification or automation of some of the procedures described below. The JU project representative or designee will notify the Contractor of all such changes upon contract award and as they occur. Any procedural change as a result of the new system will have a negligible impact on the workload performed.
Clearinghouse forms and instructions referenced herein are subject to change and may differ significantly in layout and content upon contract award or thereafter as decided by the JU project representative or designee and the CPUC or designee, and as approved by the CPUC or designee.
A-1) New Applications
To be verified by the Clearinghouse, applicants must submit an application form and required documents as indicated in the instructions. A verification application package (VAP) refers to the combined form and documents as submitted by an applicant. A complete VAP is one wherein the form contains all necessary information and all required documents are present.
Upon receipt of a VAP, the Contractor will:
a. Determine whether the applicant is already listed in the Clearinghouse System. If the applicant is listed and:
1. Was denied Clearinghouse certification less than 11 months prior, return all submitted materials by mail with a letter indicating ineligibility to reapply until 12 months following the prior denial.
2. Was denied Clearinghouse certification more than 11 but less than 12 months prior, retain all submitted materials and mail the applicant a letter indicating the application will be processed after the twelfth month has elapsed.
3. Has Clearinghouse certification which expired within the previous 12 months or will expire in less than 30 days, process the application as a reverification.
4. Has a Clearinghouse application actively on file, combine any newly submitted material or information with the existing record.
5. Is otherwise currently certified, return all submitted materials by mail with a letter indicating status.
b. Examine the VAP for completeness. If the VAP was submitted with:
1. Less than four of the required documents, return all submitted materials by mail with a cover letter requesting resubmittal.
2. At least four of the required documents, but remains incomplete:
· Mail a letter to the applicant requesting the missing information.
· Mail the applicant up to two nonresponse reminders at monthly intervals.
· Place at least two telephone calls to offer and provide the applicant any necessary assistance with the application process.
c. Examine a complete VAP to ensure internal consistency, accuracy and conformity with eligibility standards in GO 156 sections 1.3.2 and 1.3.3.
d. If additional information is needed to ascertain eligibility:
1. Mail a letter to the applicant requesting supplemental documents and up to two nonresponse reminders at monthly intervals if necessary.
2. Conduct one or more telephone interviews with the applicant if necessary.
e. Conduct one or more site visits if any of the following criteria is met:
1. The applicant reports revenues in excess of ten million dollars.
2. Review of the submitted documents does not definitively prove eligibility or raises doubt about applicant veracity.
3. One or more known parties have made reasonable allegations regarding applicant eligibility.
f. If a site visit is necessary:
1. Schedule an audit with the firm's principals at the earliest possible date based upon supplier availability, geographic proximity and utility priority.
2. Conduct interviews with the principals and key personnel to resolve questions of ownership, control and operation of the firm.
3. Determine percent of ownership, percent of corporate stock owned, distribution of profits, corporate securities held and extent to which contribution of capital or expertise to acquire interest in business is real or substantial.
4. Verify that management and control by the applicant is based on:
· Extent to which the company operates as independent business.
· Major, day-to-day decision-making responsibilities in business matters of policy, management and operations.
· Management or technical skills and/or educational experience.
· Position as full-time manager and responsibility for supervision, control and direction of the business and its officers.
· Control by the Board of Directors and corporate legal status in California.
5. Prepare a site visit report including at a minimum:
· Introductory information identifying the applicant and indicating any internal case number.
· A synopsis of Clearinghouse contact with the applicant to date and the factors warranting a site visit.
· All questions posed by and to the Contractor and responses given.
· Pertinent observations.
· Conclusions regarding Clearinghouse eligibility.
g. Determine whether an applicant is verified as a woman and/or minority-owned supplier or denied certification.
1. If verified, issue the appropriate certification and mail to the applicant with a congratulatory letter.
2. If denied, send a letter to the applicant via certified mail containing:
· A detailed explanation for the denial, documenting all facts in substantiation of the determination
· Copies of any site visit reports.
· A notice of ineligibility to reapply for certification until 12 months following the date of the denial letter.
· Information on how to protest the determination.
h. Presumptively deny any applicant who is nonresponsive for 90 days or more or unwilling to schedule a site visit three or more times, mailing a letter to the applicant documenting the reason for denial and dates of attempted contact.
A-2) Comparable Agency Verifications
The Clearinghouse shall recognize certifications from National Minority Supplier Development Council and affiliates, Women's Business Enterprise National Council and affiliates, and U.S. Small Business Administration (SBA) 8a & SDB Programs, which are certifying agencies previously identified by the CPUC as having comparable verification criteria. An applicant submitting a VAP form with a certificate from one of these agencies (other than the SBA) may be certified by the Clearinghouse for up to one year or until the expiration date on the original certificate, whichever is less; SBA certifications are valid until expiration.. Applicants are permitted to use the comparable agency verification (CAV) process only once.
The JU and JU project representative and the CPUC or designee reserve the right to request or perform review of any verification.
Upon receipt of an application submitted with a CAV certificate, the Contractor will:
a. Determine whether the applicant is already listed in the Clearinghouse system. If the applicant:
1. was previously certified by the Clearinghouse through the CAV process, follow the procedures identified under NEW APPLICATIONS, returning the certificate with a letter indicating the one-time availability of the process.
2. was denied certification less than 11 months prior, return all submitted materials with a letter indicating applicant ineligibility to reapply until 12 months following the date of the denial.
3. was denied certification more than 11 but less than 12 months prior, retain all submitted materials and mail the applicant a letter indicating the application will be processed after the twelfth month has elapsed.
4. has an active Clearinghouse application on file with significant and unresolved issues, return the submitted materials with a letter indicating unavailability of the CAV process.
b. If name, business or address on the VAP differs from the information printed on the CAV certificate, return all submitted materials with a letter indicating the discrepancies and requesting resubmittal, sending up to two nonresponse reminders at monthly intervals if necessary.
c. Contact the original verifying agency to confirm the certification. If the certification is:
1. confirmed, issue the appropriate Clearinghouse certification and mail to the applicant with a congratulatory letter.
2. not confirmed, send a letter to the applicant via certified mail indicating the reason for the denial and including information on how to protest the determination.
d. If any Contract Manager or designee or the CPUC or designee requests review of a particular CAV, Contractor shall:
1. Follow the procedures identified under NEW APPLICATIONS, items d - f. If the applicant is:
· verified, Contactor shall issue and mail the appropriate certification to the applicant with a congratulatory letter.
· recommended for denial, Contractor shall forward a copy of the file to the Contract Manager or designee or the CPUC or designee with a letter identifying the applicant, summarizing findings to date, responding to any Utility questions or concerns and documenting all facts which substantiate a recommendation for denial.
2. If informed by the CPUC or designee that the applicant is verified, issue the appropriate Clearinghouse certification and mail to the applicant with a congratulatory letter.
3. If informed by the CPUC or designee that the applicant is denied, send a letter to the applicant via certified mail containing:
· A detailed explanation for the denial, documenting all facts in substantiation of the determination.
· Copies of any site visit reports.
· Notice of ineligibility to reapply for certification until 12 months following the date of the denial letter.
· Information on how to protest the determination.
A-3) Reverifications
To remain actively listed with the Clearinghouse beyond the expiration date listed on its certification, a woman- and/or minority-owned supplier must apply to be reverified. A reverification application package (RAP) refers to the RAP form and required documents as submitted by an applicant. A complete RAP is one wherein the form contains all necessary information and all required documents are present.
The Contractor will:
a. each month, use the Clearinghouse System to identify woman- and minority-owned suppliers whose certifications will expire within 90 days.
b. each month, mail each identified supplier a RAP and up to two nonresponse reminders 60 and 30 days before expiration of their Clearinghouse certification if necessary.
c. respond to questions from suppliers concerning the reapplication process, placing at least two telephone calls to offer and provide any necessary assistance with the reapplication process.
d. upon receipt of an incomplete RAP, mail a letter to the supplier requesting the missing information and up to two nonresponse reminders at monthly intervals if necessary.
e. Upon receipt of a RAP with a CAV certificate, if the applicant:
· Was previously certified by the Clearinghouse through the CAV process, mail the applicant a letter indicating the one-time availability of the CAV process and requesting any information necessary to continue processing the application.
· Has not previously submitted a CAV certificate, process the application following the procedures identified under CAV process.
f. Upon receipt of a complete RAP, Contractor shall:
· ensure its internal consistency, accuracy and conformity with eligibility standards.
· compare it with the supplier information on file, noting any changes or significant discrepancies.
· note any additional information supplied beyond that presented in initial VAP, particularly changes in work codes.
g. Conduct any necessary site visits, adhering to criteria and procedures identified under NEW APPLICATIONS items e-f.
h. Determine whether the supplier is reverified or denied recertification. If the applicant is:
1. reverified, issue and mail the appropriate Clearinghouse certification to the applicant with a congratulatory letter.
2. denied, send a letter to the applicant via certified mail containing:
· A detailed explanation for the denial, documenting all facts in substantiation of the determination
· Copies of any site visit reports.
· Notice of ineligibility to reapply for Clearinghouse certification until 12 months following the date of the denial letter.
· Information on how to protest the determination.
i. Presumptively deny any applicant who is nonresponsive for 90 days or more or unwilling to schedule site visit three or more times, and shall mail a letter explaining the reason for denial and indicating dates of attempted contact.
A-4) Protests
An applicant denied certification or recertification as a woman- and/or minority-owned supplier, or a third party, may submit a written protest to the Clearinghouse within 14 days of the determination.
a. Upon receipt of a timely protest, the Contractor will:
1. Send a letter to the applicant confirming receipt of protest.
2. Send a letter to the CPUC or designee providing applicant name and contact information and indicating the basis for the protest.
Direct all inquiries to:
CPUC Staff |
Unit: Utility Supplier Diversity Programs |
Address: 505 Van Ness Avenue San Francisco, CA 94102-3298 |
Phone: (415) 703-4112 |
Fax: (415) 703-3411 |
3. Review the initial Clearinghouse determination and request additional information if necessary, following the procedures identified under NEW APPLICATIONS, items d-f.
b. If applicant is verified or reverified as woman- and/or minority-owned supplier, Contractor shall:
1. Issue the appropriate Clearinghouse certification and mail to the applicant with a congratulatory letter.
2. Send a letter to the CPUC or designee explaining and substantiating the reversal of the initial determination.
c. If applicant remains denied, send applicant letter via certified mail providing:
1. Detailed explanation for denial and enclosing any site visit report.
2. Notice that applicant cannot reapply for Clearinghouse certification until 12 months following original denial, indicating date.
3. Information on how to appeal the Contractor's decision to the CPUC.
4. The CPUC shall have final jurisdiction on any appeal after a final decision has been rendered by Contractor.
d. The Contractor shall participate in appeals to the CPUC as requested by the CPUC.
7-B PROVIDE INFORMATION
B-1) Applicant Assistance
B-2) Primary Office
B-3) Work Papers
B-4) Toll-Free Hotline
B-5) Informational Literature
B-6) Web Preference
B-7) Public Meetings
B-8) Clearinghouse System
B-9) Training
B-10) Knowledge Transfer
B. Provide Information
B-1) Applicant Assistance
Upon receipt of requests from a prospective applicant or upon referral by a Utility, the Contractor will mail a VAP form, instructions and any other appropriate information. If contact information is provided or otherwise readily available, the Contractor will place at least two telephone calls to prospective applicants, offering assistance with the application process.
B-2) Primary Office
The Contractor will lease, maintain and staff at least one Clearinghouse office within reasonable same-workday, return-trip driving proximity to CPUC headquarters at 505 Van Ness Avenue in San Francisco, open to the public from Monday through Friday, 8:00 A.M. to 5:00 P.M. Pacific Time. This office will be the primary worksite for Contractor project staff and the repository for all Clearinghouse work papers. The Contractor may close Clearinghouse offices only on holidays observed by the State.
The Contractor will ensure sufficient staffing for the presence of a decision maker and full coverage of a reception area during all hours of operation. Reception area staff supplied by the Contractor will provide Clearinghouse information and application forms and assistance requested by walk-in traffic. The Contractor will ensure sufficient staffing to meet the timelines listed in Section D-2 Verifications.
B-3) Work Papers
The Contractor will store and maintain in a secure environment indexed, tabbed and organized folders on each Clearinghouse applicant, containing at a minimum a copy of the original application and any reapplication, all submitted documentation, and any subsequent correspondence, whether internal or external.
The Contractor will also maintain indexed files of all other contract-related literature, correspondence and documents of note, whether hardcopy or electronic, and make such records available upon request of the JU project representative or designee and/or the CPUC or its designee, and upon termination of the contract.
The JU project representative or designee and/or the CPUC or its designee, may review and/or audit any or all Clearinghouse files during the hours of operation identified under the preceding Section B-2 (PRIMARY OFFICE).
All workpapers and information either hard-copy or electronic, maintained by the Contractor, shall be subject to the provisions in section B-11 below.
B-4) Toll-Free Hotline
The Contractor will operate a toll-free hotline during the hours of operation identified under PRIMARY OFFICE, which shall provide Clearinghouse information to callers from the public, the Program and participating Utilities upon request. At all other hours, the Contractor will make voicemail available at the same telephone number.
B-5) Informational Literature
As need arises or as directed by the JU project representative or designee and/or the CPUC or designee, and as approved by the CPUC or designee, the Contractor will develop, modify and/or distribute Clearinghouse forms, instructions and informational literature. The Contractor will ensure an adequate stock of these materials is available at all times, submitting original or substantively modified materials to the JU project representative or designee for review and approval prior to duplication.
B-6) Web Preference
The Contractor will create and maintain a Clearinghouse homepage locatable through standard Web search engines; Contractor shall obtain prior approval of design and content and all subsequent modifications from the JU project representative or designee and/or the CPUC or designee, and as approved by the CPUC or designee. The Web page must be exclusively devoted to Clearinghouse information, including at a minimum origin and role of the Clearinghouse, benefits of certification, application forms and instructions, contact information and link to the Program homepage.
B-7) Public Meetings
Upon request by the JU project representative and/or the CPUC or designee, the Contractor will make presentations and participate in public meetings at the hourly rate charged to implement program modifications.
B-8) Clearinghouse System
The Contractor will access and use the newly designed Clearinghouse system via a standard Web browser with logon identification and password. The Clearinghouse system will be used to enter and modify applicant and supplier information, generate and send hardcopy and electronic correspondence, create data reports as requested by the participating Utilities and/or the CPUC, and search records.
B-9) Training
Upon request or following each substantive upgrade to the new Clearinghouse system, the Contractor will offer and conduct training for procurement staff of participating Utilities on how to use the system to search for diverse suppliers. Training must be scheduled at a location and time convenient to the Utility staff.
The Contractor will ensure the training location is adequately and reasonably equipped for transmitting the specified information. Instructional content and any training manuals will be provided by the Contractor after approval by the JU and/or the CPUC. The Contractor will anticipate any need to restock, and is responsible for all reproduction costs.
B-10) Knowledge Transfer
Upon termination of the awarded contract and at no additional cost to the Utilities the Contractor will conduct knowledge transfer in a timely manner to the JU, the CPUC, and any new Contractor. At least two months prior to contract end, the Contractor will submit for approval to the JU project representative or designee a proposed schedule, describing in detail how the Contractor will accomplish complete knowledge transfer by the contract end date.
The Contractor will incorporate and implement any modifications made by the JU project representative or designee, or the CPUC. Knowledge transfer includes, but is not limited to, providing detailed documentation of all Clearinghouse business practices and business contacts accrued during the life of the contract and the secure transfer of electronic and hardcopy work papers.
B-11) Information Security and Integrity
The Contractor shall:
Conduct periodic training, and maintain an appropriate legal reference library, to ensure that individuals with access to confidential information have easy access to relevant Constitutional provisions (e.g., California Constitution, article 1, section 1); statutes (e.g., Civil Code section 1798 et seq.); regulations (e.g., State Administrative Manual sections 4840-4845); Executive Orders' Budget Letters (e.g. Budget Letter 04-35, dated November 16, 2004); Department of General Services Management Memos, including MM 06-12; this contract; and any other policies, procedures, or other guidance provided by the Commission.
Maintain appropriate levels of confidentiality for data developed and/or maintained during the course of the contract, based on data classification, as outlined in the State Administrative Manual section 4841.3, and in accord with the policies and procedures established by the Commission;
Comply with standards, polices, and procedures developed or imposed by the Commission for the transmission and storage of the data, including any requirements for the encryption of confidential personal information;
Comply with all State laws, policies and procedures, and Commission orders, policies and procedures regarding the confidentiality of personal and sensitive information resources and data. The Contractor and Utilities shall take all steps necessary to educate their employees of such laws, policies and procedures.
Comply with all Commission policies and procedures regarding the use of information resources and data obtained, developed, or maintained during implementation of the Contract;
Disclose confidential information only to the extent permitted by the Civil Code and as directed by the Commission (e.g., Civil Code section 1798.24 (b) permits disclosure of personal information, as defined in section 1798.3, with the written consent of the individual to whom the information pertains, and section 1798.24 (e) permits disclosure to a person, or to another agency, where the transfer is necessary for the transferee agency to perform its constitutional or statutory duties, and the use is compatible with a purpose for which the information was collected and the use or transfer is accounted for in accordance with section 1798.25; since public utilities subject to GO 156 have an obligation to comply with the orders of the Commission, and the statutory provisions (Public Utilities Code sections 8281-8286, careful and limited disclosure of certain personal information to utilities during implementation of this Contract would not violate the Information Practices Act or other Civil Code provision, and as directed by the commission when appropriate.
Apply security patches and upgrades, and keep anti-virus, anti-"spyware" and anti-"phishing" software up-to-date on all systems on which data may be used or maintained;
Require each and every principal, officer, or employee that will have access to confidential personal information to sign a detailed confidentiality agreement (in a form approved by the Commission) that ensures that the individual understands and agrees to fully comply with all laws, policies, and procedures for preserving the integrity and security of data obtained, developed, and maintained during the course of the Contract, and to continue to abide with the agreement even after the individual ceases to be a principal, officer, or employee of the contractor; confidentiality agreements must be signed before an individual begins working on the contract, and periodically thereafter;
Agree to notify the State data owner (the Commission) promptly if a security incident involving the data is known to have occurred, or is reasonably believed to have occurred, as required by the Information Practices Act, other State laws, and any relevant regulations, policies, or procedures established by the Commission, and this Contract;
Agree to notify all individuals whose personal information was, or is reasonably believed to have been, acquired by an unauthorized person, as required by the Information Practices Act, other State laws, any relevant regulations, policies, or procedures established by the Commission; and this contract.
7-C IMPLEMENT PROGRAM MODIFICATIONS
C. Implement Program Modifications
The JU project representative or designee and the CPUC or designee will discuss with the Contractor the scope and deliverables of any changes requested by the JU. All work performed must be reviewed and approved by the JU project representative or designee and the CPUC or designee. Services may include:
· Integration of new or amended legislative requirements.
· Changes to the reciprocity of the CAV process.
7-D ADHERE TO TIMEFRAMES
D-1) General
D-2) Verifications
D-3) Information Requests
D. Adhere to Timeframes
D-1) General
a. The Clearinghouse must be operational within four weeks of contract award.
b. The Contractor will enter or update information in the Clearinghouse system within one day of notification or determination of any change to applicant or supplier information or status.
D-2) Verifications
The Contractor shall make or recommend eligibility determinations as described under Verify Suppliers within:
1. 60 days of receipt of a protest or VAP, CAV or RAP requiring a site visit.
2. 30 days of receipt of a complete VAP or RAP, or Commission request to review a CAV.
3. 3 business days of receipt of a routine CAV.
At the time that the Contractor provides its respective invoices to the Utilities, the Contractor shall provide each Utility a status report regarding compliance with this Section D-2.
D-3) Information Requests
a. The Contractor will respond within one business day to:
1. Requests from applicants for assistance with the application process.
2. Messages left on the Clearinghouse voicemail system.
b. Upon receipt of a request from the JU project representative or designee, or the CPUC or designee, for informational literature, the Contractor will complete within:
1. 15 working days, original works.
2. 5 working days, substantive modifications.
3. 1 working day, nonsubstantive modifications.
BUDGET DETAIL AND PAYMENT PROVISIONS
The billing rates below serve as the basis for the Contractor to bill the Utilities for the Services over a twelve (12) month period.
Deliverable |
Unit Price |
New application (VAP) |
$616.00 |
Comparable Agency (CAV) |
$50.00 |
Reverification (RAP) |
$490.00 |
Program Modifications |
$50.00 |
Travel and Other Expenses
The Utilities will reimburse Contractor for reasonable travel expenses incurred in the performance of this Statement of Work Agreement. All travel expenses and any costs beyond those relating to the billings rates described above must be authorized in writing in advance by the Joint Utilities project representative.
Additional services
Additional services may be added to this Statement of Work as agreed by the parties.
CERTIFICATE OF SERVICE
I hereby certify that I have this day served a copy of Resolution CSID-001 by using the following service:
[ X ] E-Mail Service: sending the document as an attachment to all parties of record who provided electronic mail addresses.
[ ] U.S. Mail Service: mailing by first-class mail with postage prepaid to all known parties of record who did not provide electronic mail addresses.
Dated January 12, 2007, at San Francisco, California.
/s/ MARTHA PEREZ |
Martha Perez |
1 The JU is comprised of Southern California Edison, Verizon, AT&T, Pacific Gas and Electric Company, Sempra Energy, and a representative for the remaining utilities, to be designated annually commencing on or about February 1, 2007, by the remaining utilities.
2 Asian Inc. is currently under contract with the State of California to perform as the Clearinghouse. Agreement Number 04PS5476 expires January 30, 2007.
