Certification Panel SADBOC 2014

Certification Panel

2014 SADBOC Government Procurement Fair

April 30, 2014

Certification Programs

Federal Programs 8(a) Business Development HUBZone Service Disabled Veteran

Targeted Vendor State of Minnesota

DBE Program Federally Funded Transportation - MN/DoT, MET Council,

MAC CERT Program

City/County Minnesota Minority Supplier Development Council (MMSDC)

Corporate Certification of MBE- Minority Business Enterprise.

Women’s Business Enterprise National Council (WBENC) WBE Certification

What is Small Business Certification and Why is it Required? Government agencies have goals for using various

types of small businesses. Large corporations have supplier diversity programs

driven by: Contract requirements Demands of the marketplace

Small businesses owned by women, minorities, and Veterans are reviewed to insure that they meet all criteria. Ownership Control

Should You Become Certified?

Do you qualify? Do the benefits justify the investment? Who are your customers? Are your customers asking for certification?

Federal Prime Contracting Small Business Goals

• Small Business 23% (self-certify) • Small Disadvantaged Business 5%.

– Includes 8(a) (SBA certified). • HUBZone Small Business 3% (SBA

Certified). • Service Disabled Veteran Owned Small

Business 3% (self-certify except VA). • Woman Owned Small Business 5%.

Subcontracting Requirements

• A large business receiving a contract over $650K ($1.5M construction) must submit a subcontracting plan as part of the contract.

• Plans can be contract specific or commercial. • Specific goals for all small business categories. • Contractors must designate a Small Business

Liaison Officer (SBLO).

Contract Set-asides

• Government can set requirement aside: • Small Business • 8(a) Business Development Participants • HUBZone Small Business Concerns • Women Owned Small Business (WOSB)

and (EDWOSB) • Service Disabled Veteran Owned Small

Business • VA can Set-aside for Veteran Owned

8(a) Business Development Program

• Business development program for small business owned and controlled by socially and economically disadvantaged individuals. – 8(a) Participants remain in program for up to

nine years. – SBA works closely with participants. – Government contract support.

8(a) BD Program

• Social Disadvantage – Designated Groups – Non-Designated Groups

• Economic Disadvantage – Assets and income tests.

• Potential for Success – Two years in business

Eligibility Criteria - Must Meet All Three

• The Small Business Act authorizes SBA to enter in to contracts with federal agencies and to subcontract the work to 8(a) BD participants.

• 8(a) contracts less $4.0M ($6.5 for Manufacturing) are sole source.

• 8(a) contracts over $4.0M ($6.5 for Manufacturing) are competed among 8(a) BD participants.

8(a) BD Contracting

• 8(a) BD application information is at www.sba.gov/8abd. • Applications are made online. • 8(a) Business Development Program Orientation – 12:00

Harvest Room A. • Minnesota District SBA Office has monthly webinar for

prospective 8(a) applicants – second Tuesday of the month at 10:00 am (next up – May 13).

• Contact Katherine Roth at 612-370-2320 to register for the May 13 webinar.

Application and Additional Training

HUBZone Program

HUBZone Program

• Place based program. • Designed to increase investment and

employment in distressed areas. • Three types of Historically Underutilized

Business Zones or HUBZones – Rural counties – Urban areas – Census tracts – Exterior boundaries of an Indian reservation.

• To find out if a location qualifies, type in address at: www.sba.gov/hubzone.

• HUBZone Workshop: – 11:00 Harvest Room A

HUBZone Program Eligibility

• Must meet all four requirements – Principal Office must be in HUBZone – 35% of employees must reside in

HUBZone – Must be small – Business must be 51% owned by U.S.

Citizens • Prospective businesses apply for

certification on line. • www.sba.gov/hubzone.

HUBZone Contracts

• Competitive. Contracting Officer may limit competition on a contract to only HUBZone certified firms.

• Sole Source. Only one HUBZone SB available – HUBZone set-asides shall be considered before HUBZone

sole-source awards or small business set-asides

• HUBZone Evaluation Preference. preference of 10% for HUBZone firms when the low offer was made by a large business.

WOMEN OWNED SMALL BUSINESS CONTRACTING

PROGRAM

Eligible NAICS Codes for Set-asides

Set-asides are only allowed under certain NAICS Codes identified in a disparity study by RAND Corp.

373 6-Digit NAICS Codes Two Categories of NAICs Codes 216 Underrepresented 157 Substantially underrepresented

Two Categories of Eligible Businesses

• Women Owned Small Business (WOSB) must be a small business based on the business’ primary NAICs code.

• Not less than 51% unconditionally and directly owned and controlled by women who are U. S. citizens.

• Additional requirements to be Economically Disadvantaged Women Owned Small Business (EDWOSB):

• Personal net worth of less than $750,000 • Three year income averaged less than $350,000. • The fair market value of all assets less than $6 million.

Two Types of Set-asides

• Requirements assigned NAICS Codes

identified by RAND where WOSB are Substantially Underrepresented can be set-aside for WOSB.

• Requirements assigned NAICS Codes identified by RAND where WOSB are Underrepresented can be set-aside for Economically Disadvantaged WOSB (EDWOSB)

Certification

• SBA does not certify WOSB or EDWOSB. • Self certification with supporting

documentation. • Certifications from a SBA approved third

party certifier. • El Paso Hispanic Chamber of Commerce • National Women Business Owners Corporation • US Women’s Chamber of Commerce • Women’s Business Enterprise National Council (WBENC) –wosb only.

Service Disabled Veteran Owned Small Business (SDVOSB)

Service Disabled Veteran Owned Small Business (SDVOSB)

• Small Business must be owned and controlled by one or more Service Disabled Veteran(s).

• Qualifying small business may self certify their

status – except for contracts with VA.

• SDVOSB wanting to do business with the Veterans Administration under Public Law (P.L.) 109-461 must register and be verified by the VA’s Center for Veterans Enterprise. – Web site: www.vetbiz,gov.

• Veteran Verification Workshop: 12:00 Harvest B

SDVOSB Set-Asides

• Contracting Officer may limit competition on a contract to only SDVOSB firms.

• Sole source: Only one SDVOSB SB available • Under Public Law (P.L.) 109-461 VA must set

everything aside for SDVOSB unless there are no SDVOSB that can perform the work.

MINNESOTA SMALL BUSINESS PROCUREMENT PROGRAM

WHAT IS IT?

A statewide purchasing program for certified socially and economically disadvantaged small businesses

The size of a business is determined using the State of Minnesota size standards available on our website at http://www.mmd.admin.state.mn.us/sicsize.asp

TARGETED GROUPS (TG)

Small businesses that are at least 51% owned, operated and controlled by: Non-minority women Ethnic minorities Persons with a substantial physical disability

OTHER ELIGIBILITY REQUIREMENTS FOR TARGETED GROUP CERTIFICATION

Must be a for profit small business based in Minnesota

The majority owner must have the expertise to

control the management and operation of the business

Construction

Prime Contracts

Construction Subcontracts

Professional

Services

Other

Services*

Goods & Supplies

African American

X

X

X

American Indian

X

X

X

X

Asian American

X

X

X

Hispanic American

X

X

X

X

X

Nonminority Women

X

X

X

X

X

Disabled

X

X

X

X

X

STATE OF MINNESOTA DEPARTMENT OF ADMINISTRATION

TABLE OF GROUPS EXPERIENCING DISPARITY

IN STATE OF MINNESOTA PURCHASING & CONTRACTING CONDUCTED UNDER MINN. STAT. CHAPTER 16C

(Based on the 2009 Disparity Study)

March 16, 2010

For purposes of applying preferences, other services include the following categories:

Janitorial and maintenance services Uniformed guard services Computer services (such as repairs) Certain job shop services Printing Graphics, photographic services Landscaping (except for large construction projects such

as boulevards and highways) Other nontechnical or unlicensed services

ECONOMICALLY DISADVANTAGED (ED)

Small business located in Economically Disadvantaged Counties:

LABOR SURPLUS COUNTIES – counties designated as labor surplus by the US Dept. of Labor

LOW MEDIAN INCOME COUNTIES – counties in which the median income for married couples is less than 70 percent of the state median income for married couples

REHABILITATION FACILITIES

ELIGIBILITY REQUIREMENTS FOR ECONOMICALLY DISADVANTAGED

CERTIFICATION

Must be a for profit small business based in Minnesota

Business must be located in one of the designated economically disadvantaged counties

Aitkin Grant Marshall Redwood Becker Hubbard Meeker Renville Big Stone Jackson Morrison Rock Cass Kanabec Murray Sibley Chippewa Kittson Norman Swift Clearwater Koochiching Otter Tail Todd Cottonwood Lac Qui Parle Pine Traverse Douglas Lake of the Woods Pipestone Wadena Faribault Lincoln Pope Watonwan Fillmore Mahnomen Red Lake Yellow Medicine

BENEFITS OF CERTIFICATION

A price preference when submitting bids to the State for goods, services and construction Up to a 6% preference for TG vendors Up to a 6% preference for ED vendors for goods

and services Up to a 4% preference for ED vendors for construction

Opportunities for sub-contracting on construction and professional/technical services contract

BENEFITS OF CERTIFICATION TG/ED certification may be used by Mn/DOT, the

Metropolitan Council, and the Metropolitan Airports Commission for their state funded purchases

Other states, counties, municipalities verify eligibility through our program

Some major corporations with programs for women and minorities accept our certification

Can be used as a marketing tool

BENEFITS OF CERTIFICATION

Business listing in the Materials Management website directory at http://www.mmd.admin.state.mn.us/process/search/

Designation as TG or ED in the state’s internal statewide

purchasing system

Both are updated immediately upon certification.

APPLICATION PROCESS Register as a vendor for the State of Minnesota, using our

online vendor registration system at http://supplier.swift.state.mn.us

Complete the online TG/ED Application and print it (Cannot be submitted electronically). The application is available at http://www.mmd.admin.state.mn.us/mn02001.htm

APPLICATION PROCESS

Submit the application to the Materials Management Division with all applicable supplemental information

Certification process takes approximately 8-10 weeks

CONTACT INFORMATION For information regarding the Minnesota Small Business

Procurement Program: Call the MMD HELPLINE at 651.296.2600 or by

e-mail at mmdhelp.line@state.mn.us

Contact Sheila Scott 651-201-2428 Sheila.Scott@state.mn.us

WELCOME

MNUCP Objectives

› Provide a one-stop shop for DBE certification

› Standardized process › One centralized directory › Unifies all recipients of USDOT funds › Less paperwork › Comply with federal regulation 49CFR

Part 26 › Interstate certification (must be certified

in home state first)

Who are certifying members of the MnUCP?

› Federal Aviation Administration (FAA) fund recipients (Metropolitan Airports Commission)

› Federal Highway Administration (FHWA) fund recipients (Minnesota Department of Transportation)

› Federal Transit Authority (FTA) fund recipients (Metropolitan Council/Metro Transit). (NOTE: DBE certification is also used on EPA-funded work with the Metropolitan Council Environmental Services division and non-federally funded contracts over $100,000)

› City of Minneapolis

Which Businesses Are Eligible?

› For Profit › Small Business as defined by NAICS Codes › Minimum of 51% ownership by one or

more socially and economically disadvantaged individual(s)

› Demonstrated daily management and control

Socially & Economically Disadvantaged Individuals (SED)

› Must be a citizen or permanent U.S. resident

› Groups reputably presumed to be SED: • Black Americans • Hispanics • Native Americans • Asian Pacific • Asian American • Women

Individual Determinations of Social and Economic Disadvantage

(Appendix E)

› Socially Disadvantaged • Racial or Ethnic Prejudice • Cultural Bias

› Economic Disadvantaged

• Ability to compete impaired

DBE’s Must Demonstrate

› Personal Net Worth • $1,320,000 maximum – excluding value

of primary residence • Assets less Liabilities • Does not include value of firm applying for DBE certification

› Commercially Useful Function • Provide services truly needed on

projects

Certification Qualifications › Meets social/economic disadvantage

› Demonstrates majority ownership, power to direct and

day-to-day control

› Officer/status (holds highest position) › Independent

› Disadvantaged owner must demonstrate a comprehensive

understanding of all functions of the business

› Completion of business on-site

How to Apply

› MnUCP DBE Certification Application is available in 2 formats at www.mnucp.org • Microsoft Word Document • PDF

Contact Information

MAC- Debra Johnson 612.726.8193 Debra.Johnson@mspmac.org

Metropolitan Council- Pat Calder 612.349.7463 Pat.calder@metc.state.mn.us

Mn/DOT- Ashanti Payne 651.366-3071 Ashanti.payne@state.mn.us City of Minneapolis 612-673-2112 Roxanne.crossland@minneapolismn.gov

CERT Program

Tisidra Jones City of Saint Paul

Department of Human Rights & Equal Economic Opportunity (HREEO)

What is the CERT Program?

A central certification program sponsored collaboratively by

• Hennepin County • City of Saint Paul • Ramsey County

Certification Categories

• Small Business Enterprise (SBE)

• Minority-owned Business Enterprise (MBE)

• Woman-owned Business Enterprise (WBE)

15 County Marketplace

Eligibility Criteria SBE For profit, independent

operation, below applicable size standard, located in 15 county metro

MBE 51% ownership, day-to day control

WBE 51% ownership, day-to-day control

Demographics of the Database

1. Over 1900 businesses are CERT Certified 2. Over 600 MBEs 3. Over 900 WBEs 4. Over 1900 SBEs

CERT Capabilities

1. Database includes over 1900 Small, Minority-owned and Woman-owned businesses

2. Able to search for certified businesses based on multiple criteria such as:

1. Industry 4. NAICS code

2. MBE/WBE/SBE 5. Ethnicity

3. Zip code 6. Gender

3. The CERT database is one of the largest in the state: https://cert.smwbe.com/

Applying for CERT • Cost of certification: FREE • For a new vendor to applying, go to:

– https://cert.smwbe.com/ – Scroll to the bottom of the page and select the link

reading “Online (new applications and renewals)”

• For a vendor in the system: – Log in at: https://cert.smwbe.com/ – Scroll to the bottom of the Dashboard and click the link

reading “Apply for Certification”

Saint Paul HUD Section 3

David Gorski City of Saint Paul

Department of Human Rights and Equal Economic Opportunity (HREEO)

What is Section 3?

• Federal program on primarily residential projects

• Recipients and contractors must, to the greatest extent feasible, direct economic opportunities (jobs, contracts, training) to low-income residents in connection with projects and activities in their neighborhood.

Why Section 3?

HUD Section 3 Certified Residents

• Low-income: – Personal household income

• Different than SBE standards!

– Determined by HUD: 80% of the median household income for the Metropolitan Statistical Area

– Recipient of MFIP, SNAP, WIC, Reduced Lunch, Medicaid, etc.

HUD Section 3 Residents: Income Limits 2014

Household Size Income Limit

1 $44,750

2 $51,150

3 $57,550

4 $63,900

5 $69,050

6 $74,150

7 $79,250

8 $84,350

HUD Section 3 Certified Businesses

• A business that provides economic opportunity to Section 3 Residents

• Eligibility criteria to for a business to become HUD Section 3 certified: – Section 3 owner (51%) – Section 3 workforce (30%) – History of subcontracting ¼ of business to

businesses with Section 3 owners or workforce – Cost to certify: FREE!

Section 3 Resident Application

Section 3 Resident Application (cont’d)

Section 3 Business Application

Section 3 Business Application (Cont’d)

Section 3 Business Application (Cont’d)

Section 3 Business Application (Cont’d)

• Final note about Business Applications: – Individuals claiming Section 3 eligibility are

required to submit evidence of eligibility • Tax return • Receipt of government benefits • W2 • Etc.

Section 3 Businesses: the Ideal Model

Business owned by Section 3 resident

Business grows: employs lots of Section 3 residents

Business continues to grow: subcontracts with Section 3 owners and workforce

CONTACT INFORMATION

Tisidra Jones

tisidra.jones@ci.stpaul.mn.us

David Gorski dave.gorski@ci.stpaul.mn.us

Tōnya Hébért-Dickson

Certification Manager

Annual Government Procurement Fair

April 30th, 2014

(Formerly MMSDC)

Access to the North Central MSDC Corporate Directory

Networking Events

Referrals to Local, Regional and National Corporate Customers

Exposure to Local and National Corporations MBE Company Profile

• National Minority Supplier Development Council (NMSDC) Database • North Central MSDC Local Database

Reciprocal Services with NMSDC Affiliated Councils Showcase Your Business

• The North Central MSDC Annual Minority Business Opportunity Fair • The National Conference and Business Opportunity Fair

Educational and Development Programs

Scholarships Awards to CEOs Professional Seminars, Workshops and Trainings Discounted Marketing and HR Programs

Business Mentoring

MBE Input Committee (MBEIC) Industry Groups

Access to Working Capital Loans

Why Become MBE Certified?

For-Profit Enterprise Ethnic Background

African-American Hispanic-American Native-American Asian and Pacific Islander American

U.S. Citizen

Owns at least 51%

Operates and Controls an Independent Business

Headquarters located in the states of: Minnesota, Wisconsin, Iowa, North Dakota & South Dakota

Capable to provide Products or Services to Corporate America

(Business to Business) No Limitation:

Revenue Years in business

MBE Certification Criteria

Steps for applying for MBE

Certification through North Central MSDC:

Submit the Online MBE Certification Application at www.northcentralmsdc.net

Create a username and password Complete all online application sections:

General Information Ownership of Business References Special Business Operations Declaration of Certification and Documentation Instructions

Pay the Application Fee by credit card or send a check

Submit all applicable Required and any Additional Documentation

How To Become Certified?

Application Fees

Fee Scale (Effective as of January 2014)

How To Become Certified? (continued)

Fee Category by Annual Revenue (Millions)

Class 1 < $1.0 M

Class 2 $1.0 – $9.9 M

Class 3 $10.0 - $49.9 M

Class 4 $50.0 M

Initial Certification Fees

$300

$400

$500

$750

Recertification Fees

$250

$250

$350

$500

How To Become Certified? (continued)

The MBE Certification Process Consist of:

1. Application and supporting documents are Reviewed for Completeness

2. A Site Visit and Interview With Owner is conducted

3. Files presented to Certification Committee (once a month)

4. The Certification Committee submits a Recommendation to Board of Directors 5. The Board of Directors make a Determination

6. The Applicant is Certified/Denied Certification

Thank You For Participating In Todays Fair!

CONTACT INFORMTION North Central MSDC (Formerly MMSDC)

Heather Noel Olson Direction, Corporate Relations & Certifications

Holson@northcentralmsdc.net 500 West Silver Spring Drive, Suite K-200

Glendale, WI 53217 414.847.6497

Tōnya Hébért-Dickson Certification Manager

Thebertdickson@northcentralmsdc.net 111 Third Avenue South, Suite 240

Minneapolis, MN 55401 612.465.8881

WBE Certification from WBENC • Women’s Business Development Center

(WBDC) – Chicago and MN

• Women’s Business Enterprise National Council (WBENC) – Washington, D.C.

WBE Certification from WBENC • Largest third-party certifier of women-owned

businesses in US • National in Scope • WBE Certification of Choice for Corporate

America • Accepted by thousands of corporations and a

number of federal and government agencies • Issued in partnership with WBDC

Benefits • Increased Value to Existing Customer Base • Access to Corporate America and Government • Credibility • Post-Certification Support

– Training and Networking Opportunities • Networks and Referrals

– National Database of WBENCLink – Other Databases – Matchmakers – Networking Events – Trade Shows

Supplier Diversity Corporate Partners

WBE Certification

To Certify or Not to Certify?

• Process takes investment of time, energy, and resources

• PAY OFF TAKES INVESTMENT OF TIME, ENERGY, RESOURCES

• Can (not will) help to identify new markets

Eligibility Criteria MAIN AREAS OF WBE CRITERIA Ownership

– Real & substantial – Shares in risks and profits

• Contribution of Capital and Expertise • Operation & Control

– Managerial and Operational • Independence • Visit www.wbenc.org for complete criteria

Certification Fees • Certification Prices are based on

Gross Annual Revenues Gross Annual

Sales New

Applications Annual Renewal

Applications

< $2M $350 $275

$2-8M $650 $575 >$8M $950 $875

Application Process

Apply for WBE Certification online at www.wbenc.org

Some tips to make certification easier: • Submit completed application from the start • Address each document that you believe does not

apply to you • Work with the Procurement Technical Assistance

Center (PTAC) to review your documentation prior to submittal

Contact Info

Katie Lang Women’s Business Development Center – MN

612-259-6571 or klang@wbdc.org

OR

Natasha Fedorova Women’s Business Development Center-MN

612-259-6584 or nfedorova@wbdc.org