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Our last issue featured an article about the passage of the National Defense Authorization Act which secured sole source authority for the Woman-Owned Small Business (WOSB) Program. How does this legislation affect a WOSB? What level of effort does a WOSB firm need to invest to make this legislation profitable and low risk?
The Basics
Agencies and prime contractors (usually large businesses who hold a contract with the government) have a variety of socio-economic goals established for them by the Federal Government. These goals include WOSB, Service Disabled Veteran-Owned Small Business (SDVOSB), Historically Underutilized Business Zone (HUBZone) Small Business, Small Disadvantaged Business (SDB), and Small Business (SB). Some examples of goals for Federal Agencies to meet when soliciting contracts are:
Remember, although the percentages may appear small in the chart, the dollar amounts associated with these percentages are huge when applied to the Agencies such as the Department of Defense or Department of the Interior. Additionally, each prime contractor who is classified as a Large Business (based on either number of employee or three years of annual revenues) is required to have a Subcontracting Plan approved by the Small Business Administration (SBA) and the Agency Contracting Officer. The goals in these Subcontracting Plans can be substantially higher than the goals for the agencies. (I worked with a prime contractor who was required to subcontract 79 percent of their subcontracting dollars to small businesses). This leads to two strategies for market consideration– does the WOSB want to work directly with a government agency as a prime contractor or work with a prime contractor as a subcontractor? Or both?
Agencies (Federal, State, and Local) and prime contractors generally will require a WOSB to obtain certification to validate their socio-economic status. In addition to the certification, the WOSB firm will need to register in System Award Management (SAM). Registration is free and this system is used by the Federal Government and prime contractors for validation, goal attainment, market research and is necessary in order to be paid by the Federal Government. SAM will generate an identifier for each firm called a Commercial and Government Entity (CAGE) Code. Agencies and prime contractors utilize CAGE Codes instead of the firm’s name for market research due to difficulties between the names and the web system. For example, if the WOSB is “MJ Realty and Associates” and the agency or prime contractor searches for “MJ Realty,” a match will not appear. Hence, the CAGE Code is used for identification purposes and to streamline the process of locating a small business.
Opportunities
Marketing materials differ slightly yet significantly for the private sector and those involved in the public sector. Capability statements and business cards should include the socio-economic status (WOSB, Veteran-Owned Small Business, and Minority-Owned Small Business) along with the CAGE Code, and a tagline stating what the business does. If the agency or prime contractor has a WOSB goal they are attempting to meet, they will search through their marketing materials for WOSB and a CAGE Code. While prime contractors usually accept electronic marketing materials, several branches of the government will request hard copies as they are not able to look at websites or receive large emails due to security restrictions and settings. Always ask which format is preferred.
The government buys everything or has a prime contractor purchase it for them. As a former Contracting Officer, I have seen contracts issued for goats to clear environmentally sensitive areas, dogs to chase geese off military airfields and for balloons to welcome military personnel returning home. How can a WOSB figure out where to market her firm’s services and products?
The last issue of this magazine discussed the services offered by the Small Business Administration (SBA), an agency that maintains a wealth of information regarding who in the government is purchasing what services and products. Each state has a Procurement Technical Assistance Center (PTAC) that is partially funded by the Department of Defense to help small businesses obtain government contracts. Many of the counselors in the PTACs are former government employees with knowledge and connections for introductions. PTAC services are free to small firms. You can work with several counselors and/or centers since they all offer different expertise and classes. Industry conferences and forums are great places to find contacts and build relationships. Alliance Northwest has over 650 attendees and is the largest business-to-government conference in the Northwest with networking and matchmaking sessions available to small firms. Building relationships is the basis for many successful contractors.
What opportunities exist for WOSBs in the housing industry? Even in times when the Federal Government is not spending a great deal of money, they are still spending more than anyone else. Mobility is a way of life for many agencies, especially 
the Department of Defense. Follow the money – what bases are building up? For example, a ship arriving means a number of families will need housing.
In my own community, we requested the local motels register in SAM in case a need for temporary housing occurred. Unexpectedly, the Navy needed to house a large number of military members due to housing renovations on bases. None of the local motels had followed through and registered in SAM, forcing the Navy to arrange bus transports for military members to stay at a base over three hours away. As discussed above, SAM is used by the Department of Defense for payment and without registration, the Contracting Officer could not put a contract in place with any local facilities. Another area to follow is when the Government Agencies are awarding contracts in your community – track who is receiving those awards and where they are located. One of the recent local awards in Washington State was to five contractors from across the nation who were not familiar with the local community and needed assistance in relocating, setting up offices, homes, and finding employees.
Keys to success:
Is gaining another stream of income in this manner worth it? Some studies show it takes an average of 18 months to build relationships and get that first contract. Here are a few suggestions to help facilitate the process faster:
- Start your certification process now!
- When learning a new subject or industry, the first item to ponder and study is the language. The public sector—whether federal, state, or local—is full of acronyms. “SAM,” “CAGE Code,” and “WOSB” are just the tip of the iceberg. The good news is that you can simply ask for help whether in a meeting with an agency or at a conference. Many professionals understand and are more than willing to help a firm navigate and make introductions.
- Stay current on government market trends.
- Establish at least one viable working relationship with a business that does some federal contracting work. You can work with that business as a subcontractor prior to attempting to be a prime contractor.
- Know your niche and research which government agencies need your skills.
- Always ask questions. The individual you are talking with may not be the one to give you a contract, but could possibly share contact information of someone who could help you get closer to your goal.
- Diversify! Work with several prime contractors, agencies, or in a teaming arrangement with other small businesses that have government experience.
- Don’t disappoint a customer once you have an award.
- Don’t send non-specific marketing emails with large attachments as they will most likely not make it through the email limitations of most government agencies.
- Do your homework and establish relationships.
- Work with your local SBA and PTAC office; offer to facilitate a class or workshop at one of their industry forums.
Legislation usually provides an incredible opportunity. However, it makes no sense without the tools to make that opportunity a reality. It’s important to keep learning and asking for help to move your business towards your goal.
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Mary Jo Juarez is retired from the Federal Government after more than 30 years as a Contracting Officer. She spent the past six years as the Deputy for Small Business for a branch of the Navy which helped her fulfill her true passion: helping businesses connect and achieve success in all aspects of government contracting. Juarez is currently the President of the Juarez Group where she consults with businesses regarding certification and government contracts.