Frequently Asked Questions

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Certification

Getting Certified

  1. What types of certification do you offer?
    We are the State’s central resource for certification of eligible small businesses for the following programs:
  2. What is the process to apply for certification?
    • Determine which certification program(s) will most benefit your business.
    • Download the application.
    • Complete all the questions on the application. Write “not applicable” or “n/a” if a question does not apply to you or the business. Do not leave the answer space blank.
    • Attach all of the documents requested in the application’s Document Checklist.
      Important note: OMWBE does not accept incomplete application packets. If you do not answer all the application questions and attach all the required documentation, your entire application packet, including the processing fee, will not be processed and will be returned to you.
    • Include the processing fee in the application packet. We accept checks or money orders made out to OMWBE. Processing fee amounts depend on the legal structure of your business, as follows:
      • Sole Proprietorships - $50.00
      • Partnerships, Limited Partnerships - $75.00
      • Corporations, Limited Liability Companies, Others - $100.00
    • Bring your complete application packet in to OMWBE’s Olympia office at:
      406 South Water St., Olympia, WA 98501
      or mail it to OMWBE at:
      PO Box 41160, Olympia, WA 98504-1160
    • Keep a copy of the completed application and all documentation submitted to OMWBE for your records.

  3. My business is owned equally (50/50) by me and my spouse. I am an eligible minority or woman, but my spouse is not. Is our business eligible for certification?
    Because Washington is a community property state, a business owned by a husband and wife is automatically deemed to be owned 50% by the husband and 50% by the wife.

    • Income in Community Property States is considered to belong half to the husband and half to the wife regardless of who actually earned the income. Similarly, anything purchased during the marriage is owned half by the husband and half by the wife, regardless of who actually purchased the item. This goes for purchasing businesses as well.
    • A firm owned by an eligible person (minority or woman), but whose ownership is based on Community Property with an ineligible spouse, may still be certified in the state program, with a valid, signed and notarized Non-Participation Statement (included in the State Certification Application), and provided the eligible owner  also meets all other control requirements. When the ineligible spouse signs the Non-Participation Statement, he is affirming that he is not a director, officer, manager, supervisor, and does not participate in the management/operations of the firm. The Non-Participation Statement does not exist in the federal program.
    • Ways of establishing Separate Property:
      • Legal transfer and renouncement of ineligible spouse’s ownership/control of the firm prior to marriage in the form of a Separate Property Agreement or Pre-Nuptial Agreement.
      • Gift from a presumptively eligible person to the eligible owner only is considered the eligible owner’s separate property and is allowed.
      • Inheritance given to the eligible owner only is considered the eligible owner’s separate property and is allowed.
      • Once any separate property income is deposited into a joint account, it becomes community property.
  4. Am I required to have a professional license to be certified?

    If Washington State requires a professional license to do the type of work your firm wants to be certified to do, the eligible owner must possess the applicable professional license.

    For example, in order for a firm to be certified to do electrical work, the eligible owner must be a licensed electrician. However, if a firm wants to be certified to provide IT Consulting services, the eligible owner does not need to possess any professional licenses because Washington State does not require an IT Consultant to be professionally licensed.
    This rule also applies if a professional license is required to operate any equipment necessary for the firm’s activities.  For example, the eligible owner of a dump trucking firm must possess a Commercial Driver’s License.

  5. How do I determine if my business qualifies as small?
    Size standards are set by the U.S. Small Business Administration (SBA) and can be found at www.sba.gov/size. Using the North American Industry Classification System (NAICS) codes, the SBA has determined the gross receipts or number of employees a business can have and still be considered small. To determine your firm’s size standard, you must first determine which NAICS code applies to your firm. As part of the certification review, OMWBE will assign your firm one or more NAICS codes and then determine if your firm is considered small based on the size standards the SBA has set for each assigned code.
  6. How are NAICS codes assigned?
    North American Industry Classification System (NAICS) codes can be found on the U.S. Census Bureau website at http://www.census.gov/epcd/www/naics.html. In order to assign one or more NAICS codes to your firm, OMWBE will need to know exactly what your firm does and will verify that the eligible owner(s) has the experience, technical expertise, and any required professional licenses.  We will also verify that the firm has the capacity to perform the work.  A firm can be certified in up to 8 different NAICS codes. OMWBE is currently using the 2002 NAICS coding system.
  7. I was certified at one time, but am reapplying. Can OMWBE make copies of supporting documents from my old file?
    No. Any time you submit a new application to OMWBE, you must provide all of the required documentation requested in the application.

    Important note:     OMWBE does not accept incomplete application packets. If you do not answer all the application questions and attach all the required documentation, your entire application packet, including the processing fee, will not be processed and will be returned to you.
  8. How often will I have to renew and what does it cost?

    All of our certification programs require that you complete a recertification every three years. OMWBE will send you a recertification application prior to your renewal date and you will have 30 days to respond. The processing fee for recertification depends on your legal business structure, as follows:

        • Sole Proprietorships - $50.00
        • Partnerships, Limited Partnerships - $75.00
        • Corporations, Limited Liability Companies, Others - $100.00

    The DBE program also requires us to perform an Annual Update of your certification. As with the recertification, OMWBE will send you an Annual Update form each year prior to your anniversary date. The processing fee for annual updates is $20.00.

  9. Do I have to be in business for a certain length of time before I apply for certification? What must I do before I can apply for certification?
    In order to apply for certification, your business must be ready to operate. What this means is that your business must be fully and properly licensed to conduct business in Washington State, and you must have any equipment, insurance, and any other resources that your business would need were it to be awarded a contract today. Start-up businesses are welcome to apply, as well as businesses that have been in operation for many years.
  10. I am from out of state. Must I be certified in my home state before applying to OMWBE?
    Yes, if you are applying for the Federal DBE certification.
    No, if you are applying for Washington State M/WBE certification only.

    11. Certification Application

  11. Who has access to the information I provide with my application?

    Applications and supporting documentation submitted to OMWBE for the state program are considered public records and subject to public disclosure (WAC 326-07). Any exemptions from public disclosure are found in chapter 42.56 RCW, the state’s Public Record Act. 

    Applications and supporting documentation submitted to OMWBE for the DBE or ACDBE programs are non-disclosable without written consent from the firm (49 CFR Part 26.109(a) of Subpart F).

  12. How long will it take for my application to be processed?
    OMWBE processes application on a first come, first served basis. Our goal is to process an application within 45 days. The Federal DBE program requires us to process DBE applications within 90 days. Because of the complexity of certification applications, it is impossible to provide for an exact timeframe in which an application will be processed.
  13. Can I expedite my application?

    Applications are only expedited when it is deemed necessary by OMWBE to further the intent of the certification program. It is considered in the following circumstances:

      • A state agency or school submits a written request for expediting
      • The office determines that expediting is the only way to ensure opportunities for certified firms to offer a particular product/service, or to meet other priority interests of the state.
  14. Can applications be submitted electronically?

    No. Certification applications require supporting documentation to be submitted along with the application. For this reason, all applications must be submitted in hard copy.
  15. What is the difference between community property and separate property?
    Community Property
    There are nine community property states - Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.These states generally regard as community property all property that has been acquired during the marriage, other than a gift or inheritance. Even if one spouse earns all the money to acquire the property, all the property acquired is considered to be community property. While there are a number of differences in each state, all states have special laws that operate on the theory that both spouses contribute equally to the marriage; thus all property acquired during the marriage is the result of the combined efforts of both spouses. In community property jurisdictions, spouses equally own all community property (fifty percent owned by the husband and fifty percent owned by the wife).

    Separate Property
    Separate property is the property that each spouse brings into the marriage, that is, the property that s/he owned before the marriage. For the property to remain separate, the spouse must keep it apart from marital or community property; that is, s/he would keep it entirely in his/her name. Once the separate property has been commingled (mixed) with marital or community property, it becomes part of the marital or community property. The only separate property that can be acquired during the marriage is a gift or inheritance.
  16. What is accepted as proof of separate property?
    • Gift from a presumptively eligible person to the eligible owner only is considered the eligible owner’s separate property and is allowed.
    • Inheritance given to the eligible owner only is considered the eligible owner’s separate property and is allowed.
    • Once any separate property income is deposited into a joint account, it becomes community property.
  17. What is a bank authorization/signatory card?
    This is a form that the bank collects when you open your bank account. The form contains signatures of the person or people who are authorized to sign for the bank account. A copy of this form can be obtained from your bank.
  18. I would like someone to look at my application. How do I set an appointment?
    An Analyst is available in OMWBE’s Olympia office Monday through Friday from 8:00 am to 5:00 pm, no appointment necessary.

    OMWBE also maintains community offices in Seattle, Tacoma, and Lakewood. These offices are not staffed at all times and appointments are required.
    • Tacoma Bates Technical College: Call Jenaro “Cas” Castaneda at (253)680-7393.
    • Lakewood Clover Park Technical College: Call Jenaro “Cas” Castaneda at (253)589-4501
  19. I don't have three years of taxes. What should I do?
    • If you are a start-up business, you are not required to submit taxes. Indicate “start-up” next to this item on the application’s document checklist. If you are applying for Federal DBE or ACDBE certification, you must submit a balance sheet if you do not have taxes.
    • If you have been in business for less than three years, you are only required to submit taxes for the years you have been in business.
    • If you have filed an extension for taxes with the IRS, submit a copy of the filed extension in lieu of the filed tax return. Note: You will be required to submit a copy of the filed tax return once it is filed.
    • If you haven’t filed taxes and haven’t filed an extension for taxes, submit a signed statement explaining your situation.
  20. What documentation is accepted for citizenship?
    • US Passport, expired or unexpired
    • US Birth Certificate
    • Valid US-issued Permanent Foreign Resident Card
    • Valid Tribal Enrollment Card
    • Certificate of Naturalization (form N-550 or N-570)
    • Certificate of Citizenship (form N-560 or N-561)
    • Certificate of Birth Abroad issued by the Department of State (form FS-545 or form DS-1350)
    • US Military ID Card or Certificate of Release or Discharge from Active Duty (DD form 214)
  21. What documentation is accepted to prove my ethnicity? 

    For M/WBE certification, a valid photo-id (ex. Driver’s License) may be sufficient. If your photo-id does not establish race, or if you are applying for DBE or ACDBE certification, you must provide other legal identification which shows race. Examples include:

    • Certificate of Naturalization
    • Birth Certificate
    • Parents’ birth certificates
    • Tribal Card
  22. What happens after OMWBE receives my application?
    When applications arrive at OMWBE, they are prescreened for completeness. Any application packet that does not include a complete application, all required supporting documentation, and the processing fee are returned to the applicant with a list of the items that were missing. The applicant may then include the missing items and resubmit the application.

    Once an application is determined to be complete, it is assigned to an Analyst to determine if it satisfies all of the program eligibility criteria. The review process may include an on-site interview, job site visit, and interviews with third parties to verify the information submitted.
    The applicant may be asked to provide additional information/documentation at any time while the application is being processed.

    23. Managing my Certification

  23. How soon after I am certified will I receive a contract?
    Certification does not guarantee that you will receive a contract. You are responsible for marketing your business and finding and bidding on contracts. OMWBE will post any opportunities it receives on our website on the Opportunities page. We advise all of our certified firms to register in the State’s WEBS system to be notified of opportunities via email as they are posted.
  24. How do I get work as a certified firm?  How do I use the certification to get work?
    • Advertise that your business is certified in your marketing materials.
    • Register your firm in the State’s WEBS system to be automatically notified of opportunities by email as they are posted. Indicate that your firm is certified.
    • Check OMWBE’s website: You may be interested in contracting and subcontracting opportunities that are posted regularly.
    • Check the Bid Opportunities page on the State’s Business Website: www.business.wa.gov
    • Find other certified firms in the Directory of Certified Firms to partner or joint venture with, (joint ventures with certified firms are ok!).
  25. How do I request new codes be assigned to my certification?
    Submit your request to OMWBE in writing. Specify what type of new work your firm is performing and include documentation that shows the firm is performing this work and has the equipment necessary to perform this work. Be specific! We need details in order to accurately code your new type of work and make sure your firm’s business description matches the codes assigned to you.

    Examples of documentation include copies of signed bids, contracts, work orders, etc. You must also submit proof that the eligible owner has the technical expertise and/or professional licenses required to perform the new type of work. OMWBE may elect to perform an onsite visit to verify that your firm is performing the new work and has the equipment necessary to perform the work. You may also need to supply updated resumes and equipments lists.

    Attention DBEs: Please be sure to check the types of work for which you are certified to ensure it is accurate.  (Look at the description of the types of work your company performs on OMWBE’s webpage). The WSDOT requires that you be certified in the type of work for which you are bidding if the work is to be credited as work performed by a DBE.  Bids have been rejected because DBEs are named by primes to perform work for which they are not certified.

Business Development

  1. Does OMWBE offer training to businesses?
    Yes. OMWBE offers free training to small businesses. Visit our Workshops page for more information and to register.
  2. How do I start and license a business?
    You can register to attend OMWBE’s Starting or Buying a Small Business workshop. You can also visit the State’s business website at www.business.wa.gov and click on Start a Business.
  3. How can a business or individual apply for a grant or loan from OMWBE?

    OMWBE is not authorized to make any grants or loans to businesses or individuals.* We are aware of various advertisements and publications across the United States that identify OMWBE among the list of public entities that have money available for grants or loans to businesses and individuals. This is simply not the case. Despite our efforts to correct this misinformation, the publications continue to improperly represent OMWBE.

    *The State of Washington's Linked Deposit Program provides for reduced interest rates on commercial loans. Important note: It is not OMWBE that loans money to the certified firm. The Linked Deposit Program only enables a certified firm to obtain a discount on the interest rate charged on a loan the firm has obtained from a commercial bank.

  4. How do I find available grants and loans?
    Visit the State’s business website at www.business.wa.gov and click on Grow a Business.

Affirmative Action and I-200

  1. Shouldn't all businesses compete on an equal basis?
    Yes; unfortunately, they don't. Businesses owned and controlled by minorities and women (M/WBE) that are ready, willing, and able to compete in the state contract and procurement process continue to face barriers to their participation. It should also be noted that as much as forty percent of all State procurement is awarded with little or no competition. This fact does not include contracts designated as "sole source" or "emergency" contracts. There are "direct-buy" awards where no competition is required under a certain dollar threshold. In addition, there are awards within a set dollar range that are made after limited competition where only a few firms of the agency's choosing are asked to compete.
  2. Why has the M/WBE program continued after the passage of I-200? Didn't I-200 repeal affirmative action?
    The M/WBE program continues because its objectives are consistent with the policy set forth in I-200. In relevant part, the initiative refined Washington's existing anti-discrimination law to prohibit discrimination against, or the grant of preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin in public contracting. In 1983, after being presented evidence that M/WBEs were receiving less than 0.1% of state contracting dollars, the Washington Legislature created the Office of Minority and Women's Business Enterprises (OMWBE) and empowered it to design programs to ensure that M/WBEs have the maximum practicable opportunity to participate in public contracts and procurements.

    I-200 did not repeal affirmative action or the state's M/WBE statute. Washington law does not allow a statute to be repealed by inference. An existing statute must be superseded by amendment to the state constitution, rendered ineffective by court action, or repealed by another statute that specifically identifies the statute to be repealed. I-200 was a citizen's initiative which amended an existing statute, chapter 49.60 of the Revised Code of Washington (RCW).

    This chapter contains the state's anti-discrimination policies. Following the passage of the initiative, OMWBE and other state agencies and educational institutions reviewed their programs to identify procedures that might be in conflict with I-200 and immediately discontinued them.
  3. What are some examples of the "preferential treatment" prohibited by I-200?
    I-200 did not define the term "preferential treatment" and the term has yet to be defined by the courts or the legislature. However, when I-200 was passed state agencies and educational institutions reviewed their administrative regulations, programs and practices to identify and discontinue any that might be considered to constitute preferential treatment in order to ensure they were not in violation of I-200.
  4. Doesn't Affirmative Action create an environment where less qualified businesses are selected over more qualified businesses?
    No. Implicitly, this question presumes an unproven correlation between a business' ability to provide a quality product or service and the race, ethnicity, or gender of its owner(s). Affirmative action assures equitable opportunities for those businesses that have been excluded because of the owner(s) race, ethnicity or gender to compete. Clearly, not all white male owned and operated businesses are more qualified than businesses owned by non-white individuals. Washington's M/WBE program has never included any form of "set aside" or other provision requiring that award of a contract be made without regard to the business' ability to provide the product or service according to requested specifications; e.g., price, workmanship, quality, delivery time, etc.
  5. Isn't Affirmative Action reverse discrimination against white males?
    No. Historically and currently, the majority of award decisions are made by white males. The purpose of affirmative action is to counteract the effects of past and present discrimination and/or preferential treatment, practices that have effectively excluded firms owned and controlled by persons who are not white and male. Further, it is incorrect to presume that white males are excluded by the operation of the state's M/WBE program. White males can own up to 49 percent of an M/WBE and, in fact, approximately 12 percent of certified M/WBE firms have at least one white male owner. Additionally, over 24 percent of certified Women's Business Enterprises (WBE) have community property ownership, meaning the businesses are owned by women whose spouses are white and male.
  6. Doesn't the State have to pay more whenever it contracts with a minority or woman owned and controlled firm because of the time it takes to find an M/WBE firm?
    No. The state has not observed any disproportionate increase in contract costs that can be attributed solely to the time required to find a minority or woman-owned business. Further, OMWBE has made it relatively easy to find M/WBE firms by maintaining a directory of certified businesses on-line and conducting research for agencies upon request. Except for those situations where an agency can simply call one firm or show evidence of limited informal competition, which is how a significant percentage of state contracts are awarded, it should not take any longer to find a minority or woman-owned business than it does to find any other firm.
  7. Since the passage of I-200, do state agencies and educational institutions conduct outreach/education programs?
    Yes and these efforts have increased. OMWBE provides state agencies, educational institutions, and private contractors with customized lists of certified firms to be notified of their contracting/procurement opportunities. State agencies and educational institutions sponsor and participate in vendor conferences where certified firms can learn about upcoming contracting/procurement opportunities and speak directly with agency purchasing officers to negotiate a contract at these events.
  8. Can state agencies specifically invite minorities and women to attend entrepreneurial training and technical assistance classes?
    Yes. Targeted education is not prohibited by I-200. Many state agencies and educational institutions advertise bid and other opportunities in minority interest newspapers. State agencies and educational institutions have a continuing duty to use the means most likely to get the word out.

Supplier Diversity: Goals and Contracting Guidelines

    1. How do I find and include certified firms?
      • Search OMWBE’s Directory of Certified Firms
      • Ask OMWBE to provide you with a customized list of certified firms
      • Use the State’s WEBS system
      • Target outreach to diverse communities
      • Team with OMWBE to offer workshops on contracting and how to bid on YOUR contracts
      • Attend and participate in the Regional Contracting Forum, held every Spring in Seattle
      • Ask OMWBE to post your opportunities on our website
    2. Are state agencies and educational institutions required to have M/WBE goals on their contracts/procurements?
      State agencies and educational institutions have never been "required" to set goals on all of their contracts/procurements. Goals to utilize M/WBE firms should be set on specific contracts/procurements only when it is determined that there are available certified firms to provide the product or service being sought. This was true prior to the passage of I-200 and has not changed since its passage. Prior to December 1998, some agencies and institutions set participation goals on the contracts/procurements they administered and rejected bids/proposals that did not reflect participation at or above those levels. This practice was discontinued with the passage of the initiative.

      Currently, each state agency/educational institution has the authority to establish voluntary goals on individual contracts/procurements. When they do, prospective bidders/proposers are alerted that a specific level of M/WBE utilization has been deemed achievable on a specific contract/procurement. However, meeting the goal(s) is not a requirement or even a factor to be considered in determining who is awarded the contract/procurement.
    3. Does OMWBE hold state agencies/educational institutions accountable for meeting annual M/WBE goals?
      OMWBE reports the annual M/WBE goal achievement to the Governor, Legislature and State Auditor. While OMWBE itself has no authority to sanction state agencies and educational institutions if they fail to meet their annual M/WBE goals, these entities are responsible for carrying out all duties and responsibilities prescribed by statute and regulations, including the duty to meet annual M/WBE goals set by OMWBE regulations. The regulations apply to all state agencies and educational institutions that make discretionary expenditures for products and services covered by the M/WBE program. The goals enable the agencies/educational institutions' efforts to be tracked. Agencies can then be held accountable for the results of their efforts and OMWBE can design narrowly-tailored programs to ensure all sectors of the State's business community have access to State contracting and procurement without regard to preference or discrimination.
    4. What M/WBE bid/solicitation clauses are not permissible?
      Provisions that condition award of a contract upon attainment of the M/WBE goals established for a specific contract/procurement cannot be used, nor can clauses indicating points will be awarded to a bidder whose proposal includes M/WBE utilization equal to the stated goals. Provisions that allow a contract/procurement to be awarded to a bidder whose proposal included M/WBE utilization equal to the state goals, notwithstanding that the bid was not the lowest dollar amount.
    5. What practices other than goal setting on individual contracts can state agencies and educational institutions use to encourage utilization of M/WBE firms on state contracts/procurements?
      • Include M/WBE firms on lists of vendors to be notified of their contracting/procurement opportunities.
      • Avoid bundling of contract/procurement work scopes, unless project feasibility is jeopardized.
    6. Is there anything wrong with purchasing agents using the same vendor year after year?
      With the passage of I-200, this could be viewed as "preferential treatment;" particularly, if there is evidence that there are certified businesses ready, willing and able to provide the product or service. This practice does not encourage competition - meaning existing firms have little or no incentive to pass on to their customers in the form of lower prices the improvements in product quality and production efficiencies occurring in their industry. Vendors are typically motivated to make their product or service more attractive, in terms of pricing and quality, to a customer when that customer has multiple sources from which to acquire the product or service. Unless the purchasing agent periodically determines that there are no new vendors who can supply a better quality product or service at a lower price, then the public is not assured it is getting the best value for its money. Indeed, when purchasing agents do not solicit new vendors, choosing instead to purchase from the same supplier year after year, all other businesses (including those new businesses owned by non-minority male vendors), have no opportunity to introduce their products and services to the State.