SUBJECT:

Business Affirmative Action

UCSD is entering the seventh fiscal year of its Business Affirmative Action
Program. At this milestone, we want to reacquaint our procurement customers
with the campus approach to achieve the requisite target in business
affirmative action utilization. This program affects all of us.

It is the policy of the University of California, consistent with State and
Federal law, to take affirmative action to optimize opportunities for
business contracting with small, disadvantaged, women-owned, and disabled
veteran business enterprises to ensure the placement of a fair proportion of
business contracts with such enterprises. These laws require annual reporting
of our results.

The program at UCSD has been successful in reaching utilization targets in
the small and women-owned business categories. However, utilization of
disadvantaged and disabled veteran business enterprises falls short of the
established goals. The goal for this fiscal year is to direct a minimum of
15% of total dollars spent for purchases of goods and/or services to
disadvantaged enterprises and 3% to disabled veteran enterprises.

Each UC campus, medical center and laboratory has a Business Affirmative
Action Program designed to implement state, federal and local laws through
liaison with the business community and development of resources for campus
personnel who buy goods and services. However, ultimate responsibility for
success lies with the individuals who initiate purchase transactions, whether
low value, high value or travel agency commitments. Through these joint
efforts, UCSD utilization, relative to the targets, has significantly
improved. However, a renewed commitment is required to continue our
record of improvement.

The policy stemming from state law, and which is utilized by our purchasing
professionals, is defined by UC Business and Finance Bulletin BUS 43. This
policy authorizes negotiation, where appropriate, in lieu of competition for
procurements up to $50,000. To effectively utilize this resource,
buyers, in partnership with requestors, will be required to: (1) determine
if requisitioned goods or services can be provided by a business affirmative
action source, and (2) determine that the price quoted is "reasonable."
Negotiation and competition practices must assure that performance and
quality criteria are considerations in the final selection and award of
contracts.

A partnership between the professional buyer and requestor is essential for
achieving success. All departmental requestors and low value buyers are
encouraged to embrace the policy of the University by working hand in hand
with the professional buyers tasked with high value procurements.
Additionally, low value orders should be directed to disadvantaged and
disabled veteran enterprises at every opportunity. Only through this spirit
of teamwork, cooperation and communication will we achieve the goals by which
we are challenged. We encourage you to contact UCSD's Small Business Office
and Purchasing Division at extension X43081 or X43084 regarding your role in
business affirmative action outreach efforts.

Steven W. Relyea Vice Chancellor - Business Affairs