§ 58.402. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Agency liaison—An agency employee reporting directly to a Secretary, Deputy Secretary, agency head or equivalent responsible for assisting the Department on issues related to the SB programs.
Aspirational target—An annual target set by the Secretary for SB, SDB and VBE participation in Commonwealth contracting opportunities which shall be posted on the Department’s web site.
BDISBO—The Department of General Services’ Bureau of Diversity, Inclusion and Small Business Opportunities.
Bid or proposal—The documents and information submitted in response to a solicitation, including but not limited to a bid, proposal, quote or application.
Bidder, offeror or applicant—The person submitting documents and information in response to a solicitation, including but not limited to a bidder, offeror or applicant.
Commercially useful function—The performance of a distinct element of work required for the contract, with the requisite skill and expertise.
Contract-specific goal—A goal established by the Department in collaboration with the purchasing agency for use of SDBs or VBEs on a specific procurement.
Contractor—A person that has entered into a contract with a Commonwealth agency. This term includes but is not limited to a design professional.
DOBE—disability-owned business enterprise—An SB which is at least 51% owned and controlled by one or more persons with disabilities. In the case of a corporation, at least 51% of the stock shall be owned by one or more persons with disabilities.
Department—The Department of General Services of the Commonwealth.
Disability—Physical or mental impairment, or both, that substantially limits one or more major life activity and can be demonstrated by appropriate documentation from a licensed vocational rehabilitation specialist, an agency that issues disability benefits or a licensed medical professional.
Disparity study—A study completed by a third-party vendor to determine whether there is a disparity between the availability of SDBs and VBEs and the Commonwealth’s utilization of SDBs and VBEs.
Good faith efforts waiver request—Documentation submitted by a bidder or offeror requesting a full or partial waiver of the SDB or VBE contract-specific goals demonstrating the good faith efforts taken by the bidder or offeror to achieve the contract-specific goals.
LGBTQBE—LGBTQ business enterprise—An SB which is at least 51% owned and controlled by one or more lesbian, gay, bisexual, transgender or queer (LGBTQ) persons. In the case of a corporation, at least 51% of the stock must be owned by one or more LGBTQ persons.
Letter of Commitment—A document signed by both a bidder or offeror and SDB or VBE subcontractor, supplier or manufacturer acknowledging an understanding that the bidder or offeror, if awarded the contract, will utilize the SDB or VBE in the percentage and for the work set forth within the document. Unless otherwise specified within the solicitation, a Letter of Commitment must identify, at a minimum, all of the following:(i) The fixed numerical percentage of the commitment made to the SDB or VBE subcontractor, manufacturer or supplier based upon the Commonwealth spend or the total dollar value of the contract revenue received by the prime; or if specified by the solicitation, the total dollar value of the commitment made to the SDB or VBE subcontractor, manufacturer or supplier.
(ii) A description of the services or supplies the SDB or VBE will provide that are consistent with services or supplies the SDB or VBE is certified to provide.
(iii) The time frame during the original contract duration or the initial contract term and any extensions, options and renewals the SDB or VBE will perform or provide the services or supplies.
(iv) The name and telephone number of the bidder or offeror’s point of contact for the SDB or VBE participation.
(v) The name and telephone number of the primary contact person for the SDB or VBE.
MBE—minority business enterprise—An SB which is at least 51% owned and controlled by one or more minorities. In the case of a corporation, at least 51% of the stock must be owned by one or more minorities.
Manufacturer—A firm that operates or maintains a factory or establishment that produces, on the premises, the materials, supplies, articles or equipment required under the contract and of the general character described by the specifications.
Nonstocking supplier—A firm that does not carry inventory but orders materials from a manufacturer, manufacturer’s representative or a stocking supplier. For a nonstocking supplier to receive credit, the nonstocking supplier shall perform a useful business function by engaging in meaningful work (that is, negotiating price, determining quality and quantity, ordering materials and paying for the materials). Industry practices and other relevant factors will be considered.
Participation submittal—A submittal that must be submitted by bidders or offerors for procurements with a contract-specific goal indicating whether the bidder or offeror intends to meet the contract-specific goal or is requesting a good faith efforts waiver, in whole or in part, of the contract-specific goal. A procurement may require an SDB participation submittal or a VBE participation submittal, or both.
Permanent caregiver—The spouse, or an individual who is at least 18 years of age, who is legally designated, in writing, to undertake responsibility for managing the well-being of the service-disabled veteran with permanent and severe disability.
Race-neutral and gender-neutral measures—Methodologies that are or can be used to assist all businesses, notwithstanding the social, economic, racial or gender composition of those who own or control the business. Race-neutral and gender-neutral measures include but are not limited to the following:(i) Outreach efforts to advise SBs of contracting opportunities within the Commonwealth in accordance with subdivisons (ii)—(iv) of the definition of race-neutral and gender-neutral measures.
(ii) Agencies periodically conducting meetings with SBs, as appropriate, to advise of upcoming agency procurement opportunities, which shall be coordinated with BDISBO and other agencies that make similar procurements.
(iii) BDISBO periodically convening seminars that include SBs and appropriate personnel of the various agencies, which shall include topics of interest to prospective or current SBs such as Commonwealth procurement procedures, SB self-certification and SDB and VBE verification, anticipated Commonwealth procurements and technical assistance to SBs relating to the procurement process.
(iv) Technical assistance and business development programs available to SBs.
(v) Contract-specific goals for use of VBEs.
(vi) SBR procurements, which shall be made in accordance with § 58.411 (relating to small business reserve program) and do not require contract-specific goals.
(vii) An evaluation of each potential contract to determine and, if practicable, abate any impediments to full and open competition with an emphasis on removing impediments that affect SDBs.
SB—small business—A for-profit business in the United States which is independently owned, is not dominant in its field of operation, employs no more than the maximum number of employees established by the definition of small business in 62 Pa.C.S. § 2102 (relating to definitions) and earns less than the revenue limit posted on www.dgs.pa.gov. The Secretary shall utilize the United States Small Business Administration’s methodology to inform the Commonwealth’s definition of a small business as it relates to the highest revenue limit, as established in § 1.922(b) (relating to responsibilities). The Department reserves the right to alter the revenue thresholds which can be viewed at www.dgs.pa.gov.
SBR—small business reserve—A race-neutral and gender-neutral measure program that enables SBs to compete among other SBs for designated or reserved government contract opportunities as prime contractors.
SDB—small diverse business—This designation includes MBEs, WBEs, DOBEs, LGBTQBEs, SDVBEs and other disadvantaged businesses that have been so certified by one of the Department’s approved third-party certifying entities.
SDB program—small diverse business program—The Commonwealth’s Small Diverse Business Program that enables small diverse businesses to participate in Commonwealth procurement opportunities.
SDVBE—service-disabled veteran business enterprise or total service-disabled veteran-owned—An SB which is at least 51% owned and controlled by one or more service-disabled veterans or, in the case of a veteran with permanent and severe disability, the spouse or permanent caregiver of a veteran.
Secretary—The Secretary of the Department.
Stocking supplier—A firm that owns, operates or maintains a store, warehouse or other establishment in which the materials, supplies, articles or equipment of the general character described by the specifications and required under the contract are bought, kept in stock and regularly sold or leased to the public in the usual course of business.
Utilization schedule—A document, submitted by a bidder or offeror as part of a bid or proposal, in which a bidder or offeror commits to a level of SDB or VBE participation for a contract, identifies the associated responsibilities and scope of work, and identifies the dollar value or percentages, or both, of the work to be performed.
VBE—veteran business enterprise—This designation includes veteran-owned small business enterprises and service-disabled veteran-owned small business enterprises.
VBE program—The Commonwealth’s veteran business enterprise program.
Veteran-owned small business enterprise—An SB which is at least 51% owned and controlled by one or more veterans. In the case of a corporation, at least 51% of the stock must be owned by one or more veterans.
Veteran—One of the following:(i) An individual who served in the United States Armed Forces, including a reserve component or the National Guard, and who was discharged or released from service under conditions other than dishonorable.
(ii) A reservist or member of the National Guard who completed an initial term of enlistment or qualifying period of service.
(iii) A reservist or member of the National Guard who was disabled in the line of duty during training.
WBE—woman-owned business enterprise—An SB which is at least 51% owned and controlled by one or more women. In the case of a corporation, at least 51% of the stock must be owned by one or more women.
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