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The Small Diverse Business (SDB) Program encourages and ensures open and equitable contracting practices are used by prime contractors in soliciting and contracting with small diverse businesses during the Request for Proposal (RFP) procurement process, which requires all offerors to submit a Small Diverse Business proposal indicating the extent to which they will contract with small diverse business partners.

A Small Diverse Business is a DGS-verified minority-owned business, woman-owned business, veteran-owned business, service-disabled veteran-owned, disability-owned, and LGBT-owned business.

A small business is a business in the United States which is independently owned, not dominant in its field of operation, employs no more than 100 full-time or full-time equivalent employees, and earns less than $38.5 million in gross annual revenues.


During the RFP process, offerors are responsible for verifying the SDB eligibility for each business partner within their SDB submittal. Below are a few requirements:

  1. An SDB verified by the Bureau of Diversity, Inclusion & Small Business Opportunities (BDISBO) as an MBE/WBE/VBE/SDVBE Minority, Woman, Veteran, Service Disabled Veteran, Disability-Owned, or LGBT Business Enterprise must provide a copy of their active BDISBO verification letter.
  2. All offerors must include a numerical percentage which represents the total percentage of the work (as a percentage of the total cost in the Cost Submittal) to be performed by the Offeror and not by subcontractors and suppliers.
  3. All offerors must include a numerical percentage which represents the total percentage of the total cost in the Cost Submittal that the Offeror commits to paying to SDBs as subcontractors.
  4. All offerors must name the specific SDB(s) to which they are making subcontracting commitments. List the company name, address, and telephone number for each specific SDB included in the proposal. You will not receive credit by stating that you will find an SDB after the contract is awarded or by listing several companies and stating one will be selected later.
  5. All offerors must specify the type of goods or services the SDB(s) will provide. Specify the timeframe for each small diverse business to provide the goods or services and the location where the SDB(s) will perform these services.


Please see RFP Scoring Formulas to view the scoring methodology for the procurement of goods or services through competitive sealed proposals.

Contract Requirements

The selected contractor's commitments to SDBs must include a provision requiring the selected contactor to meet and maintain those commitments made to SDBs at the time of proposal submitted or contract negotiation unless a change in the commitment is approved by the BDISBO.

The selected contractor shall complete the Prime Contractor's Quarterly Utilization Report and submit it to the contracting officer of the Issuing Office and BDISBO within 10 workdays at the end of each quarter the contract is in force.