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As a minority-owned business, you're likely aware of the importance of certifications in opening up new opportunities and increasing your visibility. But with so many different certifications available, it can be overwhelming to navigate the process. From federal contracts, to state and local government projects, each certification has its own unique benefits and requirements. Today, I will explore the various minority business certifications available, including the 8(a) Certification, NMSDC, State MBE Certification, DBE Certification, and the ACDBE Certification. We'll break down the benefits, requirements, and application timelines for each, helping you make an informed decision about which certification or certifications are right for your business.
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8(a) Certification |
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Membership: 6,500 Average Sales: $6 Million per year Target Customers: Federal Agencies, Large Federal Prime Contractors Description: The SBA code "8a" that enacted the certification gave rise to the "8(a)" Certification. It is a socially and economically disadvantaged accreditation from the federal government (minority-owned). The federal government spends across all agencies at least 5% of the total amount of federal purchases. Of all minority-owned business certifications, the requirements for this one are widely regarded as the strictest. Contracting Opportunities: Federal - 8a firms receive Sole Source (direct award contract) and Set-aside Contracts restricted to 8(a) participation only. Approximate Certification Application Timeframe: 4-6 months |
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NMSDC (National Minority Supplier Development Council) |
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Membership: 15,000 Target Customers: Large Businesses Description: As a member of a nationwide network of minority-owned companies, this accreditation enables a minority-owned business to be linked with large business customers. The biggest publicly traded and privately held businesses in America are included in this group. This accreditation is typically viewed as a requirement if you want to pursue contracting with Fortune 1000 companies. Contracting Opportunities: There are 1,700 large corporate members and therefore great opportunity on a per NMSDC member basis. Approximate Certification Application Timeframe: 4 months |
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State MBE Certification |
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Membership: Varies by state, but usually between 300-1,000 members Target Customers: State and Local Governments Description: This is a State by State certification and, in some cases, large city governments such as Chicago and New York, have created their own certification. Contracting Opportunities: MBE Certification holders enjoy price preference when bidding for State or Local contracts via a bid evaluation adjustment of up to 25%. Approximate Certification Application Timeframe: 4-5 months |
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DBE Certification |
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Membership: Varies by state, but usually between 100-700 members Target Customers: State Construction and/or Transportation Related Projects |
Description: The DBE Certification is part of a federal program that is administered by the 50 states that deal with FHWA (Highway), FAA (Airport) and FTA (Rail/Other) contracts. The firms must register in each state in which they plan to obtain work on state contracts that are supported by federal grants. This certification gives small minority businesses a part in these large highway/airport contracts.
Contracting Opportunities: The state creates a plan for DBE contracting opportunities generally on a 1-3 year basis. The number of DBEs is weighted against the number of firms in the general marketplace that are non-DBE and then targets are set to ensure that the DBE firms are meeting some minimum goal. Generally, this weighting is beneficial to DBE firms as on average they are generally smaller than the average construction contractor in the grouping.
Approximate Certification Application Timeframe: 5-7 months
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ACDBE Certifications |
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Membership: 1,000 Target Customers: Airports Description: The least widely known minority business certification, this certification deals with airport concessions for federally funded airports. This is an excellent niche business play for firms that take advantage of this certification. Contracting Opportunities: All airports are recipients of FAA grants and larger airports generally award 20% or more of all concession contract dollars to ACDBE firms. Approximate Certification Application Timeframe: 4-6 months |
Before you start the certification process, it's crucial to identify your target client because there are various minority business certifications available. By doing this, your company can achieve its marketing objectives by obtaining the appropriate accreditation. I always recommend contacting an industry expert such as ez8a or Advance 8a with any questions you may have. They are excited to assist you in determining which certifications your company qualifies for, and whether doing business with the federal government is appropriate for your company. Neither charge for an initial consultation.
Feel free to download a copy of your <Guide on Minority Business Certifications>
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