Glossary of Terms

Use this helpful reference to navigate the world of supplier diversity.

  • 8(a) Certified

    A federal business development program, set down by the U.S. Small Business Administration, designed to help eligible small, socially and economically disadvantaged businesses bid and obtain federal government contracts and other assistance to develop their business. Eligible businesses must be owned and controlled at least 51 percent by socially and economically disadvantaged individuals.

  • Airport Concession Disadvantaged Business Enterprise

    Federal Airport Concession Disadvantaged Business Enterprise (ACDBE) regulations indicate whether a business operates as a concessionaire at one of the nation’s airports and meets the ownership eligibility requirements as set forth by the regulations outlined in 49 CFR Part 23.

  • Alaskan Native Corporation

    Section 450b(e) of title 25 U.S.C. “Indian tribe” means any Indian tribe, band, nation or other organized group or community, including any Alaska Native village or regional or village corporation as defined in or established pursuant to the Alaska Native Claims Settlement Act, which is recognized as eligible for the special programs and services provided by the United States to Indians because of their status as Indians.

  • Buyer Portal

    Powered by ConnXus, the buyer portal is a private-branded supplier-diversity interface that makes it easy for suppliers to register with a business. ConnXus provides an automated supplier self-update process that can collect diversity certificates and keep files updated.

  • Certifying Agency

    Indicates a confirmed response from a vendor, master supplier database and/or a physical copy of a certification for vendor.

  • DBE

    Disadvantaged Business Enterprise-certified (DBE) businesses meet federal, state or local government standard eligibilities as women, minority, disabled and other disadvantaged businesses as a result of economic disadvantages with respect to education, employment, residence or business location or social disadvantage, and lack of business training. The business must be at least 51 percent owned by one or more people who are socially and economically disadvantaged.

  • DVBE

    The Disabled Veteran Business Enterprise (DVBE) certification through the U.S. Department of Veterans Affairs allows U.S. veteran-owned business to apply for veteran contract programs. The business must be at least 51 percent owned, managed and controlled by one or more disabled veterans. The home office cannot be a branch or subsidiary of a foreign corporation, foreign firm or other foreign-based business.

  • Direct Spend

    Spend from a diverse supplier with a prime supplier that is used directly for the contract with the buying organization.

  • EDWOSB

    Economically Disadvantaged Woman-Owned Small Business certified.

  • HUB

    Historically Underutilized Business (HUB) is a federal designation for businesses at least 51 percent owned by one or more people who are black, Hispanic, Asian American, Native American, disabled or disadvantaged. Administered by the U.S. Small Business Administration (SBA), HUBs are eligible to bid on applicable federal contracts.

  • Indirect Spend

     A Prime supplier’s diverse spend that supports its own business operation.

  • LGBT Enterprise

    Indicates whether a business is at least 51 percent owned, operated, managed and controlled by lesbian, gay, bisexual or transgender (LGBT) person(s) who are either U.S. citizens or lawful permanent residents. Exercises independence from any non-LGBT business enterprise.

  • MBE

    The Minority Business Enterprise (MBE) is a designation for businesses that are at least 51 percent owned, operated and controlled by one or more people who are African-American, Hispanic, Asian American or Native American. MBE can be certified by local, state or federal agencies. National certification is also offered through the National Minority Supplier Development Council (NMSDC).

  • NMSDC

    The National Minority Supplier Development Council (NMSDC) offers national, third-party certification of minority-owned businesses. It’s the largest third-party certifier of minority-owned businesses, supported by 23 regional partner organizations across the  country.

  • Not Diverse

    Supplier has confirmed business is not 51 percent owned, operated, managed or controlled by one or more diverse persons and a U.S. citizen.

  • Procurement

    The act of buying or obtaining goods and services.

  • RFI

    A request for information (RFI) is a company or government request for written information about supplier functions and capabilities.

  • RFP

    A request for proposal (RFP) is a company or government request for project bids. The request begins the process of procurement of products or services. In response to requests for quotations (RFQs), suppliers submit detailed business proposals that outline how the supplier can best meet the requesting business or government’s procurement needs.

  • RFQ

    A request for quotation is an opportunity for suppliers to competitively cost the final project bid.

  • SBA

    The U.S. Small Business Administration (SBA) is one of the country’s oldest and farthest-reaching small-business development organizations. The SBA has dozens of regional and district offices across the U.S that support loan programs, contracts, counseling and other business services.

  • SBE

    Indicates whether a small business enterprise (SBE) has a business concern eligible for assistance from the SBA. Indicates whether the business is small, usually certified by a federal, state or local government agency or organization as having met all of the government standards that award eligibility.

  • SDB

    The Small Disadvantaged Business (SDB) designation requires the business be at least 51 percent owned by one or more people who are socially and economically disadvantaged. All firms must be certified by one of the Small Disadvantaged Business Certification Agencies designated by the SBA.

  • SDV

    The Service-Disabled Veteran (SDV) certification allows a veteran-owned business to apply for veteran contract programs. The business must be at least 51 percent owned, managed and controlled by one or more veterans. Certification starts through the U.S. Department of Veterans Affairs.

  • SDVOSB

    The Service-Disabled Veteran-Owned Small Business (SDVOSB) designation indicates whether a business is at least 51 percent owned by one or more veterans with a disability that is service connected. The term “service connected” means with respect to disability or death, that such disability was incurred or aggravated in the line of duty in the active military, naval or air service, and is determined by the Department of Veterans Affairs or Department of Defense. Must be classified as “small” under the North American Industry Classification System (NAICS) code assigned to the procurement. Must control the management and daily operations of the SDVOSB. Must hold the highest officer position in the SDVOSB.

  • Self-Reporting

    Self-reporting is a diverse supplier without certification. Supplier has confirmed the business is at least 51 percent owned, operated, managed or controlled by one or more diverse persons and a U.S. citizen.

  • SmartScrub®

    A data service that validates supplier classifications with an analysis of accounts payable data files.

  • Supplier

    A vendor, or a supplier, defined by a supply chain management term that refers to companies that provide goods or services to another company.

  • Supplier Diversity

    Supplier diversity is a business program that encourages the procurement of minority-owned businesses for the purchase of goods and services.

  • Supply Chain

    A supply chain is a system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer.

  • Tier 1/Prime Supplier

    Tier 1 suppliers provide products and services directly to the buying corporation. At the top of the supplier hierarchy, they receive the direct call from a buyer.

  • Tier 2 Supplier

    A Tier 2 company is the company that supplies the Tier 1 company. The Tier 2 company might be a little lower on the supplier hierarchy, but it is a vital part of getting things done. A Tier 2 company is typically smaller than a Tier 1. Tier 2 supplier diversity opens more opportunities for smaller diverse businesses to grow, because the Tier 2 supplier can work with those larger suppliers that work directly with large corporations.

  • TierTracker®

    ConnXus patent-pending application tracks prime suppliers spending with diverse suppliers through a transparent analysis report.

  • VBE

    A veteran-owned business enterprise (VBE), or a small business owned and controlled by veterans, not less than 51 percent owned by one or more veterans; and in the case of a publicly owned business, not less than 51 percent of the stock is owned by one or more veterans.

  • VOSB

    The Veteran-Owned Small Business (VOSB) certification allows a veteran-owned business to apply for veteran contract programs. The business must be at least 51 percent owned, managed and controlled by one or more veterans. Certification starts through the U.S. Department of Veterans Affairs.

  • Vietnam Veteran-Owned

    Indicates whether a business is a least 51 percent owned by one or more Vietnam veterans who served between 1/1/59 and 5/7/75 and have control and operate the business. Control in this context means exercising the power to make policy decisions and operate means to be actively involved in the day-to-day management of the business.

  • WBE

    Women’s Business Enterprise (WBE) is a national certification for women-owned businesses. The Women’s Business Enterprise National Council (WBENC) oversees the certification that is widely accepted by corporate and nonprofit organizations as well as local, state and federal agencies.

  • WBENC

    The Women’s Business Enterprise National Council (WBENC) offers national, third-party certification of women-owned businesses. It’s the largest third-party certifier of women-owned businesses, supported by 14 regional partner organizations across the country.

 

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