Women-Owned Small Businesses, both new and existing, are encouraged to seek certification. For additional information and free training webinars, see the Small Business Administration's webpage on the Women-Owned Small Business Federal Contracting Program. For a price, several firms will manage your certification. Several of these groups are listed below.
New Companies: Create an LLC, Corporation, or DBA/Fictitious Name, then confirm eligibility on the SBA's website and gather documentation for the WOSB application.
To apply for these programs, you will need the necessary documents and information.
- Birth certificates, naturalization documents, or valid passports are required for each female business owner.
- Articles of incorporation/organization, partnership/joint venture agreements, voting agreements, and any revisions to these instruments
- Stock certificates and a stock ledger were issued (if applicable).
- If you're using one, use an assumed/fictitious name (DBA) certificate.
- Each woman company owner and her spouse must provide three most recent personal tax returns, including W-2s and associated schedules (for EDWOSB).
- For each woman company owner and her husband, complete IRS Form 4506-T, Request for Tax Transcript (for EDWOSB).
Existing Companies: On the SBA's website, you may check your eligibility. Gather the essential documents and complete the WOSB application.
- Birth certificates, naturalization documents, or valid passports are required for each female business owner.
- Articles of incorporation/organization, partnership/joint venture agreements, voting agreements, and any revisions to these instruments
- Stock certificates and a stock ledger were issued (if applicable).
- Certificate for assumed/fictitious name (DBA).
- Each woman company owner and her spouse must provide three most recent personal tax returns, including W-2s and associated schedules (for EDWOSB).
- For each woman company owner and her husband, complete IRS Form 4506-T, Request for Tax Transcript (for EDWOSB).
Once you've gathered all of your documentation, head to SBA.gov to finish your online WOSB application. In addition, the SBA's Office of Women's Business Ownership is a great resource to have on hand throughout your entrepreneurial journey.
As per Small Business Management (SBA), the Government must grant WOSBs and EDWOSBs 5% (approximately $25 billion) of its Prime and Subcontracting dollars. WOSBs were granted slightly more than $9 billion in Federal Agreements in 2012. WOSBs now have uncapped procurement potential as a result of the recently enacted "Amendment Bill of 2013," permitting Governmental Officers to award contractual dollars in excess of the original "Small Business Act" constraints. These unbounded contracts are available to all WOSBs and EDWOSBs enrolled in the Network for Award Administration.
Woman-Owned Small Business Certification (WOSB)
In general, Certification for Woman-Owned Small Businesses (WOSBs) gives contracting officers the power to award specified contracts only to WOSBs and Financially Deprived Women-Owned Small Businesses (EDWOSBs). Women-owned small companies are distinct from other types of small enterprises in that they are generally owned by women. Economically disadvantaged enterprises often have a personal wealth of less than $750,000, an estimated gross yearly income of less than $350,000 over three years, and a current market value of all assets of less than $6 million. Small and minority firms that are recognized as EDWOSBs are eligible for additional financing and will be used in a smaller pool of set-asides than WOSBs. To accomplish yearly contracting targets, Chief Contracting Officers must expressly exclude WOSBs and EDWOSBs from certain solicitations.
As per the Small Business Administration, about $25 billion in Federal Government Prime and Subcontractor's dollars must be allocated to WOSBs and EDWOSBs (SBA).
What is the significance of Woman-Owned Small Business (WOSB) certification?
Certification grants you access to contracts reserved only for certified WOSBs and EDWOSBs. Women-owned for-profit enterprises receive at least 5% of all government contracts issued in the United States (nonprofits are ineligible for certification and most SBA small business programs).
Being accredited enables financially deprived and other women-owned enterprises to collaborate with larger corporations that promote their growth. By registering to conduct business with the US government, you have access to networking possibilities, mentoring, and other tools to help your company flourish.
As per the National Association of Women Business Owners (NAWBO), women-owned over 11.6 million enterprises in 2017. WOSBs generated $1.7 trillion in sales and employed over 9 million people.
The qualifying conditions are as follows:
- Women must control 51 percent or more of the company and be citizens of the United States.
- Women must oversee the day-to-day operations of the firm.
- Women must have the highest positions in the firm.
- Business management should be done full-time by a woman as part of her full-time obligations.
- Women have complete supervisory authority over the company.
- The NAICS codes chosen for the WOSB set-aside must be from one of the 217 set-aside NAICS.
The following advantages come with certification as a Woman-Owned Small Business:
- Every year, the federal government is required to spend 5% of all money on WOSB-certified enterprises.
- WOSB certification provides considerable opportunity for women in government contracting since federally required quotas must be reached by government contracting officers.
- WOSB certification on a bid proposition opens the door to subcontracting with firms that require it.
- Direct arrangements with prime procurement officers may also result.
- The organization is listed in just ONE database where vendors can market their certificates and only ONE database where the government looks for such businesses (especially for "No-Bid Contracts").
- Contracts set aside for women-owned small enterprises often provide up to 8% greater net returns than other contracts.
WOSB Helo for a Better Business
The main advantage of certification is that when you join the Women-Owned Business Federal Contracting Program as a WOSB or EDWOSB, your company becomes eligible to compete for federal contracts designated for WOSBs.
The government limits competition for some contracts to firms who participate in the WOSB Federal Contracting Program to assist establish a fair playing field for women business owners.
Women-owned business accreditation is beneficial to both the public and commercial sectors, as contracts may be held aside for greater chances.
These contracts are for certain industries with a low representation of women-owned small businesses (WOSBs). Some contracts are further restricted to economically disadvantaged female-owned small companies (EDWOSBs). The WOSB/EDWOSB certification procedure has changed. Self-certification with the SBA is no longer an option for businesses. Firms seeking WOSB/EDWOSB certification in the future must go through the SBA's more extensive process. More qualifying small enterprises can now participate in the program thanks to the new requirements.
WOSB INFORMATION to Get on Empowered Business
- Small businesses receive 23 percent of federal contracting dollars.
- Federal contracts worth less than $150,000 are usually referred to as "Small Business Set-Asides" (70 percent awarded via Simplified Acquisitions)
- Only 30% of these Small Contractual Arrangements are discovered and granted through Federal Contract Boards (70 percent directly awarded to Small Businesses)
- Contracts under $25,000 are not required to be publicly publicized and are usually referred to as "No-Bid Contracts."
The federal government has proposed that a Certified Small Business receive 23 percent of all federal contracts (Small Business Certification). Most individuals are unaware that federal agreements under $150,000 are set aside for verified small businesses, and federal contracts under $25,000 are not publicly available (how do you get these?). In several categories, state governments and big distributors/retailers follow similar guidelines (each state differs). Contracting Officers must satisfy annual targets for specified Set-Aside categories such as:
- Small Business Acquisition Procedures Simplified — "No-Bid" Contracts for less than $150,000
- Certification for Small Businesses
- Woman-Owned Small Business
- Economically Deprived Woman-Owned
- Small Business Service Disabled
- Veteran Owned Small Business
- HUBZone Qualification (Historically Underutilized Business Zone)
- Program 8(a) (Minority-Owned Small Business)
Conclusion
Small firms must acquire an approved vendor from the appropriate certifying organization (multiple agencies involved). More significantly, once a company has a Credential, it must be represented so that Contracting Administrators are conscious of it. Contracting Officers seek, verify, pay, and work with suppliers using numerous databases. We are currently in the early stages of growth and structure for Government Contracting and the online procedures. Certified businesses must have the appropriate registrations, accreditations, detailed profiles in different databases, be enrolled with specialized agencies (industry dependent), and have dependable profiles with the most up-to-date specific data listed across all government contracting platforms.
Contracting Officers proactively contact Certified Small Businesses to award "No-Bid Contracts," which are Federal Contracts worth less than $25,000 or Small Business Set-Asides worth less than $150,000; using Simplified Acquisition Procedures (70 percent of Contracts worth less than $150,000 are not publicly posted). These "No-Bid Contracts" are not required to be publicized publicly, nor are they required to solicit multiple bids or to assess Past Performance. Small Businesses employ 80% of the workforce in the United States, which is why they are protected and have restrictions in place to ensure they obtain 23% of Federal Contractual Dollars. USBRI can assist Small Businesses in positioning themselves to be identified for these Accelerated Acquisition Contracts, as well as in locating and winning agreements at all levels of government.
