§ 58.303. Self-certification of eligible small businesses.
(a) Online self-certification for small businesses. To participate in the SBPI and the Small Diverse Business Program, small businesses shall self-certify through an online application process outlined at www.dgs.pa.gov. The small business self-certification enables eligible small businesses to compete for prime contracting opportunities with the Commonwealth against other eligible small businesses. Upon successful completion of the self-certification process, the small business will be issued a certificate. The self-certification will remain in effect for 2 years. The small business shall recertify every 2 years to maintain its status as a self-certified small business.
(b) Eligibility requirements.
(1) A small business shall meet the following requirements to participate in the SBPI:
(i) The business must be a for-profit United States business that is independently owned. Factors that determine independent ownership include the date the business was established together with its relationship with other firms in terms of operational and managerial control, personnel, facilities, equipment, financial support, exclusive dealings, and the extent to which resources are shared with other firms. A business that is a subsidiary of another business or is owned principally by another business entity or by a trust (including an employee stock ownership plan [ESOP]) does not meet this requirement. However, if a parent or holding company, established for tax, capitalization or other purposes consistent with industry practice, in turn owns and controls an operating subsidiary, the subsidiary may be considered independently owned if it otherwise meets all small business eligibility requirements. In this situation, the individual owners and controllers of the parent or holding company are deemed to control the subsidiary through the parent or holding company.
(ii) The business may not be dominant in its field of operation.
(iii) The business may not employ more than 100 full-time equivalent employees.
(iv) The business shall earn less than the amounts designated by the Department, that is, $20 million in gross annual revenues ($25 million in gross annual revenues for those businesses in the information technology sales or information technology service business and $7 million in gross annual revenues for those businesses performing building design services).
(2) The Department reserves the right to alter revenue limits. Changes will appear in the Department’s guidelines at www.smallbusiness.pa.gov.
(c) Disclaimer. The Department’s self-certification process, as set forth in this section, is limited to small business status and should not be construed as an endorsement of the small business expertise.
(d) Program auditing. The Department reserves the right to audit small business status either randomly or based on allegations of noneligibility. An applicant providing false information to the Commonwealth in connection with self-certification or as part of the bidding process is subject to debarment or suspension, exclusion from the SBPI, a determination that the bidder is not responsible under the Contractor Responsibility Program and criminal prosecution or other legal action.
Source The provisions of this § 58.303 amended March 29, 2013, effective March 30, 2013, 43 Pa.B. 1731; amended July 8, 2016, effective July 9, 2016, 46 Pa.B. 3660; amended April 12, 2019, effective April 13, 2019, 49 Pa.B. 1792. Immediately preceding text appears at serial page (382400).
Cross References This section cited in 4 Pa. Code § 58.304 (relating to verification of Small Diverse Businesses).
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