Oregon Business Development Department
Chapter 123
Division 200
CERTIFICATION PROCEDURES
123-200-1100
Definitions
As used in these rules, the following terms shall have the following definitions, unless the context requires otherwise:
(1) “Agency” means the Oregon Business Development Department.
(2) “COBID” means the Certification Office for Business Inclusion and Diversity in the Oregon Business Development Department.
(3) “Commercially Useful Function” or “CUF” means function the firm performs when it is responsible for execution of the work of the contract and carries out its responsibilities by actually performing, managing, and supervising the work involved. The firm must also be responsible, with respect to materials and supplies used on the contract, for negotiating price, determining quality and quantity, ordering the material, and installing (where applicable) and paying for the material itself.
(4) “Contribution” means a real and substantial contribution of money, tangible personal assets, and expertise to acquire ownership interest in the firm. A contribution is not a promise to contribute, an unsecured note payable to the firm or an owner who is not a disadvantaged individual, or mere participation in a firm’s activities as an employee.
(5) “Control” or “controlled” means that operational and managerial control of all aspects of the business is true, real, and exercised by one or more qualifying individual(s).
(6) “Disadvantaged Business Enterprise” or “DBE” means a business that meets the eligibility standards for participation in United States Department of Transportation (USDOT) federally funded projects as described in 49 CFR parts 23 and 26 (2013 Edition).
(7) “Emerging Small Business” or “ESB” means an independent business or firm that meets the requirements described in OAR 123-200-1600.
(8) “Independence” or “Independent” means the business is not dependent upon any non-qualifying individual or firm.
(9) “Management Control” or “Management” means that the applicant has responsibility for the critical areas of business operations and has the demonstrated ability to make independent and unilateral business decisions needed to guide the future of the business.
(10) “Minority” means a person who is a citizen or lawful permanent resident of the United States and who is one of the persons described in (a) through (f) below.
(a) Black American includes persons having origins in any of the Black racial groups of Africa;
(b) Hispanic American includes persons of Mexican, Puerto Rican, Cuban, Central or South American or other Spanish or Portuguese culture or origin, regardless of race;
(c) Native American includes persons who are American Indians, Eskimos, Aleuts, or Native Hawaiians;
(d) Asian-Pacific American includes persons whose origin is from Japan, China, Taiwan, Korea, Vietnam, Laos, Cambodia, Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the United States Trust Territories of the Pacific Islands, the Commonwealth of the Northern Marianas Islands, Macao, Fiji, Tonga, Kiribati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong;
(e) Subcontinent Asian Americans includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, the Maldives Islands, Nepal, or Sri Lanka;
(f) Any additional groups whose members are designated as socially disadvantaged by the Small Business Administration and/or as designated under 49 CFR Part 26 (2013 Edition).
(g) Other minority group membership as established by the applicant. Membership is based on evidence provided by the applicant to support the applicant’s claim he or she is a member of a minority group, and the particular minority community recognizes the individual to be a member of the community. It is in COBID’s discretion to determine if the applicant’s claim is valid. If the minority community does not exist in Oregon, the burden of proof shifts to the applicant to prove he or she is a socially and economically disadvantaged individual.
(11) “Minority Business Enterprise” or “MBE” means a business owned and operated by a minority who meets the eligibility standards set out in OAR 123-200-1210 through 123-200- 1240. For the purposes of the certification programs, the rules recognize women as a separate group and not as a “minority” group.
(12) “Ownership” or “Owned” has the meaning set out in OAR 123-200-1220.
(13) “Public agency” or “agency” means every government officer, board, commission, department, institution, branch or agency of the government, whose costs are paid wholly or in part from funds held in the federal, state, county, or city treasury.
(14) “Principal place of business” means the place where the firm directs, controls, and coordinates its primary, high-level business activities; the address the firm uses to file Federal income taxes. If the firm uses a P.O. Box, the COBID may request additional documentation to verify location.
(15) “Qualifying Individual” means a person who COBID has determined meets the eligibility requirements in these rules for the type of certification being sought by such person. For example, a qualifying individual who is seeking certification as a VBE is a person who COBID determines meets all the qualifications of being a “veteran” as defined in these rules.
(16) Small Business” means a small business as defined in 13 CFR part 121 (e-CFR 2015 Edition). A small business shall not include any concern or group of concerns controlled by the same qualifying individual or individuals that have average annual gross receipts over the previous three fiscal years (including its affiliates) that exceed the cap as established yearly by the U.S. Small Business Administration (SBA).
(a) Firms seeking certification must also meet the business and North American Industry Classification System (NAICS) size standards set yearly by the SBA.
(b) The COBID will utilize federal tax information, submitted by the applicant along with new applications, No Change Statements, and certification review applications, to determine annual gross receipts for the business.
(17) “Socially Disadvantaged Individuals” means individuals who are minorities, women, or any other individuals found to be disadvantaged by the SBA pursuant to Section 8(a)(5) of the Small Business Act and has the meaning set out in 49 CFR § 26.67 (e-CFR 2015 Edition).
(18) “Timely notice” as used in ORS 200.035, shall mean at the time the state agency publicly releases the contract and bid request solicitations.
(19) “Veteran Business Enterprise (VBE)” means a business owned by a Veteran who meets at least one of the following criteria:
(a) Served on active duty with the Armed Forces of the United States:
(A) For a period of more than 90 consecutive days beginning on or before January 31, 1955, and was discharged or released under honorable conditions;
(B) For a period of more than 178 consecutive days beginning after January 31, 1955, andwas discharged or released from active duty under honorable conditions;
(C) For 178 days or less and was discharged or released from active duty under honorable conditions because of a service-connected disability;
(D) For 178 days or less and was discharged or released from active duty under honorable conditions and has a disability rating from the United States Department of Veterans Affairs; or
(E) For at least one day in a combat zone and was discharged or released from active duty under honorable conditions;
(b) Received a combat or campaign ribbon or an expeditionary medal for service in the Armed Forces of the United States and was discharged or released from active duty under honorable conditions;
(c) Is receiving a nonservice-connected pension from the United States Department of Veterans Affairs;
(d) Is a disabled veteran, as defined in ORS 408.225; or
(e) Has been a reserve officer or member of a National Guard unit for at least five years before the individual seeks a certification under ORS 200.055.
(f) As used in paragraph (a) of this subsection, “active duty” does not include attendance at a school under military orders, except schooling incident to an active enlistment or a regular tour of duty, or normal military training as a reserve officer or member of an organized reserve or a National Guard unit.
(20) “Woman Business Enterprise” or “WBE” means a business owned and operated by a woman who meets the eligibility standards set out in OAR 123-200-1210 through 123-200-1240.
[Publications: Publications referenced are available from the agency.]
Statutory/Other Authority: ORS 285A.070, ORS 285A.075(1)(a) & ORS 200.025(2)
Statutes/Other Implemented: ORS 200.005 & Oregon Laws 2023, chapter 497
History:
OBDD 34-2023, temporary amend filed 12/28/2023, effective 01/01/2024 through 06/28/2024
OBDD 5-2018, minor correction filed 02/16/2018, effective 02/16/2018
OBDD 1-2016, f. & cert. ef. 1-5-16
Renumbered from 123-200-0010, OBDD 7-2013, f. & cert. ef. 9-3-13
OBDD 17-2010, f. 4-30-10, cert. ef. 5-1-10