If you happen to be in the Construction Industry and handle government contracts, that acronym may conjure thoughts of extra layers of compliance, issues with finding qualified firms or any number of other stress-related feelings.
Governments at all levels and many Fortune 1000 firms are requiring a percentage of their capital expenditures be set-aside for Certified Minority Firms. In addition, traditional non-MBE firms that compete for government contracts are often required to source a percentage of their purchases from certified MBE’s.
There are several types of minority owned businesses, and a particular purchaser may require that total expenditures include designated percentages from each category. A typical breakdown might include something like the following:
- Minority owned 20%
- Women owned 10%
- Veteran & other 10%
These can add up to substantial dollar values, and every bit that can help you qualify is important.
One concern with MBE sourcing is potential price gouging, or at least non-competitive bids. For example, a non-MBE contractor may bid $100K on a job, and an equivalent MBE may bid $150K. But you may be forced to accept the higher bid in order to satisfy the MBE requirements of the project.
The trick is to find certified MBE’s that offer enough products and/or services for the job in each category to fulfill the requirements of the job. As with any vendor relationship, you should feel totally comfortable with the firms that you are considering, that they have the expertise you require and offer fair pricing and exemplary service.
Advantage of an MBE for surety bonding
One of the advantages of using a surety bond vendor to partly satisfy your MBE requirements is that the price you pay is fixed based on the characteristics of the bond. Your surety agent or broker is compensated by the carrier underwriting the bond, so you will never pay a higher price buying from a certified MBE firm.
We can help in more than one way
The Blaise Group is one of the leading suppliers of surety and fidelity bonding in the NY Metropolitan region, and is also a certified NYS & NYC MBE Firm. You shouldn’t do business with us solely because of our MBE status. But if you do government contracting, we can help satisfy your certified MBE sourcing requirement, while providing unmatched expertise, fast turnaround and outstanding service.
We can also handle bonding for your subcontractors, to help you further reach your MBE goals, and we will be happy to refer you to quality MBE contractors involved in various construction related trades.
For assistance or to learn more, please call us at (914) 667-7700 x122.