UNIVERSITY OF MINNESOTA EXTENSION University of Minnesota Extension delivers educational programs and information to Minnesota citizens and communities. Extension’s statewide network of researchers, educators, and volunteers focuses on community development and vitality; land, food, and environment; and youth development and family living.
GOVERNMENT PROCUREMENT ASSISTANCE
Governmental agencies at the federal, state and local level are major consumers of a variety of goods and services. Many such agencies have special set-aside or preference programs for small businesses in general and/or businesses which are owned, controlled and operated by minorities, women, service-disabled veterans or businesses located in distressed areas. To qualify for many of these programs, businesses must complete an application and be certified by the third party that the business meets the program qualifications. Information on the various federal, state, local and private certification programs can be found at the Federal Executive Board of Minnesota, Small and Disadvantaged Business Opportunities Council (SADBOC). In addition, many units of government are increasingly using the Internet in their procurement processes. Businesses will need to prepare to participate in Internet procurement and electronic payment systems if they intend to be able to compete for government business. FEDERAL PROCUREMENT The Small Business Act authorizes federal agencies to conduct procurements that are exclusively reserved for small businesses called “small business set asides.” There are different programs under which these set-asides are authorized. The Small Business Reserve is a statutory provision that requires all agency purchases valued between $3,500 and $150,000 to be reserved for small businesses. It applies when there are two or more responsible businesses that can satisfy the agency’s requirement at a fair market price. Contracts in this dollar range are made using simple procedures that make it easier for businesses to participate. Procurement opportunities valued above $150,000 are subject to more complicated procedures, and may be set aside for small businesses if there is an expectation that offers will be obtained from two or more small business concerns. Federal agencies have goals for spending certain percentages of their contracting dollars for various subcategories of small businesses. For some of these categories, a small business may self-certify its status in the System for Award Management (SAM). Small businesses, small disadvantaged small business, small women owned businesses, veteran owned small businesses, and service-disabled veteran owned small businesses may self-certify their status. However, veteran owned small businesses and service disabled veteran owned small businesses wishing to do business with the U.S. Dept. of Veterans Affairs (VA) must have their eligibility verified. Visit VA Office of Small and Disadvantaged Business Utilization (OSDBU).
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