THE WOMEN OWNED SMALL BUSINESS PROGRAM...

Subpart 19.15 - Women-Owned Small Business Program.

Parent topic: Part 19 - Small Business Programs

The Women-Owned Small Business (WOSB) Program under FAR Subpart 19.15 is designed to increase federal contracting opportunities for Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) in industries where women have historically been underrepresented. The program is administered by the Small Business Administration (SBA) and is part of the federal government’s broader goal to award at least 5% of all prime contracting dollars to WOSBs each year.

To qualify as a WOSB or EDWOSB, a business must meet specific eligibility requirements:

• Be at least 51% owned and controlled by one or more women who are U.S. citizens. 
• The women owners must manage daily operations and hold the highest officer position. 
• Must qualify as a small business under the applicable SBA size standards for the industry.
   

For a business to qualify as an Economically Disadvantaged WOSB (EDWOSB):

• The woman owner must have a personal net worth of less than $850,000 (excluding retirement accounts and primary residence). 
• The woman owner’s adjusted gross income (AGI) must be $400,000 or less over the past three years. 
• The fair market value of all her assets must not exceed $6.5 million.
   

Businesses can obtain WOSB or EDWOSB certification through:

1. SBA's Free Online Certification process. 
2. Approved Third-Party Certifiers recognized by SBA. 
3. Self-certification (until the SBA eliminated it in 2020).
    

The program allows contracting officers to reserve (set aside) contracts exclusively for WOSBs and EDWOSBs in specific industries where women are underrepresented or substantially underrepresented.

Set-Aside Contracts

• Federal agencies can limit competition to WOSBs or EDWOSBs in certain NAICS codes. 
• The expected contract value must be above the micro-purchase threshold ($10,000) but below the Simplified Acquisition Threshold ($250,000) or higher if justified.
   

A contracting officer can issue a sole-source award (direct contract without competition) to a WOSB/EDWOSB if:

• The business is the only responsible source that can fulfill the contract. 
• The contract value does not exceed: 
  • $7 million for manufacturing contracts. 
  • $4.5 million for all other contracts. 
• The award price is fair and reasonable.
   

To prevent large businesses from taking advantage of set-aside contracts, WOSBs and EDWOSBs must perform a significant portion of the work themselves:

• Service contracts: At least 50% of the contract value (excluding materials) must be performed by the WOSB/EDWOSB. 
• Supply contracts: The WOSB/EDWOSB must perform at least 50% of the cost of manufacturing (excluding materials). 
• General construction: The WOSB/EDWOSB must self-perform at least 15% of the work. 
• Specialty trade construction: The WOSB/EDWOSB must self-perform at least 25% of the work.
   

The SBA is responsible for ensuring compliance with the WOSB Program regulations:

• Eligibility Protests: Any interested party, the contracting officer, or SBA can challenge a company’s eligibility for WOSB/EDWOSB contracts. 
• SBA Reviews: The SBA may conduct random audits or investigate businesses suspected of non-compliance. 
• Penalties for Non-Compliance: 
  • If a business is found ineligible, its contract may be terminated. 
  • False certifications can lead to civil or criminal penalties, including suspension or debarment from federal contracts.
     

The Women-Owned Small Business Program is a critical tool for addressing gender disparities in federal contracting. By reserving contracts for women-owned businesses, the program:

• Encourages more women entrepreneurs to participate in federal procurement 
• Increases diversity and competition in government contracting. 
• Helps federal agencies meet their small business contracting goals.
   

Through this program, the government continues to support women entrepreneurs and small business growth, ensuring they have a fair opportunity to compete in the federal marketplace.