SBDC Podcast Episode #3 - Federal Contracting Certifications

 

Introduction

If you are looking to get started in government contracting there are socio economic certifications that can give you an edge in bidding for the federal contracts. In this episode we will cover the federal contracting certifications that you might qualify for and what you need to apply for them.

Types of Contracts

Set Asides

These contracts are like regular competitions, but only small businesses can join! This happens automatically for most government contracts under $150,000. Think of it as a small business playground – plenty of room to swing without giants stomping around. Some set-asides are open to any small business, while others might be exclusive to those in special programs

Sole Source

Most contracts involve competition, but sometimes there's an exception. Imagine a super specialized project that only your company can tackle. That's a sole-source contract, and it can be awarded without the usual bidding process. The Catch: To be considered for these exclusive gigs, you gotta register your business with the System for Award Management (SAM) and explore any SBA programs you might qualify for.

Even some sole-source contracts get announced publicly. These might be marked with an "intent to sole source," but that doesn't mean you can't throw your hat in the ring! Sometimes, the government might open the bidding process up if they get compelling proposals. So, keep an eye out and be ready to showcase why your small business is the perfect fit.

8(a) Business Development Program

This 9-year program assists businesses owned by minorities, veterans, and others facing economic barriers. As a small business owner, you gain access to exclusive contracts, training, and mentorship to compete effectively in the government marketplace. You will be able to develop your business over nine years with one-on-one coaching, technical support, and joint venture opportunities to compete for set-aside contracts and even sole-source awards (up to $7 million) reserved for qualified businesses.

Qualifications

To qualify for the 8(a) program, businesses must meet the following eligibility criteria:

• Be a small business
• Not have previously participated in the 8(a) program
• Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged
• Have a personal net worth of $850 thousand or less, adjusted gross income of $400 thousand or less, and assets totaling $6.5 million or less
• Demonstrate good character
• Demonstrate the potential for success such as having been in business for two years

Application

To apply for the 8(a) program, follow these steps:

1. Identify your primary NAICS code(s).
2. Register your business in the System for Award Management (SAM).
3. Apply for 8(a) certification.
1. Application review
2. Quick Start Guide
3. Gather Documents
4. Annual review

Women-Owned Small Business WOSB/EDWOSB

Wanna win cool government contracts but feel like you're stuck behind bigger businesses? The WOSB program is here to help! Government wants to give women a fair shot, so they have special contracts just for women-owned businesses. Being a WOSB lets you compete for these secret contracts. But remember, WOSB is just for government contracts, not regular stores.

Eligibility

To be eligible for the WOSB Federal Contract program, a business must:

• Be a small business according to SBA size standards
• Be at least 51% owned and controlled by women who are U.S. citizens
• Have women manage day-to-day operations who also make long-term decisions

To qualify as an EDWOSB within the program, a business must:

• Meet all the requirements of the WOSB Federal Contract program
• Be owned and controlled by one or more women, each with a personal net worth less than $850,000
• Be owned and controlled by one or more women, each with $400,000 or less in adjusted gross income averaged over the previous three years
• Be owned and controlled by one or more women, each $6.5 million or less in personal assets

Application

To Apply for the WOSB we will head to certify.sba.gov

• Get Started
• Register in SAM
• Register Your SBA Account
• Apply for WOSB
• Prepare
• Checklist
• Knowledge base for application review

Veteran-Owned Small Business VOSB/SDVOSB

Getting certified by SBA as veteran-owned (VOSB) makes your business eligible to compete for sole-source and set-aside contracts at the Department of Veterans Affairs (VA). The VA sets aside at least 7% of its contracts each year specifically for certified VOSBs and SDVOSBs. You can also compete for contracts under other qualifying socio-economic programs.

Getting certified by SBA as service-disabled veteran-owned (SDVOSB) makes your business eligible to compete for sole-source and set-aside contracts. At least 3% of all federal contracting dollars each year are set aside specifically for certified SDVOSBs.

Eligibility

To apply for certification with SBA as a VOSB or SDVOSB, a firm must meet the following requirements:

• Be considered a small business, as defined by the size standard corresponding to any NAICS code listed in the business’s SAM profile.
• Have no less than 51% of the business owned and controlled by one or more veterans.
• For certification as a SDVOSB, have no less than 51% of the business owned and controlled by one or more veterans rated as service-disabled by the VA. 
• For those veterans who are permanently and totally disabled and unable to manage the daily business operations of their business, their business may still qualify if their spouse or appointed, permanent caregiver is assisting in that management.

Application

To establish an SBA account and apply for certification, visit the Veteran Small Business Certification portal.

• Check your firm’s eligibility
• Request information
• Create an account, login and proceed with an application
• Search for a certified VOSB or SDVOSB
• Through the application portal, you can:Access checklists and pre-application guides

Historically Underutilized Business Zones (HUBZones)

The government limits competition for certain contracts to businesses in historically underutilized business zones. It also gives preferential consideration to those businesses in full and open competition. HUBzone certified businesses can get a 10% price preference when evaluated for open contracts. 

Eligibility

• Be a small business according to SBA size standards
• Be at least 51% owned and controlled by U.S. citizens, a Community Development Corporation, an agricultural cooperative, an Alaska Native corporation, a Native Hawaiian organization, or an Indian tribe
• Have its principal office located in a HUBZone*
• Have at least 35% of its employees living in a HUBZone*

Apply for the Certification

• First step to applying is to check out Fact Sheet for tips on how check availability and instructions to apply 
• Next you will need to register for SAM to have a Unique ID and Pin to be procurement ready.
• Review the Checklist to review the necessary 
• Download the Worksheet to calculate the necessary details to apply. 

HUBZone businesses must notify SBA if their business is involved in a merger or acquisition or if HUBZone residency drops below 20% while performing on a HUBZone contract. Any certification made or information provided as part of the HUBZone application or recertification process.

Funded in part through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, conclusions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.