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The Disabled Veteran Business Enterprise (DVBE) and Small Business (SB) Certification Programs were established to increase business opportunities for the DVBE and SB communities with the State of California; thereby stimulating the state's overall economy. The programs are designed to help DVBEs and SBs participate in a more level playing field with certain advantages when competing against other non-DVBEs and non-SBs for state contracts and purchases. Certified firms can also take advantage of other DVBE and SB benefits.
Every year, each state agency must submit to the legislature an annual report that tracks contract award activity involving DVBEs and SBs. The report must demonstrate that the various participation goals have been met or exceeded. If the minimum goals are not met, the agency must provide a sound justification and the remedial action they will take to attain or exceed the goal(s) the following year.
The Department of General Services (DGS), Procurement Division (PD), Office of Small Business and DVBE Services (OSDS) is the state's certifying agency that administers the DVBE and Small Business Certification Programs. While small business and DVBE certification is the OSDS's primary role, they also assist SBs and DVBEs in a variety of ways including conducting outreach events, providing resource guidance, and supporting the businesses through advocacy.
Comparison Between the DVBE & SB Certifications
The primary difference between the DVBE and SB certifications are the eligibility requirements. An SB's eligibility is primarily based on size standards (average gross annual receipts and number of employees) and a DVBE's eligibility focuses on the firm's disabled veteran owner(s). Some of the common items between the two certifications that are considered in the certification process is the business' structure, the principal office location, the type of business, and the owners and their domicile.
Another difference is how the certification, once obtained, is applied in the state contracting arena. DVBE certification entitles the certified business to participate in the state's DVBE Participation Program, which establishes a goal of at least 3% of total overall annual state contracting dollars to be awarded to DVBEs. Comparitively, SBs participation goal is set at 25%. SB certification also entitles the certified business to a five percent (5%) bid preference on applicable state contracts. The 5% bid preference is only used for computational purposes to determine a contract award. SBs also have prompt payment benefits and DVBEs do not.
Providing all eligibility and compliance requirements are met, it is possible for a business to be certified as both small business and DVBE. Businesses that have this dual certification are able to experience the benefits of both certifications.
Microbusiness Certification
Microbusiness (MB) certification is a subset classification of small business (SB) certification. Therefore, all MBs are also SBs. There is no separate formal MB certification. It is a designation they receive based on the size of their business, which is determined by gross annual receipts averaged over a three-year period and the average number of employees over four quarters.
See Microbusiness Definition.
Depending on business fluctuations throughout the MB's certification period, it is possible that the MB's designation could be turned "on" or "off". If the MB is under both the dollar and employee count thresholds, they retain their MB designation. If they exceed either the dollar or employee count threshold, they are no longer MB but retain their small business status.
About the DVBE & SB Certification Process
To be certified, a firm must meet specific DVBE or SB eligibility requirements. They must apply for formal certification with the Office of Small Business and DVBE Services (OSDS), which consists of an application and specific required support documents. The OSDS will then review the applicant's application package to determine if the applicant meets all eligibility requirements and that all application requirements have been fulfilled. Within about 30 working days, the applicant is then notified of their certification status.
Other Certifications, Certifying Agencies, and Business Assistance
There are many certification and business assistance programs aimed at improving the advantages of smaller business enterprises, including start-up, financial, and networking assistance. Certifying agencies range from the federal government to local government and other businesses and organizations. Some of the more popular certification programs available today include the Federal Small Business Administration's (SBA) "8a Program" and the "Business Enterprise Program", which is adminstered by the California Department of Transportation (CALTRANS).
For more information regarding business assistance and opportunities, visit our Related Websites.
Small Business Certification Reciprocity
The OSDS also administers the Certification Reciprocity Program which helps further promote small business participation throughout the state by building partnerships with local government agencies in accepting the state's small business certification. Thereby, establishing the convenience of going through one certification process and experiencing the certification benefits of multiple agencies.
Need Help? Contact Us
Email osdchelp@dgs.ca.gov or call (916) 375-4940. |
