Federal contracting, with its intricate web of regulations and procedures, can appear formidable and impervious to outsiders. However, nestled within this labyrinth lies a hidden passage—an extraordinary opportunity—that has the potential to reshape the destiny of a company. For women-owned businesses and economically disadvantaged women entrepreneurs across America, the EDWOSB certification serves as a lifeline, unlocking a realm of government contracts, untapped resources, and invaluable mentorship.
This article is dedicated to visionary, risk-taking American women who are both owners and entrepreneurs of economically disadvantaged companies. It delves deep into the realm of the EDWOSB certification, meticulously exploring its prerequisites while unmasking the myriad advantages that lie in wait for those bold enough to seize this opportunity. Acting as a beacon, this essay will illuminate the path to success in the EDWOSB application, whether you are embarking on your entrepreneurial journey or striving to propel your existing business to greater heights.
What does EDWOSB Certification mean?
The Small Business Administration's (SBA) Women-Owned Small Business (WOSB) Federal Contracting Program is dedicated to enhancing the accessibility of federal contracting opportunities for women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs). Its primary objective revolves around facilitating federal agencies in achieving their target of allocating 5% of their contractual budget specifically to WOSBs.
Within this initiative, government contracting officers hold the prerogative to reserve certain orders or contracts exclusively for WOSBs or EDWOSBs. The determination to set aside these contracts is grounded in the SBA's comprehensive evaluation of the inadequate representation of WOSBs within specific industries. To this end, the SBA has pinpointed 364 six-digit North American Industry Classification System (NAICS) codes that correspond to WOSBs, as well as 80 six-digit NAICS codes that pertain to EDWOSBs, out of a total pool of 1,023 codes.
Moreover, in specific scenarios, federal agencies have the option to bestow sole-source contracts upon WOSBs and EDWOSBs engaged in eligible industries. These circumstances necessitate the absence of multiple offers from qualified WOSBs or EDWOSBs, the establishment of fair and reasonable pricing, and a contractual value that falls below predetermined thresholds ($4 million for non-manufacturing contracts or $6.5 million for manufacturing contracts).
Since 1978, directors of federal agencies have been mandated to establish federal procurement targets that consider the potential of small enterprises, particularly those led by individuals hailing from socially and economically disadvantaged backgrounds. However, the inclusion of WOSB goals was initially overlooked in these objectives. To rectify this, President Jimmy Carter signed Executive Order 12138 in 1979, which not only promoted the establishment of women-owned businesses but also mandated federal agencies to facilitate procurement opportunities and aid in the formation of joint ventures for EDWOSBs.
With the implementation of Executive Order 12138, the Small Business Administration was empowered to include WOSB procurement goals in the roster of small business contracting objectives discussed with federal agencies. Unfortunately, by 1988, only a mere 1% of all federal contracts were awarded to WOSBs, prompting the Women's Business Ownership Act of 1988 (P.L. 100-533) to be enacted.
What are the qualifications?
The requirements of the Women-Owned Small Business (WOSB) Federal Contracting Program were established by the Consolidated Appropriations Act, 2001 (P.L. 106-554). According to the act, contracts reserved for WOSBs or economically disadvantaged women-owned small businesses (EDWOSBs) can only be designated if specific conditions are met. These conditions encompass the reasonable expectation of multiple qualified companies submitting bids, ensuring that the anticipated award price of the contract, including options, remains within predetermined limits (which were later removed), and guaranteeing that the contract can be awarded at a fair and reasonable price.
To participate in the WOSB program, companies must fulfill eligibility requirements. These requirements include being classified as a small business according to the SBA's definition, having unconditional and direct ownership and control of at least 51% by one or more women who are U.S. citizens, having women involved in day-to-day management and long-term decision-making, and obtaining certification from a federal agency, state government, the SBA, or an authorized national certifying entity. Businesses may also self-certify their eligibility to the federal contracting officer by providing adequate evidence that aligns with SBA guidelines.
Previously, small businesses had the option to self-certify their eligibility for the WOSB program. However, the P.L. 113-291 (NDAA 2015) repealed this provision, making it no longer possible to ensure exclusive contract allocation to the designated recipients. Consequently, the SBA was mandated to establish its own certification procedure for WOSBs. It is advisable for WOSBs and EDWOSBs to either self-certify or obtain third-party certification to participate in the program, although the SBA anticipated implementing the certification process and eliminating self-certification by July 2020. Self-certification involves maintaining an accurate profile on the System for Award Management (SAM) website and annually submitting certification information through the SBA's certification webpage. Recognized organizations approved by the SBA offer third-party certification, typically for a fee.
For businesses to be considered as EDWOSBs, they must satisfy both the criteria of being economically disadvantaged and comply with all requirements of the WOSB contracting program. The SBA's definition of economic disadvantage is based on factors such as the owner's personal net worth, adjusted gross income averaged over three years, and personal assets. For example, an owner certified as an EDWOSB must have a personal net worth not exceeding $750,000, an average adjusted gross income of no more than $350,000 over the previous three years, and personal assets not exceeding $6 million.
Key Takeaways:
The EDWOSB certification program holds significant promise for American women entrepreneurs and women-owned businesses. By understanding the qualifying criteria and leveraging the benefits of this accreditation, business owners can unlock a wealth of opportunities and propel their companies towards success.
The EDWOSB certification serves as a gateway to government contracts, aiming to level the playing field and enhance access to federal contracting opportunities. By having contracts specifically reserved for WOSBs and EDWOSBs, businesses have an improved likelihood of securing lucrative government contracts, expanding their customer base, and fostering overall growth.
Comments