Certification of Payments to DVBE Subcontractors and Withhold to be enforced by ordering agency

In accordance with the State Contracting Manual, Volume 2, Section 1203.1, State departments shall require the Contractor to submit a complete an accurate Prime Contractor’s Certification – DVBE Subcontracting Report (STD. 817) upon acceptance of ordered goods or services for which the Contractor committed to DVBE subcontractor participation.

Upon delivery or completion of ordered goods or services, State departments shall do the following:

• Provide proper withhold notification to prime contractors.
• Withhold $10,000 or the full amount of the final invoice if less than $10,000 pending receipt of the complete and accurate STD 817.
• Review the STD 817. If it is determined to be complete and accurate, authorize payment of the withhold.
• If the STD 817 is late or incomplete, department must send the prime contractor a cure notice allowing at least 15 days, but not more than 30 days, to meet the Certification of Payments to DVBE Subcontractors requirements.
• If the prime contractor does not comply by the identified deadline, permanently deduct the withhold.
• Retain all records for a minimum of six years.”