SBA Finalizes Rule Adopting Changes to Contracting Program for Women-Owned Small Business

Women-owned businesses will have greater access to federal contracts.

A press released issued by the U. S. Small Business Administration (SBA) announced that an interim final rule has been published in the Federal Register and is effective immediately. The rule will amend regulations to the SBA's Women-Owned Small Business Federal Contract Program allowing for greater access to federal contracting opportunities for women-owned businesses as a result of the National Defense Authorization Act of 2012 (NDAA) signed in January 2013. The interim rule removes the anticipated award price of the contract thresholds for women-owned small businesses (WOSB) and economically disadvantaged women-owned small business (EDWOSB) to allow them greater access to federal contracting opportunities without limitations to the size of the contract. The rule can be accessed at: http://www.gpo.gov/fdsys/pkg/FR-2013-05-07/html/2013-10841.htm. As a result of this rule change, contracting officers will be able to set aside specific contracts for certified WOSBs and EDWOSBs at any dollar level which will help the federal agencies achieve the existing statutory goal of 5% of federal contracting dollars being awarded to WOSBs. SBA is currently working on the changes to the Federal Acquisition Regulations (FAR). Prior to the rule change, the anticipated award price of the contract for women-owned and economically disadvantaged women-owned small businesses could not exceed $6.5 million for manufacturing contracts and $4 million for all other contracts. Any firm that wishes to participate in the WOSB program must meet the eligibility requirements and either self-certify or obtain third party certification. There are four approved third-party certifies that perform eligibility exams: El Paso Hispanic Chamber of Commerce, National Women Business Owners Corporation, U. S. Women's Chamber of Commerce, and the Women's Business Enterprise National Council. Additional information and links about approved third-party certifiers are available at www.sba.gov/wosb. To qualify as a WOSB, a firm must be at least 51% owned and controlled by one or more women, and primarily managed by one or more women. The women must be U. S. citizens and the firm must be considered small according to SBA size standards. To be deemed "economically disadvantaged," a firm's owners must meet specific financial requirements set forth in the program regulations. The WOSB Program identifies 83 four-digit North American Industry Classifications Systems (NAICS) codes where WOSBs are underrepresented or substantially underrepresented. Contracting officers may set aside contracts in these industries if the contract can be awarded at a fair and reasonable price and the contracting officer has a reasonable expectation that two or more WOSBs or EDWOSBs will submit offers for the contract.