Certifications

Supplier Diversity

Federal, state and local governments purchase billions of dollars worth of products and services each year. Recent federal mandates require that a certain minimal percentage of government and corporate procurement opportunities be set aside for small businesses and, more particularly, small minority-owned businesses.

Supplier Diversity is the proactive business process of sourcing products and services from previously under-utilized suppliers such as diverse-owned, women-owned, veteran-owned, LGBT-owned, service disabled veteran-owned, historically underutilized business and SBA defined small businesses. Supplier Diversity is defined by the creating of partnerships which contribute to the growth and prosperity of minority-, women- and disadvantaged-owned businesses. It has become an integral part of modern corporate culture and a vital element to success.

Diverse and women-owned business enterprises are among the fastest-growing segments in the U.S. economy, the former generating over $495 billion in annual revenue and employing nearly 4 million workers since 1997, and the latter accounting for some $2.5 trillion in annual sales and employing over 19 million people. Veteran-owned (VOB) and Service Disabled Veteran-owned businesses (SDVOB) are among the most prominent groups of entrepreneurs currently being sought after by corporate supplier diversity directors.

Before your business can begin to do business with the government or large corporations, however, it is first necessary to obtain the proper certifications. Small business certifications are similar to professional certifications in that they document a special qualification, capability or status of that business. While certifications are not required in order to operate a business legally, whereas permits and licenses are, it may be necessary to obtain certain certifications in order to take advantage of business opportunities, such as government contracts. Certifying your business can definitely help you successfully compete for contracts bidded out by large corporations and government entities.

Business Certification Benefits vary, depending upon the type of certification. Some general benefits might include access to:

• Private and public contract opportunities
• Supplier/Supplier Diversity Contacts
• Prime / Subcontractors / Tier 1 / Tier 2/ Tier 3 Contacts/Contracts
• Databases of other businesses
• Exclusive vendor events
• Educational/Training programs
• Percentage Bid preference
• Advantages on payments
• Preferred vendor opportunities
• Restricted Contracting opportunities

And more…

Keep in mind that, in addition to certification, the following criteria are what Procurement Representatives look for in a company they are considering awarding supplier diversity contracts to:

• EDI- Electronic Data Interchange
• Financial Stability
• Ability to Serve Multiple-locations, if necessary
• History of Successful Projects
• Good Business & Practices
• High Quality, Cost-Competitive Goods
• OSHA Compliant
• Ethical Business Conduct
• Federal ID#
• D&B- Dun & Bradstreet-#
• Basic Contact Information
• Insurance Documentation
• Annual Sales Records for previous three years
• Minimum of Three References
• “Greening”- Sustainable and Green Business Capability/Compliance

  Certifications Types include:

  • California Department of General Services (DGS)
  • National Minority Supplier Development Council (NMSDC)
  • Los Angeles County Metropolitan Transportation Authority (Metro)
  • California Public Utilities Commission (CPUC)
  • Women’s Business Enterprise National Council (WBENC)
  • U.S. Small Business Administration- Business Development Program SBA 8(a)
  • California Department of Transportation (CalTrans)