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SUPPLIER DIVERSITY: DEFINITIONS

U.S./Puerto Rico Definitions

Disabled-owned Business (DBL)

A for-profit organization that:

  • Is at least 51% owned, operated, managed, and controlled by an individual with a disability or service-disabled veteran who is either a U.S. citizen or a lawful permanent resident
  • .
  • Exercises independence from any non-disabled business enterprise.
  • Has its principal place of business (headquarters) in the United States
  • .
  • Has been formed as a legal entity in the United States.

 

Disabled-owned Business Enterprise

A for-profit organization that:

  • Is at least 51% owned, operated, managed, and controlled by an individual with a disability or service-disabled veteran who is either a U.S. citizen or a lawful permanent resident.
  • Exercises independence from any non-disabled business enterprise.
  • Has its principal place of business (headquarters) in the United States.
  • Has been formed as a legal entity in the United States.

 

Historically Underutilized Business Zone Small Business Concern (HUBZone)

A for-profit organization that is a small business enterprise (SBE) that appears on the List of Qualified HUBZone Small Business Concerns maintained by the Small Business Administration. The business is located in an historically underutilized business zone (HUBZone), is owned and controlled by one or more U.S. citizens and has at least 35% of employees residing in a HUBZone.

A HUBZone is an area that is located in one or more of the following:

  • A qualified census tract (as defined in section 42(d)(5)(C)(i)(1) of the Internal Revenue Code of 1986).
  • A qualified non-metropolitan county that is: not located in a metropolitan statistical area (as defined in section 143(k)(2)(B) of the Internal Revenue Code of 1986), and a) in which the median household income is less than 80% of the non-metropolitan state median household income, or b) that, based on the most recent data available from the Secretary of Labor, has an unemployment rate that is not less than 140% of the statewide average unemployment rate for the state in which the county is located.
  • Is within the external boundaries of an Indian reservation.

 

Lesbian, Gay, Bisexual, Transgender-owned Business Concern

A for-profit organization that:

  • Is at least 51% owned, operated, managed, and controlled by an LGBT person or persons who are either U.S. citizens or lawful permanent residents.
  • Exercises independence from any non-LGBT business enterprise.
  • Has its principal place of business (headquarters) in the United States.
  • Has been formed as a legal entity in the United States.
  • Is certified by the National Gay & Lesbian Chamber of Commerce.

 

Minority-owned Business Concern

A for-profit organization that:

  • Regardless of size, is at least 51% owned by one or more minority-group members or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more minority-group members; and
  • Whose management and daily business operations are controlled by one or more minority-group members; and
  • Is certified as a minority-owned business concern by a Merck-approved independent certifying agency or registration process.

The term "minority-group members" shall mean U.S. citizens who are Asian, Black, Hispanic, or Native American.

 

Service-disabled Veteran-owned Small Business Concern

A small for-profit organization that:

  • Is at least 51% owned by one or more service-disabled veterans or, in the case of any publicly owned business, not less than 51% of the stock of which is owned by one or more service-disabled veterans; and
  • The management and daily business operations of which are controlled by one or more service-disabled veterans or, in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such a 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).

 

Small Business Concern

“Small business concern” means a small business as defined pursuant to Section 3 of the Small Business Act and relevant regulations promulgated pursuant thereto.

 

Small Disadvantaged Business Concern

A for-profit organization that represents, as part of its offer that:

  • It has received certification as a small disadvantaged business concern consistent with 13 CFR part 124, Subpart B;
  • No material change in disadvantaged ownership and control has occurred since its certification;
  • Where the concern is owned by one or more individuals, the net worth of each individual upon whom the certification is based does not exceed $750,000 after taking into account the applicable exclusions set forth at 13 CFR 124.104(c)(2); and
  • It is identified, on the date of its representation, as a certified small disadvantaged business in the database maintained by the Small Business Administration (PRO-Net).

 

Veteran-owned Business Concern

A for-profit organization that:

  • Regardless of size, is at least 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, not less than 51% of the stock of which is owned by one or more veterans; and
  • the management and daily business operations of which are controlled by one or more veterans, or in the case of a service-disabled veteran with permanent and severe disability, the spouse or permanent caregiver of such veteran.

 

Veteran-owned Small Business Concern

A for-profit organizaton that is a small business concern and:

  • At least 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, not less than 51% of the stock of which is owned by one or more veterans; and
  • The management and daily business operations of which are controlled by one or more veterans.

 

Women-owned Business Concern

A for-profit organization that:

  • Regardless of size, is at least 51% owned by one or more women, or, in 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; and
  • Is certified as a women-owned business concern by a Merck-approved independent certifying agency or registration process.

 

Women-owned Small Business Concern

A for-profit organization that is a small business concern and:

  • Is at least 51% owned by one or more women, or, in 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.

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