As a firm looking to get into the government marketplace in order to increase your future business development potential, it is tough to know what direction to head. While sometimes it’s more obvious than other times, you can never have enough information when it comes to getting your business on the correct trajectory. Here’s some of that information that hopefully will put you on the right course:

8(a) Certification

Membership:  5,800

Average Sales:  $6-8MM per year

Target Customers:  Federal Agencies, Large Federal Prime Contractors

Description:  The “8(a)” Certification gets its name from the SBA code “8(a)” that enacted the certification. It is the federal government’s socially and economically disadvantaged business certification (minority owned). The federal government spends across all agencies at least 5% of all federal procurement, which for the last 3 years, was in excess of 40 billion dollars. The qualifications for this certification are generally regarded as the most stringent of all minority owned business certifications.

Contracting Opportunities:  Federal - 8(a) firms receive Sole Source (direct award contract) and Set-aside Contacts restricted to 8(a) participation only.

Approximate Certification Application Timeframe:  4-6 months

NMSDC (National Minority Supplier Development Council)

Membership:  12,000

Target Customers:  Large Businesses

Description:  This certification allows a minority owned business to be matched with large business buyers as part of a national network of minority owned businesses. These businesses range from America’s largest publicly–owned to privately-owned companies. This certification is generally regarded as the must-have if you are pursuing contracting with Fortune 1,000 businesses.

Contracting Opportunities:  There are 1,700 large corporate members, therefore, great opportunity on a per NMSDC member basis.

Approximate Timeframe:  4 months

State MBE Certification

Membership:  Varies by state, usually between 100-1,000 members.

Target Customers:  State and Local Governments

Description:  This is a State by State certification and, in some cases, large local governments such as Chicago and New York City, have created their own MBE certifications.

Contracting Opportunities:  MBE Certification holders enjoy price preference when bidding for State or Local contracts via bid evaluation adjustment of up to 25%.

Approximate Timeframe:  4-5 months

DBE Certification

Membership:  Varies by State, usually between 100-700 members.

Target Customers:  State Construction & Transportation 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 their home state first, then in each state in which they wish 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/rail contracts.

Contracting Opportunities:  The State creates a plan for DBE contracting opportunities, generally on a 1-3 year basis. The number of DBEs are 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 the 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 Timeframe:  5-7 months

ACDBE Certification

Membership:  1,000

Target Customer:  Airports

Description:  The least widely known minority business certification, this certification deals with the 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 Timeframe:  4-6 months

Because of the different types of minority business certifications, it is important to determine who your target customer is before you begin the certification process. This way your firm obtains the correct certification for your given firm’s marketing needs.

If you are wondering which of these business certifications could be an advantage to help expand your business through federal and/or state contracting, I always recommend contacting an industry expert such as ez8a or Advance 8a. They both have the expertise in evaluating your firm's potential, and neither charge for an initial consultation.