§ 58.403. Self-certification of eligible small businesses.
(a) Online self-certification for SBs. To participate in the SBR and the SDB or VBE programs, SBs shall self-certify through an online application process outlined at www.dgs.pa.gov. The SB self-certification enables eligible SBs to compete for prime contracting opportunities with the Commonwealth against other eligible SBs. Upon successful completion of the self-certification process, the SB will be issued a certificate. The self-certification will remain in effect for 2 years. The SB shall recertify every 2 years to maintain its status as a self-certified SB.
(b) Eligibility requirements. An SB shall meet the following requirements to self-certify as an SB with the Department:
(1) 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 SB 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.
(2) The business may not be dominant in its field of operation.
(3) The business may not employ more than the maximum number of employees established by the definition of small business at 62 Pa.C.S. § 2102 (relating to definitions).
(4) The business shall earn less than the amounts designated by the Department.
(5) The Department reserves the right to adjust revenue limits in accordance with § 1.922(b) (relating to responsibilities). Changes will appear in the Department’s guidelines at www.dgs.pa.gov.
(c) Disclaimer. The Department’s self-certification process, as set forth in this section, is limited to SB status and should not be construed as an endorsement of the SB expertise.
(d) Program auditing. The Department reserves the right to audit SB status either randomly or based on allegations of non-eligibility. In addition to the decertification process set forth in this subsection, and subject to penalties under 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities), anyone providing false information to the Commonwealth may be subject to any or all of the following:
(1) Debarment or suspension.
(2) Revocation of any SB, SDB or VBE status.
(3) Exclusion from the SBR.
(4) A determination that the bidder is not responsible under the Contractor Responsibility Program.
(5) A determination that a contract entered into is void or voidable under 62 Pa.C.S. § 1711.2 (relating to solicitations or awards contrary to law).
(6) Liability for any costs incurred by the Commonwealth in investigating potential violations relating to the validity of information submitted during the SB self-certification process.
(7) Criminal prosecution or other legal action permitted by law and deemed necessary to protect the Commonwealth’s interest and ensure compliance with the laws of the Commonwealth.
Cross References This section cited in 4 Pa. Code § 58.404 (relating to verification of eligible small diverse businesses or veteran business enterprises).
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