1. Certification Panel
2014 SADBOC Government
Procurement Fair
April 30, 2014

2. 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

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, minorities, and
Veterans 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 your customers?
 Are your customers asking for certification?

5. 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%.

6. 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).

7. 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. 8(a) Business Development
Program

9. • 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

10. • 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

11. • 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

12. • 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

13. HUBZone Program

14. 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

15. 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.

16. 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.

17. WOMEN OWNED SMALL
BUSINESS CONTRACTING
PROGRAM

18. 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

19. 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.

20. 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)

21. 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.

22. Service Disabled Veteran Owned
Small Business (SDVOSB)

23. 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

24. 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.

26. 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

27. 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

28. 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

29. 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

30. 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

31. 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

32. 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

33. 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

34. 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

35. 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

36. 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.

37. 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

38. APPLICATION PROCESS
 Submit the application to the Materials Management
Division with all applicable supplemental information
 Certification process takes approximately 8-10 weeks

39. 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

40. WELCOME

41. 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)

42. 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

43. 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

44. 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

45. Individual Determinations of Social
and Economic Disadvantage
(Appendix E)
› Socially Disadvantaged
• Racial or Ethnic Prejudice
• Cultural Bias
› Economic Disadvantaged
• Ability to compete impaired

46. 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

47. 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

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

49. 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

50. CERT Program
Tisidra Jones
City of Saint Paul
Department of Human Rights &
Equal Economic Opportunity (HREEO)

51. What is the CERT Program?
A central certification program
sponsored collaboratively by
• Hennepin County
• City of Saint Paul
• Ramsey County

52. Certification Categories
• Small Business Enterprise (SBE)
• Minority-owned Business Enterprise (MBE)
• Woman-owned Business Enterprise (WBE)

53. 15 County Marketplace

54. 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

55. Demographics of the Database
1. Over 1900 businesses are CERT Certified
2. Over 600 MBEs
3. Over 900 WBEs
4. Over 1900 SBEs

56. 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/

57. 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”

58. Saint Paul HUD Section 3
David Gorski
City of Saint Paul
Department of Human Rights and
Equal Economic Opportunity (HREEO)

59. 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.

60. Why Section 3?

61. 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.

62. 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

63. 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!

64. Section 3 Resident Application

65. Section 3 Resident Application
(cont’d)

66. Section 3 Business Application

67. Section 3 Business Application
(Cont’d)

68. Section 3 Business Application
(Cont’d)

69. 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.

70. 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

71. CONTACT INFORMATION
Tisidra Jones
tisidra.jones@ci.stpaul.mn.us
David Gorski
dave.gorski@ci.stpaul.mn.us

72. Tōnya Hébért-Dickson
Certification Manager
Annual Government Procurement Fair
April 30th, 2014
(Formerly MMSDC)

73.  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?

74.  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

75. 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?

76. 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

77. 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

78. 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

79. WBE Certification from WBENC
• Women’s Business Development Center
(WBDC) – Chicago and MN
• Women’s Business Enterprise National
Council (WBENC) – Washington, D.C.

80. 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

81. 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

82. Supplier Diversity Corporate Partners

83. 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

84. 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

85. 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

86. 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

87. 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