WomenOwned Small Business Federal Contract Assistance Program

1
Women-Owned Small Business Federal Contract
Assistance Program

• Robert C. Taylor
• Area Director for Government Contracting
• Area 5
• U.S. Small Business Administration

2
Women-Owned Small Business Federal Contract
Assistance Program Seminar Objectives

• To explain the statutory basis for the program.
• To help women understand why it has taken so long
  to implement this program.
• To summarize the principal features of the
  program with respect to eligibility,
  certification, set-asides, program examinations,
  protests, and appeals.

3
Statutory Basis for the Program

• Public Law 103-355 (1994), the Federal
  Acquisition Streamlining Act (FASA), established
  a 5 Government-wide goal for women-owned small
  business (WOSB).
• In FY 2005, the most recent year for which we
  have official data, the Government achieved
  barely over 3.3, well short of this goal.
• Public Law 106-554 (December 2000), the Small
  Business Reauthorization Act of 2000, amended the
  Small Business Act and authorized contracting
  officers to restrict competition to eligible
  WOSBs in industries in which SBA has determined
  that they are underrepresented or substantially
  underrepresented in Federal procurement.

4
Background

• In September 2001, 10 months after the
  legislation authorizing the program was enacted
  by Congress, SBA completed an in-house study
  identifying the industries in which women-owned
  small business were underrepresented.
• After extensive review by OMB and other Federal
  agencies, a decision was made to seek an
  independent review of SBAs methodology in
  performing this study.

5
Background (continued)

• In 2003, SBA contracted with the National
  Academies of Sciences (NAS) to review SBAs
  methodology and conclusions.
• In 2005, NAS released its report concluding that
  SBAs methodology was flawed.
• In 2006, SBAs contracted with the Rand
  Corporation, a nationally recognized consulting
  firm, to perform a new study.

6
Overview of the Program

• The Rand Corporation published its report on the
  underrepresentation of women-owned small
  businesses in April 2007.
• Using the results of this study, SBA would have
  been able to publish a list of the industries in
  which WOSBs are (a) underrepresented and (b)
  substantially underrepresented however
• In 2008, a decision was made to seek public
  comment on the eligible industries before
  proceeding with implementation.

7
Overview of the Program (continued)

• On October 1, 2008, SBA published two separate
  rules in the Federal Register
• The Final Rule implementing the eligibility
  requirements, contracting procedures, protest
  procedures, penalties, and appeal procedures for
  the womens contracting program and
• A Proposed Rule and Request for Comments on the
  Eligible Industries with a deadline of October
  31, 2008, for the public to submit comments.
• On January 12, 2009, SBA reopened the comment
  period for an additional 60 days. The new
  deadline for comments is March 13, 2009 (e.g.,
  comments must be received by SBA on or before
  that date).

8
Overview of the Program (continued)

• In industries in which WOSBs are
  under-represented, contracting officers will be
  permitted to restrict competition to economically
  disadvantaged WOSBs (EDWOSBs) for contracts up to
  5 million in manufacturing or up to 3 million
  in all other industries, provided that
• there is a reasonable expectation that two or
  more EDWOSBs will submit offers and
• the contract can be made at a fair market price.

9
Overview of the Program (continued)

• In industries in which WOSBs are substantially
  underrepresented, the law allows SBA to waive the
  requirement that the WOSBs be economically
  disadvantaged, and any WOSB will be able to
  compete for the contract.
• The Final Rule effectively delegates this
  authority to the contracting officer.
• The dollar threshold will still be limited to 5
  million in manufacturing and 3 million in all
  other industries i.e., the set-aside cannot
  exceed these amounts.

10
Overview of the Program (continued)

• Economic disadvantage for WOSBs is defined the
  same as for disadvantaged businesses (SDBs), with
  a 750,000 net worth limitation on the firms
  owner.
• The formula allows the owner to deduct the equity
  in the business as well as the equity in his/her
  personal residence in making this calculation.

11
Overview of the Program (continued)

• SBAs Final Rule, as submitted to OMB, allows
  WOSBs, including economically disadvantaged
  WOSBs, to self-certify their status when they bid
  on Government contracts, except that women may be
  required to answer specific questions regarding
  ownership and control when they register in the
  CCR in order to satisfy the statutory requirement
  that the certification process includes
  supporting documentation.

12
Overview of the Program (continued)

• To minimize fraud and abuse, the statute gives
  SBA the authority to conduct random program
  examinations of WOSBs and EDWOSBs.
• SBAs regulation also provides a robust protest
  procedure, appeal process, and statutory
  penalties under the U.S. code for deliberate
  misrepresentation.

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Summary Conclusion

• The new set-aside program will target assistance
  to women in selected industries where they are
  underutilized, based on an independent study.
• The program should move us closer to achieving
  the 5 goal for women-owned small business
  established by Congress in 1994, which the
  Government has never achieved.