Many veteran small businesses need some sort of advantage when they are starting government contracting, and gaining some kind of veteran certification can do just that. Many small business owners find the certification process really confusing and are not even sure where to begin to apply. In this video guide, I will cover what the DBVE certification is, how to apply for it online, and how to put your years of service to work for your business.
The certification allows you a 5% incentive for DVBEs on applicable state solicitations. This means if you are DVBE certified and are 5% percent higher than the lowest bid that isn’t certified you can win the contract because of this incentive.
The State of California also allows the certification to apply to the prime business if you are a subcontractor. Meaning if the prime is not DVBE certified, they can still utilize that certification a subcontractors DVBE status providing they do work on the contract.
The business must be at least 51% percent owned by one or more disabled veterans and if you are a LLC, must be wholly owned by one or more disabled veterans.
The daily business operations must be managed and controlled by one or more disabled veterans, but the managing veteran is not required to be an owner of the business.
The home office of the business must be located in the US and cannot be a branch or subsidiary of a foreign firm, foreign corporation, or other foreign based business.
If you are applying for the certification for the first time, you will need a document to prove your veteran status and disability. You will need a Award of Entitlement, Benefits Verification letter or Retirement Letter from the Department of Veterans Affairs and must show at least 10% disabled with a name and current address.
All applicants must provide Federal Business Tax Returns for the last 3 years, but if you haven't been in business that long you can provide tax returns for how long the business has been around.
You will need to include all pages, forms schedules and statements for each tax return that have the business start date. If you have not filed your most recent tax returns at the time of the application you will need to complete and submit an Affidavit of Income form.
Depending on your business, you may need to provide equipment rental agreements, trust agreements, franchise agreements, the disabled veterans resume, seller's permits and a business license if required.
Finally, you will need your business formation documents such as Articles of incorporation, bylaws, minutes, with corporate officers or stock transfers or changes in ownership for corporations. LLCs will need the Articles of Organization, Statement of Information with current members or managers and Operating Agreement.
You will need to choose new bidder registration if you are new to process or login if you have an account. You will need to create a supplier profile and along with certification if you have done that yet so let's do both.
The application can accommodate if you are currently applying for a bid and need expediting for approval. You can also include North American Industry Codes or NAICs for manufacturing businesses and you can find those at www.naics.com.
Click accept the terms and conditions and ‘Ok’ and your application is complete. Back on your supplier profile you can see your certification status or if you have been approved and the term of certification. In some cases, this certification will show up and be approved immediately, but you may need to wait and check back when it is approved.
Background
So what is the DVBE certification? The Disabled Veteran Business enterprise Certification is government contracting socioeconomic certification in California. California has committed to set aside 3% of contracts for DVBEs.The certification allows you a 5% incentive for DVBEs on applicable state solicitations. This means if you are DVBE certified and are 5% percent higher than the lowest bid that isn’t certified you can win the contract because of this incentive.
The State of California also allows the certification to apply to the prime business if you are a subcontractor. Meaning if the prime is not DVBE certified, they can still utilize that certification a subcontractors DVBE status providing they do work on the contract.
Eligibility
To be eligible to apply for a DVBE certification you need to be a veteran of the US Military like Army, Navy or Air force with a service connected disability of at least 10% and live in California.The business must be at least 51% percent owned by one or more disabled veterans and if you are a LLC, must be wholly owned by one or more disabled veterans.
The daily business operations must be managed and controlled by one or more disabled veterans, but the managing veteran is not required to be an owner of the business.
The home office of the business must be located in the US and cannot be a branch or subsidiary of a foreign firm, foreign corporation, or other foreign based business.
Required Documents
Before I show how to apply for the certification itself, there are required documents and information you will need to upload in the application. Let’s take a look at what you need.If you are applying for the certification for the first time, you will need a document to prove your veteran status and disability. You will need a Award of Entitlement, Benefits Verification letter or Retirement Letter from the Department of Veterans Affairs and must show at least 10% disabled with a name and current address.
All applicants must provide Federal Business Tax Returns for the last 3 years, but if you haven't been in business that long you can provide tax returns for how long the business has been around.
You will need to include all pages, forms schedules and statements for each tax return that have the business start date. If you have not filed your most recent tax returns at the time of the application you will need to complete and submit an Affidavit of Income form.
Depending on your business, you may need to provide equipment rental agreements, trust agreements, franchise agreements, the disabled veterans resume, seller's permits and a business license if required.
Finally, you will need your business formation documents such as Articles of incorporation, bylaws, minutes, with corporate officers or stock transfers or changes in ownership for corporations. LLCs will need the Articles of Organization, Statement of Information with current members or managers and Operating Agreement.
How to Apply
Once you have determined your eligibility and have your documents ready, you will need to do one more thing and that is to determine your United Nations Standard Product and Service Codes or UNSPSCs. If you don't already know these you can head to www.UNSPSC.org and search for your specific product or service offerings and find the corresponding codes and keywords for the application.Application
To actually apply, we are going to head to www.caleprocure.ca.gov and scroll down to the get certified box. It will take you to a page where you can review all the eligibility, documents and background on the SB and DVBE certifications. To apply, scroll down to the “Get Certified” button and click to start.You will need to choose new bidder registration if you are new to process or login if you have an account. You will need to create a supplier profile and along with certification if you have done that yet so let's do both.
Registration
On the first page will be the registration, here is where you include all the basic and contact information for the business like business name, address and phone numbers.Business Section
On the next page, under business, here is where you will input some information about the business. The first 6 questions will help classify your business as a construction, manufacturing, non manufacturing, or service business. You may need to answer more questions to classify your business and then ownership and formation information.Owners
On the Owners page, here you will enter in all the information of the owners based on the structure of your business. You must designate if the owner is a qualified DVBE person for the certification.Affiliates
Under Affiliate, You will put how much of the business each owner or member controls and their contact information. You will also put the average number of employees here as well.Taxes
Under Taxes, you will enter the number of employees. Below is where you will need to enter your Gross Annual Receipts on your taxes. You need to enter them for the last 3 years or how long the business is in existence whichever applies to you. If you don't know where to find this information on your taxes the table to the right has references to what line you need to get this number on your tax forms.Other
Under the Other Section, you will include where your service areas are by county. This helps the state reach out to you if a contract comes up that can contact you if it matches their needs. You will also need to include keywords you have for your business on the right and the UNSPSCs at the bottom.The application can accommodate if you are currently applying for a bid and need expediting for approval. You can also include North American Industry Codes or NAICs for manufacturing businesses and you can find those at www.naics.com.
Attachments
On the Last Page, Attachments, you will need to add your attachments based on your business structure, ownership and on your answers to the questions on the business page. Upload those attachments and submit your application.Click accept the terms and conditions and ‘Ok’ and your application is complete. Back on your supplier profile you can see your certification status or if you have been approved and the term of certification. In some cases, this certification will show up and be approved immediately, but you may need to wait and check back when it is approved.
Comments
Post a Comment