Certification Panel 2012 SADBOC Government Procurement Fair April 25, 2012
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/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 and minorities 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 you customers? Are your customers asking for certification?
Federal Prime ContractingSmall Business Goals Small Business 23% (self certify). Small Disadvantaged Business 5% 8(a) Business Development Program (SBA certified) HUBZone Small Business 3% (SBA certified). Woman Owned Small Business 5% (self certify – with documentation or certification from SBA approved certifier) Service Disabled Veteran Owned Small Business 3% (self certify – except for VA).
Subcontracting Plans Large Businesses Receiving Contracts Exceeding $650K ($1.5 M construction) must provide written plan with specific goals for: Small Business. Small Disadvantaged Business (SDB). HUBZone Small Business Women Owned Small Business. Service Disabled Veteran Owned Small Business. Veteran Owned Small Business.
Small Disadvantaged Business (SDB)(Includes 8(a) BD Participants) Federal Prime Contract Goal: 5%. Business must be owned and controlled by socially and economically disadvantaged individuals. Economically Disadvantaged ($750K net worth). Size – must be small based on SBA size standards.
8(a) Business Development Program Nine Year Business Development Program. Participants work with District SBA office. Federal Government contracting support. Application on-line at www.sba.gov/8abd. Workshop at 1:00 in Harvest A.
8(a) Business Development - Eligibility Social Disadvantage. Designated groups. Non-designated groups. Economic Disadvantage: net worth, income, and assets. Potential for success – Two years in business.
HUBZone Program Place based program. Designed to increase investment and employment in distressed areas. Must meet all four requirements Principal Office must be in HUBZone 35% of employees must reside in HUBZone Must be small by SBA size standards Business must be 51% owned by U.S. Citizens. Prospective businesses apply for certification on line. www.sba.gov/hubzone.
HUBZone Program Federal Goal 3% HUBZone Set-asides Sole source if only one qualified HUBZone firm identified. Competition Limited to only certified HUBZone firms. HUBZone price preference on full and open competition Workshop 11:00 Harvest Room A
Women-Owned Small Business Program Set-asides for WOSB and EDWOSB based on eligible NAICs codes. Under each eligible NAICs Code women are either: Underrepresented Substantially underrepresented Requirements for underrepresented NAICS = EDWOSB Requirements for Substantially underrepresented NAICS = WOSB
Women-Owned Small Business Program Self Certification with documentation or certification from an SBA approved certifier. WBENC (WOSB only). U.S. Women Chamber of Commerce National Women Business Owners Corporation El Paso Hispanic Chamber of Commerce WOSB Workshop 10:00 Harvest A
Service-Disabled Veteran Owned SmallBusiness Federal prime contracting goal 3%. 51% owned by one or more service-disabled veterans. Management and daily operations controlled by one or more service-disabled veterans (38 U.S.C. 101(16))or spouse or permanent care giver. Service-disabled veteran Self certification. Certification required with CVE for VA P.L 109 Contracts can be set aside for SDVOSB.
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 51% owned, operated and controlled by: Non-minority women Ethnic minorities Persons with a substantial physical disability
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 Construction Professional Other Goods & Prime Subcontracts Services Services* Supplies ContractsAfrican American X X XAmerican Indian X X X XAsian American X X XHispanic American X X X X XNonminority Women X X X X XDisabled X X X X XMarch 16, 2010
For purposes of applying preferences, otherservices 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
ELIGIBILITY REQUIREMENTS FOR TARGETED GROUP CERTIFICATION Must be a for profit small business based in Minnesota Minimum of 51% ownership by non-minority women, ethnic minorities, or persons with a substantial physical disability The majority owner must have the expertise to control the management and operation of the business
ECONOMICALLY DISADVANTAGED (ED) Small business located in Economically Disadvantaged Counties: LABOR SURPLUS COUNTIES – counties designated as labor surplus by the US Dept. of Labor 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 Hubbard Marshall RedwoodBecker Itasca Meeker RenvilleBig Stone Jackson Mille Lacs RockCass Kanabec Morrison SibleyChippewa Kittson Murray SwiftClearwater Koochiching Norman ToddCottonwood Lac Qui Parle Otter Tail TraverseDouglas Lake of the Woods Pine WadenaFaribault Le Sueur Pipestone WatonwanFillmore Lincoln Pope Yellow MedicineGrant Mahnomen Red Lake
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 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 using our online vendor registration system at https://www.mmd.admin.state.mn.us/webven/ TG/ED Applications are available on our web site at http://www.mmd.admin.state.mn.us/ mn02001.htm Using your vendor number and password, log in to http://www.mmd.admin.state.mn.us/tg_ed_app/ TG_ED_Login.asp
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
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@example.com
Minnesota UnifiedCertification Program WELCOME
Certification Program Mn/UCP Objectives • Minnesota Unified 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)
Certification Program Who are certifying members of the MnUCP? Minnesota Unified • 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
Certification Program Which Businesses are Eligible? Minnesota Unified • 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
DBE’s Must Demonstrate…Certification Program • Socially Disadvantaged Minnesota Unified – Racial or Ethnic Prejudice – Cultural Bias • Economically Disadvantaged – Ability to compete impaired
Socially & Economically Disadvantaged Individuals (SED)Certification Program Minnesota Unified • Must be a citizen or permanent U.S. resident • Groups rebuttably presumed to be SED: – Black Americans – Hispanics – Native Americans – Asian Pacific – Asian American – Women
DBE’s Must Demonstrate…Certification Program • Personal Net Worth Minnesota Unified ($1,320,000 maximum – excluding value of primary residence) – Assets -- Liabilities • Commercially Useful Function – Provide services truly needed on projects
Certification QualificationsCertification Program Minnesota Unified • 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
Certification Program HOW TO APPLY Minnesota Unified • MnUCP DBE Certification Application is available in word or adobe format from website at: http://www.dot.state.mn.us/civilrights/ dbedirectory.html
Contact InformationCertification Program • MAC- Debra Johnson 612.726.8193 Minnesota Unified Debra.Johnson@mspmac.org • Metropolitan Council- Pat Calder 612.349.7463 Pat.firstname.lastname@example.org • Mn/DOT- Diane Clark 651.366-4290 Diane.email@example.com • City of Minneapolis 612-673-2112 Roxanne.crossland@minneapoli smn.gov
Minnesota UnifiedCertification Program Questions & Answers
What is the CERT Program? • A central certification program sponsored collaboratively by: – City of Saint Paul – Hennepin County – Ramsey County
Certification Benefits• One-stop certification• One place for information on – the three programs – contracting opportunities• Publication in directories on the web
Certification Benefits• Referrals to contractors, developers, private companies, and other organizations• Participation goals set on projects• Recruitment of certified businesses for specific projects – fax or email notices – open house events
Certification Categories• Small Business Enterprise (SBE)• Minority-owned Business Enterprise (MBE)• Woman-owned Business Enterprise (WBE)
Eligibility CriteriaSmall Business Enterprise – Independent operation – For profit – Annual revenues below size limit • State of MN Size Standards
Eligibility CriteriaSmall Business Enterprise – Located in 15 County Marketplace
Eligibility Criteria• Minority-owned Business Enterprise – Small Business Enterprise – at least 51% owned by minorities – day-to-day operational control• Woman-owned Business Enterprise – Small Business Enterprise – at least 51% owned by women – day-to-day operational control
Eligibility CriteriaOperational Control – More than ownership – Day to day operations – Industry knowledge, expertise
Eligibility Criteria• http://cert.smwbe.com• Full directory of all companies• Construction directory – Subdirectory of construction related companies• Alphabetical Name Listing – Quick reference containing cert categories
CERT Applications• available: – download from http://cert.smwbe.com – email firstname.lastname@example.org to request a form – call 651-266-8900 to request a form
Other CertificationsThe CERT Program may accept certifications from othercertifying entities such as: Mn/UCP (DBE) State of MN (TGB) Women’s Business Dev. Center (WBENC) Midwest Minority Supplier Dev. Council (MMSDC)CERT eligibility criteria must be met. Review process isexpedited with minimal paperwork. Acceptance is notguaranteed. Full application review may be requested.
Contact Information• Charles Gbadebo, Certification Specialist 651-266-8914 email@example.com• Email: firstname.lastname@example.org• Web: http://cert.smwbe.com• Michael Johnson, Program Coordinator 651-266-8900 email@example.com
What we do Who we areMission: To provide business development services to • Non-profit organization corporate members and established in 1975 certified MBEs to enhance relationships and maximize • Affiliated with the National business opportunities. Minority Supplier Development Council (NMSDC) • Our region: the states of How we do it Minnesota, North Dakota, South Dakota, Nebraska and western Iowa. The MMSDC serves as a conduit between the corporate world and minority-owned businesses
Why become MBE Certified?• Validation of MBE Status – Market your business with MMSDC endorsement – Register as a minority vendor with corporate members• 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
MBE Certification Criteria • For-Profit Enterprise • Ethnic Background (25%) – 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
How to become Certified?Steps for applying for MBE Certification through MMSDC: The Certification Process:• Submit the online MBE 1. Application and supporting Certification application at documents are reviewed for www.mmsdc.org – Create a username and password completeness – Complete all online application sections: General Information, 2. Conduct Site Visit and Ownership of Business, References, interview with the owner Special Business Operations, Declaration of Certification, and Documentation Instructions 3. Present files to Certification Committee (once a month)• Pay the application fee by credit card or send a check ($300.00) 4. MMSDC Board Approval• Submit all applicable required additional documentation
MBE Certification FAQS1. How long does the MBE Certification process take? Time frame usually 30-90 days. The time it takes to be certified is dependent on: • The firm’s legal structure • The complexity of its ownership structure • The completeness of the file2. What happens if my firm does not get certified? The applicant can file for an appeal within thirty (30) days of denial notice, or it can re-apply for MBE certification one year after denial.3. What is the renewal process? Certifications are renewed on a yearly basis for $200.00. The applicant submits an online application (3 pages), most recent business tax returns, and signature page of application signed and dated by owner.Complete list of FAQS at www.mmsdc.org under “MBE CERTIFICATION”
Preparing for MBE CertificationThe following is a list of items you should consider before you apply for MBE certification:• Start well-structured (by-laws, operational agreements, finances, etc. in order)• Research and target the specific corporation(s) or sector you would like to do business with• Research the industry you are targeting to determine trends and opportunities• Consolidate your services and products to fit TARGETED market• Determine how you will create value for your potential corporate customers• Select all suitable NAICS (The North American Industry Classification System) codes• Research the companys business and develop a strategic approach• Research your opportunities for growth (be open and ready for partnering) – Tactical Alliance or Strategic Alliance
Thank you MMSDC111 Third Avenue South, Suite 240 Minneapolis, MN 55401 612-465-8881 www.mmsdc.org
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
WBE CertificationTo 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 CriteriaMAIN AREAS OF WBE CRITERIAOwnership – 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 New Annual Renewal Sales Applications Applications < $2M $350 $275 $2-8M $650 $575 >$8M $950 $875
Application ProcessApply for WBE Certification online at www.wbenc.orgSome 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 Natasha FedorovaWomen’s Business Development Center-MN 612-259-6584 firstname.lastname@example.org