Return to NASE.org

 Print Friendly         Email to Friend   


Minority Owned Business
Article 4: The Small Disadvantaged Business Certification Program

The Small Disadvantaged Business (SDB) Certification Program is a federal procurement program whereby certified SDBs are eligible for special considerations when bidding on federal contracts.

The goal of the SDB program is to overcome the effects of discrimination against small disadvantaged businesses by ensuring that benefits used in the federal procurement program are fair and effective for all businesses.

SBDs may be eligible for price evaluation adjustments of up to 10 percent when bidding on federal contracts in certain industries where the U.S. Department of Commerce has determined that SDBs are underrepresented. What this means, in effect, is that other bidders’ prices are raised by this amount. The federal government has set a goal of 5 percent SDB participation in prime contracting.

“Not only do SDBs benefit from this price evaluation adjustment, but there is a strong incentive for large prime government contractors to use SDBs as subcontractors,” says David King, assistant administrator for the SBA’s office of certification and eligibility. “These large contractors receive evaluation credits when they achieve SDB subcontracting targets. I have seen huge benefits to SDB firms as a result of this.”

Once certified, SDBs are added to an online registry of SDB-certified business that’s maintained in PRO-Net — the online service used by large prime contractors and government procurement officials to identify potential small business vendors and suppliers. They remain on this list for three years, after which time they can be recertified for another three-year term.

The qualification criteria for SDB certification is similar to the criteria for the SBA’s 8(a) Business Development Program. All companies that qualify for the 8(a) Program automatically qualify for the SDB program, but SDBs are not automatically qualified as 8(a) businesses.
 

 Print Friendly         Email to Friend   

 
Employee Perks
Select an online seminar from the Success Skills Archives:


Complete List of Seminars


 Current Seminar

If you liked this seminar, check out these related topics:

 

© 2007 NASE All Rights Reserved.