Federal small business certifications and state MBE/WBE programs have key differences in governing regulations, NAICS code application, ownership requirements, and the benefits they offer. Federal contracting is governed by the Federal Acquisition Regulation (FAR), specifically FAR Part 19 for small business programs, while state and local procurements follow state procurement codes and their respective portal's vendor guides. For example, my firm uses the same NAICS codes for federal and state work, but some state programs use their own coding systems or may have additional classification requirements.
Federal small business certifications like the WOSB program have specific ownership and control criteria defined by the SBA, such as the woman owner having a personal net worth less than $850,000, adjusted gross income of $400,000 or less averaged over the previous three years, and $6.5 million or less in personal assets. State MBE/WBE programs also have ownership and control requirements, but these can vary significantly by state or even by local municipality.
For benefits, federal small business certifications enable set-aside contracts and sole source awards under specific thresholds, such as a WOSB sole-source award having an anticipated price including options not exceeding $8.5 million for manufacturing NAICS codes or $5.5 million for any other NAICS code. State MBE/WBE programs may offer similar benefits, but the specific thresholds, set-aside percentages, or other preferences will differ based on state law and agency policy. Always check the specific state's procurement portal for details.