PTAC. Minority Certifications and More

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2 PTAC Minority Certifications and More Minority Certifications and More

3 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.

4 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.

5 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

6 PTAC Federal 8A, Hub Zone and Woman Owned Small Business and Self-Certification

7 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.

8 FEDERAL FORMAL CERTIFICATIONS Three certifications requiring a formal submission and approval process SBA 8a HUBZone WOSB/EDWOSB (approved NAICs only)

9 BENEFITS OF GOVERNMENT CERTIFICATIONS Set aside awards Sole source awards Subcontracting opportunities Mentor protégé program JV program SBA Bond program

10 8A BUSINESS DEVELOPMENT PROGRAM (Sec. 204 of Public Law ) to promote the business development of small business concerns owned and controlled by socially and economically disadvantaged individuals

11 PERSONAL ELIGIBILITY REQUIREMENT Social Disadvantage Economic Disadvantage

12 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 -and- Black American Asian Pacific American Hispanic American Subcontinent Asian American Native American (American Indian, Eskimos, Aleuts, or Native Hawaiians)

13 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;

14 ECONOMIC DISADVANTAGE Individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit. Personal Net Worth - equity in primary residence - equity in business Adjusted net worth CANNOT exceed $250,000 Married - submit separate financial statements

15 BUSINESS ELIGIBILITY Ownership must be direct At least 51% unconditional ownership by the disadvantaged person(s). 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.

16 BUSINESS ELIGIBILITY CONTINUED Size is determined by: average of three years sales volume or number of employees Business must be small according to their primary NAICS Code; including affiliates. Potential for Success requirement Length of Time In Business Financial Capability Managerial Capability Technical Capability Ability to Perform on Government Contracts

17 2 year waiver The eligible applicant has to be substantial and demonstrated business management experience; demonstrated technical expertise to carry out the business plan with a substantial likelihood for success; has adequate capital to carry out the business plan as a Participant; records of successful performance on contracts from governmental and non governmental sources; demonstrate it's ability to timely obtain, personnel, facilities, equipment, and any other requirements needed to perform contracts.

18 Financial requirements- 2 year waiver Sufficient capitalization Financial performance Bonding capacity Manageable debts MANAGERIAL Requirements 2 year waiver Education, experience and training of CEO and other managers, Magnitude and complexity of past/current jobs, Management systems.

19 Technical capacity 2 year waiver Performance on previous contracts, Has the necessary personnel, licenses, certifications and facilities, Prior experience. Ability to perform on government contracts- Relevant successful contracting experience from governmental and non-governmental sources in the primary industry category, Ability to meet Federal procurement policies, Demonstrated ability to obtain the necessary personnel, facilities, and equipment.

20 Ineligible Businesses and Individual Disqualification Brokers* Nonprofit organizations Franchises may be allowed contingent upon SBA review of the franchise agreement. Debarred or suspended persons or concerns Any person or concern who has previously participated in the program 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. Any person who demonstrates a lack of good character.

21 Application is done online Mail to San Francisco DPCE - Regions 2, 4, 6, 7, 8, 9, & Market Street, 6th Floor San Francisco, CA

22 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

23 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

24 Set-aside awards Sole source awards Benefits Awards through full and open competition after application of a 10% price preference Subcontracting Opportunities

25 Application/Recertification Totally electronic Processing time 30 days Recertification Every three years Will receive notice of expiration of certification failure to respond will result in decertification proceedings.

26 Women Owned Small Business 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.

27 EDWOSB ELIGIBILITY Unconditional Ownership, Management and Control: 51% by US woman/women citizen(s) who are economically disadvantaged ; EDWOSB must hold highest position in company. 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.

28 Application/Recertification Totally electronic Processing time 30 days Self-certification Third-Party Certification: WBEA s WBENC (for WOSB only). Upload documentation to WOSB Repository

29 VETERAN REGISTRATION (NOT CERTIFICATION) In order to do business with the Veteran Administration (VA). Veterans are required to register through the vetbiz.gov system.

30 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

31 PTAC Local Certifications City of Houston M/W/SBE State of Texas HUB Texas Unified Certification Program (DBE)

32 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

33 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.

34 US citizen State of Texas HUB Requirements 51% owned by WBE/MBE or SDV with 20% or more disability Texas resident

35 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

36 - TX Resident TUCP/DBE ELIGIBILITY - Minority owned or woman owned - Personal networth cannot exceed $1,320,000 - US citizen or Permanent resident alien - 51% owned and controled

37 Corporate certification Two certifying firms

38 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

39 Thank you University of Houston PTAC phone # sbdcptac@uh.edu Deidra Sutton