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Minority Owned Business
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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.
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