Tuesday, January 7, 2025

Certifications + Ratings

I. Local Content and Domestic Content Certification

Local Content and Domestic Content Certification verifies a small business or nonprofit's compliance eligibility and enhances its visibility for economic development opportunities. These opportunities include small business contracting, workforce development, and community benefit funding investments aimed at improving the quality of life for local stakeholders.

These opportunities are created by industries, including infrastructure development projects, that are governed by local and domestic content policy requirements. These policies mandate that a percentage of goods, services, workforce, and community benefit investments from infrastructure development projects be sourced from local stakeholders within the geographic regions of the projects.

A. Local Content Certifcation

For: Small Businesses and Nonprofits

Verifies: Geographic Designation

Certifies that the organization is registered to operate within a specific geographic region to comply with regulatory project requirements.

Example: ABC Inc. is registered to do business in Maryland, Massachusetts, and New Jersey, making them eligible to become “Local Content Certified” with a Maryland, Massachusetts, and New Jersey designation. This certification enhances ABC Inc's eligibility and visibility for industries and development projects with local content policy requirements.

B. Domestic Content Certifcation

For: Small Businesses, Nonprofits and Project Development Teams

Verifies: Majority Ownership Country of Origin Designation

Confirms that at least 51% of the small business is owned by individuals who are residents of the country specified in the certification designation.

Example: XYZ LLC’s ownership team is 51% U.S. and 49% international, making them eligible to become “Domestic Content Certified” with a U.S. designation. This certification enhances XYZ LLC’s eligibility and visibility for industries and development projects with domestic content policy requirements.

Benefits of Becoming Local Content and Domestic Content Certified

Increased Eligibility for Public-Private Contracts

Certification positions small businesses and nonprofits to secure high-value contracts in public-private partnerships where local content compliance is a key criterion for awarding contracts. This gives them access to expanded market opportunities in infrastructure development.

Enhanced Visibility and Credibility

Certification signals to project owners and other stakeholders that the business is a reliable, compliant partner, capable of contributing meaningfully to the success of local and domestic content-focused projects. This boosts market visibility and attracts new opportunities within the ecosystem of certified suppliers.

Eligibility for Economic Incentives and Funding

Being certified can make these organizations eligible for various public funding programs and tax incentives tied to local and domestic content requirements, leading to financial advantages and greater resources to support their operations and growth.

II. Local Content Ratings

For: Infrastructure Development Projects

Local and Domestic Content Ratings provide both public and private development projects with increased public confidence and compliance with Local and Domestic Content project requirements, which mandate the use of local small businesses, job creation, community benefit investments, and stakeholder engagement. We use a rules-based methodology to identify industry leaders and laggards based on their exposure to these local content criteria and how well they manage them relative to their peers. Our Local Content Ratings range from high (AAA, AA) and mid (BBB, BB) to low (CCC) levels of transparency and compliance, reflecting the development project performers' adherence to these criteria.

Enhanced Transparency and Accountability

Transparency fosters trust and confidence among the public and local communities, ensuring that infrastructure projects are contributing to the local economy as promised.

Improved Compliance with Public Policies

Regulators can use ratings to verify that projects are fulfilling their commitments to meet local content standards, which is essential for maintaining the integrity of public funding programs, tax incentives, and development goals.

Boosted Economic and Social Impact

Local stakeholders, including community leaders and small businesses, can more clearly see the tangible benefits of the project. For regulators, the ratings provide a valuable tool to assess whether infrastructure development is aligning with broader public policy goals like economic equity, job growth, and community well-being.

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