PTAC
Minority Certifications and More
Minority Certifications and More
WHAT IS CERTIFICATION?
A document attesting that a person or organization
meets minimum standards or qualifications in a
specific area. Usually issued by an organization
with recognized expertise in that area.
WHAT IS THE REASON FOR CERTIFICATION
By law, federal agencies are required to establish contracting goals
which require self-certification or formal certification. Small
business certifications are like professional certifications; they
document a special capability or status that will help you compete in
the marketplace. Unlike permits and licenses, you do not need to
obtain certifications to legally operate. However, in order to take
advantage of business opportunities, such as government contracts,
you may need to obtain some certifications.
Certifications we will cover
Federal – 8A, HubZone and Woman
Owned Small Business
Local- City of Houston
MBE,WBE,SBE,DBE
State of Texas – HUB
Corporate – HMSDC and WBEA
PTAC
Federal
8A, Hub Zone and Woman Owned Small
Business
and
Self-Certification
FEDERAL CERTIFICATIONS – SELF CERTIFY
The Federal government sets aside certain contract bid opportunities exclusively for
small businesses. In order to compete for these contracts, you must first register as a
vendor with the government.
As part of the registration process, you will be required to enter information about
your company in the System for Award Management (SAM) database. In SAM, you
may self-certify yourself as a small business, but you must meet the Federal
government's definition of a small business. You can also self certify as Minority,
Woman, and Veteran business if applicable.
FEDERAL – FORMAL CERTIFICATIONS
Three certifications requiring a formal submission and approval process
SBA 8a
HUBZone
WOSB/EDWOSB (approved NAICs only)
BENEFITS OF GOVERNMENT CERTIFICATIONS
Set aside awards
Sole source awards
Subcontracting opportunities
Mentor protégé program
JV program
SBA Bond program
• 8A BUSINESS DEVELOPMENT PROGRAM
• (Sec. 204 of Public Law 100-656)
• “to promote the business development
of small business concerns owned and
controlled by socially and economically
disadvantaged individuals…”
• PERSONAL ELIGIBILITY REQUIREMENT
• Social Disadvantage
• Economic Disadvantage
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SOCIAL DISADVANTAGE
Individuals who have been subjected to racial or ethnic
prejudice or culture bias within American society because of
their identities as members or groups, and without regard to
their individual qualities. Social disadvantage must stem from
circumstances out of their control.
U.S. Citizen
-andBlack American
Asian Pacific American
Hispanic American
Subcontinent Asian American
Native American (American Indian, Eskimos, Aleuts, or Native
Hawaiians)
• INDIVIDUALS NOT MEMBERS OF THIS GROUP
• Evidence of individual social disadvantage must include the following:
• At least one objective distinguishing feature that contributed to social
disadvantage such as:
• Discriminated against because of race, ethnic origin, gender, physical
handicap, long term environmental isolation, or other similar causes;
• Personally suffered disadvantage in the United States;
ECONOMIC DISADVANTAGE
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Individuals whose ability to compete in the free enterprise system has been impaired due to
diminished capital and credit.
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Personal Net Worth
- equity in primary residence
- equity in business
Adjusted net worth CANNOT exceed $250,000
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Married - submit separate financial statements
• BUSINESS ELIGIBILITY
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Ownership must be direct
At least 51% unconditional ownership by the disadvantaged person(s).
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Control and Management
Partnerships: Agreements must reflect unconditional management by disadvantaged
partner (s).
Limited Liability Company: One or more disadvantaged individuals must serve as
management members with unconditional control.
The disadvantaged individual must:
Hold the position of President or Chief Executive Officer, Managing Partner, or LLC Managing
Member.
Be the highest compensated individual.
Have the ability to hire and fire.
Devote full-time to the business.
Set policies.
Have the ability to commit firm to contracts.
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• BUSINESS ELIGIBILITY CONTINUED
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Size is determined by:
average of three years sales volume or number of employees
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Business must be small according to their primary NAICS Code; including affiliates.
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Potential for Success requirement –
Length of Time In Business
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Financial Capability
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Managerial Capability
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Technical Capability
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Ability to Perform on Government Contracts
• 2 year waiver
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The eligible applicant has to be…
substantial and demonstrated business management experience;
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demonstrated technical expertise to carry out the business plan with a substantial likelihood for success;
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has adequate capital to carry out the business plan as a Participant;
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records of successful performance on contracts from governmental and non governmental sources;
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demonstrate it's ability to timely obtain, personnel, facilities, equipment, and any other requirements
needed to perform contracts.
• Financial requirements- 2 year waiver
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Sufficient capitalization
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Financial performance
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Bonding capacity
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Manageable debts
• MANAGERIAL Requirements – 2 year waiver
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Education, experience and training of CEO and other managers,
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Magnitude and complexity of past/current jobs,
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Management systems.
• Technical capacity – 2 year waiver
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Performance on previous contracts,
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Has the necessary personnel, licenses, certifications and facilities,
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Prior experience.
• Ability to perform on government contracts•
Relevant successful contracting experience from governmental and non-governmental sources in the
primary industry category,
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Ability to meet Federal procurement policies,
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Demonstrated ability to obtain the necessary personnel, facilities, and equipment.
• Ineligible Businesses and Individual Disqualification
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Brokers*
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Nonprofit organizations
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Franchises may be allowed contingent upon SBA review of the franchise agreement.
www.franchiseregistry.com
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Debarred or suspended persons or concerns
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Any person or concern who has previously participated in the program
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any person who has used disadvantaged status to qualify another firm may not apply, even if ownership
and control has changed, firm may not reapply.
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Any person who demonstrates a lack of good character.
• Application is done online
• Mail to San Francisco DPCE - Regions 2, 4, 6, 7, 8, 9, & 10
455 Market Street, 6th Floor
San Francisco, CA 94105
415-744-0328
HUBZone
Purpose of program
• Provide federal contracting assistance for qualified
small business concerns located in historically
underutilized business zones to:
• Increase employment opportunities
• Stimulate capital investment in those areas
• Empower communities through economic leveraging
and the “multiplier effect”
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Eligibility
Size: Small, by relevant SBA standards;
Ownership and Control: 51% by US citizens,
Community Development Corporations,
Agricultural Cooperatives; Alaska Native
Corporations, or Indian tribes;
Location: “Principal Office” located in a
HUBZone; and
Employment: At least 35% of employees must
reside in a HUBZone
Benefits
• Set-aside awards
• Sole source awards
• Awards through full and open competition
after application of a 10% price preference
• Subcontracting Opportunities
Application/Recertification
• Totally electronic – www.sba.gov/hubzone
• Processing time – 30 days
• Recertification – Every three years
• Will receive notice of expiration of
certification – failure to respond will result in
decertification proceedings.
Women Owned Small Business
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Eligibility
Size: Small, by relevant SBA standards;
Ownership and Control: 51% by US woman/women
(citizen(s);
NAICS limitation
Two designations: Woman Owned Small Business
(WOSB) and Economically Disadvantaged WOSB
(EDWOSB).
All EDWOSB are WOSB, but not all WOSB are
EDWOSB.
EDWOSB ELIGIBILITY
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Unconditional Ownership, Management and Control: 51% by US woman/women
citizen(s) who are “economically disadvantaged”;
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EDWOSB must hold highest position in company.
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Presumed EDWOSB if net worth less than $750,000, three-year income averages
less than $350,000, and total assets’ fair market value is less than $6 Million.
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Application/Recertification
Totally electronic – www.sba.gov/wosb
Processing time – 30 days
Self-certification
Third-Party Certification:
WBEA’s WBENC (for WOSB only).
Upload documentation to WOSB Repository
VETERAN REGISTRATION (NOT CERTIFICATION)
In order to do business with the Veteran Administration (VA). Veterans are required to
register through the vetbiz.gov system.
• VETERAN BUSINESS REGISTRATION BENEFIT
• Advantage –
• promotes your firm to the world as a
legitimate Veteran owned business
• VA requires the registration
• VA has a set aside program for registered firms
PTAC
Local Certifications
City of Houston M/W/SBE
State of Texas HUB
Texas Unified Certification Program (DBE)
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City of Houston
Eligible group participation –51% or more
owned
* Minority
* Woman
*Person with Disabilities (SDV)
* SBE (construction only)
US Citizen or lawfully admitted Permanent
Resident
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Benefits
Promote MBE/WBE/SBE to participate in bid
opportunities with the City of Austin/Houston
Also certify as State HUB if requested
Provide directory of firms for Primes to
contact for subcontract opportunities
Also provide certification with DBE program
through TUCP allowing firms to do business
will other Cities, airports, transit authorities,
etc.
State of Texas HUB
Requirements
• US citizen
• 51% owned by WBE/MBE or SDV with 20% or
more disability
• Texas resident
State Certification Benefits
* HUB certification is free of charge.
* Certification is valid for 4 years, provided the
business continues to meet the eligibility requirements
* Increased exposure to the general public, as well as,
other entities who have a supplier diversity program
and are searching for minority and woman-owned
businesses.
* Vendors may also receive HUB certification by way of
a certification memorandum of agreement the
Statewide HUB Program has entered into with other
TUCP/DBE
ELIGIBILITY
- TX Resident
- Minority owned or woman owned
- Personal networth cannot exceed
$1,320,000
- US citizen or Permanent resident alien
- 51% owned and controled
Corporate certification
Two certifying firms
HMSDC
• Minority owned firm
• Scholarship program
• Mentoring
• Access to Corporate buyers
• Networking events
• Educational workshops
• Working capital program
WBEA
• Woman owned firm
• Scholarship program
• Mentoring
• Access to Corporate buyers
• Networking events
• Educational workshops
• Assist with WOSB
Thank you
University of Houston PTAC
713-752-8477 phone #
[email protected]
www.ptac.uh.edu
Deidra Sutton
713-752-8439