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USWCC | Review of the Proposed Regulations for the Women's Federal Procurement Program


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The U.S. Women's Chamber of Commerce overview of the proposed regulations for the implementation of the Women's Federal Procurement Program.

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USWCC | Review of the Proposed Regulations for the Women's Federal Procurement Program

  1. 1. Women's Federal Procurement Program 10 years later . . . . increased access to contracts for women-owned firms. U.S. Women’s Chamber of Commerce
  2. 2. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Not less than 51% women-owned by economically disadvantaged (or not. . .) </li></ul></ul><ul><ul><li>Reasonable expectation; 2 or more offers </li></ul></ul><ul><ul><li>Award may not exceed $3M; $5M manufacturing </li></ul></ul><ul><ul><li>Fair and reasonable price </li></ul></ul><ul><ul><li>Competing businesses must certify women-owned </li></ul></ul><ul><ul><li>Underrepresented or substantially underrepresented industries </li></ul></ul>
  3. 3. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Not less than 51% women-owned by economically disadvantaged </li></ul></ul><ul><ul><ul><li>Small business </li></ul></ul></ul><ul><ul><ul><li>One or more women-owners </li></ul></ul></ul><ul><ul><ul><li>Not less than 51% </li></ul></ul></ul><ul><ul><ul><li>Economically disadvantaged </li></ul></ul></ul><ul><ul><ul><li>Or (for certain industries), not-economically disadvantaged </li></ul></ul></ul>
  4. 4. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Reasonable expectation; 2 or more offers </li></ul></ul><ul><ul><ul><li>The contracting officer must have a reasonable expectation that two or more women-owned small businesses will submit offers </li></ul></ul></ul><ul><ul><ul><ul><li>>> Respond to SOURCES SOUGHT </li></ul></ul></ul></ul>
  5. 5. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Award may not exceed $3M; $5M manufacturing </li></ul></ul><ul><ul><ul><li>The anticipated award price of the contract may not exceed $5M for manufacturing, $3M for other contracts </li></ul></ul></ul><ul><ul><ul><li>>> We need to work to get these figures raised </li></ul></ul></ul>
  6. 6. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Fair and reasonable price </li></ul></ul><ul><ul><ul><li>The anticipated award price of the contract may not exceed $5M for manufacturing, $3M for other contracts </li></ul></ul></ul><ul><ul><ul><li>>> We need to work to get these figures raised </li></ul></ul></ul>
  7. 7. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Competing businesses must certify women-owned </li></ul></ul><ul><ul><ul><li>Each competing business must be duly certified by a Federal agency, State government, or an SBA-approved entity as a women-owned small business (WOSB) </li></ul></ul></ul><ul><ul><ul><li>OR, must certify to the contracting officer and provide adequate documentation that it is WOSB (regulatory) </li></ul></ul></ul><ul><ul><ul><li>Penalties are imposed for misrepresentation </li></ul></ul></ul>
  8. 8. <ul><li>Six Criteria for Use of the Program </li></ul><ul><ul><li>Underrepresented or substantially underrepresented industries </li></ul></ul><ul><ul><ul><li>Competition may be restricted for this program only in industries where WOSB are underrepresented or substantially underrepresented </li></ul></ul></ul>
  9. 9. <ul><li>Women-Owned Defined </li></ul><ul><ul><li>The definition of women-owned has been made clear in the regulations, dealing pretty well with: </li></ul></ul><ul><ul><ul><li>Issues of legal control of the business </li></ul></ul></ul><ul><ul><ul><li>Day-to-day management </li></ul></ul></ul><ul><ul><ul><li>Competency to oversee certain types of businesses that may include professional certifications </li></ul></ul></ul><ul><ul><ul><li>Holds highest position within the company </li></ul></ul></ul><ul><ul><ul><li>Does not hold outside employment that prevents true day-to-day management </li></ul></ul></ul>
  10. 10. <ul><li>Certification Options </li></ul><ul><ul><li>Certification provided by: </li></ul></ul><ul><ul><ul><li>Federal Agency </li></ul></ul></ul><ul><ul><ul><ul><li>DOT DBE (must show that this certification was received because business is women-owned </li></ul></ul></ul></ul><ul><ul><ul><li>State Government </li></ul></ul></ul><ul><ul><ul><li>Third Party Providers </li></ul></ul></ul><ul><ul><li>AND certify to the contracting officer that the business is small and women-owned (repository) </li></ul></ul>
  11. 11. <ul><li>Self Certification </li></ul><ul><ul><li>The original law called for a method of self-certification in addition to the formal certification process </li></ul></ul><ul><ul><li>These rules provide a method to accomplish this </li></ul></ul>SELF
  12. 12. <ul><li>Size = Small </li></ul><ul><ul><li>Business must be small in the NAICS code of the contract (see for list of NAICS codes and size standards) </li></ul></ul>
  13. 13. <ul><li>ORCA and Repository </li></ul><ul><ul><li>Prior to ORCA, vendors were required to submit Reps and Certs for each individual large purchase contract award. Now, using ORCA, a contractor can enter their Reps and Certs information once for use on all Federal contracts. This site not only benefits the contractor by allowing them to maintain an accurate and complete record but also the Contracting Officer as they can view every record, including archives. </li></ul></ul>
  14. 14. <ul><li>ORCA and Repository </li></ul><ul><ul><li>ORCA requirements to represent WOSB status will be enhanced to require the business asserting WOSB to answer certain key questions that are relevant to women-owned status. </li></ul></ul><ul><ul><li>This is a great improvement in ORCA </li></ul></ul><ul><ul><li>A repository will be created to hold all certifications, documents, etc. </li></ul></ul><ul><ul><li>This system enables Contracting Officers to act, trust, and be protected as they use the program. </li></ul></ul>
  15. 15. <ul><li>Eligibility Examinations </li></ul><ul><ul><li>The SBA has detailed a method to verify the accuracy of a certification. </li></ul></ul><ul><ul><li>These are often called “site visits.” </li></ul></ul><ul><ul><li>May be done randomly, based on contract sizes, or upon report of a business wrongly asserting WOSB status. </li></ul></ul>
  16. 16. <ul><li>Economically Disadvantaged </li></ul><ul><ul><li>The SBA has simplified the determination of “economically disadvantaged status. </li></ul></ul><ul><ul><ul><li>A woman IS NOT economically disadvantaged if her yearly income averaged over the past two years exceeds $200,000 (approximates the top 2% of wage earners) </li></ul></ul></ul><ul><ul><ul><li>The SBA provides a good deal of clarification regarding retirement program, husbands and wives, and inheritance. </li></ul></ul></ul><ul><ul><ul><li>The SBA provides the opportunity for businesses to show that the income level is not indicative of lack of economic disadvantage. </li></ul></ul></ul>
  17. 17. <ul><li>Selection of Industries </li></ul><ul><ul><li>There has been much argument over the method and data sets used to select the industries to be determined as “underrepresented” and “substantially underrepresented.” </li></ul></ul><ul><ul><li>Dollars and actions </li></ul></ul><ul><ul><li>Ready, willing, and able – compared to outcomes </li></ul></ul><ul><ul><li>>> The SBA has decided to use CCR. We object as CCR has and will be affected by the very problem we seek to remedy. </li></ul></ul>
  18. 18. <ul><li>More on Industries </li></ul><ul><ul><li>We need to be clear on protests to add industries – a criteria for showing exception. </li></ul></ul><ul><ul><li>We need clarity for the ongoing updates of these industries and testing to the sensitivity of the selection of the data sets used (especially the likelihood that CCR data may be impacted by discrimination and/or the views of WOSB who fail to register or drop their registration due to ongoing access to contracts). </li></ul></ul>
  19. 19. <ul><li>Industries included </li></ul><ul><ul><li>The forty-five NAICS codes in which WOSBs are underrepresented are: 2213—Water, Sewage and Other systems; 2361—Residential Building Construction; 2371—Utility System Construction; 2381—Foundation, Structure, and Building Exterior Contractors; 2382—Building Equipment Contractors; 2383—Building Finishing Contractors; 2389—Other Specialty Trade Contractors; 3149—Other Textile Product Mills; 3159—Apparel Accessories and Other Apparel Manufacturing; </li></ul></ul>
  20. 20. <ul><li>Industries included </li></ul><ul><ul><li>3219—Other Wood Product Manufacturing; 3222— Converted Paper Product Manufacturing; 3321; Forging and Stamping; 3323—Architectural and Structural Metals Manufacturing; 3324—Boiler, Tank, and Shipping Container Manufacturing; 3333— Commercial and Service Industry Machinery Manufacturing; 3342— Communications Equipment Manufacturing; 3345—Navigational, Measuring, Electromedical, and Control Instruments Manufacturing </li></ul></ul>
  21. 21. <ul><li>Industries included </li></ul><ul><ul><li>5311—Lessors of Real Estate; 5413— Architectural, Engineering, and Related Services; 5414—Specialized Design Services; 5415—Computer Systems Design and Related Services; 5416— Management, Scientific, and Technical Consulting Services; 5419—Other Professional, Scientific, and Technical Services; 5611—Office Administrative Services; 5612—Facilities Support Services; 5614—Business Support Services; 5616—Investigation and Security Services; 5617—Services to Buildings and Dwellings; </li></ul></ul>
  22. 22. <ul><li>Industries included </li></ul><ul><ul><li>6116—Other Schools and Instruction; 6214— Outpatient Care Centers; 6219—Other Ambulatory Health Care Services; 7115—Independent Artists, Writers, and Performers; 7223—Special Food Services; 8111—Automotive Repair and Maintenance; 8113—Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance; and 8114— Personal and Household Goods Repair and Maintenance. </li></ul></ul>
  23. 23. <ul><li>Industries included </li></ul><ul><ul><li>The thirty-eight NAICS codes in which WOSBs are substantially underrepresented are: 2372—Land Subdivision; 3152—Cut and Sew Apparel Manufacturing; 3231—Printing and Related Support Activities; 3259— Other Chemical Product and Preparation Manufacturing; 3328— Coating, Engraving, Heat Treating, and Allied Activities; 3329—Other Fabricated Metal Product Manufacturing; 3371—Household and Institutional Furniture and Kitchen Cabinet Manufacturing; </li></ul></ul>
  24. 24. <ul><li>Industries included </li></ul><ul><ul><li>3372—Office Furniture (including Fixtures) Manufacturing; 3391—Medical Equipment and Supplies Manufacturing; 4841—General Freight Trucking; 4889—Other Support Activities for Transportation; 4931— Warehousing and Storage; 5111— Newspaper, Periodical, Book, and Directory Publishers; 5112—Software Publishers; 5171—Wired Telecommunications Carriers; 5172— Wireless Telecommunications Carriers (except Satellite); </li></ul></ul>
  25. 25. <ul><li>Industries included </li></ul><ul><ul><li>5179—Other Telecommunications; 5182—Data Processing, Hosting, and Related Services; 5191—Other Information Services; 5312—Offices of Real Estate Agents and Brokers; 5324—Commercial and Industrial Machinery and Equipment Rental and Leasing; 5411— Legal Services; 5412—Accounting, Tax Preparation, Bookkeeping, and Payroll Services; 5417—Scientific Research and Development Services; 5418— Advertising, Public Relations, and Related Services; </li></ul></ul>
  26. 26. <ul><li>Industries included </li></ul><ul><ul><li>5615—Travel Arrangement and Reservation Services; 5619—Other Support Services; 5621— Waste Collection; 5622—Waste Treatment and Disposal; 6114— Business Schools and Computer and Management Training; 6115—Technical and Trade Schools; 6117—Educational Support Services; 6242—Community Food and Housing, and Emergency and Other Relief Services; 6243—Vocational Rehabilitation Services; </li></ul></ul>
  27. 27. <ul><li>Industries included </li></ul><ul><ul><li>7211—Traveler Accommodation; 8112—Electronic and Precision Equipment Repair and Maintenance; 8129—Other Personal Services; and 8139—Business, Professional, Labor, Political, and Similar Organizations. </li></ul></ul>
  28. 28. <ul><li>Other Details and Issues </li></ul><ul><ul><li>Joint Ventures </li></ul></ul><ul><ul><li>Penalties for false representation as women-owned and small </li></ul></ul><ul><ul><li>Protest </li></ul></ul><ul><ul><li>Parity – the requirement to utilize limited competition programs in a certain order may negate the effectiveness of the women’s program and other socio-economic programs </li></ul></ul><ul><ul><li>Broader issue of businesses counted as WOSB for goaling reporting. </li></ul></ul>
  29. 29. <ul><li>Many leaders have come together </li></ul><ul><ul><li>We have many leaders to thank </li></ul></ul><ul><ul><ul><li>Congress </li></ul></ul></ul><ul><ul><ul><li>SBA, Federal Agency Small Business Leaders </li></ul></ul></ul><ul><ul><ul><li>The Court (and our attorneys) </li></ul></ul></ul>Federal Agencies SBA Congress YOU USWCC The Court
  30. 30. <ul><li>Next Steps </li></ul><ul><ul><li>Keep Up to Date – </li></ul></ul><ul><ul><li>Register for notifications - </li></ul></ul><ul><ul><li>Advocate - </li></ul></ul><ul><ul><li>Submit Comments – the SBA has published proposed regulations for comments to be submitted by May 3, 2010 </li></ul></ul><ul><ul><li>Join the WFPP group at USWCC | Community 360 and/or the Small Business Contractors Forum </li></ul></ul>
  31. 31. <ul><li>QUESTIONS </li></ul>