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Enacted by section 8(m) of the Small Business Act, the Women-Owned Small Business (WOSB) Program authorizes Federal contracting officers to limit competition for Federal contracts to qualified Women-Owned Small Businesses (WOSBs) or Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs), in select industries.
Sole source authority refers to the power of contracting officers to award Federal contracts directly to individuals or companies without having to consider other firms. This expedites the contracting process by eliminating its competitive nature.
Legal justifications for the use of sole source authority in the United States include:
There is an urgent need to expedite the selection process
– It is a matter of public interest
– An international agreement
– There is only one firm that can perform the services required by the contract
– It is required by law, as in a special program
– It is a matter of national security
– It is in the interest of industrial mobilization or expertise
Until recently, sole source authority was an aspect of all small business contracting programs, except the WOSB Program. If established, sole source authority would permit WOSB Program contracting officers to uncomplicatedly award contracts to women-owned small businesses and eliminate the previous, lengthy process for distributing these highly needed contracts.
A December 2014 amendment by Congress to the WOSB Program in section 825 of the National Defense Authorization Act (NDAA) for fiscal year 2015 bestowed contracting officers with sole source authority. This amendment reduces the time requirements for the Small Business Administration’s (SBA) mandatory study determining industries in which WOSBs are underrepresented in federal contracting and establishes a requirement for companies to certify as WOSBs or EDWOSBs by the SBA, a federal agency, a state government or an SBA-approved agency.
On May 1, 2015, the SBA published a proposed rule in the Federal Register to implement sole source authority for WOSBs and EDWOSBs and to shorten the process for the SBA’s required study. In an effort to avoid delaying the fulfillment of sole source authority, the SBA stated that it would address certification requirements in a future rulemaking. The proposed rule received 495 comments, most of which offered wide-ranging support. Commenters particularly expressed gratitude for the swiftness with which the SBA pursued sole source authority for the WOSB Program.
On September 11, 2015, the Small Business Administration announced a final rule authorizing sole source authority in the WOSB Federal Contract Program. The rule’s official implementation date was October 14, 2015, it will have a manufacturing cap of $6.5 million and a $4 million cap for all other contracts.
The authorization of sole source authority for the WOSB Program is a pivotal achievement that will benefit women-owned small businesses across the United States. This authority will afford women entrepreneurs crucial financial support and provide women-owned small businesses opportunities and access to resources necessary for success.
NAWRB is a proud supporter of the SBA and their efforts to empower women-owned businesses. To view the final rule, please visit the Federal Register’s website. For more information on the SBA, please visit sba.gov.