majority of DCE’s customers have chosen to remain with this premium product rather than opting down into the Desert Saver product, which provides cost-savings to customers while still meeting Renewables Portfolio Standard (RPS) compliance requirements. The DCE Board has approved a schedule for issuing renewable solicitations such as RFOs and RFPs, executing contracts with existing resources, and bringing new projects online in time to meet the applicable RPS targets.
DCE also continues efforts to include small, local, and diverse businesses in non-energy procurement opportunities. To this end, DCE’s Board adopted a procurement policy at its meeting on July 18, 2022. This policy includes a section on supplier diversity, in line with the CPUC’s Supplier Diversity Program. Since promoting local job creation is one of the core benefits of DCE, the procurement policy also includes a local preference based substantially on the Local Business Preference Program in both Palm Desert and Palm Springs.
9.1.2 Summary of Purchases
DCE commits to purchasing from small, local, diverse businesses within our region to the extent possible. This section summarizes the 2023 results of DCE’s procurement in the requested categories. It should be noted that the majority of DCE’s procurement is through wholesale power contracts. As a result, opportunities to directly engage with local and small businesses are more limited. Many of the electric generation resources are developed, owned, and operated by large corporations with sufficient capital to manage these projects. Still, DCE has been successful in procuring wind energy from projects within the local community (please see section 9.1.1) from local developers.
Despite the challenges of achieving opportunities in power purchases, DCE procured
3.52% of its products and services through registered, diverse suppliers. DCE launched an RFP to procure marketing and outreach services on September 12, 2023. The RFP encouraged all eligible proposers to get certified with the CPUC as a diverse business enterprise and resulted in the contract with DCE’s existing marketing and outreach provider, a Lesbian, Gay, Bisexual, Transgender Business Enterprise, being renewed for an additional three-year period. In 2024 and beyond, DCE will continue developing opportunities to increase local procurement and supplier diversity opportunities, thereby increasing the percentage of diverse spending.
Supplier Diversity Results of Goods and Services (non-power purchases) if Procured
2023 Report
Direct
Spend1 $
Sub
Spend2
$ Total $ %
Product
Spend
$
Service
Spend $
Total
$ %
1 Minority
Male
African
American
2 Asian
Pacific
American
3 Hispanic
American
4 Native
American
5 Total
Minority
Male
6 Minority
Female
African
American
7 Asian
Pacific
American
8 Hispanic
American
9 Native
American
10 Total
Minority
Female
11 Total Minority Business
Enterprise (MBE)
12 Women Business
Enterprise (WBE)
13 Lesbian, Gay, Bisexual,
Transgender Business
Enterprise (LGBTBE) $54,987.20 $54,987.20 3.52%
14 Disabled Veteran
Business Enterprise
(DVBE)
15 Persons with
Disabilities Business
Enterprise (DBE)
16 8(a)*
17 Total Supplier Diversity
Spend $54,987.20 $54,987.20 3.52%
18 Net Procurement** $1,561,037.48
19 Net Product
Procurement $18,204.30
20 Net Service
Procurement $1,542,833.18
21 Total Number of
Diverse Suppliers that
Received Direct Spend 1
NOTE:
* 8(a) - Businesses owned and controlled by persons found to be disadvantaged by the U.S. Small Business
Administration pursuant to Section 8(a) of the Small Business Act, as amended (15 U.S.C. 637 (a)) or the U.S. Secretary of Commerce, pursuant to Section 5 of Executive Order 11625 (GO 156 Section
1.3.13).
** Net Procurement includes purchase orders, non-purchase orders, and credit card dollars. 1 Direct - Means Direct Procurement: when a CCA directly procures from a supplier. 2 Sub - Means Subcontractor Procurement: when a prime contractor, in contract with a CCA, procures from a subcontractor
to fulfil its contractual obligation(s).
% - Percentage of Net Procurement.
Description of Diverse Suppliers with Majority Workforce in California As noted above, the majority of DCE’s purchases are power contracts. One of the goals of DCE is to keep profits in our local communities to benefit businesses and residents, including those who have endured economic marginalization. Currently, DCE has only one locally based diverse supplier (the marketing and outreach provider mentioned above), and most of its workforce is also local. Further, this supplier registered with the Clearinghouse prior to initially contracting with DCE. In 2024, DCE is working to increase the number of suppliers that fall under one or more GO 156 diversity categories.
9.1.3 Diverse Supplier Program Expenses
DCE has spent $38,427.25 to implement a supplier diversity program based on GO 156. The chart below includes expenses related to marketing and outreach costs for events, salaries for staff dedicated to supplier diversity programs, plans, and reporting, and costs for training staff on supplier diversity initiatives and reporting. In 2023, there were no specific trainings on GO 156, so there was nothing to include in this report. In 2024, DCE is planning at least two training and education/outreach workshops; that expenditure will be included in the 2024 report.
Consistent with the California Public Utilities Code and California Public Utilities Commission (CPUC) policy objectives as set out in CPUC General Order 156, DCE encouraged all eligible bidders to get certified with the CPUC as a diverse business enterprise.
Expense Category 2023
Wages $7,282.26
Other Employee Expenses $0
Program Expenses $5,257.50
Reporting Expenses $0
Training Expenses $0
Consultant Expenses $25,887.49
Other Expenses $0
Total $38,427.25
9.1.4 Description of Progress in Meeting or Exceeding Set Goals
This section is not applicable to CCAs.
9.1.5 Summary of Prime Contractors Utilization of Diverse Supplier Subcontractors
In 2023, DCE worked with primary contractors to fully utilize diverse suppliers when possible. Efforts included encouraging contractors to subcontract with diverse suppliers in product procurement. In 2024 and beyond, DCE will work with primary contractors to identify ways to enhance supplier diversity, including subcontracting, and encourage them to have all tiers of subcontractors participate in the Clearinghouse certification process.
9.1.6 List of Diversity Complaints Received
DCE did not receive any formal complaints this reporting cycle.
9.1.7 Description of Efforts to Recruit Diverse Suppliers in Low Utilization Areas
This section is not applicable to CCAs.
9.1.8 Retention of All Documents/Data
This section is not applicable to CCAs.
9.1.9 Description of Supplier Diversity Activities and
Progress in Power (Energy) Procurement
As mentioned previously, DCE has issued RFOs and RFPs, which have led DCE to enter into various agreements, including renewable energy agreements, ESAs, and PPAs, to purchase power and electric capacity over the course of four years.
The March 6, 2023, RFP led to the ESA with the subsidiary of NextEra mentioned above. The project is a prime example of how DCE can achieve its goal of reinvesting revenues locally to support the community by creating jobs and prompting the development of more local renewable energy sources close to home. The entire project will be built using a project labor agreement. Desert Peak (Phase 1 of the total project complex) created 200 construction jobs and four full-time jobs. Desert Sands (Phase 2 of the total project complex) is estimated to create 100 construction jobs and two to three full-time jobs.
In summary, DCE did not procure energy storage systems, vegetation management, or renewable and non-renewable energy from a CPUC Supplier Diversity Program certified entity during the reporting year 2023, nor did DCE have any owned power plants or PPAs that would require us to procure fuel for generation during 2023. (Table 9.1.9 on next page.)
Direct Power
Purchases $
Direct Fuels for Generation
$ Totals $1 %2
Renewable
and Non-Renewable
Power
Products
Diesel Nuclear Natural
Gas Direct3 Sub4 Total
$5
1 Minority Male
African
American $0 $0 $0 $0 $0 $0 $0
2 Asian Pacific
American $0 $0 $0 $0 $0 $0 $0
3 Hispanic
American $0 $0 $0 $0 $0 $0 $0
4 Native
American $0 $0 $0 $0 $0 $0 $0
5 Total
Minority
Male $0 $0 $0 $0 $0 $0 $0
6 Minority Female
African
American $0 $0 $0 $0 $0 $0 $0
7 Asian Pacific
American $0 $0 $0 $0 $0 $0 $0
8 Hispanic
American $0 $0 $0 $0 $0 $0 $0
9 Native
American $0 $0 $0 $0 $0 $0 $0
10 Total
Minority
Female $0 $0 $0 $0 $0 $0 $0
NOTE: 1 Excludes purchases from the California Independent System Operator (CAISO), utilities, federal entities, state entities, municipalities, and cooperatives.
2 % - Percentage of Net Procurement. 3 Includes Direct Power Purchases and Direct Fuels for Generation. Direct - Means Direct Procurement: when a CCA directly procures from a supplier.
4 Sub - Means Subcontractor Procurement: when a prime contractor, in contract with a CCA, procures from a subcontractor to fulfill its contractual obligation(s).
5 "Total" does not include pre-commercial development (COD) subcontracting values. 6 8(a) - Businesses owned and controlled by persons found to be disadvantaged by the U.S. Small Business Administration pursuant to Section 8(a) of the Small Business Act, as amended (15 U.S.C. 637 (a)) or the U.S. Secretary of Commerce, pursuant to Section 5 of Executive Order 11625 (GO 156 Section 1.3.13). 11 Total Minority Business Enterprise
(MBE) $0 $0 $0 $0 $0 $0 $0
12 Women Business Enterprise (WBE) $0 $0 $0 $0 $0 $0 $0 Lesbian, Gay, Bisexual, Transgender
$0 $0 $0 $0 $0 $0 $0
13 Business Enterprise (LGBTBE)
Disabled Veteran Business
$0 $0 $0 $0 $0 $0 $0
14 Enterprise (DVBE)
15 Persons with Disabilities Business
Enterprises (DBE) $0 $0 $0 $0 0 0 0
16 8(a) 6 $0 $0 $0 $0 $0 $0 $0
17 Total Supplier Diversity $0 $0 $0 $0 $0 $0 $0
18 Net Power Procurement $31,121,962
19 Net Direct Power
Purchases $31,121,962
20 Net Direct Fuels for Generation $0
21 Total Number of
Diverse Suppliers 0
2024 Annual Plan
10.1 Diverse Annual Short-, Mid- and Long-Term Goals by Product and Service Category
This section is not applicable to CCAs.
10.2 Description of Diverse Internal and External Activities for 2024
PLANNED EXTERNAL PROGRAM ACTIVITIES FOR 2024
Proposed Activity Description
Participate in diverse
organizations and
chambers of commerce
Identify diverse local organizations and chambers of commerce that would be interested in hearing about GO 156 and the State's Supplier Clearinghouse; this may involve being a speaker at a regular meeting or providing information on the benefits of certification.
Participate in local, state,
and national Supplier
Diversity events
Identify events (preferably local but also regional and statewide) where DCE can engage with diverse supplier groups, such as the Desert Business Organization, the National Business Inclusion Consortium, the Western Regional Minority Supplier Development Council, and the Women's Business Enterprise Council.
PLANNED INTERNAL PROGRAM ACTIVITIES FOR 2024
Proposed Activity Description
Enhance training and
knowledge efforts on
supplier diversity with
current and new DCE
Staff.
DCE is a small agency with limited staff and utilizes consultants for most services. In 2024, we anticipate hiring and training new team members who will become familiar with supplier diversity requirements. DCE will prioritize attending quarterly training provided by CPUC to CCAs and MCE’s Amplify and Certify virtual workshops.
Track DCE’s spend and
report results to DCE’s
Board of Directors.
DCE will develop mechanisms to better track spending with diverse BEs. Staff will prepare a report summarizing this annual GO 156 submission and deliver the report to DCE’s Board of Directors.
Share upcoming
contracting opportunities
with the Supplier
Clearinghouse database
with a priority on local
suppliers; Enhance DCE’s
online registration form.
Whenever a purchasing or contracting opportunity arises, DCE staff will reach out to local businesses with GO 156 certification first, then consider other GO 156 suppliers for the given purchase/contract. DCE will update its website and create a user-friendly online form whereby certified contractors can enter their e-mail addresses to be included in upcoming contract and procurement opportunities. In addition, the online form will allow diverse suppliers interested in becoming certified to receive information on the process and registration.
Plans to Encourage Prime Contractors to Subcontract Small, Local, and Diverse Businesses
DCE will work with its current and future contractors to encourage the utilization of small, local, and diverse businesses to engage these BEs in all categories that provide subcontracting opportunities. Part of this outreach will include educating contractors on the importance and benefits of engaging the services of Clearinghouse-registered and eligible entities.
CONCLUSION
DCE is committed to achieving its supplier diversity goals in 2024. In May 2023, the DCE Board adopted the supplier diversity program goals and activities to be implemented in 2024. The short, mid, and long-term goals DCE has established are summarized below.
In the short term, DCE aims to train its team to become proficient in supplier diversity requirements and eventually become the go-to resource for local and county business entities. These objectives are reflected in the planned activities for 2024. In the mid and long term, DCE aspires to expand its outreach to diverse local businesses, particularly those in underserved communities, and increase the number of diverse supplier contracts. DCE also aims to establish a supplier diversity working group to increase awareness and opportunities locally. This could be achieved by collaborating with other regional CCAs to develop a network that pools resources to expand outreach efforts.
DCE acknowledges that there is still more work to be done in order to align its outreach procedures with its efforts to meet supplier diversity goals. As part of this effort, DCE will prioritize increasing the amount of contract dollars spent on underserved or marginalized groups. We will dedicate time and resources to promote these efforts and ensure we stay on track. DCE intends to work closely with other CCAs and CalCCA to identify program best practices and opportunities for information sharing. DCE appreciates the continued assistance provided by CPUC Staff and looks forward to working together to enhance supplier diversity programs in the coming years.