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Diverse Business Designations
An ANC means any Regional Corporation, Village Corporation, Urban Corporation or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended 43 U.S.C. 1601, et seq. 13 C.F.R. § 124.3
A Disability-Owned Business Enterprise is a business that is at least fifty-one percent (51%) owned, operated, controlled and managed by individual(s) with disabilities, as defined by the U.S. Business Leadership Network (USBLN).

Historically Black Colleges & Universities 

These are educational institutions determined by the Secretary of Education to meet the requirements of 34 CFR 608.2. Nonprofit research institutions that were an integral part of such a college or university before November 14, 1986, are included in this definition.

Historically Underutilized Business (HUBZone)

The business must be in an area located within one or more qualified census tract, qualified non-metropolitan counties or lands within the external boundaries of an Indian reservation.

Status as a qualified HUBZone small business concern is determined by the Small Business Administration (SBA) in accordance with 13 CFR part 126. If the SBA determines that a concern is a qualified HUBZone small business concern it will issue a certification to that effect and will add the business to the List of Qualified HUBZone Small Businesses on its Internet website. 

In doing business with Carrier, this certification must be active and maintained accordingly.

Lesbian, Gay, Bi-Sexual, Transgender Business Enterprise 

An LGBT business must be at least fifty-one percent (51%) owned, operated, managed and controlled by an LGBT person or persons who are either U.S. citizens or lawful permanent residents, exercise independence from any non-LGBT business enterprise, have its principal place of business (headquarters) in the United States and have been formed as a legal entity in the United States. 

An LGBT business can be certified by the National Gay & Lesbian Chamber of Commerce.

Minority Business Enterprise 

A business that is at least fifty-one percent (51%) owned and operated by an individual(s) who is a U.S. citizen and their ancestry is African American, Native American, Hispanic-American, Asian Pacific or they originate from India, Pakistan, Bangladesh or Sri-Lanka. 

Carrier prefers that such businesses be certified by a third party such as the National Minority Supplier Development Council (NMSDC) or certifying government agency. In doing business with Carrier, this certification must be active and maintained accordingly.

An institution of higher education meeting the requirements of Section 1046(3) of the Higher Education Act of 1965 (20 U.S.C. 1135d-5(3)) which, for the purposes of this clause, includes a Hispanic-serving institution of higher education as defined in Section 316(b)(1) of the Act (20 U.S.C. 1059c(b)(1).

Small Business Enterprise – the Small Business Act defines a small business as an entity that is organized for profit; has a place of business in the United States; operates primarily within the United States or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; is independently owned and operated; and is not dominant in its field on a national basis. 

The business may be a sole proprietorship, partnership, corporation or any other legal form. In determining what constitutes a small business, the definition will vary to reflect industry differences. 

www.sba.gov/content/table-small-business-size-standards

Small Disadvantaged Business 

SDBs are at least fifty-one percent (51%) owned by one or more individuals who are both socially and economically disadvantaged. This can include a publicly-owned business that has at least 51% of its stock unconditionally owned by one or more socially and economically disadvantaged individual and whose management and daily business is controlled by one or more such individuals. 

Since October 2008, small businesses can self-represent their status as a small disadvantaged business (SDB). 

www.sba.gov/content/disadvantaged-businesses

Service-Disabled Veteran-Owned Business 

This is a business that is at least fifty-one percent (51%) owned by one or more service-disabled veterans or, in the case of any publicly-owned business, at least 51% of the stock of which is owned by one or more service-disabled veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such veteran. 

“Service-disabled veteran” means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected as defined in 38 U.S.C. 101(16).

Service-Disabled Veteran-Owned Small Business 

This is a small business that is at least fifty-one percent (51%) owned by one or more service-disabled veterans or, in the case of any publicly-owned business, at least 51% of the stock of which is owned by one or more service-disabled veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such veteran. 

“Service-disabled veteran” means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected as defined in 38 U.S.C. 101(16).

Any business that is at least fifty-one percent (51%) owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly-owned business, at least 51% of the stock of which is owned by one or more veterans; and the management and daily operations of which are controlled by one or more veterans.

Veteran-Owned Small Business 

This is a small business that is at least fifty-one percent (51%) owned by one or more veterans (as defined at 38 U.S.C. 101(2)) or, in the case of any publicly-owned business, at least 51% of the stock of which is owned by one or more veterans; and the management and daily operations of which are controlled by one or more veterans.

Woman Business Enterprise 

A business that is at least fifty-one percent (51%) owned by one or more women, or, the case of any publicly owned business, at least 51% of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women. Carrier prefers that such businesses be certified by a third-party such as the Women Business Enterprise National Council (WBENC) or certifying government agency. In doing business with Carrier, this certification must be active and maintained accordingly.

www.wbenc.org

Woman-Owned Small Business 

A small business that is at least fifty-one percent (51%) owned by one or more women, or, the case of any publicly owned business, at least 51% of the stock of which is owned by one or more women; and whose management and daily business operations are controlled by one or more women. 

SUPPLIER DIVERSITY GLOSSARY

Certifying Organizations
The National Gay & Lesbian Chamber of Commerce is the world’s largest nonprofit organization that develops and certifies LGBT businesses.

National Minority Supplier Development Council 

The NMSDC seeks to provide a linkage between corporate America and minority-owned businesses. Its regional councils certify and match minority-owned businesses (Asian, Black, Hispanic and Native American, etc.) with NMSDC member corporations, which want to purchase goods and services. 

www.nmsdc.org

Small Business Administration 

The SBA was established in 1953 to provide financial, technical and management assistance to help Americans start, run and grow their businesses. It also plays a major role in the government’s disaster relief efforts by making low-interest recovery loans to both homeowners and businesses. 

www.sba.gov

U.S. Business Leadership Network’s mission is to help business drive performance by leveraging disability inclusion in the workplace, supply chain and marketplace.

Women’s Business Enterprise National Council 

WBENC is the nation’s leading advocate of women-owned businesses as suppliers to America’s corporations. It also is the largest third-party certifier of businesses owned and operated by women in the United States. WBENC works to foster diversity in the world of commerce with programs and policies designed to expand opportunities and eliminate barriers in the marketplace for women business owners. WBENC works with representatives of corporations to encourage the utilization and expansion of supplier/vendor diversity programs. 

www.wbenc.org

Other Definitions
An SBA (Small Business Administration) business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.
www.sba.gov/8abd

An Airport Concession Disadvantaged Business Enterprise is one that has received Disadvantaged Business Enterprise certification. The ACDBE program was originally enacted in 1987 and most recently amended in 2012. 

www.faa.gov/about/office_org/headquarters_offices/acr/bus_ent_program/

Concerns and entities are affiliates when one controls or has the power to control the other, or a third party has the power to control both. In determining the concern’s size, SBA (Small Business Administration) counts the receipts, employees or other measure of size of the concern whose size is at issue and all of its domestic and foreign affiliates. 

www.sba.gov/sites/default/files/affiliation_discussion.pdf

Billion Dollar Roundtable 

The BDR was created in 2001 to recognize and celebrate corporations that achieved spending of at least $1 billion with certified (National Minority Supplier Diversity Council (NMSDC) and/or the Women’s Business Enterprise National Council (WBENC)) minority and woman-owned suppliers. The BDR promotes and shares best practices in supply chain diversity excellence through the production of white papers. In discussions, the members review common issues, opportunities and strategies. 

www.billiondollarroundtable.org

Certification validates a diverse or small business person’s ownership, controlling and management stake in a for-profit enterprise. Examples of third-party certification organizations are National Minority Supplier Development Council (NMSDC) which certifies minority owned businesses. Women’s Business Enterprise National Council (WBENC) certifies women-owned businesses.

Commodity management is the process of developing a systematic approach to the entire usage cycle for a group of items. The term is often used interchangeably with Category Management. 

A Commodity Manager is a person responsible for developing, implementing and maintaining a commodity inventory strategy that supports a company’s supply chain. He/she evaluates market conditions in order to maintain inventory levels and control costs, as well as evaluating and recommending vendors. 

Dynamic Small Business Search 

This is a search site hosted by the Small Business Administration (SBA).

The U.S. Business Leadership Network (USBLN) Disability Supplier Diversity Program is the nation’s leading third-party certifier of disability-owned business enterprises (DOBEs), including companies owned by service-disabled veterans.

Individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities compared with others in the same line of business and competitive market area who are not socially disadvantaged. 

www.sba.gov/about-sba

Federal Acquisition Regulation 

FAR was established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. Key small business sections include Part 19 and Part 52.

A subcontractor organized or existing under the laws of a country other than the United States (the 50 states, the District of Columbia, U.S. territories and possessions, Puerto Rico, the Northern Mariana Islands and any other place subject to U.S. jurisdiction, not including leased bases).

General Services Administration 

The GSA is an independent agency of the United States government, established in 1949 to help manage and support the basic functioning of federal agencies. The GSA supplies products and communications for U.S. government offices, provides transportation and office space to federal employees, and develops government-wide cost-minimizing policies, as well as other management tasks. 

www.gsa.gov/portal/category/100000

The GSA Schedules program is the premier acquisition vehicle in government, with approximately $50 billion a year in spending or 10 percent (10%) of overall federal procurement spending. Eighty percent (80%) of GSA Multiple Award Schedule (MAS) contractors are small businesses who represent 36 percent (36%) of sales. 

www.gsa.gov/buy-through-us/purchasing-programs/multiple-award-schedule

A large business is a domestic firm that does not meet the small business size standards. Businesses should contact the U.S. Small Business Administration to determine appropriate North American Industry Classification (NAICS) codes and size standard. The threshold for number of employees and revenue vary depending on the product or service.

The U.S. Small Business Administration’s (SBA) Mentor-Protege Program enhances the capability of 8(a) participants to compete more successfully for federal government contracts. The program encourages private-sector relationships and expands SBA’s efforts to identify and respond to the developmental needs of 8(a) clients. 

web.sba.gov/glossary/dsp_alphabet.cfm?Letter=M 

The Department of Defense Mentor-Protege Program assists small businesses (proteges) to successfully compete for prime contract and subcontract awards by partnering with large companies (mentors) under individual, project-based agreements. 

https://business.defense.gov/Programs/Mentor-Protege-Program/ 

These are just two examples of many similar corporate and third-party programs.

North American Industry Classification System 

The NAICS is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data related to the U.S. business economy. 

www.census.gov/eos/www/naics

The Small Business Administration (SBA) has established a Table of Small Business Size Standards, which is matched to the NAICS industries. A size standard, which is usually stated in number of employees or average annual receipts, represents the largest size that a business (including its subsidiaries and affiliates) may be to remain classified as a small business for SBA and Federal contracting programs.

www.sba.gov/content/table-small-business-size-standards

System for Award Management 

This is the official U.S. Government system that consolidates the capabilities of CCR (Central Contractor Registration) federal regulations, ORCA (Online Representations and Certifications Application) and EPLS (Excluded Parties List System). There is no fee to register for this site. 

www.sam.gov/portal/public/SAM

Service-Disabled Veteran-Owned Business Enterprise 

This is a business that is at least fifty-one percent (51%) owned by one or more service-disabled veterans or, in the case of any publicly-owned business, at least (51%) of the stock of which is owned by one or more service-disabled veterans or, in the case of a veteran with a permanent and severe disability, the spouse or permanent caregiver of such veteran. 

"Service-disabled veteran" means a veteran, as defined in 38 U.S.C. 101(2), with a disability that is service-connected as defined in 38 U.S.C. 101(16).

Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as members of a specific social group. Social disadvantage must stem from circumstances beyond their control. 

In the absence of evidence to the contrary, individuals who are members of the following designated groups are presumed to be socially disadvantaged: Black Americans, Hispanic Americans, Native Americans, Asian-Pacific Americans, as well as members of other groups designated by the SBA. 

www.sba.gov/aboutsba/sbaprograms/8abd/faqs/index.html

Supplier development is an essential element of Carrier's strategy for developing a world-class integrated supply chain. We provide numerous resources for our suppliers to support continuous improvement and lean manufacturing.
A business program that encourages the use of small and diverse businesses as suppliers. This may include entities as defined by the Small Business Association and beyond.
A broad term describing the various acts of identifying, acquiring and managing the products and/or resources needed to run a business or other organization. These include physical goods as well as information, services and any other necessary resources.
A supplier who is awarded a contract directly from a prime customer.
A supplier who is awarded a contract by a prime or Tier 1 supplier.