Navigating Federal Contracts: A Guide for Women Entrepreneurs

According to the latest Women-Owned Small Business NAICS analysis, women face a broader range and greater intensity of challenges when starting and growing their businesses compared to men. A significant hurdle is the difficulty in obtaining government contracts. To address these obstacles, the federal government has implemented policies and programs to help women-owned small businesses gain access to these contracts, with the Women-Owned Small Business (WOSB) Federal Contracting Program being a key initiative.

The WOSB Federal Contracting Program

The WOSB program was established under the Federal Acquisition Streamlining Act (FASA) of 1994, which set a government-wide goal of awarding 5% of federal contracts to women-owned small businesses. This program aims to level the playing field by providing greater opportunities for women-owned businesses to compete in the federal marketplace.

To address the underrepresentation in federal contracting, the WOSB program offers two types of certifications:

1. Women-Owned Small Business (WOSB): This designation is used by federal agencies seeking women-owned companies for contracts.
2. Economically Disadvantaged Women-Owned Small Business (EDWOSB): A subcategory of WOSBs, focusing on businesses owned by economically disadvantaged women.

In addition to the federal certifications, the private sector and many state and local governments recognize the Women’s Business Enterprise (WBE) certification, further expanding opportunities for women-owned businesses.

Navigating the Certification Process

Recent changes by the Small Business Administration (SBA) have simplified the certification process for WOSBs and EDWOSBs, making it more accessible. Businesses can no longer self-certify and must go through approved third-party organizations or the SBA’s online portal at certify.sba.gov.

To apply for certification, businesses need to:

1. Visit the SBA’s certification website and answer eligibility questions.
2. Choose to get certified through the SBA or an approved third-party certifier, such as:
   • National Women Business Owners Corporation
   • U.S. Women’s Chamber of Commerce
   • Women’s Business Enterprise National Council
   • El Paso Hispanic Chamber of Commerce

The certification process involves completing an application, providing business documentation, and potentially having the certifying organization visit the business location. An application fee is also required. Once certified, businesses must upload proof of citizenship and TPC-certified documentation to WOSB.Certify.sba.gov before bidding on WOSB set-aside contracts.

Qualification Requirements

To qualify for WOSB certification, a business must:

• Meet SBA size standards (varies by NAICS code).
• Be at least 51% owned and controlled by women who are U.S. citizens.
• Have women managing day-to-day operations and making long-term decisions.

For EDWOSB certification, additional criteria include:

• Owners must have a personal net worth of less than $750,000.
• Owners must have an adjusted gross income of $350,000 or less, averaged over the previous three years.
• Owners must have personal assets of $6 million or less.

The application requires various documents such as birth certificates, business and financial statements, incorporation documents, and professional licenses. It typically takes at least three months for the application to be processed, with annual updates required.

Leveraging Certification for Business Growth

Once certified, it is essential for businesses to leverage their new status to maximize opportunities. Steps include:

• Displaying official logos on websites and marketing materials.
• Using relevant keywords in online content to enhance visibility.
• Signing up for mailing lists from third-party certifiers for contracting opportunities.
• Actively marketing the certification in all business communications.

Certified businesses can find federal contract opportunities on Sam.gov and use resources provided by the SBA to navigate the federal contracting landscape.

Despite the challenges, obtaining WOSB or EDWOSB certification can open doors to significant business opportunities in the federal contracting space. The process, while detailed and time-consuming, is a worthwhile investment for women-owned businesses looking to expand their market reach and compete more effectively. By staying proactive and leveraging available resources, women entrepreneurs can overcome barriers and thrive in their business endeavors.