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Women owned businesses get more government opportunity

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Women owned businesses get more government opportunity

By BillGormley
Published: June 22, 2011 Updated: June 23, 2011

 

Women-owned businesses have always had a place in the world of government contracting.  Earlier this year, however, the Small Business Administration (SBA) implemented a new program that is designed to provide more contracting opportunities for women-owned businesses. 

As of April 1, 2011, agencies may now set aside contracts specifically for women-owned small businesses (WOSB) and economically disadvantaged women-owned small businesses.   

According to the Federal Acquisition Regulation (FAR) amendment, contracting officers are now allowed to:

  • Restrict competition to WOSB or Economically Disadvantaged WOSBs (EDWOSB) in industries where women-owned businesses are substantially underrepresented. 
  • Restrict competition to EDWOSBs in industries where women-owned businesses are underrepresented. 

Agencies can set aside these contracts on acquisitions where the anticipated contract award price (including options) is less than $6.5 million in manufacturing industries, or $4 million in all other acquisitoins. 

SBA has determined that women-owned small businesses are underrepresented (or substantially underrepresented) in more than 300 industries represented through the North American Industry Classification System (NAICS).  You can view those NAICS codes here: http://www.sba.gov/sites/defualt/files/files/gc_wosb_naics_grids.pdf

 

Who is Eligible?

There may be people reading this right now with companies that are eligible for additional contracts under this new ruling—and that is very exciting! It is important, however, to be sure you’re able to meet the women-owned small business requirements.

To be eligible to benefit from a set-aside, a business must be:

  • At least 51% owned and controlled by one or more women who are U.S. citizens Considered “Small” in its primary industry in accordance with SBA’s size standards for that industry

There are two primary ways to certify as a women-owned small business: A firm can self certify its status or obtain third party certification.

In order for a WOSB to be deemed “economically disadvantaged,” the company owners must also satisfy certain criteria. Specifically, a woman is presumed economically disadvantaged if she has a personal net worth of less than $750,000, her adjusted gross yearly income averaged over the preceding three years is less than $350,000, and the fair market value of all her assets is less than $6 million.

Getting ready

New clauses implementing these new rules should be showing up soon in contract solicitations that fit the criteria.  SBA's goal was to have the program ready for competition by women-owned businesses by the fourth quarter of this fiscal year- which ends September 30. 

So, in anticipation of these potential new opportunities, it's time to make sure you're ready for government business!  If you are a WOSB or EDWOSB, make sure to take the administrative steps necessary to qualify your business for potential set-asides.  Start now to gather the information and documentation you'll need so you are well positioned to take advantage of opportunities whenever they become available. 

Here are three quick to-dos:

  1. Register in Central Contractor Registration(CCR) as a WOSB or EDWOSB if you haven’t done this already.
  2. Upload the necessary documents to SBA’s WOSB Program repository that verify your eligibility as a WOSB.  If your firm chooses to self-certify, you’ll be required to provide documentation, such as birth certificates, joint venture agreements, articles of incorporation, etc.  Then, a contracting officer will have to ensure complete documentation is uploaded before awarding a set-aside contract under the WOSB program.
  3. Represent your status as a WOSB or EDWOSM in Online Representations and Certifications Application(ORCA)

Good luck!

Additional Resources

Bill Gormley is president and CEO of Washington Management Group, chairman of the Coalition for Government Procurement, and Vice Chair at the Procurement Round Table.

About the Author:

Comments:

Great news! Looking forward to getting started!
Thank you on behalf of women
This will encourage more women to start their own businesses. Women have traits that make them good entrepreneurs.
This proves women-power and authority to handle those difficult situations. Now women given great opportunity as they prove themselves to be an effective member and contributor in the society. They are not only engage in business sector but also to other aspect of society. House for sale Philippines

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