Minority woman owned firm: which certification should I get first, 8(a), WOSB, MBE or WBE?

You should prioritize the 8(a) Business Development Program if your firm meets the eligibility requirements, as it offers significant advantages for federal groundskeeping and landscaping contracts, and then pursue WOSB certification. The 8(a) program allows for sole source awards up to $5.5 million for non-manufacturing NAICS codes, which can be a strong path for new firms. An 8(a) participant receives a program term of nine years, with the first four years being the developmental stage. To be economically disadvantaged for 8(a), your individual net worth must be less than $850,000, excluding your ownership interest in the firm and the equity in your primary personal residence.

After 8(a), securing the Woman-Owned Small Business (WOSB) certification from the SBA is a good next step for federal work. A WOSB sole-source award also has a threshold of $5.5 million for non-manufacturing NAICS codes. For state and local opportunities, the MBE and WBE certifications are relevant, as these programs follow state and local procurement codes and their specific vendor guides. Your local APEX Accelerator can provide specific guidance on state and local certifications in Florida.

Jordan, for federal contracting, you should prioritize SBA certifications like the 8(a) Business Development Program and WOSB because the contracting officer must verify your certification status directly through the SBA's systems for set-aside awards. While Grace correctly points out the sole-source thresholds, it is important to remember that these set-aside programs also have competitive thresholds. An 8(a) requirement, for instance, must be competed among eligible 8(a) participants when its anticipated total value exceeds $5.5 million for non-manufacturing NAICS codes. For state and local opportunities, the process for MBE and WBE certifications is entirely separate and typically involves registering with the relevant state procurement portal or county purchasing department, as these entities have their own distinct certification and verification processes.

Jordan, the SBA certifications are the only ones that apply to federal contracts. The governmentwide goal for small business participation is not less than 23 percent of the total value of all prime contract awards each fiscal year, with specific goals for various socioeconomic programs. Agencies shall set aside acquisitions above the simplified acquisition threshold for small business when there is a reasonable expectation of offers from at least two responsible small business concerns and award at fair market prices, known as the Rule of Two (FAR 19.502-2(b)). MBE and WBE certifications are for state and local government contracts, which follow different regulations than federal acquisitions.