Federal Women Owned Business Certifications Benefits ~ Criteria ~ Certification Women in Contracting September 10, 2015
Women Owned Business • Designed to increase the number of small women owned firms that are winning government contracts and prime contracts. • Federal government has a goal to buy 5% from women owned businesses. • Currently government is at 4.86% • Goals flow down to prime contractors who also have goals to buy from women owned businesses •
Women Owned Business Set Asides Solicitations can be set aside for WOSB and EDWOSB if 1. The contracting officer has a reasonable expectation that 2 or more EDWOSBs/WOSBs will submit offers for the contract and 2. contract award may be made a fair and reasonable price and 3. The NAICS code assigned to the contract is for an industry that the SBA has designated as underrepresented or substantially underrepresented 13 CFR 127 •
Women Owned Business Set Asides 330 six digit NAICS codes are eligible for set asides. Women in these industries are underrepresented or substantially underrepresented. Each code is designated as either a WOSB or an EDWOSB. If you are EDWOSB, you are also a WOSB. www.sba.gov/wosb for full list of NAICS codes •
Women Owned Business Set Asides www.fbo.gov lists 2 solicitations in Washington State that are set aside www.fbo.gov lists 187 award notices to WOSB or EDWOSB •
Women Owned Business Sole Source? Not Yet! • 2015 National Defense Authorization Act (NDAA) authorized sole source contracts for WOSB & EDWOSB • Accepted public comment until June 30, final rule not yet published. • Proposed rule: CO can’t set aside (rule of 2) • The award including options <$6.5 million for • manufacturing and $4 million for others The EDWOSB/WOSB is responsible • Price is fair and reasonable • •
Women Owned Business Criteria Criteria - WOSB • Small Business • One or more women must unconditionally and directly own 51% of the business • The women owner(s) must control the business • US Citizen •
Ownership Ownership must be unconditional • Not subject to any conditions, executory agreements, voting trusts, or other arrangement that could cause ownership benefits to go to another. Ownership must be direct • The women must own 51% of the concern directly not through another business entity or trust (including stock ownership plan). Revocable trusts are likely okay. •
Ownership The woman or women owners must have control of firm • Manage the daily business operations • Must hold the highest officer position • Must have the managerial experience • Work full-time to the business during normal working hours •
Economically Disadvantage WOSB A woman is economically disadvantaged if she can demonstrate that her ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities. • Limitation on personal net worth: <$750,000 excluding her ownership interest in business and equity in primary personal residence, also excludes retirements funds if funds not available until retirement age without penalty. SBA may consider spouses income (see CFR 127.203) • Adjusted gross yearly income averaged over 3 years must be less than $350,000. • Also see restrictions on value of all assets ($6 m) and the transfer of assets in the past 2 years. •
Are you sure you’re Certified? A B Self Certification via: Third Party Certification via: • El Paso Hispanic Chamber uploading • National Women Business Owners Corp documents into SBA • US Women’s Chamber repository • Women’s Business Enterprise National Council (WBENC) Considerations: Considerations: - High likelihood it’ll withstand protest - No assurance you - Other benefits to being involved with the completed it correctly above organizations - No longer authorized by - Cost ($350-$450) Congress - No Cost! Must keep SAM up to date! •
Certification Checklist Documentation Reason for providing Birth Certificates or naturalization papers US Citizenship or unexpired passports of owner(s) who are women Joint Venture Agreements (if applicable) Control For LLC’s: Operating Agreements with Control, Ownership, Decision amendments & Operating Agreements Making Authority For Corporations: Bylaws, stock Control, Ownership, Decision certificates, stock ledger, voting Making Authority agreements, meeting minutes* For Partnerships: Partnership agreements Control, Ownership, Decision Making Authority State licensing information (DBAs) Ownership SBA Form 2413 Control, Ownership, & More •
Certification Checklist Documentation Reason for providing For EDWOSB: SBA Form 413 Personal Economically Disadvantaged designation - Financial Statement from owner (and personal net worth spouse*) prior year financial statements for Ownership and control: Distribution of business* income or loss Quarterly tax returns* Ownership and control: Distribution of income or loss Ownership and control narrative of financial and management history of firm*, resumes of all owners* Control W-2 or 1099 of officers* Control •
Certification Tips • Keep records of everything you submit • Triple check your SAM is current and accurate • Before you certify, understand the benefits and your marketing strategy • Remember – penalties for misrepresenting (presumption of loss up to the total amount of contract) • Work with an SBDC Advisor • Review your certification application with your PTAC Counselor •
Questions? Tiffany Scroggs tscroggs@thurstonedc.com 360-754-6320 www.washingtonptac.org
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