The goal of the federal government is to offer at least 5% of all federal contracting dollars to businesses owned by women every year. This initiative helps in rendering a levelled playing field for women business owners. Through this initiative, the government is also limiting the competition for certain contracts to businesses that participate in the Women-owned small business federal contract programs.
Benefits of Support Extended by the Federal Government to WOSBs
The Federal government limits certain government business contracts to women-owned businesses to encourage their participation in specific industries in which the role of WOSBs is underrepresented. Some of these contracts are also restricted further for economically disadvantaged WOSBs. It is to be noted that the Small Business Administration maintains a list of the eligible industries and their NAICS codes.
Joining the Women-owned Small Business Federal Contract Program will make a business eligible to compete for certain federal contracts reserved for the program’s certified participants. These set-aside contracts are specific for women-owned businesses, however, they can participate in other contract awards under other socio-economic programs as well.
Eligibility Requirements to Grab Federal Contracts by WOSBs
To be eligible for the Women-Owned Small Businesses, the federal contract program should be a small business according to the SBA size standards. The business should be at least 51% owned and controlled by women who are citizens of the United States. The business should also have women manage their day-to-day operations and make long-term decisions.
For economically disadvantaged women-owned small businesses, apart from meeting all the requirements of the WOSB federal contract program, the business should be owned and controlled by one or more women, each having a personal net worth of less than $850,000, $6.5 million or less in personal assets. The standards of economic disadvantage have been aligned between the 8 (a) business development program and the WOSB federal contract program. SBA allows participation from firms that are certified by the US Department of Veterans Affairs Center, provided they meet all the eligibility requirements.
Before women-owned businesses compete to set aside contacts, they should apply for certification on the basis of checklists offered as guidance. Certification for women-owned businesses entails certain obligations, which might involve periodic updates that reflect any changes in the business, along with participating in the renewal process and resubmitting specific documents as required.
Entering Business Contracts with the Government
Newly certified women-owned small businesses that hope to do business with government agencies can go to MySetAside to find contract opportunities. Before getting certified and competing for federal contracts, the business should register itself in the System for Award Management. Registration is free and enables the contacting agencies to find their business while searching for contractors.
The federal government continues to prioritize small businesses, awarding close to $163 billion in contracts to small businesses. There are also a number of resources that are specifically designed for women-owned businesses to better navigate the contracting market. Getting certification of a WOSB is a crucial strategy for businesses to qualify for certain set-aside contracts by the federal government. Getting the correct guidance and the right help can help them achieve these contracts.
Empowering Women Entrepreneurs
Department of Defense and a number of other agencies render a range of programs and resources that are aimed at empowering women entrepreneurs to succeed in government contracting. These initiatives render valuable support and opportunities for women-owned businesses to thrive. By engaging in these contracts, entrepreneurs receive the support and knowledge that helps them achieve their government contracting goals. The federal agencies gain a diverse supply chain and serve as an equal opportunity employer for all.