Some small business groups require formal certifications in order to receive the benefits of their specific small business program for purpose of federal procurement. Some groups merely self-represent their business status when completing the solicitation representations and certifications clauses.
Small Disadvantaged Business Status
The Small Disadvantaged Business (SDB) Certification Program is designed to treat small companies equitably and empower them to pursue business in both the private and public sector contract arena. Once an SDB is certified, it will be eligible for specific procurement benefits. Formal certification is required by the SBA.
Click here for more information: http://www.sba.gov/sdb/section06h.htm
SBA’s 8(a) Business Development Program
FAR - Part 19.8
Section 8(a) of the Small Business Act, as amended, authorizes SBA to contract for goods and services with federal agencies. SBA then subcontracts actual performance of the work to socially and economically disadvantaged small businesses, which have been certified by SBA as eligible to receive these contracts. The major advantage of this program is that it allows the government to contract, on a noncompetitive basis, with socially and economically disadvantaged small businesses. SBA also offers managerial, technical, and financial support to participating firms.
DOT gives special emphasis to identifying procurement requirements for matching with the capabilities and potential of approved 8(a) firms. DOT has obtained special authority to negotiate directly with 8(a) firms on the behalf of SBA.
Program participation is divided into two stages.
- The developmental stage is designed to help 8(a) certified firms overcome their economic disadvantage by providing personalized business assistance in expanding their business and fostering meaningful business relationships.
- The transitional stage is designed to help program participants become more effective in both the large business and government sector market in dealing with complex business deals and to prepare them for post 8(a) program expansion and development. Formal certification is required by the SBA.
You can learn more about the 8(a) program on the SBA web site at: http://www.sba.gov/8abd/
HUBZone Certification
FAR - Part 19.13
The HubZone Empowerment Contracting program provides federal-contracting opportunities for qualified small businesses located in distressed areas. This program was enacted into law as part of the Small Business Reauthorization Act of 1997 and is administered by the SBA. The program encourages economic development in historically underutilized business zones (HUBZones) and through the establishment of preferences. SBA certified firms for eligibility to receive HUBZone contracts and maintains a listing of qualified HUBZone small businesses that federal agencies can use to locate prospective vendors.
You can learn more about the HUBZone program and apply electronically on the SBA web site at: eweb1.sba.gov/hubzone/internet/
Veteran and Service Disabled Veteran Certification
The Service Disabled Veteran Certification Program is designed to assist those businesses, with not less than 51%, which are owned by one or more service-disabled veterans (not less than 51%), or in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more service-disabled veterans and the management and daily business operations of which are controlled by one or more service-disabled veterans, or in the case of a veteran with a permanent and severe disability, a spouse or permanent caregiver of such veteran.
There is no certification process for veterans. A veteran or a service-disabled veteran self certifies his/her veteran status when he/she registers on Central Contractor Registration (www.ccr.gov) and when responding to a government solicitation. Proof of being a service-disabled veteran can be evidenced by a DD Form 214 and a Veteran's Administration certified letter as to disability. Click here for more information: http://www.sba.gov/GC/indexprograms-vets.html
Woman-Owned Small Business Status
At this time there is no certification procedure required for women-owned businesses for Federal procurement. However, you are encouraged to self-certify your business as a woman-owned small business (WOSB) in the CCR database. Provide a full profile of your business when you register.
Why be Certified?
The SBA Certification in the SDB, the 8(a), or the HUBZone Program provides benefits by:
- Bringing more dollars to an eligible company through SDB procurement mechanisms;
- Targeting competition to specific industries where there are disparities; and
- Increasing economic activity in distressed communities.
SDB certified companies may benefit in one of two ways. First, an SDB can qualify for a price evaluation adjustment when bidding as a prime contractor. Second, all prime contractors are encouraged to use certified SDB's as subcontractors through mandated evaluation factors and optional monetary incentives.
Small businesses are considered SDB's upon successful certification into the SBA 8(a) BD Program. In addition to the benefits available through the SDB Program, 8(a) firms enter into a nine-year partnering relationship with the SBA.
HUBZone certified businesses can qualify for specific procurement benefits. Businesses that use these benefits are also helping to improve the economy of the distressed area.
SBA's Size Standards
SBA's size standards define whether a business entity is small and, thus, eligible for Government programs and preferences reserved for "small business" concerns. Size standards have been established for types of economic activity, or industry, generally under the North American Industry Classification System (NAICS). An applicant must not exceed the size standard corresponding to its primary industry classification in order to qualify for admission to SBA's 8(a) Business Development Program.
Click here for more information on whether your company meets the SBA's size standards: http://www.sba.gov/size/index.html
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