1. WOMEN OWNED SMALL BUSINESS
CONTRACTING PROGRAM
April 25, 2012
Tom Linnertz
North Dakota District
Office, SBA (NDDO)

2. What We’ll be Talking About
• Federal Spending and Goals
• WOSB and EDWOSB Set-asides
• WOSB Eligibility Requirements
• Certification/Documentation
• Examinations and Protests
• WOSB and EDWOSB Contracts
• Problems and Shortfalls.

3. Federal Small Business Spending 2010
(FPDS Goaling Report - $432.3B available)
• Small Business: $97.9B
• Small Disadvantaged Business: $34.3B
• 8(a) Business Development $ 18.5B
• HUBZone Small Business $12.0B
• Service Disabled Veteran SB: $10.8B
• Women Owned Small Business: $17.5B

4. Federal Prime Contracting
Small Business Goals
 Small Business 23% (22.7%).
 Small Disadvantaged Business & 8(a) 5% (8.0%).
 HUBZone Small Business 3% (2.8%).
 Service Disabled Veteran Owned Small Business 3%
(2.5%).
 Woman Owned Small Business 5% (4.0%).
 Percentages taken from 2010 Goaling Report

5. Federal Prime Contracting 2010 WOSB Goals
and Accomplishment
 WOSB Goal: 5%
 WOSB Goal Accomplishment: 4.0%
 WOSB Dollars: $17.5 B
 WOSB Dollars @ 5%: $21.6 B
 WOSB Dollar Delta FY 2010: $4.1 B
– Data taken from 2010 Goaling Report

6. Set-asides
• Government can set requirement aside for:
• Small Business
• 8(a) Business Development Participants
• HUBZone Small Business Concerns
• Service Disabled Veteran Owned Small Business
• Women Owned Small Business (WOSB) and
Economically Disadvantaged Women Owned Small
Business (EDWOSB).

7. Benefits
 Allof the benefits of the new WOSB
Contracting Program are tied to the
authority of the contracting officer to
set-aside the requirement which limits
the competition to WOSBs or
EDWOSBs.

8. Eligible NAICS Codes
Set-asides are only allowed under certain NAICS Codes
identified by the RAND study.
NAICS are found at www.sba.gov/wosb
83 Industries 4-digit NAICS Codes
(373 6-Digit NAICS Codes)
216 Underrepresented
157 Substantially Underrepresented
373 6 digit NAICS codes

9. Two Types of Set-asides
• Requirements assigned NAICS Codes identified by
RAND where WOSB are Underrepresented can be set-
aside for Economically Disadvantaged WOSB
(EDWOSB)
• Requirements assigned NAICS Codes identified by
RAND where WOSB are Substantially
Underrepresented can be set-aside for WOSB.

10. WOSB Eligibility Requirements
• Must be a small business based on the business’ primary
NAICs code.
• Not less than 51% unconditionally and directly owned and
controlled by women who are U. S. citizens.
• Unconditional ownership means that ownership must not be subject
to any conditions, agreements, or other arrangements that could
potentially cause ownership benefits to go to another.
• Women must directly own 51% of the business.
• Business owned by another entity owned by a woman does not qualify.
• Control means the long term and the day to day operation of the
business is controlled by women.

11. EDWOSB Eligibility Requirements
• All of the WOSB requirement apply.
• Additional requirements to be economically disadvantaged:
• Personal net worth of less than $750,000
• Ownership interest in EDWOSB, primary personal residence, and IRAs
excluded.
• Adjusted gross income averaged for the previous three years does not
exceed $350,000.
• The fair market value of all assets cannot exceed $6 million.

12. WOSB Not Interested in
WOSB or EDWOSB Set- Asides
• Qualified WOSB that does not provide products services under
eligible NAICs codes or are otherwise not interested in competing
under WOSB or EDWOSB set-asides may continue to list themselves
as a Women Owned Business (WOB) in CCR and self-certify in ORCA
that they are WOB.
• WOBs will not have to complete the longer self certification form or
place any documents in the WOSB document repository.
• Contract dollars awarded to these businesses through other
contracting methods will continue to count towards an agencies’
WOSB goals.

13. Certification
• SBA does not certify WOSB or EDWOSB.
• Exception: Current 8(a) BD participants 51% owned and
controlled by one or more women.
• Self certification with supporting documentation.
• Certifications from a SBA approved third party
certifier:
• Women’s Business Enterprise National Council
• US Women’s Chamber of Commerce
• National Women Business Owners Corporation
• El Paso Hispanic Chamber of Commerce

14. Self Certification: All WOSB and EDWOSB
• The EDWOSB or WOSB must register in the
• Central Contractor Registration (CCR). www.ccr.gov
• Online Representations & Certification Application (ORCA)
https://orca.bpn.gov/
• Supporting documents must be submitted to the WOSB
Program Repository.
• Repository accessed through SBA’s GLS Login system.
• Provide a copy of a signed certification verifying its eligibility and
stating all supporting documents are true and accurate.
• Copies of all required supporting documentation.

15. Self Certification: (Cont’d)
All WOSB and EDWOSB
• The EDWOSB or WOSB must represent its
status in the Online Representations and
Certification Application (ORCA).

16. Required Supporting Documentation
• If certified by an approved third party certifier:
• A copy of third party certification.
• SBA's WOSB Program Certification form (SBA Form
2413)
• The joint venture agreement, if applicable.

17. Required Supporting Documentation
• If self-certifying:
• Birth certificates, unexpired passports.
• The joint venture agreement, if applicable
• For LLCs: Articles of Organization, amendments and
Operating agreement
• For corporations: Articles of organization or incorporation,
by-laws, stock certificates, stock ledgers, voting agreements.
• For partnerships: the partnership agreement and any
amendments
• Assumed/fictitious (DBA) certificates.
• SBA's WOSB Program Certification form (SBA Form 2413).
• For EDWOSBs: SBA Form 413.

18. Eligibility Examinations
• Investigation that verifies the accuracy of any
certification made or information provided as part of
the certification process.
• Examination may be performed:
• As a result of a protest.
• Based on information provided by a third party.
• As a result of random sample of WOSBs/EDWOSBs.
• SBA will notify firm, request specific documents and
may perform a site visit.

19. Protest and Appeals
• A WOSB or EDWOSB status protest is a challenge to the WOSB
or EDWOSB status in connection with specific WOSB or
EDWOSB requirement.
• Only an interested party may file status protest.
• Interested parties include other offerors, the CO, and the
SBA.
• Interested party must have specific and credible evidence
showing a problem with the firm’s eligibility.
• Non-interested parties may contact SBA and suggest
eligibility examination.
• Size protest from interested party are filed separately pursuant
to 13 CFR 121.

20. Contract Requirements
• Limitations of Subcontracting.
• Supplying items manufactured by others (resellers).
• Offers from a WOSB or EDWOSB joint venture.

21. Limitations of Subcontracting
• The WOSB or EDWOSB must perform the following
percentages of the cost of the contract for personnel
with its own employees:
• Services (excluding construction): 50%
• Manufacturing: 50%
• General Construction: 15%
• Specialty trade construction: 25%

22. Resellers
• A WOSB or EDWOSB may provide an item on a supply
contract that it did not manufacture provided that:
• The WOSB or EDWOSB has less than 500 employees and is
primarily involved in wholesale or retail trade and normally
sells the type of item being supplied.
• The item was manufactured by a small business or a waiver
to the non-manufacturer rule was obtained from SBA.

23. Joint Venture: Written Agreement
• The WOSB or EDWOSB JV agreement must:
• Designate the WOSB or EDWOSB as the managing venturer.
• Designate an employee of the WOSB or EDWOSB as the
project manager responsible for contract performance.
• Stating that not less than 51% of the profits go to the WOSB
or EDWOSB .
• Stating that the WOSB or EDWOSB venturer must perform a
significant portion of the contract.

24. Contracting Officers Responsibilities
• Selects NAICs code for requirement.
• Conduct market research and consider set-asides.
• May set contract aside for WOSB or EDWOSB if (see
FAR 19.15):
• NAICS code is eligible.
• Contract value is less than $6.5 million in manufacturing or
$4 million in all other industries (including options).
• Reasonable expectation of 2 or more offers by WOSBs or
EDWOSB.

25. Contracting Officers Responsibilities
(cont’d)
• Solicitation is advertised in FedBizOpps
• Includes 52.219-29 - EDWOSB or 52.219-30 - WOSB
• Must check that the apparent successful offeror has
proper certification in ORCA.
• Notify the apparent successful offeror.
• The successful WOSBs or EDWOSB will grant the CO access to
business’s documents for 120 days.

26. Contracting Officers Responsibilities
(continued)
• Must certify he/she checked the WOSB repository and
that all required documents are in the system
(including certifications by Third Party certifiers).
• If documents are inadequate initiate status protest.
• Award Contract!

27. How is the Program Working so far
•
?
Last year - 3 out of 4 Small Business Contracts went to
72 of the Fed’s top 100 businesses.
• IG has called on SBA to up it’s surveillance process.
• (INC )
• Over the last decade women’s share of business
revenues has dropped more than 10% (Based on a
March 2012 report to congress by USWCC).
• The same report stated the “Women’s Business Set-
Aside Program Grievously Underutilized”

28. How is the Program Working so far
•
?
Roughly 1/3 of all business in the US is women-owned,
yet the government has never met a 5% set aside
goal.
• FY 2011 Reports indicate WOSB set asides at 3.99%
• YTD 2012 WOSB Set asides are at 3.3%
• The authority for the program was created in 2000
and implemented in 2010A
• Contracting Officers are struggling to implement the
program.

29. What is Happening Now ?
• New Regulations are out making Fraudulent
Representation/Claims Extremely Costly
• IG has called on SBA to overhaul its Surveillance to
become effective & consistent
• Women’s Procurement Improvement Act, H.R. 4203
• Remove the $4.0 & $6.5 million Cap on Set Asides for Women
• Competitive Set Asides would be allowed in unlimited Amounts
• Allow Sole Source Set Asides up to $4 million or 6.5 million for
Manufacturing

30. What is Happening Now ? (Cont’d)
• These would match the provisions for 8(a) and HUBZone
& SDVOSB.
• Certification would be easier
• Rep Nydia Velazquez (D-NY) Says the current rules are “Nearly
Unworkable”
• NAICS Restrictions are considered for removal
• SBA Certification Process would be stepped up by this bill.
• This bill was approved by committee on March 22, 2012

31. The U.S. Women’s
Chamber of Commerce (USWCC)
has called for these changes in their
report to Congress

32. Resources
• At www.sba.gov/wosb
• The Final Rule & History
• FAQs
• Fact Sheet
• List of NAICS codes for the program
• Compliance Guide for Small Entities
• Program Guidelines for Contracting Officers
• Approved self certification forms
• Link (and instructions) to the repository
• US Womens Chamber of Commerce Report to Congress
March 2012.

33. Questions???
 Minnesota District SBA Office
Randall Czaia (612) 370-2314
randall.czaia@sba.gov
www.sba.gov/mn
 North Dakota District Office, SBA (NDDO)
Tom Linnertz (701) 239-5131 x 215
Thomas.Linnertz@sba.gov
www.sba.gov/nd