Demystifying the Alphabet Soup of Certifications

The impetus for founding Marine Tiger 10 years ago was the absence of WBEs and DBEs to support technology consulting and systems implementation projects for transportation clients. I learned this firsthand while trying to find subconsultants for projects for both software and architectural/engineering firms. Now, a decade later, our firm is certified as a DBE in 13 states and the District of Columbia, a WBE in four states and an SBE in five states. This is in addition to WBE and SBE certifications by the Port Authority of New York and New Jersey, several cities and several transit authorities. 

I am often asked to explain the differences among these certifications, how to obtain them and where they apply. So, here’s the skinny: 

• DBE (Disadvantaged Business Enterprise) is a certification defined by the USDOT and applied to transportation projects that receive federal funding.
• WBE (Women Business Enterprise) is a certification that confirms a business is majority woman-owned and controlled. The requirement generally applies to transportation projects that are city or state funded. It also applies to non-transportation projects and is a requirement used by city and state jurisdictions for projects of all types.
• SBE (Small Business Enterprise) is a certification that can be issued by states, local jurisdictions or agencies and like the WBE, is not limited to transportation projects.

What are the criteria for eligibility for these certifications? That's where it starts to get complicated. 

While the DBE is a federal certification, it is issued at the state level. States typically have a unified certification program (UCP) which recognizes certifications provided by any participating agency. A business must be certified as a DBE in the state in which it is headquartered or incorporated before applying for certification in other states. To satisfy contracts in other states, a firm needs to go through the process stipulated by the state in which they are seeking certification. For example, California had multiple certifying agencies, but foreign or out-of-state corporations must apply through CalTrans.

DBE certifications are issued for specific NAICS codes. NAICS is a standard system for identifying different industries. As an example, Marine Tiger is certified for four NAICS codes; Computer Systems Design Services, Administrative Management and General Management Consulting Services, Process, Physical Distribution and Logistical Consulting Services, and Computer Training. 

How long does it take to get certified? The process can take six months for the initial certification and typically takes 30-90 days for out-of-state approvals. It can however take much longer if applications are backed up or agencies are understaffed. 

While a DBE certification is always issued at the state level and is guided by USDOT requirements, the WBE certification has no rules. It may be issued by a state, a city or an authority, and while some jurisdictions will accept a WBE certification by another entity in the same state, that is not always the case. As an example, Marine Tiger is separately certified as a WBE by the City of New York and the State of New York.

Requirements for WBE eligibility vary. For New York City, a business must be 51% owned, controlled and operated by one or more women, have a record of selling products or services for a period of at least one year prior to the date of application, and have a "real and substantial presence in the geographic market" of New York City as well as Nassau, Putnam, Rockland and Suffolk Counties in New York and Bergen and Hudson Counties in New Jersey.

Similarly, SBE eligibility may be issued by agencies, authorities, local jurisdictions, or states, and the requirements vary. As an example, New Jersey requires businesses to be headquartered in the state to apply for SBE status while other states such as Pennsylvania automatically grant SBE status when they approve firms as DBEs. 

This month, Marine Tiger added WBENC to its certification alphabet soup. WBENC allows entrée to state and municipal contract opportunities by serving as a third-party verifier and serves as a certifier for the United States Small Business Administration (SBA) Women-Owned Small Business (WOSB) Federal Contracting Program. 

Here’s what you need to qualify. Your company must be at least 51% owned and controlled by one or more women and you need to go through a time-intensive process that includes thorough documentation, a site visit and an interview with the owner. Once you obtain the verification, you must register with the individual government agencies to be added to the roster of WBENC firms. For example, Pennsylvania WBENC is the only certifier of women-owned businesses in PA, but to utilize your WBENC certification in Philadelphia, you must register with the city as well.

So, is all this worth it? Yes — with some caveats. Getting certified in as many states as possible is not necessarily a good plan since some states, such as California, assess expensive franchise taxes even if you don’t do any work in the state. There is also the administrative burden of keeping multiple certifications from multiple states up to date, so more is not always better.

The benefits are the ability to build your company by participating in projects you could not win on your own and the opportunity to serve as a prime on SBE or MWBE set-asides. In our case, it gave us the opportunity to participate in the design of Second Avenue Subway – Phase 2 and to win multiple call-in contracts as a prime with the Port Authority of New York and New Jersey.

Also, these certifications provide a way to build long-term teaming relationships. When we started out, we took projects where we were only offered 5% or 10% but we treated these like job interviews. By showcasing our talent and delivering value, we have found that primes were willing to offer us larger share of the work on later projects. So, my advice to firms that are eligible for these certifications, be strategic and be patient. Still have questions? Feel free to contact me at [email protected].

Marcia Shapiro is the President of Marine Tiger, a certified DBE/WBE/SBE consulting firm focused on delivering business and technology solutions for public sector transportation and environmental clients. With over 20 years of experience in asset management, she has supported the design and implementation of asset management programs at large, complex transit agencies, including NY MTA, the Port Authority of NY and NJ, Amtrak and Chicago Metra.