SDVOB Task Force 2010 Report

Report to the Illinois General Assembly
March 2010

In accordance with Public Act 096-0096, 30 ILCS 500/45-57, a Task Force was established with representatives from the Illinois Department of Veterans' Affairs, the Illinois Department of Transportation, the Department of Central Management Services, the Business Enterprise Program and the Business Enterprise Council. The purpose of the Task Force was to determine the appropriate percentage goal for award each fiscal year of the State's total expenditures for contracts awarded under the Illinois Procurement Code to qualified service disabled veteran-owned businesses (SDVOB). To make this determination, the Task Force consulted with statewide veterans' service organizations and the business community, including businesses owned by qualified disabled veterans.

Based upon data gathered from the United States Department of Veterans Affairs, and the Business Enterprise Program, and consultations with statewide veterans' service organizations and the business community, including businesses owned by qualified disabled veterans, the Task Force recommends that the General Assembly accept and adopt an initial goal of two percent (2%) for SDVOB.

In addition to the recommended percentage goal, the Task Force respectfully submits the attached recommendations regarding SDVOB certification process. Please note that these recommendations developed from the Task Force�s internal discussions as well as consultations with the veteran and business community.

• Donald J. Lynch, Department of Central Management Services (Task Force Chairperson)
• Roy L. Dolgos, Illinois Department of Transportation
• Harry Reinhard, Business Enterprise Program
• Harry F. Sawyer, Illinois Department of Veterans' Affairs
• Larry Ivory, Business Enterprise Council

1. Increase the Service Disabled Veteran Owned Business (SDVOB) gross sales cap from $31 million a year on a three-year average to $75 million annually to correspond with the changes to the Business Enterprise Program that will effective on July 1, 2010. Increasing the gross sales cap will eliminate multiple year tax reporting from potential SDVOB vendors, as well as, be in line with the Green Initiative for paperwork reduction.
   
   
2. Set the SDVOB disability minimal threshold at ten percent (10%) compensation as defined by the United States Department of Veterans Affairs and United States Department of Defense. This percentage is not to be confused with the veteran�s pension benefit. Any change in benefit status should be reported to the certifying agency within thirty (30) days from the disability status change.
   
   
3. Establish the SDVOB certification and program as national, not Illinois only.
   
   
4. Recommend that the Illinois Department of Central Management Services' (CMS) Business Enterprise Program (BEP) perform the function of lead certification agency with the Illinois Department of Veterans Affairs (DVA) assisting potential SDVOB vendors with required certification documentation.
   
   
5. Authorize funding of two (2) Certification Analyst positions within the selected/identified certification agency to process SDVOB applications.
   
   
6. Clearly define the reporting of SDVOB contract dollars. For example, will these dollars be reported through BEP's Annual Report, and if so, will they be separate or combined with the BEP/Person with Disabilities contract dollars?
   
   
7. Establish a full certification SDVOB renewal cycle of 5 years with a No-Change Affidavit completed annually the four years between full cycles.
   
   
8. Establish an initial SDVOB certification implementation date.
   
   
9. Reauthorize DVA and CMS/BEP to establish the certification standards and process.