Monday, January 10, 2011

FAQ's on the SBA's Women-Owned Small Business Federal Contract Program

When Does the Women-Owned Small Business (WSOB) Program Start?

The WOSB Federal Contract Program will officially start one hundred and twenty days (120) from October 7, 2010, or February 4, 2011.

Who Administers the WOSB Program?
The Small Business Administration (SBA) is charged with implementing and administering the program. This means that SBA publishes regulations that provide the framework for the program, conducts eligibility examinations of WOSB and EDWOSBs, decides protests, conducts studies to determine eligible industries, and works with other Federal agencies in assisting WOSBs and EDWOSBs.

What Are the Laws that Govern the WOSB Program?
On December 21, 2000, Congress enacted the Small Business Reauthorization Act of 2000, Public Law 106-554. Section 811 of that Act added a new section 8(m), 15 U.S.C. 637(m), authorizing Federal contracting officers to restrict competition to eligible Women-Owned Small Businesses (WSOBs) or Economically Disadvantaged Women-Owned Small Business (EDWOSBs) for Federal contracts in certain industries.



What Is the Purpose of the WOSB Program?
The purpose of the WOSBFCP is to enable contracting officers to identify and establish a sheltered market for competition among WOSBs or EDWOSBs for the provision of goods and services to the Federal Government. Restricting competition to WOSBs and EDWOSBs increases their success to compete for and win federal contracts. The program also ensures a level playing field on which such small businesses can compete for Federal contracting opportunities.



How Does my Firm Qualify as a WOSB or EDWOSB?
Qualification as a WOSB - To qualify as a WOSB, a concern must be: a small business not less than 51 percent unconditionally and directly owned and controlled by one or more women who are United States citizens.

Qualification as an EDWOSB - An eligible business must be not less than 51 percent owned by one or more women who are "economically disadvantaged" (i.e. an EDWOSB). However, SBA may waive this requirement of economic disadvantage for industries in which WOSBs are "substantially underrepresented." The ownership of the business must be direct as defined in (13 CFR 127.201(b) Requirement for unconditional ownership.

There are additional requirements for qualification that can be found on the SBA's website.



What Does It Mean To Be Economically Disadvantaged?
An Economically Disadvantaged Women-Owned Small Business (EDWSOB) is a small business concern that is at least 51 percent directly and unconditionally owned and controlled by one or more women who are citizens (born or naturalized) of the United States and who are economically disadvantaged. The EDWOSB automatically qualifies as a women-owned small business eligible for the WOSB Program. 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 three years preceding the certification does not exceed $350,000, and the fair market value of all her assets (including her primary residence and the value of the business concern) does not exceed $6 million.



What Criteria Enables Contracting Officers to Restrict or Set-Aside Contracts for WOSBs?
In order to restrict or set-aside contracts for WOSBs or EDWOSBs, the contracting officer must:

1. A contracting officer may restrict competition in industries where SBA has determined that WOSBs or EDWOSBs are underrepresented or substantially underrepresented in Federal procurement. Based upon analysis, SBA will designate by NAICS Industry Subsector Code industries where WOSBs are underrepresented and substantially underrepresented.

2. Have a reasonable expectation that two or more EDWOSBs or WOSBs will submit offers for the contract;

3. The contract award price must not exceed $5 million in the case of manufacturing contracts and $3 million in the case of all other contracts;

4. The contract can be awarded at a fair and reasonable price.



Where Can I Find the List of Eligible Industry Codes?
A complete listing of the Eligible Industry Codes for the WOSBFCP can be found on the SBA's website at http://www.sba.gov/wosb. You may also contact the SBA's Office of Government Contracting Area Offices of the District Offices to obtain a list of eligible Industry Codes.



Am I Required to Self-Certify as a WOSB?
WOSBs and EDWOSBs must self-certify their status in the Central Contractor Registration (CCR) and the On-Line Representations and Certifications Application (ORCA) as other small businesses do. You must also submit documents to the WOSB Program Repository. If the Repository is unavailable, documents must be submitted to the Contracting Officer if the WOSB or EDWOSB is selected as the apparent successful offeror. If someone falsely self-certifies, misrepresents its status as a WOSB or EDWOSB or provides false information to the Government, the SBA or other Federal agency may propose to suspend and debar you pursuant to the procedures set for the the FAR, 48 CFR 9.4. In addition, other penalties for criminal activities may be imposed.



What Are Eligibility Examinations?
An eligibility examination is the formal process through which SBA verifies the accuracy of any certification made or information provided as part of the certification process or in connection with an EDWOSB or WOSB contract. An eligibility examination can be conducted at any time and is not tied to a particular solicitation or contract award. The statute also gives SBA the authority to conduct random eligibility examinations of WOSBs and EDWOSBs to minimize fraud and abuse.



How long can my company participate in the WOSB Program?
There is no term limit on program participation. You can receive WOSB Program contracts as long as you are eligible for the program and have met all of the requirements set forth in the regulations.



Who Do I Contact for Assistance with the WOSB Program?
For assistance, you may contact the SBA Answer Desk at:
1-800-U-ASK-SBA (1-800-827-5722)

For specific questions about WOSB set aside contracts, you may contact the Federal agency contracting officer that is responsible for the contract and/or named in the contract documents. You may also visit SBA's WOSBFCP web page at http://www.sba.gov/wosb for more information about the program.