Women-Owned Small Business (WOSB) Federal Contract Program and Jobs Act Update February 2012

Women-Owned Small Business (WOSB)Federal Contract Program and

Jobs Act Update

February 2012

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Overview of the WOSB program

Eligibility requirements

Certification and Repository

Reviews & Protests

Resources and Q&A

Jobs Act Update

Appendix – User guide for GLS and WOSB Repository

Topics for discussion

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Overview of Women-Owned Small Business program

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Impact of this program

• Levels the playing field for WOSBs to compete for and win federal contracts

• Provides procuring agencies a tool to help meet their WOSB contracting goal (i.e., the Federal government must award 5% of its prime contracting dollars to WOSBs)

• Ultimately, the program helps create and retain more jobs for WOSBs

Program overview

The Women-Owned Small Business (WOSB) program authorizes contracting officers to set aside certain federal contracts for eligible:• Women-owned small businesses

(WOSBs) or• Economically disadvantaged women-

owned small businesses (EDWOSBs)

SBA is responsible for implementing and administering the program and the Federal Acquisition Regulatory Council is responsible for implementing SBA’s program regulations in the FAR (part 19)

Requirements for WOSB and EDWOSB Set Asides

WOSB Set Aside EDWOSB Set AsideIndustries • NAICS code assigned to

solicitation, IFB or quote is in an industry in which WOSBs are substantially underrepresented

(38 4-digit NAICS designated – pages 11-18 of complete list)

• NAICS code assigned to solicitation, IFB or quote is in an industry in which WOSBs are underrepresented

(45 4-digit NAICS designated – pages 1- 10 of complete list)

Rule of two • Contracting officer has reasonable expectation that 2 or more WOSBs will submit an offer

* Note: All EDWOSBs are WOSBs

• Contracting officer has reasonable expectation that 2 or more EDWOSBs will submit an offer

* Note: Not all WOSBs are EDWOSBs

Award price

• Anticipated award price including options does not exceed the statutory thresholds of $6.5M for manufacturing or $4M for other contracts

• Contract can be awarded at fair market price

Contracting officers may set aside contracts for WOSBs and EDWOSBs if they meet the following requirements:

A complete list of applicable NAICS codes can be found at www.sba.gov/wosb

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Additional key information about the WOSB program

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• The same subcontracting limitations that apply for small business set asides apply for the WOSB program

• A mentor-protégé program for the WOSBs could be implemented within the next year

• By statute, the WOSB program does not authorize sole source awards

Procurements valued from $3,000 to Simplified Acquisition Threshold (generally $150,000)

#1Small business, which includes HUBZone or 8(a) or SDVO SBC or WOSB/EDWOSB

#2Full and open competition (unrestricted; not set aside for one of the five major small business prime contracting programs)

Procurements valued over Simplified Acquisition Threshold (generally $150,000)

#1Consider HUBZone or 8(a) or SDVO SBC or WOSB/EDWOSB first

#2Small business set aside

#3Full and open competition (unrestricted; not set aside for one of the five major small business prime contracting programs)

Parity and the WOSB Program

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Reviews & Protests

Resources and Q&A

Jobs Act Update



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Meet small business size standard for primary NAICS code and contract

At least 51% unconditionally and directly owned by women who are U.S. citizens*

The woman must manage the day-to-day operations

The woman must make the long-term decisions for the business

A woman must hold highest officer position

The woman must work at the business full-time during normal working hours

No minimum amount of time the business has been operational

Eligibility Requirements for WOSBs

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*We do not consider community property laws when looking at ownership.

Eligibility Requirements for EDWOSBs

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* Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in recognition of special event

Same requirements as WOSBs (on previous page) PLUS:

Personal net worth (assets minus liabilities) is less than $750,000 excluding:• Ownership in business and primary personal residence• Income reinvested or used to pay taxes of business• Funds reinvested in IRA or other retirement account*• Transferred assets within two years if to or on behalf of immediate family

member for select purposes**

Adjusted gross income average over three years is $350,000 or less excluding:• Income reinvested or used to pay taxes of business

Fair market value of assets is $6 million or less excluding:• Funds reinvested in IRA or other official retirement account

Note: SBA will look at a spouse’s finances if the spouse has a role in the WOSB/EDWOSB, has lent money to or provided financial support (including credit or guarantee of loan) to the business. SBA may also look at spouse’s finances if both spouses are in same or similar line of business and businesses share names, websites, equipment and employees.

Requirements for Joint Ventures

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A WOSB/EDWOSB may submit an offer as a joint venture with another small business if the following requirements are met:

• Size: Combined annual receipts or employees of joint venture must meet NAICS code assigned to contract*

• EDWOSB/WOSB must be managing venturer

• EDWOSB/WOSB employee must be project manager responsible for performance of the contract

• EDWOSB/WOSB must receive at least 51% of net profits

• The joint venture agreement must be in writing

• Joint venture must meet subcontracting limitations

Note: Joint venture agreement does not have to be approved by SBA

*Unless exception in 13 C.F.R. §121.103(h)(3) applies.

Active 8(a) firms and the WOSB program

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An active 8(a) firm is eligible for the WOSB program if it also meets the following requirements:

At least 51% unconditionally and directly owned by women who are U.S. citizens*

The woman must manage the day-to-day operations

The woman must make the long-term decisions for the business

A woman must hold highest officer position

The woman must work at the business full-time during normal working hours

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• Resellers/nonmanufacturers can submit an offer if the NAICS code assigned to the requirement is in a designated industry and the nonmanufacturer meets the requirements in 13 C.F.R. § 121.406(b).

• The SBA did not designate any NAICS codes in sectors 42, 44, and 45 for contracting assistance under the WOSB Program because these NAICS codes cover wholesalers and retailers.

• Contracting officers cannot assign these NAICS codes to solicitations or contracts but must assign a solicitation or contract with the applicable manufacturing NAICS code (and then the provisions of the nonmanufacturer rule would apply to any offerors that are nonmanufacturers of the items being supplied).

Nonmanufacturers

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Other key information about the WOSB program

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Does the WOSB have to perform any particular amount of work on a WOSB or EDWOSB contract or can it subcontract most of it out?

Yes, the WOSB has to perform a certain amount of the work. This is often referred to as the limitations on subcontracting because it limits how much work a small business can subcontract out. These limits for this program are:• For service contracts (that are not construction), the

WOSB/EDWOSB must perform at least 50% of the cost of the contract for personnel with its own employees.

• For supply contracts (if you are the manufacturer), the WOSB/EDWOSB must perform at least 50% of the cost of manufacturing the supplies or products (not including the cost of materials).

• For general construction contracts, the WOSB/EDWOSB must perform at least 15% of the cost of the contract with your own employees (not including cost of materials).

• For specialty construction contracts, the WOSB/EDWOSB must perform at least 25% of the cost of the contract with your own employees (not including cost of materials).




Reviews & Protests

Resources and Q&A

Jobs Act Update



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WOSB program certification

Self Certification

Third Party Certification

Free, no cost Register in CCR as WOSB or EDWOSB Compile and upload all required documents to the

repository Represent status in ORCA

Register in CCR as WOSB or EDWOSB Obtain certification from an SBA-approved

Third Party Certifier Compile and upload all required documents to the

repository Represent status in ORCA

There are two ways to certify for the WOSB program:

• Self certification with supporting documents, or

• Third Party Certification with

supporting documents

SBA has approved 4 third party certifiers to date:• El Paso Hispanic Chamber of Commerce• National Women Business Owners Corporation• US Women’s Chamber of Commerce• Women’s Business Enterprise National Council

(WOSB only)

WOSB Program Repository - Overview

What is the WOSB Repository? • By statute, documents verifying a WOSB/EDWOSBs

eligibility must be submitted to the contracting officer (CO)• Rather than have WOSBs submit documents to the CO, the

SBA has created a document warehouse• A WOSB’s documents in the repository can be accessed

only by the WOSB, SBA and the CO (only if the firm gives the CO permission to access the documents).

How do I get to the repository?• Through the SBA’s General Login System - Detailed

instructions of how to sign-up and use the Repository are in the Appendix of this presentation

What do I, as a Contracting Officer, need to do with the repository?• All COs should register in the Repository so a WOSB can

grant you access to their documents• COs must verify that the apparent successful offeror

submitted all required documents to the repository

General Login System (GLS): https://eweb.sba.gov/gls

WOSB Program Repository

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WOSB Program Repository – What to look for

Birth certificates, naturalization papers, unexpired passports to verify U.S. citizenship

Copy of JV agreement (if applicable) Copy of WOSB/EDWOSB Certification (OMB approved form) DBA certificate Corporate information relating to verifying ownership by a

woman or women EDWOSBs: All of above and SBA Form 413, Personal

Financial Statement for each woman claiming economic disadvantage.

Copy of Third Party Certification from an SBA Approved Third Party Certifier

Copy of JV agreement (if applicable) Copy of WOSB/EDWOSB Certification (OMB approved form)

What documents do I need to look for in the Repository?

Self Certification

Third Party Certification

Copy of initial 8(a) Certification Copy of WOSB/EDWOSB Certification (OMB approved form)

Active 8(a) firms

There is a Checklist in the back of the Contracting Officer’s Guide that outlines the documents to look for:

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How to set-aside a WOSB/EDWOSB contract

Reviews & Protests

Resources and Q&A

Jobs Act Update



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Reviews and Protests

Eligibility Examinations Protests

SBA may investigate the accuracy of any certification or representation made

SBA will conduct regular reviews of firms who have self-certified and obtained third party certification

A review will involve evaluation of documents uploaded in the repository and SBA may request additional documents and perform a site visit

SBA may investigate the accuracy of any certification or representation made as it relates to a specific WOSB/EDWOSB set aside

Only an interested party, SBA or a contracting officer may submit a protest

A protest must be submitted to the contracting officer within certain timeframe Can only protest the ownership, control and

economic disadvantage requirements Size protests are handled under 13 C.F.R. part 121

SBA reviews each protest and makes a final decision, which may be appealed to the Office of Hearings and Appeal

Any WOSB/EDWOSB found to be non-compliant must remove their designation in CCR and ORCA and contracting officer shall not award them a contract

SBA is committed to ensuring only eligible WOSBs benefit from the WOSB program; therefore, we utilize the following tools to ensure compliance with WOSB program requirements:





Reviews & Protests

Resources and Q&A

Jobs Act Update



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Resources and Q&A

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There are a number of resources available to help answer questions about the program:

Visit our website: www.sba.gov/wosb You will find the latest information about the program on this site,

including the Contractor Officer’s Guide for the WOSB program

Visit a local resource: Small Business District Offices

Find your local office at: http://www.sba.gov/about-offices-list/2 Women’s Business Centers

Find your local center at: http://www.sba.gov/content/womens-business-centers Small Business Development Centers

Find your local center at: http://www.asbdc-us.org/ Procurement Technical Assistance Centers

Find your local center at: http://www.aptac-us.org/new/

Email Assistance: [email protected]

Questions?

http://www.sba.gov/wosb

http://www.sba.gov/about-offices-list/2

http://www.sba.gov/content/womens-business-centers

http://www.asbdc-us.org/

http://www.aptac-us.org/new/

mailto:[email protected]





Reviews & Protests

Resources and Q&A

Jobs Act Update



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• Defines Multiple Award Contract. JA §1311• multiple award IDIQ contract entered into under 41 USC 253h-

253k• any other multiple award IDIQ contract

• Requires guidance the addresses the (JA § 1331):• set aside of part or parts of a multiple award contract for small

business; • notwithstanding fair opportunity requirements, set aside of orders

placed against multiple award contracts for small businesses; and • reserve of one or more contract award(s) for small businesses under

full and open competition multiple award procurements.

Small Business Set-Asides and Reserves

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FAR issued interim final rule on November 2, 2011 (effective that date) at 76 FR 68032 ◦ Comments extended until February 3, 2012

FAR amended:◦ FAR Subpart 8.4 to clarify that agencies may set-asides

orders and blanket purchase agreements under the GSA Schedule;

◦ FAR Subpart 16.5 to clarify that agencies may set-aside orders for SBCs in connection with multiple award contracts The CO is not required to issue a justification for this exception to

fair opportunity

Small Business Set-Asides and Reserves cont’d

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FAR also amended FAR Subpart 19.5 to authorize agencies to: ◦ set aside part or parts of a multiple-award contract for SBCs,

including set-asides for small business concerns under the 8(a), HUBZone, SDVOSB and the WOSB Programs;

◦ set-aside orders placed against multiple-award contracts for SBCs, including small businesses in the 8(a), HUBZone, SDVOSB, and WOSB Programs; and

◦ reserve one or more contract awards for SBCs, including small businesses in the 8(a), HUBZone, SDVOSB, and WOSB Programs, under full and open multiple-award procurements.


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FAR 8.405-5(a)(2) states that when setting aside orders and BPAs against the Schedule:◦ The specific small business program eligibility requirements identified in part

19 apply.

FAR 16.505(b)(2)(i)(F) states that when setting aside orders for small business concerns: ◦ The specific small business program eligibility requirements identified in part

19 apply.

What does this mean? Examples:◦ Offer and acceptance requirements apply for 8(a) set-aside◦ Dollar thresholds apply (e.g., 8(a) set-aside threshold)◦ Joint venture requirements

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FAR also amended◦ Current contract clauses re: set-asides to address this new

authority This means that subcontracting limitations and NMR apply to these

set-asides and reserves

FAR added a new clause◦ 52.219-13 which states that the CO will give notice of which

orders, if any, to be set aside under a multiple award contract


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SBA must review 1/3 of its size standards every 18 months and must conduct a complete review every 5 years. SBA has issued the following rules to date: Proposed to increase small business size standards for 20 industries and one sub-industry in NAICS Sector 53,

Real Estate and Rental and Leasing (76 FR 70680). ◦ The deadline for submission of comments ended on January 17, 2012.

Proposed to increase small business size standards for nine industries in NAICS Sector 61, Educational Services (76 FR 70667). ◦ The deadline for submission of comments ended on January 17, 2012.

Proposed to increase small business size standards for 15 industries in NAICS Sector 51, Information (76 FR 63216). ◦ The deadline for submission of comments ended on December 12, 2011.

Proposed to increase small business size standards for 37 industries in NAICS Sector 56, Administrative and Support, Waste Management and Remediation Services (76 FR 63510). ◦ The deadline for submission of comments ended on December 12, 2011.

Proposed to increase small business size standards for 22 industries in NAICS Sector 48 49, Transportation and Warehousing (76 FR 27935). ◦ The comment period ended on July 12, 2011.

Proposed to increase small business size standards for 35 industries and one sub-industry in NAICS Sector 54, Professional, Scientific and Technical Services and one industry in NAICS Sector 81, Other Services (76 FR 14323). ◦ The comment period ended on June 15, 2011.

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Size Standard Review





Reviews & Protests

Resources and Q&A

Jobs Act Update



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To log onto the General Login System (GLS), go to: https://eweb.sba.gov/gls

Request access by clicking

“Request SBA User ID”

Click here for instructions on how

to use GLS

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When you click “Request SBA User ID,” fill in all the blue highlighted fields

Create your own user ID

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Must click Zip look up to autofill

State

When you click “Request SBA User ID,” fill in all the blue highlighted fields (cont’d)

Select your Agency, make

sure “Contracting Officer” is

selected and then click “Submit”

An e-mail will be sent to you with a temporary password so you can login. After you enter the temporary password, you will be prompted to create a new permanent password.

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Once you have a user ID and password, log into GLS

Enter your Information

and hit “Login”

General Login System Web Address:https://eweb.sba.gov/gls/

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Read the Terms and Conditions and click OK

Click “OK”

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Once in GLS, Click on the Access Button to gain entry to the Women Owned Small Business (WOSB) Repository

Click Access to gain entry to WOSB Repository

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Select the Federal Agency Contract Officer role for the WOSB Repository

Click WOSBPRMake sure “Business Owner” is selected

Click Submit

Click ‘Submit’

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After SBA approves your access, the WOSB Repository will be listed as one of your currently available applications

Click WOSBPR to enter the repository

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Once you are in the WOSB Repository, read the disclaimer

Read Disclaimer and Directions on how to

use WOSBPR

Click “Help” for additional help features

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How to view a firm’s uploaded documents

Click on Business View to see a list of firms that have granted you access

Click on a business name to see their uploaded

documents

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NOTE – if you have not yet been authorized by any firms, you will

not see anything on this page

How to view a firm’s uploaded documents (Cont.)

Click on any document to download and view

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How to use the Solicitation View

You may also view firms by searching solicitations. Click

“Solicitation View” to see solicitations.

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How to use the Solicitation View (Cont’d)

Once you click on a solicitation, you will

see a list of firms who have authorized you

access to their documents

**Note that that a Contracting Officer will only be able to view documents of firms that have authorized them access. If you do not see a firm that you need to review,

contact them and ask them to grant you access.

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Women-Owned Small Business (WOSB) Federal Contract Program and Jobs Act Update February 2012

Documents