What Does "Certified SB Including MB, SB-PW, or a DVBE Only" Mean in California State Contracts?

If you've browsed California state contract solicitations on CaleProcure or any state agency bid board, you've probably seen this phrase:

"Certified SB, Including MB, SB-PW, or a DVBE Only"

This language appears on thousands of California state solicitations every year. It means the contract (or a portion of it) is set aside for businesses holding specific certifications from the California Department of General Services (DGS). Here's what each abbreviation means and how to get certified.

What Each Abbreviation Means

Decision Matrix: Which Certification Do You Actually Need?

A solicitation that says "Certified SB Including MB, SB-PW, or a DVBE Only" accepts any one of these four. But you should pick the certification that best matches your firm — not just the easiest one. Here's the decision tree:

Real Example: How the Phrase Appears on State Contracts

Here's how the language actually shows up in California state Invitations for Bid (IFBs) and Requests for Proposal (RFPs). This is drawn from the recurring pattern on CaleProcure:

What this means in practice: if your business is not certified in at least one of these four categories on the day the bid closes, your bid is rejected without being evaluated — no matter how competitive your price is. Agencies verify your certification status directly in DGS records at bid opening.

3 Mistakes That Disqualify SB/DVBE Bidders

1. Expired certification on bid-open day. DGS certifications typically need biennial recertification. If your status is "Expired" or "Under Review" when the bid closes, the agency treats you as uncertified. Check your status in CaleProcure at least a week before any bid submission.
2. Claiming SB-PW without an active contractor's license. SB-PW is limited to firms performing public works construction. Engineering-only firms or consultants do not qualify — they need regular SB. If you bid a public-works solicitation as SB (not SB-PW) without a Contractor's License, the prime or agency may disqualify you.
3. Listing yourself as DVBE when the DV owner is not on daily operations. DGS audits DVBE status and will decertify firms where the disabled veteran is a passive owner. One decertification disqualifies you from all active DVBE bids for the life of the decertification.

How the Set-Aside Works

California law requires state agencies to award at least 25% of contracts to certified small businesses (SB/MB) and has a separate 3% DVBE participation goal. When a solicitation says "Certified SB Including MB, SB-PW, or a DVBE Only," it means:

• Only certified firms can bid on this contract (or the set-aside portion).
• You must hold at least one of these four DGS certifications: SB, MB, SB-PW, or DVBE.
• "Including" means any of these sub-types qualifies — you do not need all four.
• Non-certified firms cannot bid on the set-aside portion but may be eligible for non-set-aside contracts.

This Is NOT the Same as DBE Certification

A common point of confusion: DBE certification is a completely separate program. DBE (Disadvantaged Business Enterprise) is a federal program administered by USDOT for federally-funded transportation projects. SB, MB, and DVBE are California state programs administered by DGS for state-funded contracts.

For a full comparison, see our DBE vs SBE vs DVBE comparison guide. For the full DBE application process, see the DBE certification guide.

How to Get Certified

All four certifications are free and issued by DGS. The application is online:

1. Go to caleprocure.ca.gov and create an account
2. Select the certification type(s) you are applying for
3. Complete the application and upload required documents (business license, tax returns, ownership documents)
4. DGS reviews and responds — typical processing time is 30-45 days

For detailed requirements, see our SBE certification guide or DVBE certification guide.

"SB/DVBE Option" — What's That?

Some solicitations use the shorter phrase "SB/DVBE Option." This is the same concept — the contract is available to DGS-certified small businesses and DVBEs. The longer phrase ("Certified SB, Including MB, SB-PW, or a DVBE Only") simply lists all the eligible sub-types explicitly.

Can I Hold Multiple Certifications?

Yes, and it's recommended if you qualify. Many businesses hold both SB and DVBE certifications. You can also hold DGS certifications (SB/DVBE) and CUCP certifications (DBE) simultaneously — they serve different contract markets and there is no conflict.