What is the Minority- and Woman-Owned Business Enterprise Certification Program?
What is the Small Business Enterprise Certification Program?
How can these programs benefit my business?
What are the incentive programs for certified companies?
Who qualifies for certification as a Minority- or
Woman-Owned Business Enterprise?
Who qualifies for certification as a Small Business
Enterprise?
How do I apply for certification?
What happens after I apply?
How long is the certification valid?
How will I know about upcoming business opportunities with the city?
A message from the Equal Opportunity Director
Equal Opportunity Department
Technical and financial assistance for small businesses
Submit questions or request for assistance regarding
certification programs here
What is the Minority- and Woman-Owned Business Enterprise Certification Program?
The city’s Minority- and Woman-Owned Business Enterprise (M/WBE) Certification Program is an incentive program to ensure minority and woman-owned firms have an equal opportunity to participate in city of Phoenix business opportunities. The certification process makes certain that the incentive programs are limited to businesses legitimately owned and controlled by local minorities or women. The M/WBE Certification Program was implemented in 1993 in response to a disparity study that showed minority and woman-owned firms in Maricopa County were not receiving a proportionate share of city business.
M/WBE Contract Compliance Section
The M/WBE Contract Compliance Section monitors the use of Minority- and Woman-owned Business
Enterprises (M/WBE) that serve as subcontractors for prime contractors on city construction
contracts. The program conducts onsite compliance reviews of construction projects to ensure
M/WBE utilization and participation. The program also mediates and resolves subcontractor
issues and concerns on city construction projects.
What is the Small Business Enterprise Certification Program?
The Small Business Enterprise (SBE) Certification Program certifies firms to participate in incentive prgrams available for small business owners located in Maricopa County who want to do business with the city of Phoenix. This program is the result of a 1999 Second Generation Disparity Study that identified existing barriers for all small businesses in their attempts to do business with Phoenix. The SBE program is administered in addition to the existing Minority- and Woman-Owned Business Enterprise Certification Program.
How can these programs benefit my business?
If you are the minority, woman, or small business owner
of a company that provides goods or services that the city of Phoenix
purchases, then you may benefit from these programs. The incentive programs available for certified
Small Business Enterprise
(SBE) firms include a bid preference for providers of goods and general services, and a
subcontracting goals program for construction subcontractors. The names of firms that
are granted MBE, WBE and/or SBE certification are available to all city procurement
personnel through an online directory located at phoenix.gov/CERTIFY.
If you are a certified SBE and you bid on city eligible goods or general
services contracts of between $250,000 and $500,000, a 2.5 percent bid incentive may
be applied to your bid. This means that
your bid may be up to 2.5 percent higher than the low bidder and still be considered
the low bid.
The city may reserve
specific goods and general services contracts for exclusive competition among certified Small
Business Enterprise (SBE) firms.
The city reserves the right to award to bidders other than the low bidder if
quality and qualifications are not equitable among bidders.
If you are a certified SBE construction subcontractor, prime contractors who bid on these projects will be required to make good faith efforts to
identify and subcontract with certified SBE firms to meet the goals. The goals will be
established based on the trades necessary to the project and the availability
of certified SBE firms in those trades.
Location
Group Membership
What are the incentive programs for certified companies?
Return to top of Minority- and Woman-Owned Business Enterprise and Small Business Enterprise Certification ProgramsWho qualifies for certification as a Minority- or Woman-Owned Business Enterprise?
Businesses that meet the following five criteria qualify to apply for Minority- or Woman-Owned
Business Enterprise certification:
Businesses located in Maricopa County
Business owners that are citizens or permanent legal residents and are members of the following
ethnic/gender groups:
| African-American males and females Native-American males and females Caucasian females |
Asian-American males and females Hispanic males and females |
Operational Status
A business that has been in operation for at least six months or has completed four contracts
Ownership/Control
Qualifying applicants must own at least 51 percent of the business. The owner(s) must have the
day-to-day control of the firm and have experience and expertise in the firm’s primary
area of operation. The applicant must hold a proportionate share of the business’ capital,
assets, profits and losses commensurate with their ownership interest.
Small Business Size
To be recognized as a small business for purposes of the MBE/WBE Certification Program, the
gross receipts of the firm, when averaged over a three-year period, must not exceed gross
income limitations for that type of business activity as identified by the Small Business
Administration.
Economic Disadvantage
The personal net worth of the 51 percent or greater owner must not exceed
$750,000 in order to show economic disadvantage eligibility for M/WBE
certification. The owner’s equity
interest in their personal residence and the value of the owner’s interest in
the applicant business is not included when calculating the personal net worth
for purposes of certification.
Who qualifies for certification as a Small Business Enterprise?
Businesses that meet the following five criteria qualify to apply for Small Business Enterprise Certification:
Location
Businesses located in Maricopa County.
Group Membership
SBE applicants may be representative of all ethnic and gender groups.
Economic Disadvantage
The personal net worth of each owner must not exceed
$750,000 in order to show economic disadvantage eligibility for SBE
certification. The owner’s equity
interest in their personal residence and the value of the owner’s interest in
the applicant business is not included when calculating the personal net worth
for purposes of certification.
Operational Status
A business must have been in continuous operation for at least six months or has completed four contracts.
Ownership/Control
The applicant owner(s) must be actively involved in the day-to-day control of the firm in the
critical area(s) of operation. Administrative responsibilities alone are not sufficient to
prove control. The applicant owner(s) must have
technical knowledge and expertise in the company’s major business field. The capital to start
or acquire the business must have been supplied by the owner(s).
Small Business Size
To qualify as a SBE, the gross receipts of
the firm, when averaged over a three-year period, must not exceed gross income
limitations for that type of business activity as identified by the Small
Business Administration.
How do I apply for certification?
Contact the Equal Opportunity Department at 602-262-6790/voice or 602-534-1557/TTY to request a certification packet. Please specify the type of certification you are requesting. Many minority and woman applicants qualify for both certification programs. Only one application and supporting documentation is required to apply for dual certification as a M/W or SBE. To apply for DBE certification a separate application is required. Applicants should identify their business type, i.e., corporation, partnership, sole proprietorship, etc., on the application checklist and submit the documents requested for their type of business.Certification workshops are held in the community on a monthly basis. These workshops walk applicants through the certification application and process. If you are interested in attending a workshop, call the Equal Opportunity Department at 602-262-6790/voice or 602-534-1557/TTY to ask that your name be placed on a mailing list.
What happens after I apply?
First-time applicants can expect to receive a final determination on their certification application within ten to twelve weeks. During this time, you may be contacted to supply additional information and/or documentation. The staff person assigned to review your application will contact you to schedule an on-site visit at your principal place of business. In certain technical or highly specialized trade areas, a work site visit also may be necessary to determine the applicant’s expertise in the firm’s primary field of operation.
How long is the certification valid?
Both the MBE/WBE and SBE certifications are valid for a period of 3 years, with an annual update required to maintain M/W/SBE status. If you qualify for certification, you will receive a letter and certificate showing your firm's expiration date.The annual update process is brief and requires only a one-page update of information, a notarized affidavit, a Personal Financial Statement, and a copy of your latest tax return (business and/or personal). The annual update is required to continue certification through the expiration date.
The city will send a notice approximately 45 days prior to the expiration date to notify you of the need to renew your certification. Recertification is an abbreviated process from the original application process, but does require more information than provided for the annual update. The renewal information must be received prior to the certification expiration date to ensure continuous certification. For more information, please call (602)262-6790. .
How will I know about upcoming business opportunities with the city?
As part of the certification process, all goods and general service providers are referred to the Finance Department. They are placed on the vendor list maintained by that department. Once on the vendor list, you will automatically receive notice whenever the city is seeking bid proposals or other requests in your business area.Firms interested in learning about opportunities to provide consulting or construction services on public works projects with the City of Phoenix should subscribe to the Engineering and Architectural Services (EAS) Department Newsletter. This newsletter is issued monthly as an internet e-mail at no cost to the subscriber and advertises for architectural, engineering, consulting, construction manager at risk and design-build services required by the City. Firms will find the subscription form for the EAS Newsletter by going to the EAS Department website at www.phoenix.gov/EAS then clicking on 2006 Newsletter Subscription Form link on the lower left side of the webpage.
Firms interested in learning about upcoming competitive bid construction projects should go to www.phoenix.gov/EASBIDS and click on Bid Schedule and Planholders List.
A message from the Equal Opportunity Director
Dear Business Partner:Thank you for your interest in becoming certified as a Minority, Woman, Disadvantaged and/or Small Business Enterprise (MBE/WBE/DBE/SBE) with the city of Phoenix. The downloadable applications allow you to apply for certification in multiple areas. Please read the following descriptions and indicate on your application the type(s) of certification for which you are applying. The applications contain line-by-line instructions to assist you in the process.
MBE/WBE Certification - This process is specific to the city of Phoenix. Only firms located in Maricopa County are eligible for MBE or WBE certification. It allows you to participate in the city's Construction Subcontracting Goals Program for city-funded public works projects.
MBE or WBE certification status does not qualify your firm to be considered a certified minority or woman-owned business by Maricopa County. The MBE or WBE certification does not qualify firms to bid as DBE's on federally assisted projects administered by the city.
SBE Certification - This process, implemented by the city of Phoenix does not relate to the Maricopa County program. Firms must be located in Maricopa County and must meet the small business size standards established by the Small Business Administration 8A Program. Owners must submit information to verify that their personal net worth does not exceed $750,000, excluding the equity interest in their personal residence and the value of their ownership in the business to be certified. In the near future, the city anticipates establishing incentive programs for SBE certified firms. SBE certification does not apply to federally assisted projects that require DBE participation.
DBE Certification - Qualified firms are eligible to participate in city of Phoenix business opportunities that specify DBE certification. There are no location requirements for DBE certification. However, firms located outside of Maricopa County must be certified in their home state by an agency that certifies firms under the provisions of 49 CFR Part 26, and is recognized by the U.S. Department of Transportation as a DBE certifying entity. The owners of a business seeking DBE certification must have a personal net worth of less than $750,000, excluding their equity interest in their personal residence and the value of their ownership interest in the business to be certified.
Please read the instructions carefully to ensure that your applications are complete. Verifying documentation must be submitted with all certification applications for Maricopa County firms. The review process takes approximately ten to twelve weeks and will include an on-site visit. You will receive written notification of the status of your application when the process is complete.
If you have questions or would like assistance in the certification process, contact us at 602-262-6790/voice or 602-534-1557/TTY between 8 a.m. and 5 p.m. Mountain Standard Time, Monday through Friday.
We appreciate your interest in our program.
Sincerely,
Lionel D. Lyons
Director