The document provides information about various small business certification programs available at the federal, state, and local levels. It discusses certification options including the Federal 8(a) Business Development program, HUBZone program, state of Minnesota DBE and Targeted Vendor programs, and local CERT programs. The document also addresses why certification is required, benefits of certification such as price preferences and contracting opportunities, and eligibility requirements for different programs.
2. Certification Programs
Federal Programs
Small Disadvantaged Business including 8(a) Business
Development
HUBZone
Targeted Vendor
State of Minnesota
DBE Program
Federally Funded Transportation - MN/DoT, MET Council,
MAC
CERT Program
City of Saint Paul, Ramsey County, Hennepin County
Minnesota Minority Supplier Development Council (MMSDC)
Corporate Certification of MBE- Minority Business
Enterprise.
Women’s Business Enterprise National Council (WBENC)
WBE Certification
3. 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 and minorities
are reviewed to insure that they meet all criteria.
Ownership
Control
4. Should You Become Certified?
Do you qualify?
Do the benefits justify the investment?
Who are you customers?
Are your customers asking for certification?
5.
6. 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
7. 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
8. 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
9. 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)
Construction
Prime
Contracts
Construction
Subcontracts
Professional
Services
Other
Services*
Goods &
Supplies
African American
X
X
American Indian
X
X
Asian American
X
Hispanic American
X
X
X
X
X
Nonminority Women
X
X
X
X
X
Disabled
X
X
X
X
X
March 16, 2010
X
X
X
X
X
10. 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
11. 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
12. 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
14. 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
15. 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 verify eligibility through our program
Some major corporations with programs for women
and minorities accept our certification
Can be used as a marketing tool
16. 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.
17. APPLICATION PROCESS
Register as a vendor using our online vendor registration
system at http://supplier.swift.state.mn.us
TG/ED Applications are available on our web
site at http://www.mmd.admin.state.mn.us/
mn02001.htm
18. APPLICATION PROCESS
Complete the online application and print it (Cannot be
submitted electronically)
Submit the application to the Materials Management
Division with all applicable supplemental information
Certification process takes approximately 4-6 weeks
19. 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
21. 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 and can then apply to other
locations)
22. 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
also used on EPA-funded work with the Metropolitan
Council Environmental Services division)
› City of Minneapolis
23. 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
› Demonstrated daily management and
control
24. DBE’s Must Demonstrate
› Socially Disadvantaged
• Racial or Ethnic Prejudice
• Cultural Bias
› Economic Disadvantaged
• Ability to compete impaired
25. 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
26. DBE’s Must Demonstrate
› Personal Net Worth
• $1,3200,000 maximum – excluding
value of primary residence
• Assets
• Liabilities
› Commercial Useful Function
• Provide services truly needed on
projects
27. Certification Qualifications
› Meets social/economic disadvantage
› Demonstrates majority ownership, power to direct and
day-to-day control
› Officer/status (highest position)
› Independent
› Disadvantaged owner must demonstrate a comprehensive
understanding of all functions of the business
› Completion of business on-site
28. How to Apply
› MnUCP DBE Certification Application is
available in 2 formats at www.mnucp.org
• Microsoft Word Document
• PDF
29. 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- Diane Clark
651.366-4290
Diane.clark@state.mn.us
City of Minneapolis
612-673-2112
Roxanne.crossland@minneapolismn.gov
31. Expanding the Landscape of Possibilities
Vanessa Manning
Certification Specialist
9th Annual Greater MN Resource and
Procurement Fair
October, 9th 2013
32. Why become MBE Certified?
•
Access to the MMSDC 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
• MMSDC Local database
– Reciprocal Services with NMSDC Affiliated Councils
– Showcase your business
• The MMSDC 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
33. MBE Certification Criteria
•
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 MN, ND, SD, NE and
western Iowa.
•
Capable to provide Products or Services to Corporate
America (B to B)
•
No Limitation:
– Revenue
– Years in business
34. How to become Certified?
Steps for applying for MBE
Certification through MMSDC:
• Submit the online MBE
Certification application at
www.mmsdc.org
– 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 ($300.00)
• Submit all applicable required
additional documentation
The Certification Process:
1.
Application and supporting
documents are reviewed for
completeness
2.
Conduct Site Visit and
interview with the owner
3.
Present files to Certification
Committee (once a month)
4.
MMSDC Board Approval
36. WBE Certification from WBENC
• Women’s Business Development Center
(WBDC) – Chicago and MN
• Women’s Business Enterprise National
Council (WBENC) – Washington, D.C.
37. 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
38. 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
40. 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
41. 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
42. Certification Fees
• Certification Prices are based on
Gross Annual Revenues
Gross Annual
Sales
New Annual Renewal
Applications
Applications
< $2M
$350
$275
$2-8M
$650
$575
>$8M
$950
$875
43. 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