Your Competitive Edge: Understanding Small Business Certifications
The federal government has a goal to award at least 23% of all contracting dollars to small businesses. To help meet this goal, certain government contracts are "set aside" exclusively for small businesses. In some cases, they are set aside for specific types of small businesses.
This is where small business certifications come in.
Obtaining a certification is a powerful way to gain a competitive advantage in the government marketplace. It allows you to compete for contracts that larger companies can't touch, significantly reducing your competition. Understanding which certifications your business qualifies for is a critical step in developing your government contracting strategy. Here is a breakdown of some of the most common federal certifications.
1. Woman-Owned Small Business (WOSB) This program is designed to help more women-owned businesses win federal contracts. To qualify, your business must be at least 51% owned and controlled by one or more women who are U.S. citizens. The WOSB program authorizes contracting officers to set aside specific contracts for certified WOSB and Economically Disadvantaged WOSB (EDWOSB) companies.
2. Veteran-Owned Small Business (VOSB) & Service-Disabled Veteran-Owned Small Business (SDVOSB) The government is committed to supporting veterans in business. The SDVOSB program, in particular, is a key priority. To qualify as a VOSB, your business must be at least 51% owned and controlled by one or more veterans. For the SDVOSB certification, the veteran owner(s) must have a service-connected disability. The federal government has a goal to award at least 3% of all contracting dollars to SDVOSB-certified firms each year.
3. HUBZone Program The Historically Underutilized Business Zones (HUBZone) program helps small businesses in urban and rural communities gain preferential access to federal procurement opportunities. To qualify, your business's principal office must be located in a designated HUBZone, and at least 35% of your employees must also reside in a HUBZone. This certification provides a significant advantage, as the government has a goal to award 3% of prime contract dollars to HUBZone-certified companies.
4. 8(a) Business Development Program This is one of the most powerful certifications available. The 8(a) program is designed to help small, disadvantaged businesses compete in the marketplace. To qualify, the business must be at least 51% owned and controlled by socially and economically disadvantaged individuals.
Businesses that are 8(a) certified are eligible for sole-source contracts (contracts awarded without a competitive bidding process) and can form joint ventures and teams to bid on contracts. This nine-year program provides extensive training and technical assistance to help businesses grow.
State and Local Certifications In addition to federal programs, many state and local governments have their own certification programs, often referred to as Disadvantaged Business Enterprise (DBE) or Minority/Women-owned Business Enterprise (M/WBE) programs. If you are targeting the SLED market, researching and obtaining these local certifications is essential.
The Takeaway Small business certifications are not just paperwork; they are strategic tools that can unlock exclusive opportunities and level the playing field. By identifying which certifications you qualify for and completing the application process, you can significantly increase your visibility and your chances of winning government contracts.
The certification process can be complex and time-consuming. Holt's GovCon Launchpad service includes expert guidance to help you navigate the application process for the certifications that will provide the greatest benefit to your business. to get started.