If you are a business owner who wants to become certified as a Disadvantaged Business Enterprise (DBE) or an Airport Concession Disadvantaged Business Enterprise (ACDBE), you need to show that you can perform work under the applicable North American Industry Classification System (NAICS) codes. NAICS codes are numerical codes that classify businesses by the type of goods or services they provide.
A DBE or ACDBE certifier will grant you certification only for specific types of work that you, as a socially and economically disadvantaged owner (SEDO), control. This means that you must have the power and expertise to make decisions about the management, operations, and finances of your firm.
To demonstrate your control, you must provide evidence of your education, experience, licenses, certifications, and other qualifications related to the type of work you seek to perform. You must also show that you have the necessary equipment, facilities, personnel, and resources to perform the work, or that you have the ability to obtain them.
The certifier will assign you one or more NAICS codes that describe, as specifically as possible, the principal goods or services that your firm would provide. Multiple NAICS codes may be assigned where appropriate, but the certifier must rely on the plain meaning of the NAICS code descriptions in determining the scope of your certification.
If there is not a NAICS code that fully, clearly, or sufficiently narrowly describes the type(s) of work for which you seek certification, the certifier must supplement or limit the assigned NAICS code(s) with a clear, specific, and concise narrative description of the type of work in which your firm is certified. A vague, general, or confusing description is insufficient. The certifier may also apply a descriptor from a classification scheme of equivalent detail and specificity, such as the Standard Industrial Classification (SIC) system or the Construction Specifications Institute (CSI) codes. However, such a descriptor does not supersede or limit the types of work for which you are eligible under an appropriate NAICS code.
To become certified in an additional type of work, you must demonstrate to the certifier only that you control your firm with respect to that type of work. You do not need to be recertified or submit a new application for certification, but the certifier must verify your control of the firm in the additional type of work. The certifier may change your certification classification or description if there is a factual basis in the record, but it must notify you 30 days before making the change. The certifier cannot apply such changes retroactively.
You must also meet the Small Business Administration’s small business size limit for the NAICS code under which you are seeking certification. This limit is based on the average annual receipts of your firm (including its affiliates) over the preceding five fiscal years. The certifier will apply the small business size limit in 13 CFR part 121 that corresponds to the applicable primary industry classifications (NAICS codes). You are ineligible if your firm's average annual receipts exceed the applicable SBA size cap(s).
If your company needs help with DBE or ACDBE certification, please contact Danielle Dietrich, Esq. at ddietrich@potomaclaw.com or 412-449-9141.
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