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Small Diverse Business Procurement FAQs


What criteria define an entity as a small diverse business (SDB)?

An SDB is a DGS-verified minority-owned business, woman-owned business, veteran-owned business, service-disabled veteran-owned, disability-owned, or LGBT-owned business.

To be considered a DGS-verified SDB an entity must have completed a Small Business self-certification and hold a current certification from an approved third party entity. See Small Diverse Business Verification for more information.

What happens if during a contract a SDB utilizing one of the above-listed certifications for eligibility expires or a company graduates from the SB or SDB program?

As long as the SB or SDB holds a valid DGS certification or verification at the time of bid or proposal submission, they are a valid SB or SDB in good standing for the term of the contract.

Will the minimum participation SDB percentages be disclosed in each RFP?

Yes. A significant commitment is a minimum of five percent (5%) of the total contract value. The five percent (5%) may be adjusted with DGS approval for particular procurements based on the type of project and available SDBs; “total contract value” may be changed with DGS approval to another pre-defined contract cost component as appropriate to better reflect the amount of contractor compensation realized in particular contract payment structures.

Is it true that both SDB primes and non-SDB primes cannot subcontract more than 40 percent of the work? If so, why is the restriction placed on non-SDB primes who cannot earn SDB prime points?

Yes, any business submitting a proposal as a prime contractor must self-perform 60 percent of the total contract value under any priority ranking. The restriction is related to SDB points in general; there is no differentiation between SDB primes and non-SDB primes.

How do DGS and the Office of Administration-IT (OA-IT) procurement intend to monitor situations where an SB or SDB is denied participation in or dropped from a contract by a prime?

The verification process within DGS is designed to free resources to focus on enforcement and diligence in reporting verification. If a SDB company believes it has been treated unfairly, they are encouraged to contact the Bureau of Diversity, Inclusion & Small Business Opportunities (BDISBO) immediately at (717) 783-3119 or