Targeted Group/Economically Disadvantaged/Veteran-Owned Small Business Procurement Program
The Office of State Procurement (OSP) operates a program for Targeted Group, Economically Disadvantaged and Veteran-Owned (TG/ED/VO) small businesses.
Who Is Eligible?
Eligible businesses must be Minnesota-based and small. In 2015, the Office of State Procurement adopted variable size standards by industry as set by the US Department of Transportation in order to determine what is a small business. Targeted Group small businesses must be certified as such by OSP in order to participate in the program. By being certified with the OSP, the business may also be eligible to participate in similar state-funded programs operated by the Minnesota Department of Transportation (Mn/DOT) and several Metropolitan Agencies. The commissioner of Administration periodically designates businesses that are majority-owned and operated by women, persons with a substantial physical disability, or specific minorities as targeted group businesses within purchasing categories as determined by the commissioner.
How do I become certified?
- To be certified as a Targeted Group small business, the business must be at least 51% owned by a woman, racial minority, or person with a substantial physical disability. In addition, the business must be operated and controlled on a day-to-day as well as long-term basis by the qualifying owner. In other words, ownership is not enough; operational control is also required.
- To be certified as an Economically Disadvantaged small business, the business must be located (or the owner must reside) in an Economically Disadvantaged Area in Minnesota. These areas include labor surplus areas, as designated by the federal government, and low income counties in Minnesota. Economically Disadvantaged small businesses must be certified as such by OSP in order to participate in the program.
- To be certified as a Veteran-Owned small business, the business must be at least 51% owned by a veteran or service-disabled veteran as determined by the Minnesota Department of Veterans Affairs. In addition, the business must be operated and controlled on a day-to-day as well as long-term basis by the qualifying owner. In other words, ownership is not enough; operational control is also required.
Vendors may apply for certification through the
Minnesota Small Business Certification Portal, where federal, state and local governments have partnered to provide a consolidated web portal for businesses seeking certification in one or more of our programs.
What happens post certification?
Once certified, Targeted Group small businesses may receive up to 12% preference in selling their products or services or bidding on construction projects to the state in accordance with the Commissioner's designation of eligible businesses. Certified Economically Disadvantaged or Veteran-Owned small businesses may receive up to 12% preference in selling their products or services or bidding on construction projects to the state. In addition, we have the authority to set goals that require prime contractors to subcontract a portion of the work to certified Targeted Group, Economically Disadvantaged or Veteran-Owned small businesses on contracts for construction or consulting services. Targeted Group, Economically Disadvantaged and Veteran-Owned vendors are added to the state's vendor list, and are listed in the Directory of Certified Targeted Group, Economically Disadvantaged and Veteran-Owned Vendors.
Additional information about the State's program and State purchasing can be obtained by contacting
OSP Helpline