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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 [email protected]
Contact Sheila Scott 651-201-2428 [email protected]
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 [email protected]
Metropolitan Council- Pat Calder 612.349.7463 [email protected]
Mn/DOT- Ashanti Payne 651.366-3071 [email protected] City of Minneapolis 612-673-2112 [email protected]
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
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
[email protected] 500 West Silver Spring Drive, Suite K-200
Glendale, WI 53217 414.847.6497
Tōnya Hébért-Dickson Certification Manager
[email protected] 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 [email protected]
OR
Natasha Fedorova Women’s Business Development Center-MN
612-259-6584 or [email protected]
