Where to startUtilities and public buyers
Guide 7 of 8Utilities, HUD-funded agencies, state transportation departments, cities and counties, and cooperative contracts such as Sourcewell and NASPO ValuePoint.
California utilities: GO 156 supplier diversity certification (CPUC Supplier Clearinghouse)
Who it is for. Businesses that want to sell to California investor-owned utilities (such as PG&E, Southern California Edison and San Diego Gas & Electric) and that are at least 51% owned and controlled by women, minorities, LGBT persons, persons with disabilities or disabled veterans.
General Order 156 (GO 156) is the California Public Utilities Commission (CPUC) rule that encourages utilities and other covered companies to buy from women, minority, disabled veteran, LGBT and persons-with-disabilities business enterprises. The CPUC-supervised Supplier Clearinghouse certifies these businesses for free and keeps the database the utilities search. Disabled veteran businesses are certified by the California Department of General Services (DGS) instead.
Steps
- 1Read the ownership ruleThe CPUC says the business must be at least 51% owned by one or more women, minority, LGBT or persons-with-disabilities individuals, and those same people must control management and daily operations. The CPUC also says certification is limited to U.S. citizens or legal aliens. The Clearinghouse says it certifies companies located in the United States, and a start-up must already be operating when it applies.CPUC: Certification
- 2Check whether you already hold a national certificationThe Clearinghouse FAQ says it accepts Comparable Agency Verification from NMSDC (National Minority Supplier Development Council), WBENC (Women's Business Enterprise National Council), NGLCC (National LGBT Chamber of Commerce) and Disability:IN. The CPUC says a reciprocal certification stays valid as long as the original certification is current with that agency.Supplier Clearinghouse FAQs
- 3Gather your documentsGet your most recent federal business tax return. The Clearinghouse says one year is required, in full, with all statements and schedules. If a document is missing, the Clearinghouse asks for a short written explanation on company letterhead. The online application lists the other ownership and control documents it needs.Supplier Clearinghouse FAQs
- 4Apply onlineGo to the Supplier Clearinghouse website and click Apply/Renew. Enter your Federal Employer Identification Number (FEIN) without dashes, then answer the questions that pick your application type. The Clearinghouse warns that the FEIN cannot be edited after you start, so check it first.Supplier Clearinghouse: Apply/Renew
- 5Disabled veteran-owned? Apply with DGS insteadThe CPUC says disabled veteran business enterprises (DVBEs) are certified by DGS's Office of Small Business and DVBE Services (OSDS). DGS says the disabled veteran must have a service-connected disability of at least 10 percent and must reside in California, the business must be at least 51 percent owned and managed by disabled veterans, and its home office must be in the U.S. (not a branch or subsidiary of a foreign firm). DGS asks for complete federal income tax returns for the previous three years. Register and apply through Cal eProcure, as DGS instructs. The Clearinghouse says DGS-certified DVBEs are imported into its database once a month.DGS: Apply for SB/DVBE certification
- 6Answer follow-up questionsThe CPUC says the review looks for evidence of ownership and control and that a site visit is sometimes needed. For applicants outside California, the CPUC fact sheet says a telephone interview may be used in place of a site visit.CPUC: GO 156 Certification fact sheet (PDF)
- 7Register with each utility separatelyCertification puts you in the database the utilities search. It is not a supplier account and not a contract. The Clearinghouse says certification is not a guarantee of receiving contracts. Register with PG&E, SCE and SDG&E using their own portals (see those guides).
- 8Meet utility buyersThe CPUC lists a free Small & Diverse Business Expo on September 30, 2026 (9 a.m. to 1 p.m.) with representatives from more than 55 utilities, public agencies, prime contractors and community choice aggregators, and the free 24th Annual GO 156 Supplier Diversity En Banc public hearing on October 1, 2026 (9 a.m. to 3:30 p.m.). Both are at the South San Francisco Conference Center, 255 S. Airport Blvd, South San Francisco. The CPUC also posts technical-assistance videos, including how to navigate contract opportunities with energy utilities and subcontracting opportunities with utilities' prime contractors.CPUC Supplier Diversity Program
- 9Renew before it expiresThe CPUC says certification is valid for three years. The Clearinghouse says you may complete the renewal application at least 90 days before your certificate expires.Supplier Clearinghouse FAQs
What to have ready
- Federal Employer Identification Number (FEIN)
- Most recent federal business tax return, complete with all statements and schedules (one year)
- Other ownership and control documents listed in the online application
- A short letter on company letterhead explaining any missing document
- Current NMSDC, WBENC, NGLCC or Disability:IN certificate, if you are using Comparable Agency Verification
- For DVBE certification with DGS: complete federal income tax returns for the previous three years (or each year in business, if fewer)
Time, cost, renewal and where to send
TimeAbout 45 to 90 days after all required documents are received, according to the CPUC fact sheet and the Clearinghouse FAQ. The CPUC certification page says certification is usually granted within 45 days of a complete application.
CostFree. The CPUC says "Certification is free of charge," and the Clearinghouse says there is no fee for certification.
RenewalValid for three years (CPUC). Reverify before expiry; the Clearinghouse accepts the application at least 90 days before the expiration date.
Where to sendOnline through the Supplier Clearinghouse website (thesupplierclearinghouse.com, Apply/Renew). Disabled veteran businesses apply with DGS through Cal eProcure (caleprocure.ca.gov); DGS certification questions: Certification@dgs.ca.gov, (916) 375-4940. Questions about the CPUC program: supplierdiversity@cpuc.ca.gov.
Where to get help
- CPUC Supplier Diversity ProgramTechnical-assistance videos (contract opportunities with utilities, subcontracting with utilities' prime contractors, meeting utility supplier diversity representatives) and free events such as the Small & Diverse Business Expo; contact supplierdiversity@cpuc.ca.gov.
- Supplier ClearinghouseFree certification and the certified-supplier directory that GO 156 utilities search.
Watch out
- Certification is not a contract. The Clearinghouse says it is not a guarantee of receiving contracts.
- The FEIN cannot be changed after you start the application, according to the Clearinghouse.
- The CPUC fact sheet says GO 156 covered entities can count only purchases from CPUC-certified diverse suppliers in their annual filings, so a certification from another body counts only if the Clearinghouse accepts it.
- GO 156 goals are targets for the utilities. GO 156 section 8.14 is titled "No penalties for failure to meet goals."
- The GO 156 text posted on the CPUC website is the version "as amended through June 11, 2015." Later changes, such as adding persons-with-disabilities businesses and, under SB 255 (2019), community choice aggregators and energy service providers, are described on the CPUC program page.
Official sources
PG&E: supplier registration and supplier diversity
Who it is for. Drone and robotics companies that want to sell products or inspection services to Pacific Gas and Electric Company (PG&E) in Northern and Central California.
PG&E asks prospective suppliers to create a profile in its SupplierOne registration portal so its sourcing teams can see what you offer. PG&E lists minimum qualifications (insurance, experience, references, financial stability) and extra safety and quality rules for some work. PG&E says its drone fleet is flown by PG&E pilots and contractors who are all FAA-licensed commercial pilots following FAA Part 107.
Steps
- 1Check PG&E's minimum qualificationsPG&E's "Become a PG&E Prospective Supplier" sheet lists: general liability, auto and workers' compensation insurance of at least $1 million each; at least 2 years of operation doing similar work (or equivalent experience); five current customer references; evidence of good credit and financial stability; a U.S. federal taxpayer ID or your country's equivalent; the ability to collect and pay sales and other taxes; and the ability to use Electronic Data Interchange (EDI) for orders and invoices. PG&E says requirements vary by product and service.PG&E: Become a Prospective Supplier (PDF)
- 2Get GO 156 certification if it appliesPG&E sends GO 156 suppliers to the CPUC Supplier Clearinghouse, and disabled veteran-owned businesses to the DGS portal on Cal eProcure. See the GO 156 guide.PG&E Supplier Diversity
- 3Create your supplier profile in SupplierOneRegister your company on PG&E's Supplier Profile Registration and Maintenance portal (linked from PG&E's Suppliers page). PG&E's Supplier Diversity page says registering lets its Sourcing and Functional Areas view your company's capabilities.PG&E SupplierOne registration
- 4Check the extra rules for your type of workPG&E says underground conduit access work requires registration in ISNetworld, a grade of B or better in PG&E's contractor safety program, and current Gold Shovel certification. PG&E says suppliers of high-risk materials must be ISO 9001 certified and points to its Supplier Quality Requirements for Materials.PG&E Suppliers page
- 5Contact PG&E's supply chain teamPG&E lists the Supply Chain Responsibility team at supplychainresponsibility@pge.com and 510-898-0310 for supplier questions.PG&E Supplier Diversity
What to have ready
- Certificates of insurance: general liability, auto and workers' compensation, $1 million each (PG&E minimum)
- Proof of at least 2 years of operation doing similar work, or equivalent experience
- Five current customer references for similar work
- Evidence of good credit and financial stability
- U.S. federal taxpayer ID (or your country's equivalent)
- GO 156 or DVBE certificate, if you have one
- For drone work: FAA Part 107 remote pilot certificates for your pilots. PG&E's supplier pages do not list this as a registration document, but PG&E says every pilot and contractor flying for it is an FAA-licensed commercial pilot following Part 107
- ISNetworld registration, contractor safety grade and Gold Shovel certification for underground conduit work; ISO 9001 certificate for high-risk materials
Time, cost, renewal and where to send
TimePG&E does not publish a processing time for SupplierOne registration.
CostPG&E's pages do not list a fee for SupplierOne registration. GO 156 certification through the Supplier Clearinghouse is free.
RenewalNo renewal period is stated. The portal is described as a registration and maintenance page for keeping your profile up to date.
Where to sendOnline at pge.supplierone.co. Questions: supplychainresponsibility@pge.com, 510-898-0310.
Where to get help
Watch out
- PG&E's minimum-qualifications sheet is stored under a file name that includes "2015", so some items may have changed. PG&E says requirements vary by product and service.
- A SupplierOne profile makes you visible to PG&E buyers. It is not a contract or an invitation to bid.
- Underground conduit access work has added safety requirements (ISNetworld, contractor safety grade B or better, Gold Shovel), according to PG&E.
Official sources
Southern California Edison (SCE): supplier registration in SAP Ariba
Who it is for. Drone and robotics companies that want to sell products or services to Southern California Edison.
SCE registers suppliers in SAP Ariba, where you create a profile and fill in SCE's profile questionnaire. SCE says there is no fee to register and that anyone who wants to be considered for a posted bid must register and contact its Supplier Diversity & Development team at least 30 days before the event's Estimated Launch Date. SCE reported in 2021 that drones did about 75% of its aerial inspections in high fire risk areas.
Steps
- 1Gather what SCE asks for before you startSCE lists: company contact information and a short summary of your capabilities; your tax ID number and Dun & Bradstreet (D&B) number; certificates (diverse business enterprise, insurance, business licenses and similar); and your Experience Modification Rate (EMR, a workers' compensation safety score) if work may be done on an SCE job site or at an SCE facility.SCE Bid Opportunities
- 2Register in SAP AribaCreate a profile on SCE's Ariba Supplier Registration site (sce.supplier.ariba.com/register, per SCE's FAQ). SCE says you will get a registration confirmation email from Ariba, then sign in to Ariba and complete the SCE Profile Questionnaire. SCE also posts an Ariba Supplier Self Registration Guide and a registration FAQ on its Buying & Selling page.SCE Buying & Selling
- 3Wait for SCE's two noticesSCE says you will be told when your registration submission is received, and again when its review is done and your registration is complete.SCE Bid Opportunities
- 4Watch upcoming bids and meet the 30-day ruleCheck SCE's Bid Opportunities page. SCE says any interested party must complete Ariba registration and connect with the Supplier Diversity & Development team at least 30 days before the Estimated Launch Date to be considered as a potential bidder.SCE Bid Opportunities
- 5Expect invitation-based sourcing eventsSCE says its procurement agents typically publish a sourcing event to a group of suppliers that meet the qualification criteria set for that event.SCE Bid Opportunities
- 6Add diverse-business certification if it appliesSCE's supplier diversity FAQ names the Supplier Clearinghouse for minority-, women- and LGBT-owned certification and DGS for disabled veteran-owned certification. See the GO 156 guide.SCE Supplier Diversity FAQ (PDF)
What to have ready
- Company contact information and a brief capabilities summary
- Tax ID number
- Dun & Bradstreet (D&B) number
- Certificates: diverse business enterprise, insurance, business licenses
- Experience Modification Rate (EMR), if work may be done on an SCE job site or facility
- Financial statement (listed in SCE's older supplier diversity FAQ)
Time, cost, renewal and where to send
TimeRegister and contact SCE's Supplier Diversity & Development team at least 30 days before a posted event's Estimated Launch Date. SCE does not publish a review time for registration.
CostFree to register. SCE says: "No, there is no fee to register. However, there may be fees related to transacting orders and processing invoices through the system."
RenewalNo renewal period is stated on SCE's pages.
Where to sendSAP Ariba supplier registration at sce.supplier.ariba.com/register (also linked from SCE's Buying & Selling page). Supplier diversity: SCEsupplierdiversitydevelopment@sce.com. Ariba questions: Aribateam@sce.com.
Where to get help
Watch out
- SCE's 30-day registration rule is tied to each event's Estimated Launch Date.
- Registration is free, but SCE says there may be fees for transacting orders and processing invoices through the system.
- SCE says completing any part of its checklist does not give any business the right to bid or receive a contract, and that registering in Ariba does not ensure an invitation to bid.
Official sources
San Diego Gas & Electric (SDG&E): Supplier Interest Form
Who it is for. Drone and robotics companies that want to sell products or services to San Diego Gas & Electric.
SDG&E asks new suppliers to fill out its Supplier Interest Form and email a PDF capability statement to its Responsible Sourcing team. SDG&E says it cannot contact every company that submits a form and will reach out if there is a need your company can fill. SDG&E runs its own Unmanned Aircraft System program for power line inspection, vegetation monitoring, fire hazard detection and storm damage assessment.
Steps
- 1Write a one-page capability statementSDG&E describes it as a one-page document with your contact information, certifications, past clients and project highlights. Save it as a PDF.SDG&E Responsible Sourcing
- 2Fill out the Supplier Interest FormThe form asks for company name and contacts, website, headquarters and local addresses, SIC (Standard Industrial Classification) code, number of employees, annual gross revenue, year of incorporation, utility experience, and any diverse business certifications (WBE, MBE, LGBTBE, DVBE, PDBE or SBA 8(a)).SDG&E Supplier Interest Form
- 3Email your capability statementSend the PDF capability statement to ResponsibleSourcing@sdge.com, as the form page instructs.SDG&E Supplier Interest Form
- 4Get GO 156 certification if it appliesSDG&E encourages diverse suppliers to get certified at no cost through the Supplier Clearinghouse. SDG&E notes that DVBE certification is done by DGS's OSDS. See the GO 156 guide.Supplier Clearinghouse
- 5Send the supplier tax formsSDG&E's Supplier Documents page lists California Form 590 (California residents) or Form 587 (non-residents), plus IRS Form W-9 (U.S.) or W-8BEN (foreign business or individual), faxed to Sempra Accounts Payable. SDG&E says your supplier information cannot be processed until Accounts Payable receives these forms.SDG&E Supplier Documents
What to have ready
- One-page capability statement (PDF)
- Company details for the form: addresses, SIC code, employee count, annual gross revenue, year of incorporation, utility experience
- Diverse business certificates, if any (Clearinghouse, DGS DVBE or SBA 8(a))
- Supplier tax forms: California Form 590 or 587, and IRS W-9 or W-8BEN (SDG&E cannot process supplier information until Accounts Payable receives them)
Time, cost, renewal and where to send
TimeSDG&E does not give a response time. It says it will reach out only if there is a need your company can help fill.
CostSDG&E's pages do not list a fee for the interest form. Certification through the Supplier Clearinghouse is free, and SDG&E states it is "at no cost."
RenewalNo renewal period is stated.
Where to sendSupplier Interest Form on sdge.com; capability statement PDF to ResponsibleSourcing@sdge.com; tax forms to Sempra Accounts Payable (fax 619-819-4314, per SDG&E's Supplier Documents page).
Where to get help
- SDG&E Responsible SourcingSDG&E's supplier diversity team; posts its annual supplier diversity report and a one-page list of major procurement categories.
Watch out
- SDG&E says that, because of the volume of inquiries, it cannot contact every company that submits a form.
- The interest form is not a bid. SDG&E contacts companies when it has a matching need.
Official sources
Other large U.S. utilities with drone programs: how their supplier registration works
Who it is for. Drone and robotics companies that want to sell to large investor-owned utilities outside California.
Large utilities usually ask suppliers to self-register in an online supplier portal, then invite qualified suppliers to sourcing events. Duke Energy, Florida Power & Light (FPL, part of NextEra Energy) and Southern Company (including Georgia Power) all describe active drone programs and each uses a different portal. The utilities say registration makes you visible to buyers but does not by itself give you business.
Steps
- 1Duke Energy: register through PowerAdvocateDuke Energy invites suppliers to register through its third-party platform, Wood Mackenzie (the Register button opens a PowerAdvocate registration page). Duke says joining the supplier database makes your business visible to its sourcing team. Duke describes a drone program that began as a three-person proof of concept in 2017 and now inspects distribution and transmission lines, substations, solar sites and storm damage.Duke Energy: Suppliers
- 2FPL / NextEra Energy: self-register in the supplier databaseFPL invites all potential suppliers to self-register in NextEra Energy's supplier registration tool and says information must be up to date, complete and accurate. FPL says it conducts more than 400 drone assessments a day and flew more than 140,000 drone flights in 2022.FPL: Suppliers
- 3Southern Company and Georgia Power: sourcing in SMART by GEPSouthern Company runs sourcing events in SMART by GEP. Its supplier FAQ says only contacts invited to a sourcing event can view and quote on it. Suppliers must follow Southern Company's Supplier Code of Conduct and, depending on the work, contractor screening such as drug screening and background checks. Georgia Power reported in September 2024 that it uses drones to inspect transmission lines.Southern Company: Suppliers
- 4Prepare for qualificationRegistration comes before qualification. SCE, for example, says it invites suppliers that meet each event's qualification criteria, and PG&E and SCE ask for items such as a tax ID, insurance certificates and safety records. Each utility sets its own list.
- 5Contact the utility's supplier diversity or supply chain teamDuke Energy's Supplier Diversity page says its program cultivates partnerships with small, local and diverse businesses, and asks you to contact its Supplier Diversity team to learn which types of businesses are eligible to participate. FPL lists NextEra-Supplier-Management@nexteraenergy.com. Southern Company lists R2SUPDIV@southernco.com on its Supplier Development Program page.Duke Energy: Supplier Diversity
What to have ready
- Federal Taxpayer Identification Number (TIN); FPL's supplier FAQ asks for it to access its supplier account
- Company profile describing your products and services
- Insurance certificates and safety records, as each utility asks
- For drone work: FAA Part 107 remote pilot certificates (Georgia Power says all its drone assessments are completed by licensed drone pilots and comply with all FAA rules)
Time, cost, renewal and where to send
TimeNot published by these utilities.
CostNo registration fee is listed on the Duke Energy, FPL or Southern Company pages checked.
RenewalNot stated. FPL says your information must be kept up to date, complete and accurate.
Where to sendDuke Energy: PowerAdvocate registration linked from duke-energy.com/Partner-With-Us/Suppliers. FPL/NextEra: nexteraenergy.supplierone.co/account/Register. Southern Company: SMART by GEP (smart.gep.com), linked from southerncompany.com/about/suppliers.html.
Where to get help
Watch out
- FPL's FAQ says registering gives no special consideration: "We make procurement decisions on a competitive basis and consider all pertinent criteria, such as safety, quality, cost and reliability."
- Southern Company says it awards business based on the best overall value, and only invited contacts can see a sourcing event.
- Each utility uses a different portal (PowerAdvocate, SupplierOne, SMART by GEP), so a profile in one does not carry over to another.
Official sources
HUD contracts: how HUD buys through SAM.gov and its small business office
Who it is for. Companies that want to sell products or services directly to the U.S. Department of Housing and Urban Development (HUD).
HUD buys like other federal agencies: its contracting officers post solicitations on SAM.gov (the System for Award Management) under the Federal Acquisition Regulation (FAR). HUD's Office of Small and Disadvantaged Business Utilization (OSDBU) publishes a Forecast of Contracting Opportunities and a calendar of outreach events. Much HUD money is also spent by local agencies, such as public housing agencies, that run their own bids.
Steps
- 1Register your company in SAM.govHUD's forecast says actual solicitation notices, if required, will be posted on SAM.gov as the FAR requires. SAM.gov's Entity Registration Checklist says "SAM.gov is FREE to use. There is no charge to get a Unique Entity ID, register your entity, and maintain your entity registration at SAM.gov." SAM.gov says registration can take up to 10 business days to become active and must be renewed every 365 days. See the SAM.gov guide for the full steps.SAM.gov: Entity registration
- 2Read HUD's Forecast of Contracting OpportunitiesOSDBU posts the forecast as an online dashboard, with PDF and Excel copies updated monthly. HUD says the dashboard is the most up-to-date version. Each row lists the HUD office, NAICS (North American Industry Classification System) code, type of competition, dollar range, point-of-contact email and expected solicitation and award months.HUD Forecast of Contracting Opportunities
- 3Search SAM.gov for HUD solicitationsSearch Contract Opportunities on SAM.gov and filter by the Department of Housing and Urban Development. The HUD forecast links to SAM.gov for government-wide contracting opportunities.SAM.gov Contract Opportunities
- 4Join OSDBU outreach eventsHUD's OSDBU calendar lists vendor outreach sessions, conferences and expos that may interest small businesses. Events that OSDBU sponsors or has confirmed it will attend are shown in bold. HUD-sponsored events, such as Meet and Greets with OSDBU, are posted on HUD's events site (hud.my.site.com/hevents). On September 25, 2026 the calendar listed no events after that date, so check back for new ones.HUD OSDBU Outreach Events Calendar
- 5Look for subcontracting with HUD's prime contractorsSBA says its SUBNet (subcontracting network) helps large federal prime contractors find small subcontractors. Browse the listing on SBA's SUBNet page, filter by state or keyword, and send questions to the point of contact posted for each opportunity, not to SBA.SBA: Subcontracting opportunities (SUB-Net)
- 6Find HUD money spent locallyPublic housing agencies, cities and states that receive HUD awards buy under their own documented procurement procedures, as the federal grant rules in 2 CFR 200.318 require. They post their own bids, usually on their own websites or bid portals. See the local agencies guide and the Section 3 guide.2 CFR 200.318 (eCFR)
What to have ready
- Active SAM.gov registration with a Unique Entity ID (UEI)
- Your NAICS codes, to match rows in HUD's forecast
- A capability statement to send to forecast points of contact or bring to outreach events
Time, cost, renewal and where to send
TimeSAM.gov says a new registration can take up to 10 business days to become active. HUD's forecast shows each item's expected solicitation release month.
CostSAM.gov registration is free: SAM.gov's Entity Registration Checklist says there is no charge to get a Unique Entity ID, register or maintain a registration. HUD's forecast, event calendar and SAM.gov opportunity search are public; SAM.gov says no account is needed to search contract opportunities.
RenewalSAM.gov registration must be renewed every 365 days (SAM.gov). HUD updates the forecast PDF and Excel copies monthly.
Where to sendBids go wherever each SAM.gov notice says, usually by email or upload as the notice instructs. Questions about a forecast item go to the point-of-contact email listed for that row.
Where to get help
Watch out
- HUD's forecast is for planning only. HUD says it "does not represent a pre-solicitation synopsis, does not constitute an invitation for bid or request for proposal, and is not a commitment by the Government to purchase."
- HUD's forecast dated August 31, 2026 lists NSPIRE (National Standards for the Physical Inspection of Real Estate) work, but its two NSPIRE physical-inspection task orders for fiscal year 2027 are marked "Cancelled." Still listed without that status: NSPIRE "Enhanced Assessments" (competitive 8(a)) and NSPIRE consulting services (total small business). The forecast does not say whether drones may be used.
- Grants and HUD-funded local purchases follow different rules than HUD's own contracts. A local public housing agency bid is not posted on SAM.gov unless that agency chooses to post it there.
Official sources
HUD Section 3: what it is and when it applies
Who it is for. Businesses that bid on construction, rehabilitation or public housing work paid for with certain HUD money, and businesses owned by or employing low-income people.
Section 3 is a rule on organizations that receive certain HUD money, such as public housing agencies and HUD grantees. HUD says they must ensure, "to the greatest extent feasible," that training, jobs and contracting opportunities go to low- and very low-income people and to businesses owned by or employing them (24 CFR 75.19 uses the same words for Section 3 projects). HUD's Guidebook says businesses may self-certify, and the funding recipient must verify the information before awarding the contract.
Steps
- 1See whether the project is coveredUnder 24 CFR 75.3, Section 3 applies to public housing financial assistance and to Section 3 projects. A Section 3 project is housing rehabilitation, housing construction or other public construction assisted by HUD housing and community development money above a dollar threshold. HUD raised the thresholds to $300,000, and to $150,000 for Lead Hazard Control and Healthy Homes money, effective March 16, 2026.Federal Register: Section 3 threshold update (2026)
- 2Check the material supply exclusion24 CFR 75.3(b) says Section 3 requirements do not apply to material supply contracts. The definitions in 24 CFR 75.5 describe these as contracts for the purchase of products and materials, such as lumber, drywall, wiring, concrete, pipes, toilets, sinks, carpets and office supplies.24 CFR Part 75 (eCFR)
- 3Read the Section 3 business concern definitionUnder 24 CFR 75.5, a Section 3 business concern meets at least one test, documented within the last six months: (1) at least 51% owned and controlled by low- or very low-income persons; (2) over 75% of the labor hours for the business in the prior three months were worked by Section 3 workers; or (3) at least 51% owned and controlled by current public housing residents or residents of Section 8-assisted housing.24 CFR Part 75 (eCFR)
- 4Self-certify when a bid asks for itHUD's Section 3 Guidebook says business concerns may self-certify, that recipients should require a certification form during bidding or contracting, and that the information must be verified before the contract is awarded. HUD posts a sample certification form for recipients to use.HUD Section 3 Guidebook: Contracting with Eligible Businesses
- 5Find covered bids at the local levelSection 3 contracting happens through the agencies that receive HUD money: public housing agencies, cities, counties and states. Watch their bid portals. HUD's Guidebook asks recipients to communicate Section 3 requirements at pre-bid and pre-award meetings and to make sure everyone bidding knows about any Section 3 requirements. HUD Exchange's Section 3 Resource Hub lists state-specific resources.HUD Exchange: Section 3
What to have ready
- The recipient's Section 3 business concern certification form, if the bid includes one
- Records from the last six months that support the test you claim, such as ownership records, owner income documentation, labor-hour records for Section 3 workers, or proof of public housing or Section 8 residency
Time, cost, renewal and where to send
TimeHUD's Guidebook says the Section 3 status decision is made when a contract is being developed and before it is signed.
CostHUD's rule and Guidebook describe no HUD application or fee for Section 3 status. The Guidebook says business concerns may self-certify, using the certification form the recipient asks for.
RenewalHUD's Guidebook says a certified Section 3 business concern keeps that status as long as it continues to meet the 24 CFR 75.5 definition. The regulation says the criteria must be documented within the last six-month period.
Where to sendTo the public housing agency, city, county, state or contractor running the bid, with your bid or contract paperwork. There is no central HUD submission.
Where to get help
- HUD Exchange: Section 3 program page and GuidebookHUD's Section 3 rules, notices, Guidebook, a state-by-state Resource Hub and a Neighborhood and Service Area Tool. HUD says its Section 3 Ask A Question desk is closed and directs questions to local HUD Field Offices.
Watch out
- Section 3 does not require any recipient or contractor to award a contract to a Section 3 business. 24 CFR 75.5 says "Nothing in this part shall be construed to require the contracting or subcontracting of a Section 3 business concern," and Section 3 businesses must still meet the contract specifications.
- Section 3 does not apply to material supply contracts (24 CFR 75.3(b)).
- The dollar thresholds in the eCFR text still read $200,000 and $100,000. HUD's Federal Register notice raised them to $300,000 and $150,000 effective March 16, 2026, as the rule allows by notice.
Official sources
State departments of transportation (DOTs) with drone programs
Who it is for. Drone and robotics companies that want to sell equipment, inspection, mapping or survey services to a state department of transportation.
State DOTs fly their own drones and hire outside firms. They usually buy equipment through the state's purchasing portal and hire engineering, survey and inspection firms through consultant selection, often with prequalification. Caltrans (California) and MnDOT (Minnesota) are two examples, and state drone rules differ from state to state.
Steps
- 1Learn how the DOT uses dronesCaltrans says its Division of Aeronautics is the lead division for using unmanned aircraft systems (UAS) for Caltrans business. MnDOT says its drone pilots logged more than 1,000 flight hours in 2025, when its 58 pilots made 648 flights for bridge inspections, surveying and map making, stormwater drain inspections and herbicide application. A MnDOT bridge-inspection story on the same page says more than 30 MnDOT pilots fly a fleet of 46 drones, using photography and thermal scans.MnDOT: Drones
- 2Register on the state's bid portalCaltrans sends vendors to Cal eProcure to view bidding opportunities. Caltrans also keeps a Contractor Interest Registry for emergency contracting work. In other states, find the central state purchasing portal and the DOT's own contracting pages.Caltrans: Contract with Caltrans
- 3For engineering, survey and inspection services, use the consultant routeCaltrans advertises Architectural & Engineering (A&E) contracts on Cal eProcure and asks for a Statement of Qualifications (SOQ) that includes federal form SF330 (Architect-Engineer Qualifications), plus forms such as the California Civil Rights Laws Certification (ADM-0076). MnDOT runs a consultant Pre-Qualification Program with work types that include 4.0 Bridge Inspection, 9.0 Land Surveys and 10.0 Photogrammetric Mapping and Aerial Imagery. MnDOT decides prequalification pass/fail for each work type.MnDOT: Consultant Pre-Qualification Program
- 4Apply for MnDOT prequalificationMnDOT lists an Administrative Application, a Resume & Relevant Project Experience Form (Form PQ1), any required affidavits and audit information as needed. MnDOT says its Pre-Qualification Program Administrator will reach out when a renewal is needed. Questions: PreQualificationProgram.dot@state.mn.us.MnDOT: Work Type Definitions
- 5Follow each state's drone operating rulesCaltrans says operating a UAS from within the State Highway System right-of-way requires a Caltrans encroachment permit, requested from the local District Encroachment Permits Office. Caltrans says it considers these requests only for authorized construction work or other permitted activities such as commercial filming, special events, surveys or accident reconstruction. UAS use by contractors and consultants on current Caltrans projects may be allowed and must be coordinated with the Division of Aeronautics through the Caltrans contract or project coordinator. Minnesota requires aircraft, including drones, used over the state to be registered with MnDOT (MnDOT says "in most cases, registration costs $25 per year"). Minnesota also requires a Commercial Operations License ($30 a year) when a person advertises or holds out a service that involves aircraft; MnDOT decides case by case, considering whether flight outputs are provided to a third party, and drone operators must give the Office of Aeronautics their certificate of insurance. Drone questions: droneinfo.dot@state.mn.us. North Carolina stopped requiring a state permit for commercial and government drone operators on December 1, 2024, according to NCDOT.MnDOT: Commercial drone operators
- 6Check small business and DBE optionsCaltrans points to DGS for California Small Business (SB) and Disabled Veteran Business Enterprise (DVBE) certification and to its Office of Civil Rights for the federal Disadvantaged Business Enterprise (DBE) program on federally funded transportation contracts. (The DGS link on the Caltrans page is out of date; DGS's current page is "Apply for or Re-Apply for Certification as a Small Business and/or DVBE." DGS says SB certification requires a principal office in California and owners domiciled in California.) The U.S. Department of Transportation published a DBE final rule effective September 25, 2026 that completes a move to individualized determinations of social and economic disadvantage.Caltrans: Become a Certified Business
What to have ready
- State bid portal registration (for California, Cal eProcure)
- For consultant work: Statement of Qualifications on SF330 (Caltrans) or MnDOT prequalification application, Form PQ1 resumes and project experience, affidavits and audit information
- FAA registration numbers and remote pilot certificates
- Proof of insurance (required for Minnesota aircraft registration and the Commercial Operations License)
- Caltrans encroachment permit to operate from within the State Highway System right-of-way
- SB, DVBE or DBE certificates, if you have them
Time, cost, renewal and where to send
TimeNot published as a single figure. MnDOT prequalification is decided per work type; Caltrans A&E contracts follow each advertisement's schedule on Cal eProcure.
CostMinnesota: aircraft registration usually $25 per year and Commercial Operations License $30 per year (MnDOT). No fee is listed for Cal eProcure viewing or MnDOT prequalification on the pages checked.
RenewalMinnesota registration and license are yearly. MnDOT prequalification renewal: MnDOT contacts you when renewal is needed.
Where to sendCalifornia: bids and SOQs through Cal eProcure as each ad instructs; encroachment permit applications (form TR-0100) to the local Caltrans District Encroachment Permits Office; drone questions to UAS@dot.ca.gov. Minnesota: prequalification forms to the MnDOT Pre-Qualification Program (PreQualificationProgram.dot@state.mn.us); drone registration and license through MnDOT's commercial operations and registration portal.
Where to get help
Watch out
- Flying over or from a state highway can need a separate permit even when you hold an FAA certificate. Caltrans requires an encroachment permit for operating from within the State Highway System right-of-way, and says UAS operations there for other purposes, such as recreation, private or business uses, are not allowed.
- State drone laws differ: Minnesota requires state registration and, for commercial work, a license; North Carolina ended its state permit in 2024.
- The federal DBE program changed. USDOT's interim final rule of October 3, 2025 removed race- and sex-based presumptions of disadvantage, and the final rule effective September 25, 2026 completes the move to individualized determinations.
Official sources
Cities, counties, fire and police departments
Who it is for. Drone and robotics companies that want to sell to local governments, including fire departments, police and sheriff's offices.
Cities and counties buy through their own purchasing offices and online bid portals, and they can also buy from cooperative contracts that another public body already competed. Purchases made with federal grant money must follow federal procurement rules, and since December 22, 2025 the American Security Drone Act bars using federal funds to buy or operate drones made or assembled by covered foreign entities, with limited exemptions listed in the Act. California police agencies also need governing-body approval before acquiring drones.
Steps
- 1Register on each city or county bid portalEach local government runs its own portal. The City of San Diego uses PlanetBids and says registration is at no cost, and that you must be registered to submit bids. Los Angeles County uses WebVen for vendor registration and posts open solicitations on its Doing Business site. The City of Sacramento's Procurement Services Division links to its eBid Portal for bidding on city contracts and projects.City of San Diego: Vendor registration
- 2Check local small business preferencesSome local governments give bid preferences to certified businesses. Los Angeles County says certified Local Small Business Enterprises (LSBE), Social Enterprises (SE) and Disabled Veteran Business Enterprises (DVBE) can receive a 15% bid price reduction or preference on certain goods and services.LA County: Doing Business
- 3Know how fire and police departments usually buyDepartments buy through their city or county purchasing office, through cooperative contracts (see the cooperative contracts guide), or with grant money. When they use federal grant money, 2 CFR 200.318 requires documented procurement procedures and encourages intergovernmental agreements for common goods and services.2 CFR 200.318 (eCFR)
- 4Check the federal-funds drone ruleSection 1825 of the American Security Drone Act of 2023 (in Public Law 118-31) says that, starting two years after enactment (enacted December 22, 2023), no federal funds from a contract, grant or cooperative agreement may be used to buy a drone manufactured or assembled by a covered foreign entity, or to operate one. The covered foreign entity list is kept by the Federal Acquisition Security Council and published in SAM.gov. Section 1830 says state and local law enforcement and emergency service agencies may still buy such drones with non-federal dollars.Public Law 118-31, Subtitle B (American Security Drone Act)
- 5California police sales: expect a policy approval stepCalifornia Government Code 7070(c)(1) lists "unmanned, remotely piloted, powered aerial or ground vehicles" as military equipment. Section 7071(a) says a law enforcement agency must get approval from its governing body, by an ordinance adopting a military equipment use policy, before seeking funds for, acquiring or using such equipment.California Government Code 7071
What to have ready
- Vendor registration on each city or county portal
- Local certifications (for example LA County LSBE, SE or DVBE), if you have them
- Documents to show where your drones are made or assembled, if the buyer is using federal funds
- Insurance certificates, business license and W-9, as each bid requires
Time, cost, renewal and where to send
TimeSet by each bid. San Diego says you must be registered before you can submit a bid.
CostFree for the City of San Diego's PlanetBids registration ("at no cost"). Other portals set their own terms.
RenewalNot stated on the portal pages checked.
Where to sendThrough each local government's bid portal as the solicitation instructs: for example, PlanetBids for San Diego, and WebVen plus doingbusiness.lacounty.gov for Los Angeles County.
Where to get help
Watch out
- Federal grant money now comes with a drone-origin rule: since December 22, 2025, American Security Drone Act Section 1825 bars using federal funds to buy or operate drones manufactured or assembled by a covered foreign entity. Sections 1823 to 1825 sunset five years after enactment (December 22, 2028).
- A California police sale can wait on a city council or board ordinance approving a military equipment use policy (Government Code 7071).
- Registering on one city's portal does not register you with the county or with neighboring cities.
Official sources
Cooperative purchasing contracts: Sourcewell and NASPO ValuePoint
Who it is for. Drone and robotics companies that want one competitively awarded contract that many public agencies can buy from without running their own bid.
Cooperative contracts let a city, county, school, state or other public agency buy from a contract that another public body already competed. Sourcewell, a Minnesota local government unit, has an open request for proposals (RFP) for Uncrewed and Remotely Operated Vehicle Systems due October 22, 2026. NASPO ValuePoint awards multistate contracts through a Lead State and has no vendor registration list; the only way on is to win an open solicitation.
Steps
- 1Sourcewell: read the open drone RFP nowSourcewell is requesting proposals for "Uncrewed and Remotely Operated Vehicle Systems with Related Technology and Services." Proposals are due no later than October 22, 2026 at 3:30 PM Central Time; the pre-proposal conference was September 24, 2026. Sourcewell says its Participating Entities include thousands of governmental, higher education, K-12, nonprofit, tribal government and other public agencies in the United States and Canada.Sourcewell: Uncrewed and Remotely Operated Vehicle Systems RFP
- 2Sourcewell: get the full RFP and submit in the portalCreate a free Sourcewell Procurement Portal account. Sourcewell says it "does NOT charge a fee for creating or maintaining a Sourcewell Procurement Portal account or for accessing Sourcewell solicitation documents," and that a free account is required to download bid documents and addenda. The full RFP, questions (through the portal's Question and Answer feature) and proposals all go through the portal, and only proposals submitted there will be considered. Late proposals will not be considered.Sourcewell Procurement Portal
- 3NASPO ValuePoint: watch for an open solicitationNASPO ValuePoint says it "does not have a vendor registration process or an approved vendor list." It says suppliers become NASPO ValuePoint suppliers by responding to and competing for a Master Agreement in a competitive solicitation. Solicitations are published through the Lead State's eProcurement system and advertised on NASPO ValuePoint's Solicitations page.NASPO ValuePoint: FAQs for Suppliers
- 4NASPO ValuePoint: plan for Participating AddendumsAfter a Master Agreement is awarded, each state or eligible entity must sign a Participating Addendum (PA) with the supplier before buying. NASPO ValuePoint says that without a signed PA the supplier cannot use the contract as a sales vehicle.NASPO ValuePoint: FAQs for Suppliers
- 5No open solicitation? Look at dealer or partner routesNASPO ValuePoint says that where a Master Agreement allows it, suppliers may partner with an existing contract holder as a fulfillment partner, distributor or authorized dealer. Portfolios typically run about five years before they are re-solicited.NASPO ValuePoint: How to Become a Supplier
What to have ready
- Everything the RFP asks for, downloaded from the Sourcewell Procurement Portal or the NASPO Lead State's eProcurement system
- Pricing, product and service descriptions, and the nationwide dealer or service network the RFP describes
- Signed Participating Addendums with each state or entity after a NASPO ValuePoint award
Time, cost, renewal and where to send
TimeSourcewell drone RFP due October 22, 2026, 3:30 PM Central Time. NASPO ValuePoint portfolios typically run about five years.
CostSourcewell: free. Sourcewell says it does not charge a fee for creating or maintaining a Procurement Portal account or for accessing solicitation documents. NASPO ValuePoint charges awarded suppliers an administrative fee based on portfolio sales; the amount is in each Master Agreement and solicitation.
RenewalContracts are re-solicited at the end of their term. NASPO ValuePoint says that once a bid closes, the opportunity for additional suppliers is typically closed for the term of that portfolio.
Where to sendSourcewell: only through the Sourcewell Procurement Portal (proportal.sourcewell-mn.gov); general procurement questions to rfp@sourcewell-mn.gov or 877-585-9705. NASPO ValuePoint: through the Lead State's eProcurement system named in each solicitation.
Where to get help
Watch out
- Missing the window can mean waiting years: NASPO ValuePoint says the opportunity for additional suppliers is typically closed for the term of the portfolio, about five years.
- Sourcewell will not accept late proposals or proposals sent outside its portal.
- Sourcewell says purchasing agencies are responsible for due diligence and for complying with federal, state and local laws and specific funding requirements. American Security Drone Act Section 1825 covers "Federal funds awarded through a contract, grant, or cooperative agreement, or otherwise made available" (see the local agencies guide).
- NASPO ValuePoint's Public Safety/Law Enforcement Video portfolio (Lead State Oklahoma, July 1, 2023 to June 30, 2028) covers body-worn cameras, vehicle-mounted video, automated license plate readers, interview room video and video storage; drones are not named in its category descriptions.
Official sources
Last checked September 25, 2026. Rules, fees and programs change; the official sources are where to confirm them before applying or spending money.
We help you prepare your documents
With a company account, the Company Toolkit drafts your documents from your company file and your numbers; for drone companies and manufacturers, the readiness guide walks you through each registration. Document Check, a paid review, reads your documents before you send them. Your page puts you in front of buyers, lenders, investors and production partners.
Autonomy Runway is not a law firm, an accounting firm or a financial adviser, and nothing we publish is legal, tax or financial advice. The guides are general information with links to the official sources, and the tools organize your own facts and decisions. For advice about your situation, talk to a lawyer, an accountant or a financial adviser. See all our disclaimers.