Why Start a Business that WOSB or EDWOSBs?

If you want to pursue government and corporate contracts you must learn the rules of engagement. By learning how to collaborated and leverage the benefits of getting a certification as a WOSB or EDWOSB you may get more opportunities to increase your profitability.

The Small Business Act authorizes contracting officers to specifically limit, or set aside, certain requirements for competition solely among women-owned small businesses (WOSBs) or economically disadvantaged women owned small businesses (EDWOSBs). This is referred to as the WOSB Program, which was implemented on February 4, 2011.

Women-Owned Business Concern – The term “women-owned business” is a business that is a least 51 percent owned by a woman or women who also control and operate it. “Control” in this context means exercising the power to make policy decisions. “operate” in this context means actively involved in the day-today management of the business.

WOSB – Woman-Owned Small Business – is a small business that is at least 51 percent owned by a woman or women who are U.S. citizens as defined by FAR 19.001, including economically disadvantaged women owned small businesses (EDWOSB). The woman or women must also control the management and daily operations of the business. DoD does not consider women-owned businesses as disadvantaged.

These procurement mechanisms are meant to increase federal contracting opportunities for WOSBs and to assist agencies in achieving their women-owned small business goals. These procedures are implemented in the SBA’s regulations, which can be found at 13 C.F.R. Part 127. See Women-Owned Small Businesses at www.sba.gov for more information.

Women-Owned Small Business Program – Agencies OSDBU makes a special effort to advise women on contracting opportunities within the Department and to encourage their participation in procurement programs. Federal Agencies for both prime and subcontracting for WOSBs. In December 2000, Congress passed PL 106-554 that authorizes limited competition for WOSBs at the contracting officers’ discretion. The following summarize competitive requirements for WOSBs:

• An expectation that two or more WOSBs are qualified and will compete for the procurement;
• Contracts awarded only in industries where WOSBs are underrepresented.
• WOSB owners must be economically disadvantaged unless award will be made in an industry in which WOSB are substantially underrepresented.
• SBA Administrator has authority to determine those industries in which WOSB are substantially underrepresented, and waive economic disadvantage requirement.

Anticipated awards, including options are limited to $5M in manufacturing and $3M in other industries.

• There is an expectation that contract award will be made at a fair and reasonable price.
• Each of the competing WOSBs must be certified by a Federal, State or local certifying entity approved by SBA’s Administrator, or self-certifies the C.O. that it is a small business owned and controlled by economically disadvantaged women and it provides adequate documentation, IAW SBA standards.
• The SBA will conduct the required study to ascertain in which industries WOSBs are underrepresented and will define “underrepresented”, “substantially underrepresented”, and “economically disadvantaged”.
• The proposed regulations will be published in the Federal Register for public comment before final rules are adopted
• For further information on the WOSB Program, visit the Small Business Administration web site at http://www.sba.gov, or http://www.womenBiz.gov

WWBE – an unofficial term occasionally used to differentiate between minority women and white women business enterprises (WWBE). Minority women are most often designated as MBEs, SDBs or DBEs.