Every year, the federal government awards contracts to hundreds of thousands of companies, but very few of those contracts go to women-owned businesses. Since 2000, the federal government has set a goal of awarding 5 percent of its contracts to women-owned small businesses, which it has only just begun to meet.
In the webinar Business Forward hosted on March 26, Erin Andrew, Assistant Administrator at the U.S. Small Business Administration, and Kristie Arslan, Executive Director at Women Impacting Public Policy, discussed how women-owned small businesses can take advantage of government contracts to help grow their businesses.
2. SBA’s Contracting Resources for Women-Owned
Businesses
Erin Andrew
Assistant Administrator
SBA’s Office of Women’s Business Ownership
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3. 3
Women-Owned Firms Continue to Grow
Women-owned business generate over $1.3 trillion ($2.7 trillion*) in revenues
and employ nearly 7.8 million (16 million*) people
• Between 1997 and 2013, the number of women-owned firms
grew by 59%
• Despite these findings, women-owned businesses employ just
6% of the nation’s workforce and contribute less than 4% of
business revenues
• Women entrepreneurs are found in higher concentrations
among retail sales and services industries and are more likely
to be organized as proprietorships
• 30% of enterprises in the U.S. are women-owned
4. 4
Ensuring Small Firms Get Government Contracts
- $90B portfolio of loan guarantees through 5,000
lenders
- $2.6B in growth capital via Small Business Investment
Companies (SBIC)
- Ensuring 23% of federal contracts go to small firms
- $100B annually
- 5% to women-owned firms
- 5% to small disadvantaged businesses
- 3% to HUBZone companies
- 3% to service-disabled veteran-owned firms
- Free and low cost counseling and training to 1million
entrepreneurs per year
- 107 Women’s Business Centers; 68 field and
regional offices; 1,000 Small Business
Development Centers; 12,000 SCORE volunteers
Capital
Contracting
Counseling
5. 5
Women Have Additional Opportunities Through the WOSB
Contracting Program
General Program Details:
• The WOSB Program went into effect in 2011 and since then SBA has held a number
of training and outreach events to assist small businesses and contracting officers
with understanding the program and its requirements.
Eligibility Requirements for the Program:
• A small business that is at least 51% percent unconditionally and directly owned and
controlled by one or more women who are United States citizens.
• A woman must manage the day-to-day operations, make long-term decisions for the
business, hold the highest officer position in the business and work at the business
full-time during normal working hours.
• There is no minimum amount of time that you must be in business to be eligible, but
there are requirements for managerial experience.
6. 6
The WOSB Contracting Program Provides Opportunities to
Meet the 5% Goal
Women’s Performance in the WOSB Contracting Program
• In FY 13, 4.32% percent of small business eligible contracting dollars were awarded to
woman-owned small businesses, which is approximately $15.4 billion. SBA is currently
working on the reports for FY14 and hopes to see the trend of contracting dollars awarded
to women grow toward the 5% mandate.
Additional Resources
• For additional information visit www.sba.gov/wosb
• Upload the appropriate documents in the WOSB Program Repository, sometimes referred
to as the General Login System or “GLS” at https://eweb.sba.gov/gls/dsp_login.cfm.
Other Things to Think About
• Access to Markets includes exporting opportunities for women
8. 8
CHANGES TO THE WOSB PROGRAM
Legislation was passed and signed into law (P.L. 113-291)
in December 2014 which made needed changes to the
WOSB program
Changes to the WOSB Procurement Program
Sole Source Authority
Certification Changes
Expedited study by SBA of eligible industries
To see the legislation text and more information visit WIPP’s Procurement Page:
http://www.wipp.org/?page=Procurement
www.WIPP.org
9. 9
Contracts up to $4 million for most industry codes and
$6.5 million for manufacturing can be sole sourced
Contracting officer does not have a reasonable
expectation that 2 or more WOSBs will submit offers
Limited to any small business concern owned and
controlled by women
Applies to economically disadvantaged WOSBs as well
as substantially underrepresented industries
SOLE SOURCE EXPLAINED
www.WIPP.org
10. 10
Will replace self certification
Entities that can certify: federal agency, a state
government, the SBA or national certifying entity
approved by SBA
CERTIFICATION CHANGES
www.WIPP.org
11. 11
SBA generates proposed rule to implement statute
Internal federal agency review
SBA proposes rule for public comment
Comments reviewed by SBA
Final rule proposed –additional comment period
FAR Council adopts
NEXT STEPS FOR IMPLEMENTATION
www.WIPP.org
12. 12
Opportunities:
When sole source authority is implemented, it will provide women
business owners access to more contracts.
The expedited disparity study may expand the eligible industries
for the WOSB program, opening new contracting opportunities
Challenges:
Certification requirement (no longer allowing self-certification) for
the WOSB program will add time and cost to business owners
interested in participating in the WOSB program
OPPORTUNITIES & CHALLENGES FOR
WOMEN BUSINESS OWNERS
www.WIPP.org
13. 13
1. Understanding government procurement jargon
2. Registration -what's needed as a government
contractor
3. Certifications-an effective business development tool
4. Purchase Process
5. Purchase Vehicles
6. Finding contracting opportunities
7. Finding your target market; who buys what you sell
IS THE FEDERAL MARKET RIGHT FOR
YOUR BUSINESS?
www.WIPP.org
14. 14
Recognize the differences in federal contracting
Ensure your business infrastructure is ready to take on
work and requirements of a government contract
Build relationships
Mitigate risk
Separate yourself from competition
EDUCATE YOURSELF & GET HELP!
TACTICS FOR SUCCESS IN GOVERNMENT
CONTRACTING
www.WIPP.org
15. 15
ChallengeHER: http://www.wipp.org/?ChallengeHER
Events and workshops across the U.S. providing women entrepreneurs with
knowledge and connections to help them successfully compete in the
government marketplace.
Give Me 5: http://www.giveme5.com/
Named after the 5% federal contracting goal for women-owned businesses,
provides a wealth of online education on government contracting.
SBA Education: www.sba.gov
WIPP Federal Contracting Certificate Program
Step by step program to prepare women business owners with doing business
with the federal government. Upon completion of the program, women
business owners earn a listing in the WIPP’s WOSB Directory of Qualified
Contractors.
CONTRACTING RESOURCES TO ASSIST YOU
www.WIPP.org
16. 16
QUESTIONS
Please contact WIPP at procurement@wipp.org
with questions or information requests.
www.BusinessFwd.org
www.SBA.govwww.WIPP.org