Guide

· 8 min read

How to do business with the Pennsylvania government

Pennsylvania runs vendor registration, a Small Diverse Business program, and its bid board through one agency. Here's the order to do it in, and the 26.3% goal that makes diverse certification worth the paperwork.

Pennsylvania spends billions of dollars a year buying goods and services, from road salt to software to nursing staff. If you run a small business in the Commonwealth, or one that can deliver to it, you can compete for that work. The state has built a clear on-ramp, and most of it routes through a single agency: the Department of General Services (DGS).

The good news for diverse owners is that Pennsylvania doesn't just register vendors and walk away. It sets a real, published target for how much of its contracting should go to small diverse and veteran businesses, and it tracks against that number. Getting yourself counted in that pool is the move that turns a vendor registration into actual deal flow.

Here's the order to do it in.

Step one: register on the PA Supplier Portal

Before you can bid on anything, you have to be a registered vendor with the Commonwealth. That happens on the PA Supplier Portal, the state's self-managed vendor registration system run by DGS. Registration is free.

When your registration is processed, you get a six-digit vendor number. That number is your key to the rest of the system. You need it to submit bids on statewide contracts and to participate in cooperative purchasing. Pull your basics together before you start: legal business name and address as they appear on your state and IRS records, your EIN, your banking details for payment, and the commodity or service codes that describe what you sell.

If you get stuck, the DGS Supplier Service Center help desk is at (877) 435-7363. Registration is the foundation. Everything below assumes you've done it.

Step two: self-certify as a small business

Pennsylvania runs a Small Business Contracting Program through the Bureau of Diversity, Inclusion, and Small Business Opportunities (BDISBO), a unit inside DGS. This is where the program structure gets specific, so read the thresholds carefully.

To qualify as a small business with the Commonwealth, your business must meet two tests:

  • No more than 100 full-time equivalent employees.
  • Three-year average gross revenue of no more than $47 million.

You also have to be a for-profit U.S. business, independently owned, and not dominant in your field. If you clear those bars, you self-certify as a small business. Pennsylvania approves small-business self-certifications immediately, and you re-certify every two years to confirm you still qualify.

Self-certifying as a small business is worth doing on its own. It flags you in the system as the kind of vendor the state is actively trying to direct work toward. But the bigger lever for diverse owners is the next layer.

Step three: get verified as a Small Diverse Business or Veteran Business

This is the part that matters most, and it's where Pennsylvania differs from the federal process.

The Commonwealth does not run its own from-scratch diversity certification. Instead, it recognizes third-party certifications you already hold and verifies them. To become a verified Small Diverse Business (SDB) or Veteran Business Enterprise (VBE), you first qualify as a small business, then provide proof of an approved certification from a recognized body.

The certifications Pennsylvania accepts map to the major national programs:

  • Minority-owned: NMSDC (and its regional councils), the SBA 8(a) program, or a state Unified Certification Program.
  • Women-owned: WBENC, SBA 8(a), or a state Unified Certification Program.
  • LGBTQ-owned: the National LGBT Chamber of Commerce (NGLCC).
  • Disability-owned: Disability:IN.
  • Veteran and service-disabled veteran-owned: SBA VetCert (or Disability:IN for veterans with a disability).

Once you hold one of those, you self-certify and submit verification through the PRISM portal (bdisbo.prismcompliance.com). BDISBO reviews diverse and veteran verifications and typically completes them within about 10 business days, far faster than the underlying third-party certification, which can take up to a year on its own.

The sequencing is the trap. The national certification is the long pole. The Pennsylvania verification on top of it is quick. If you want to be SDB-verified by a certain date, work backward from the certification timeline, not the state's.

This is the single highest-value step for a diverse owner, so if you don't yet hold an accepted certification, CertifyAll handles the underlying filings (NMSDC, WBENC, 8(a), VetCert, and the rest) so you arrive at Pennsylvania's portal with the document the state actually wants to see.

What SDB verification actually unlocks

Pennsylvania uses aspirational goals, not hard federal-style set-asides, to direct work to diverse vendors. The distinction matters, and it's worth understanding how goal programs differ from the carved-out contracts you see at the federal level. (We break that comparison down in federal set-asides explained.)

In 2022, the Commonwealth set an aspirational goal of 26.3% for Small Diverse Business participation and 4.6% for Veteran Business Enterprise participation in state agency contracting. Those numbers came out of a state disparity study and are tracked agency by agency. The DGS contracting program describes an overall ambition of directing close to 31% of contract dollars to businesses owned by minority, women, LGBTQ, disabled, or veteran owners.

In practice, the goals work through the bidding process. On many solicitations, prime contractors are evaluated in part on how much SDB and VBE participation they commit to, which creates real demand for verified diverse subcontractors and suppliers. Being in the verified pool means a prime hunting for participation to strengthen its bid can find you. Not being in it means you're invisible to that search.

Step four: find the bids

Pennsylvania publishes its open opportunities on eMarketplace (emarketplace.state.pa.us), the DGS bid board. Commonwealth rules require contract opportunities estimated above $10,000 to be posted there, so it's the single place to watch for solicitations, invitations to qualify (ITQ), sole-source notices, and award tabulations.

Set up a routine. Search eMarketplace by the commodity codes that match your business, and check it regularly rather than waiting for a notification to find you.

There's a second channel worth knowing: COSTARS, Pennsylvania's cooperative purchasing program. COSTARS lets local governments, school districts, and certain nonprofits buy off state-established contracts, and it connects suppliers to more than 9,500 public-sector buyers across the Commonwealth. Becoming a COSTARS supplier requires the same six-digit vendor number from the PA Supplier Portal, then a separate COSTARS registration. For a lot of small vendors, local buyers are the more reachable first sale.

A realistic timeline and first steps

Here's what the path looks like end to end:

  1. This week: Register on the PA Supplier Portal and get your six-digit vendor number. Self-certify as a small business if you meet the 100-employee and $47M thresholds; that approval is immediate.
  2. This month: Start your eMarketplace watch routine by commodity code, and decide whether COSTARS fits your buyer base.
  3. The long pole: Pursue the national certification that makes you a Small Diverse Business or Veteran Business. This is the step measured in months, not days, so start it now even though it finishes last.
  4. Once certified: Submit verification through the PRISM portal. Plan for roughly 10 business days for BDISBO to verify, and you're in the pool the 26.3% goal draws from.

The vendor registration puts you in the system. The SDB or VBE verification is what makes the system work for you, because it's the difference between competing on price alone and being the supplier a prime needs to hit a published participation number.

If you're weighing which states to pursue and how their programs compare, our state programs guide lays out the certification landscape state by state. And once you're verified, list your business in our supplier directory so corporate and public buyers running diverse-spend searches can find you.

Questions on eligibility go to BDISBO directly at gs-bdisbo@pa.gov or 717-783-3119. Get registered, get certified, then get on eMarketplace. In that order.

Tools that pair with this article

Confirm which certifications fit your business.

The quiz checks ownership, location, revenue, and NAICS codes against the eligibility rules for every federal, national, and state certification we track. The result is a ranked list with the buyers each one opens and the order to pursue them in.