Certification as Minority, Women, or Disadvantage Owned Business

If you're thinking of submitting a bid on any public contract, this information may help. First, identify the agency you may contract with and locate links to their certification programs (examples follow); second, prepare the following information; and third, fill out the appropriate application as provided by that agency.

I.   AUTHORITY

In California, awarding departments are empowered to develop a standardized certification procedure for participating state or local agencies.Certifications may be made by participating state or local agencies, where the criteria of the statute are met (see below). Generally, awarding entities must accept such certification. Within 60 days of application, participating agencies must certify the business enterprises if they meet the criteria. This certification lasts for two years, and is published in a database designed for the purpose. Pub. Contr. Code §§ 2050 et seq.

II.   DEFINITIONS

For purposes of the statute, minority means: “a citizen or lawful permanent resident of the United States who is an ethnic person of color and who is [inter alia]: Black …; Hispanic …; Native American …; Pacific-Asian …; [or] Asian-Indian, and must meet these criteria:

1. The business is at least 51 percent owned by one or more minorities or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more minorities.
2. A business whose management and daily operations are controlled by one or more minorities who own the business. 
3. A business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business. Pub. Contr. Code § 2051(d) 

For purposes of the statute, a woman business enterprise is one which meets these criteria:

1. The business is at least 51 percent owned by one or more women or, in the case of any business whose stock is publicly held, at least 51 percent of the stock is owned by one or more women.
2. A business whose management and daily operations are controlled by one or more women who own the business.
3. A business concern with its home office located in the United States which is not a branch or subsidiary of a foreign corporation, firm, or other business. 

For purposes of the statute, a disadvantaged business enterprise is one which meets these criteria:

1. A “disadvantaged business” as that term is used in Section 23.62 of Title 49 of the Code of Federal Regulations.
2. An individual proprietorship, partnership, corporation, or joint venture. 
3. Organized for profit, with a place of business located in the United States and which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials, or labor. 

The application must include, and be supported by affidavit, the: business name, address, contact person, telephone, ownership type, ethnicity and citizenship of controlling interest, documentation of qualifying ownership, names of partners/owners, details of managerial control, bonding statement, statement of prior denials, type of business, and licensure information. Pub. Contr. Code § 2054 (b).

III. EXAMPLES

Actually engaging in this process will depend on what kind of contracts the bidding company may wish to participate in. Each participating agency has their own process, and may contract out to private businesses to provide the certification.

1. Cal. Department of General Services, Office of Small Business and DVBE Services.
2. CUCP: For various municipalities, counties, transit agencies, airports, and special districts.
3. BART on the CUCP.
4. AC Transit on the CUCP.
5. Cal. DOT certification.
6. Cal. Department of General Services “eProcurement” with information on bidding and certifying for qualifying businesses.
7. University of California self-certification form (disadvantaged). 
8. San Diego unified certification program (disadvantaged). 
9. Southern California Minority Business Development Council. 
10. Northern California Minority Supplier Development Council.