Small Business Administration WOSB Program Update By Alice Lipowicz Editor, Set-Aside Alert

SBA WOSB Program update  Today’s Presentation:  SBA Women-Owned Small Business (WOSB) program overview  Recent audits and changes in regulations and requirements  Exclusive research by Set-Aside Alert

SBA WOSB Program Overview  Authorized as a small business set-aside program by Congress in 2000  Regulations established by SBA in 2011  Currently, there are approximately 37,000 WOSBs registered in the SBA WOSB program and about 13,000 are EDWOSBs (Economically-Disadvantaged WOSBs) in the program

SBA WOSB Program Overview  SBA WOSB program allows 2 types of set-asides:  WOSB set-asides are only permitted in industries in which women are underrepresented.  EDWOSB set-asides are only permitted in industries in which women are substantially underrepresented.  There are 133 industry NAICS Codes for WOSB set- asides (these codes also allowed for EDWOSBs).  There are 197 industry NAICS Codes for EDWOSB set-asides only.

SBA WOSB Program Overview  SBA WOSB program Eligibility  Firm must meet SBA criteria for “small business.”  Firm must be 51% owned and controlled by one or more women.  Firm must be registered in SBA WOSB program.  Requirements for certification as women-owned.

SBA WOSB Program Overview Keep in Mind…. How much U.S. government contracting is going to Women-Owned Small Businesses? $17.2 Billion --which was 4.68% of all eligible federal contracts in FY2014 (SBA procurement scorecard) How much U.S. government contracting is being channeled through the SBA WOSB Program? No official reporting – estimates are approximately $100 million a year

SBA WOSB Program Overview  Growth in total U.S. government WOSB contracting :  Fiscal $16.8 billion 3.98%  Fiscal $16.2 billion 4.0%  Fiscal $15.4 billion 4.32%  Fiscal $17.2 billion 4.68%  Currently about 60,000 WOSBs are registered in SAM.gov government contracting database.

SBA WOSB Program Overview  If WOSB contracting is $17 billion a year and SBA WOSB program contracting is approx. $100 million a year….is it worth it?  Advocates say YES because it’s the chief mechanism available to specifically target contracts to women.

SBA WOSB Program New rules, regulations, etc.  Recent audits:  -SBA Inspector General, May 2015, said federal agency contracting officers awarded 10 set-aside awards for ineligible work in the WOSB program totaling $7 million in fiscal 2014; --Government Accountability Office, October 2014, said more than 40% of WOSBs examined for program eligibility were not eligible at the time of review; --NASA Office of Inspector General reported in 2013 that 7 out of 20 WOSB awardees it reviewed, or 35%, may not have met the criteria for a WOSB.

SBA WOSB Program New rules, regulations, etc.  LEGISLATIVE CHANGES LEADING TO REGULATIONS:  In 2013, Congress removed the existing caps on the value of set-asides to women-owned firms in specific industries  In 2014, Congress approved sole-source contracts for WOSB and EDWOSB set-aside contracts.  SBA in May 2015 released regulations to implement WOSB sole-source authority, which could happen by year’s end.

SBA WOSB Program New rules, regulations, etc.  WOSB Certification in Flux:  Previously, there were two options for WOSB certification: (1) certification through a federal agency, a state government or a national third-party certifying entity approved by the SBA; or (2) self- certification to the contracting officer, followed by submission of supporting documentation to the WOSB Document Repository.  The NDAA of 2014 eliminated the self-certification option.  SBA in May 2015 proposed rule recognized the change from the NDAA; however, SBA said that WOSBs may continue to self-certify until new rules are established.

Set-Aside Alert WOSB study  Top 100 WOSB and EDWOSB set-aside contracts expiring in 2015 and 2016  See the full list here:  wosblist.pdf

Set-Aside Alert WOSB study  10 Best states for WOSB/EDWOSB set- aside contracts:  Virginia, $45 million;  District of Columbia, $15 million;  Missouri, $13 million; California, $10 million; Maryland, $10 million; Texas, $9 million; Florida, $5 million; Alabama, $5 million; Nevada, $4 million; Massachusetts, $2 million.

Set-Aside Alert WOSB study  10 Worst States for WOSB/EDWOSB set-aside contracts  New Mexico, $3,000; Idaho, $3,000; Oregon, $4,000; Wyoming, $4,000; Arkansas, $16,000; Connecticut, $20,000; Michigan, $36,000; Puerto Rico, $51,000; New Jersey, $68,000; and North Dakota, $72,000.

Set-Aside Alert WOSB study  10 Best Federal Agencies for WOSB/EDWOSB set-aside contracts  Commerce Department, $31 million;  Air Force, $25 million;  Homeland Security Department, $19 million;  Army, $18 million;  Agriculture Department, $16 million;  Defense Department, $6 million;  Veterans Affairs Department, $5 million;  Navy, $3 million;  General Services Administration, $3 million;  Pension Benefit Guarantee Corporation, $2 million.

Set-Aside Alert WOSB study  Set-Aside Alert identified 87 set-aside contracts totaling $62 million awarded through the SBA WOSB program in industries reserved strictly for EDWOSB set-aside contracts that were reported to have been awarded as WOSB set-aside contracts. Those contracts may have been improper. Set-Aside Alert also identified 89 set-aside contracts in the SBA's WOSB program reported to have been awarded in 31 industries which, under SBA regulations, are ineligible for any WOSB or EDWOSB set-asides. Those contracts totaled $7 million. They also may have been improper.  See the full report at setasidealertnews.com

Set-Aside Alert WOSB study  For further information….  Alice Lipowicz, editor, Set-Aside Alert  on Twitter  