The US federal government is the world’s largest purchaser of goods and services. While it does a majority of the dollars spent with large business it does have a mandate to do a portion of business with small business- 23 percent to be exact. Within this, there are further designations that businesses can utilize to get federal business should ownership match those designations.
Small Disadvantaged Business
Five percent of government business is designated for Small Disadvantaged Business (SDB). One program that helps SDB’s is the Small Business Administration 8(a) certification- a minority program. The 8(a) program gives minority businesses some advantages for getting contracts. It also includes designating 8(a) businesses as a SDB.
Women-owned Business
Five percent of federal civil purchases and contracts are to be done with women-owned businesses. There is no federal certification for women-owned business and a business may designate as woman-owned when registering in the federal government’s contractor database- Central Contractor Registration (CCR).
HUBZone Business
Three percent of government contracts go to businesses that reside in designated geographic areas. These areas are called a Historically Underutilized Business Zone or HUBZone. HUBZones are based upon an area’s unemployment rate and/or poverty rate as determined by the most recent census. Should any area’s rates be high, it could be designated as a HUBZone. Businesses which have its primary office and a percentage of employees residing in a HUBZone will be designated a HUBZone business by the SBA.
Service-disabled, Veteran-owned Business
Three percent of the civil government procurement is to go to service-disabled, veteran-owned small business concerns (SDVOBC). Like a women-owned business, there is no formal certification for a SDVOBC. They can self designate when registering as a federal vendor.
A business is not limited to one small business designation. As a matter of fact, a business should be encouraged to enroll in as many programs as they can. Federal purchasing can count a single purchase in multiple areas toward goals mentioned. Meaning if a business receiving a contract is 8(a), women-owned, and HUBZone, that a purchasing agent can count that one contract in all three areas to reach quota. Such small business designations are a huge boost to help get business with the federal government.
