Michigan SDVOB, GDBE and Michigan Business Preferences: Status and What to Do

What it is

Michigan does not run its own MBE or WBE certification for state purchasing. The state constitution (Article I, Section 26) bars preferential treatment by race or sex "in the operation of ... public contracting." The Department of Technology, Management and Budget (DTMB) instead uses three tools on state bids: a price preference of up to 10% for qualified service-disabled veteran-owned businesses (SDVOB), a spending goal for Geographically Disadvantaged Business Enterprises (GDBE), and preferences for Michigan businesses.

Who qualifies

• SDVOB: at least 51% owned by one or more veterans with a service-connected disability. Proof is a DD214 (or equivalent), a VA rating decision letter if the disability was documented after discharge, and ownership papers. DTMB also accepts NVBDC certification if "certain conditions are met."
• GDBE: headquartered in Michigan, and either located in a Michigan Qualified Opportunity Zone, with most employees working or living in one, or certified by the SBA as a Michigan HUBZone business.
• Michigan business (reciprocal preference): in the past 12 months you filed Michigan business or income tax returns, or withheld Michigan income tax for owners, showing a "significant business presence in the state."
• Out-of-state firms: the SDVOB page does not state a Michigan location rule. GDBE requires a Michigan headquarters. The reciprocal preference only helps certified Michigan businesses.

What it means for your bids

• SDVOB: up to a 10% pricing preference under Public Act 91 of 2005. State law (Public Act 133 of 2008) sets a goal of 5% of state spending with qualified SDVOBs.
• GDBE: Executive Directive 2023-1 set an annual goal of 20% of agency spending with GDBEs. The DTMB page does not describe a bid preference or points for GDBE.
• Reciprocal preference: on bids over $100,000, a certified Michigan business gets the same edge an out-of-state low bidder would get in its home state.
• Michigan-based firm preference: when "all other things being equal," the state prefers Michigan-based firms.

How to get certified

1. Register in SIGMA VSS: https://sigma.michigan.gov/PRDVSS1X1/Advantage4. DTMB says registration is free.
2. Add your business types (for example SDVO, or the GDBE codes) to your profile. List: https://www.michigan.gov/dtmb/procurement/contractconnect/how-to-register/business-types
3. SDVOB: the state does not pre-certify. Say in each bid that you are an SDVOB and attach your DD214, disability proof and ownership papers.
4. Michigan business: certify your status in the bid and authorize Treasury to verify it. A false claim is a felony with a fine of at least $25,000.
5. The official pages do not state a term or renewal for these designations.

Watch out for

• The demographic business types in SIGMA VSS (minority-owned, woman-owned and others) are for state data. DTMB pages do not describe a certification or bid benefit tied to them.
• House Bill 5277 (introduced November 12, 2025) would amend the purchasing preference section of state law. It was still in committee on the tracking page we checked.
• Cities, counties and universities in Michigan run their own programs.
• Federal DBE (MDOT highway and transit work) is a separate program.
• Free help: SIGMA VSS Support Center, 517-284-0540. SDVOB page contact: TerrillC@michigan.gov, 517-388-6012. GDBE questions: PrattE2@michigan.gov, 517-231-3875.

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Sources

• www.michigan.gov/dtmb/procurement/contractconnect/programs-and-policies/preferences/se
• www.michigan.gov/dtmb/procurement/contractconnect/programs-and-policies/policies/geogr
• www.michigan.gov/dtmb/procurement/contractconnect/programs-and-policies/preferences/ot
• www.michigan.gov/dtmb/procurement/contractconnect/how-to-register
• www.michigan.gov/dtmb/procurement/contractconnect/how-to-register/business-types
• www.michigan.gov/dtmb/procurement/contractconnect/lets-do-business
• www.michigan.gov/whitmer/news/state-orders-and-directives/2023/02/03/executive-directi
• legislature.mi.gov/documents/mcl/pdf/mcl-18-1268.pdf
• legislature.mi.gov/documents/mcl/pdf/mcl-Article-I-26.pdf
• www.michiganvotes.org/legislation/2025/house/bill-5277

FindMyBids isn't affiliated with any certifying agency, and this isn't legal advice. Status can change quickly with court orders and new laws, so confirm with the program office before you rely on it.