Graduation from the MBE/WBE Program

Once a certified MBE or WBE firm exceeds applicable size standards it graduates from the program and is presumed to be an established business. A certified entity may be determined to be an established business as it relates to all or some of its Area of Specialty NAICS Codes. An established business may apply for re-certification at such time as it has information to show a significant change in its ownership, management, contractual relations, size, or in other functions bearing on its status as an established business.

Construction

A certified firm is presumed to be an established business under the MBE/WBE Construction Program if (1) the firm and its affiliates are no longer a Small Business as defined by the U.S. Small Business Administration as "a business that has gross receipts averaged over its previous seven (7) fiscal years that do not exceed one and a half the size standards of the U.S. Small Business Administration set forth in 13 CFR Part 121, relevant to the scope(s) of work the firm seeks to perform on the City contracts," or (2) if the eligible individuals whose ownership was relied on for certification are persons whose personal net worth exceeds the program’s personal net worth limits. See DPS’s website for the current personal net worth limit.

Non-Construction

An entity certified as a City non-construction MBE/WBE program is presumed to be an established business if its gross receipts, averaged over the previous three fiscal years, exceed the business size standard set for in the MCC. See DPS’s website for the current gross receipts limit.

Participating Established Business Status for Certified MBEs and WBEs

An MBE and/or WBE firm which cannot receive continued eligibility because it is an established business will be considered a participating established business as of the effective date of the City’s determination. A participating established business may participate in the City’s phased graduation program for a three-year period for reduced credit. For the first year, a participating established business can earn 75% MBE or WBE credit for its performance; in the second year, 50%; and in the third year, 25%. This graduated utilization helps businesses build capacity and maintain a competitive advantage as they diversify their contract portfolio and enter the marketplace as a prime contractor.