Why Are ladies-Owned Small companies best Getting 5% of presidency Contracts?

Gwen Moran March 17, 2016

In a quintessential case of good information/bad information, the U.S. Small business Administration (SBA) announced on March 2, 2016, that, for the primary time, it met its intention in the quantity of federal contracts awarded to ladies-owned small companies (WOSB)—a goal that was set roughly two decades ago.

however for a intention that took nearly twenty years to achieve, the entire amount awarded would possibly not sound very impressive. It was simply 5.05%.

Why did it take twenty years to hit that mark—and why does it seem so low? The answers want some context, says John Shoraka, SBA associate administrator. First, the SBA’s overall small industry set-apart goal is 23%—a number it also bested by way of just about 3% last yr, for an all-time excessive of 25.seventy five%. That’s $ninety.7 billion in industry going to small companies. The 5.05% in contracts that went to WOSBs symbolize $17.eight billion, Shoraka says.

“It signifies that women-owned small companies are the primary tier of the supply chain to the federal executive. they’re now not subcontractors to different primes. they’re now not a couple of tiers down within the supply chain. they’re if truth be told the direct contractor with the federal executive, which has a number of benefits, and certainly can create a lot of traction for future successes,” he says.

Addressing the issues

however that also leaves WOSBs significantly underrepresented. A March 14, 2015, file by way of regulation firm Jackson Kelly, which has a specialization in govt contracts, mentioned, “while there at the moment are more industry teams overall in which WOSBs may also be awarded federal set-apart contracts, special set-apart alternatives for economically disadvantaged WOSBs have in truth diminished.”

but there are moves to improve extra WOSBs. In 2011, the formal women-Owned Small industry (WOSB) Federal Contract program was once launched and awarded its first contracts to help transfer in opposition to the 5% intention. the program gives better get admission to to federal contracting opportunities for WOSBs and economically disadvantaged women-owned small companies (EDWOSBs). the program allowed contracting officers, for the first time, to put aside specific contracts for licensed WOSBs and EDWOSBs. Shoraka says the program had problems, together with proscribing the sectors and capping contract amounts for set-asides.

“We labored over the past three years to dispose of some of these warts,” he says.

also, in October 2015, a new rule allowed the Federal Acquisition legislation (some distance) to permit sole source awards to WOSBs and EDWOSBs in some situations. One instance is when a contracting officer (CO) is on the lookout for suppliers in an trade during which WOSB or EDWOSB set-asides are approved, but the CO cannot identify multiple acceptable supplier and where the contract is $6.5 million or much less.

Tom Reid, chief problem solver at certified Contracting options, LLC and former federal lawyer with the division of the Navy and NASA, says that different limitations to WOSBs lie inside the machine. He calls the Federal Procurement knowledge machine‘s reporting gadget “critically poor.”

“Even when the federal government mentioned they hit or bought with reference to the 23%, different professional associations would say, ‘smartly, wait a minute. Let’s return to when all of the place of business-provide corporations claimed they were small businesses.’ businesses counted awards to them as awards to small companies when actually, they weren’t. they may be being awarded to huge businesses,” he says.

The red tape can be thick for WOSBs, Reid says. Being eligible to do industry with the federal government requires quite a lot of effort up front, he says. when you go through the course of required to be listed as a contractor in the machine for Award administration (SAM), the effort may not repay, especially for those who don’t offer services in areas detailed as underrepresented through ladies, he says.

lend a hand For WOSBs

however for a lot of WOSBs, like Miami-based totally consulting firm executive trade options, which lands more than $3 million in executive contracts each yr, the payoff can be big. Founder Lordes Martin-Rosa says that her certification and focused on of government contracts “changed my company dramatically.”

As for tools to assist WOSBs, Martin-Rosa factors to ChallengeHER, a program that was launched in 2013 as a national platform to educate WOSBs on contracting and connects them immediately with executive patrons at occasions across the u . s . a ., and the provide Me 5 application, which offers free executive contracting instruments similar to webinars and perception guides.

Shoraka says the federal government deals its personal suite of tools to help small businesses. Enter your zip code at SBA.gov and you’ll to find local tools, which may include one of the most sixty eight district workplaces around the u . s . a ., Small trade development facilities, and others. in addition, Procurement Technical assistance centers (PTACs) can if truth be told overview your proposals and offer you comments to make them more desirable.

“there are such a large amount of tools to be had without spending a dime, and numerous small businesses do not make the most of them,” Shoraka says.