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MBE Certification:
NOTA IMPORTANTE: EL CONTENIDO PRESENTADO ESTA PAGINA SE ENCUENTRA DISPONIBLE POR LOS MOMENTOS SOLO EN EL IDIOMA INGLES. EL PERSONAL DE LA CAMARA DE COMERCIO ESTA TRABAJANDO ACTIVAMENTE PARA TRADUCIR ESTA PAGINA AL ESPAŅOL CUANTO ANTES. POR FAVOR REVISE EL CONTENIDO DE ESTA PAGINA EN ESPAŅOL PROXIMAMENTE.
MBE CERTIFICATION AWARENESS GUIDELINES
The Certification process is in many cases unknown to many Hispanic entrepreneurs and there is a need in the Hispanic communities across the nation to find useful and practical information related to the process and the steps to become a certified organization. To this end, the Hispanic Chamber of Commerce has developed a section on its web site to deal exclusively with "Certification" issues and opportunities. This web page would is made possible thanks to the support of Wyndham Worldwide Corporation, which is an important partner of the chamber in support of the "MBE Certification Awareness program" guidelines initiative.
To find out more about Wyndham Worldwide Supplier Diversity programs, please visit:
What is the Value of Minority Business Enterprise (MBE) Certification?
Thousands of progressive corporations as well as government agencies have positioned minority supplier development as an strategy to create jobs and wealth in the minority community. Good suppliers make good customers.
The public and private sector realize the need to diversify their supplier base. They are becoming closer to their supplier base, and have set goals to increase the percentage of purchasing dollars spent with minority and women owned businesses each year. However, buyers from major corporations say that their biggest problem in meeting those goals is the identification of MBEs and having sufficient information to make a buying decision.
Certification insures that a company meets criteria that determines minority business status. It also gets them into minority business directories and databases used by corporations for referrals.
What is Certification?
Certification is the process of verifying that a business is owned and managed by minority individuals or women. The documentation required will depend on the structure of the company. For example: The documentation required from a company that has incorporated will differ from the documentation required by a partnership or sole proprietorship; and also, the information required from a distributor will differ from that required by a manufacturer. In general, an agency will request proof of ethnicity, all professional and business licenses, resumes, financial statements, tax documents, stock certificates/proof of capital investment. An on site visit to the company may also be required.
Most agencies recognize "minority group members" as US citizens who are African-American, Hispanic American, Native American, Asian-Pacific American and Asian-Indian American. Government agencies certify woman owned businesses as well.
There are numerous agencies to register with, including FMSDC, Orange County, Hillsborough County, the City of Jacksonville, the city of Tampa, the City of Orlando, the State of Florida just to name a few. For private sector corporations, only FMSDC or WBENC certification is required. FMSDC and WBENC are the only agencies that can certify on a national level; however, they only certify ethnic minority owned, operated and controlled businesses. You should certify only with those certifying bodies that you want to do business with.
What is the value of being certified?
A common misconception is that being certified provides a competitive advantage, particularly as it relates to price. This is usually not the case in the public sector. You should ask a certifying agency before you spend the time to complete their paperwork what, if any advantages your firm will receive if certified. If low bid wins, or if all interested firms have to receive bids, then the certification has little value.
The private sector almost always has more flexibility in the procurement process than the public sector. They have the ability to restrict bids to certified MBE's and have the ability to base awards on factors other than price. They can award purchase orders or contracts based upon past performance or any other factor, without going through the competitive bid process. Not all private companies use this flexibility all the time, but they can, if they choose to do so. You should ask the President of the NMSDC Council in your area to identify companies that are more flexible.
Finally, the real value of NMSDC certification is that NMSDC Councils provide regular networking opportunities with buyers from major corporations. Business is still based on relationships, these networking events help start and develop relationships. NMSDC is also a network of councils and major corporations.
Categories of certifying entities
NMSDC
There are 39 regional Councils. In Central and North Florida, there is the Florida Minority Supplier Development Council (FMSDC) and in South Florida, there is the Florida Regional Minority Business Council (FRMBC).
3,500 Private sector companies and some government agencies such as Orlando Utility Company, Orange County, and Orange County Public Schools use NMSDC certification. There is a small charge ($100) to certify, however, incomplete applications are not rejected.
Local and State Government
Those government agencies with M/WBE programs usually have a certification program. In Florida, some agencies accept other government agency certifications and NMSDC certification. Most accept only their own. For instance, the City of Orlando will accept no other certification. You must call the government agency to find out those certifications they will accept. There is usually no charge, however incomplete applications may be rejected. There are usually goals for M/WBE participation on construction contracts, but goals are not usually applicable to professional services, IT or procurement.
DOT
The US Department of Transportation has their own certification process. It is necessary to include a personal financial statement as part of the certification process, as there is a net worth limitation. DOT certifies traditional minority owned businesses and other business that can demonstrate that they have been disadvantaged. There is usually no charge, however preparation time is much longer and incomplete applications are usually rejected. Again there are usually goals for construction or major contracts, but goals are not applicable to purchasing supplies.
Federal Government and Government Prime Contractors
Federal agencies, such as the department of Defense, Department of the Treasury, etc. and Federal Prime contractors such as Lockheed Martin and Raytheon only accept SDB (Small Disadvantaged Business) certification, issued by the Small Business Administration (SBA). It is necessary to include a person financial statement as part of the certification process, as there is a net worth limitation. Also the business must be a small business, as defined by the SBA. SBA certifies traditional minority owned businesses and other business that can demonstrate that they have been disadvantaged. SDB certified firms must be United States citizens. There is no charge, however, preparation time is much longer and incomplete or improperly prepared applications are rejected with a one year wait time for rejected applications. Standard goals vary, but are usually 5% SDB and 8(a), 1% SDV, 1% Hub Zone, 2% women owned business.
8(a) Certification
This is a special category of firms, eligible for federal set-sides. 8(a) firms can include traditional minority owned businesses and other business that can demonstrate that they have been disadvantaged. 8(a) certified firms must be United States citizens. While there can be tremendous advantages to having 8(a) certification, those advantages require a lot of investigation and follow-up. There is no charge, however, preparation time is much longer and incomplete or improperly prepared applications are rejected with a one year wait time for rejected applications.
HubZone
This is a special category of firms, eligible for federal set-sides. Hubzone firms have to have their headquarters located in Census Tracts with residents earning below the national average. HubZone firms can include traditional minority owned businesses and other business that can demonstrate that they have been disadvantaged. There is no charge, however, preparation time is much longer and incomplete or improperly prepared applications are rejected with a one year wait time for rejected applications.
Small Business, Woman Owned Business and Small Disabled Veteran Registration
This is not certification, however the Central Contractor Registration (CCR) is the primary vendor database for the U.S. Federal Government. The CCR collects, validates, stores and disseminates data in support of agency acquisition missions.
Registration is relatively easy and is required to be counted as a small business, woman owned business or a small disabled veteran owned business by companies doing business with the federal government.
Both current and potential government vendors are required to register in CCR in order to do be awarded contracts by the government. Vendors are required to complete a one-time registration to provide basic information relevant to procurement and financial transactions. Vendors must update or renew their registration annually to maintain an active status.
CCR validates the vendor's information and electronically shares the secure and encrypted data with the federal agencies' finance offices to facilitate paperless payments through electronic funds transfer (EFT). Additionally, CCR shares the data with government procurement and electronic business systems.
Please note that any information provided in your registration may be shared with authorized government offices. Registration does not, however, guarantee business with the government.
Source: FMSDC (Florida Minority Supplier Development Council)
6880 Lake Ellenor Dr
Suite 104A
Orlando, FL 32809
(407) 245-6062
(407) 857-8647 - Fax
Email: info@fmsdc.orgThis e-mail address is being protected from spam bots, you need JavaScript enabled to view it
Web site: www.fmsdc.org
Certifies ethnic U.S. Citizen minority owned companies for networking opportunities with Corporate America.
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