8. Assignment of Proceeding
The assigned Commissioner is Michael R. Peevey. The assigned ALJ is Melanie M. Darling.
1. The Joint Utilities supplier diversity program proposal is an important consensus document that serves as a baseline model of key program elements across the energy, telecommunications, and water industries.
2. The Joint Utilities supplier diversity program proposal provides a clear description to businesses seeking utility procurement contracts of the knowledge and training expected to be competitive and its inclusion in this decision as Attachment A will help disseminate the information to the public.
3. It will advance the goals and policies of GO 156 for utilities and CBOs that conduct TA and CB training to share resources, conduct outreach, work together, exchange constructive criticism, share best practices, and assist smaller and newer reporting companies with their supplier diversity programs.
4. It will advance the goals and policies of GO 156 for utilities to include in their annual reports the approximate amount of funds, to the extent available, directly expended on developing and distributing technical assistance to WMDVBEs and small businesses.
5. The utilities identified their own interim steps, including quantified target goals and program initiatives, which are designed to improve the results of their GO 156 programs. These interim steps provide new opportunities for small and diverse businesses to identify procurement opportunities.
6. It will advance the goals and policies contained in GO 156 for each and every utility to annually assess their WMDVBE spend and voluntarily set their own numerical goals by looking to other utilities with successful programs. The goals set should be included in the next annual GO 156 report, pursuant to §9.1.4, and reviewed at the Commission's next en banc hearing.
7. It will advance the goals and policies contained in GO 156 to require electronic filing of annual reports and posting of the reports on the Commission's website.
8. It will advance the goals and policies contained in GO 156 to require separate reporting on spending on electric procurement.
9. It will advance the goals and policies contained in GO 156 to require utilities to report the total number of WMDVBEs that received direct spend in the reporting period.
10. It will advance the goals and policies contained in GO 156 for the Commission's Audit Division to randomly audit at least one GO 156 annual report from one of the industry groups (i.e., energy, telecommunications, and water) every two years beginning in 2012 with energy companies. The purpose of the audit is to confirm that the reported WMDVBE spend is accurate.
11. It will advance the goals and policies contained in GO 156 to make changes to conform with the statutory changes enacted by Chapter 475 Statutes of 2010, including addition of wireless providers and identification of WMDVBEs that have a majority of their workforce in California.
12. It will advance the goals and policies contained in GO 156 for the utilities, CBOs, and Commission staff to work together to develop a networking event model where prime contractors and potential subcontractors meet to discuss
(i) future large procurement projects, (ii) the benefits to primes of greater use of a diverse supplier base for subcontracts, and (iii) best practices for verification of prime contractor commitments to use diverse businesses.
13. It will advance the goals and policies contained in GO 156 for the utilities, CBOs, and Commission staff to work together to develop workshops that identify best practices, including showcasing successful programs, encourage utilities to share experienced WMDVBEs, explore the mechanics of bid partnerships, review the current state of advertising spend, and identify relevant consulting specialties.
14. It will advance the goals and policies contained in GO 156 for utilities and disabled veterans groups to work together to complete development of an updated database of DVBE profiles and make it publicly available.
15. It will advance the goals and policies contained in GO 156 for CBOs to initiate a dialogue with utilities about prompt payment provisions and flexible bond requirements in some contracts.
16. It will advance the goals and policies contained in GO 156 for CBOs to develop a workshop for WMDVBEs on obtaining credit, particularly from community banks, and to work with the utilities and Commission staff to develop a workshop on cost effective options for small business insurance.
17. It will advance the goals and policies contained in GO 156 for utilities seeking to diversify their supplier base should (i) actively consider what contracts could be unbundled into two or more smaller contracts, particularly contracts greater than $1 million, (ii) have conversations with CBOs about potentially fruitful procurement areas for unbundling.
18. It will advance the goals and policies contained in GO 156 for utilities to educate their management on the value of the program and how to integrate supplier diversity into all business lines.
19. It will advance the goals and policies contained in GO 156 for utilities to develop or strengthen existing mentoring programs.
20. It will advance the goals and policies contained in GO 156 for CBOs to reach out to the reporting companies and ask to be included in new or existing programs.
21. It will advance the goals and policies contained in GO 156 for CBOs and utilities to host matchmaking events to link up small and large suppliers.
22. It will advance the goals and policies contained in GO 156 for utilities to
(i) post future procurement plans on their websites to the extent possible, and
(ii) work with CBOs to develop a general framework or guidelines for making planned procurement public.
23. It will advance the goals and policies contained in GO 156 for utilities to work with CBOs and WMDVBEs to develop a notice to RFP participants of feedback rights on losing bids.
24. It will advance the goals and policies contained in GO 156 for utilities to consider pre-bid conferences and other means to improve the quality of submitted bids.
25. It will advance the goals and policies contained in GO 156 for CBOs to seek out procurement information, build working relationships with utility procurement personnel, and take the lead in timely informing their members and communities of bid opportunities.
26. It will advance the goals and policies contained in GO 156 for the Supplier Clearinghouse to complete implementation of the next phases of the website upgrades, including the public database and new business profiles.
27. It will advance the goals and policies contained in GO 156 for the Supplier Clearinghouse to keep a current public calendar on its website with information voluntarily submitted by utilities, CBOs, and the Commission about all networking, matchmaking, training, and TA events.
28. It will advance the goals and policies contained in GO 156 for the Supplier Clearinghouse to post on its website the Joint Utility supplier diversity program proposal, including TA and CB elements, and to work with the utilities and CBOs to expand the website to include links to available utility and CBO training materials.
29. It will advance the goals and policies contained in GO 156 for the Supplier Clearinghouse, at the next economically feasible opportunity, to amend the certification application to obtain the location of the majority of an applicant's workforce and to include the data in the certified WMDVBE's business profile.
30. It will advance the goals and policies contained in GO 156 for the utilities to initiate a conversation with CBOs and the Supplier Clearinghouse over (i) the merits of incorporating NMSDC and WBENC certification renewals, and
(ii) development of a webpage of links directly to utility procurement webpages where open RFPs are listed.
31. It will advance the goals and policies contained in GO 156 for CBOs to obtain certification training from the Clearinghouse and hold workshops in their communities to help grow certification of WMDVBEs.
32. It will advance the goals and policies contained in GO 156 for CBOs to set clear organizational goals for adding WMDVBEs to the database particularly in targeted underutilized areas.
33. It will advance the goals and policies contained in GO 156 for CBOs to work with the utilities to expand and improve the TA and CB elements of the Joint Utilities proposal to assure this training actually reaches potentially competitive businesses.
34. It will advance the goals and policies contained in GO 156 for utilities to coordinate outreach and training spending with CBOs actively working in their service territories to increase the number of certified WMDVBEs and to link small and diverse businesses to available TA and CB.
35. It will advance the goals and policies contained in GO 156 to require an annual en banc hearing by the Commission that includes top utility executives and experienced leaders of CBOs to provide an opportunity for interested parties, utilities, and others to discuss the GO 156 program and related legislative policy.
1. GO 156 should be amended to require electronic filing of annual reports and posting of the reports on the Commission's website.
2. GO 156 should be amended to require separate reporting on spending on electric procurement.
3. GO 156 should be amended to require utilities to report the total number of WMDVBEs that received direct spend in the year reported.
4. GO 156 should be amended to require utilities to include in their annual reports the approximate amount of funds, to the extent available, directly expended on developing and distributing technical assistance to WMDVBEs and small businesses.
5. GO 156 should be amended to make changes to conform with the statutory changes enacted by Chapter 475 Statutes of 2010.
6. GO 156 should be amended to require the Commission's Division of Water and Audits, Utility Audit, Financial, and Complaints Branch, to randomly audit at least one current GO 156 annual report from one of the industry groups (i.e., energy, telecommunications, and water) every two years beginning in 2012 with energy companies, followed by telecommunications companies for the next two-year-period, then water companies with the same cycle repeating itself. Nothing in this requirement shall be construed to limit in any way, the Commission's authority to undertake additional audits at any time for other reasons.
7. GO 156 should be amended to require an annual en banc hearing by the Commission that includes top utility executives and experienced leaders of CBOs.
8. The Commission's USDP staff are fully authorized by Pub. Util. Code §§8281-8286 and GO 156 to provide all reasonable assistance to utilities, CBOs, and small and diverse businesses to implement the findings of fact in this decision, subject to budget and staffing constraints.
IT IS ORDERED that:
1. General Order 156 is amended as set forth in Attachment C.
2. The amended General Order 156 shall be posted on the Commission's website.
3. Beginning in 2012, the Commission's Division of Water and Audits, Utility, Audit, Financial, and Complaint Branch, (Audit Division) will conduct at least one random audit every two years on a General Order 156 annual report from the most recently filed annual reports. The Audit Division will segregate reporting companies by industry and, beginning with energy companies in
2012, followed by telecommunications and water in subsequent two-year periods, will determine the random selection process and audit methodology to be used to verify the accuracy of reported women-, minority-, and disabled veteran-owned businesses enterprises spend. The Audit Division will promptly report its findings to the Commission by letter to the Executive Director.
4. Within ninety days following the issuance of this decision, the Commission's Utility Supplier Diversity Program Staff shall convene a workshop with the utilities in order to reach a common understanding of what is to be separately reported as a result of the amendments to General Order 156. The workshop should address and resolve any confusion the water companies have about adapting their procurement reporting to General Order 156 requirements.
5. Rulemaking 09-07-027 is closed.
This order is effective today.
Dated May 5, 2011, at San Francisco, California.
MICHAEL R. PEEVEY
President
TIMOTHY ALAN SIMON
MICHEL PETER FLORIO
CATHERINE J.K. SANDOVAL
MARK FERRON
Commissioners
