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Preferences for WOB

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Could you tell me the women-owned business preferences for the federal government?

There is a lot of confusion on this, so let me answer it as I think it relates to two areas:

First: What is a woman-owned business and does it qualify for existing preference programs? A woman-owned business is one that is owned (at least 51%) and controlled (daily operations) by women. The Department of Transportation treats Women-Owned Businesses like Minority-Owned Businesses. To the best of my knowledge, it is the only agency to do so. Their designation is DBE (Disadvantaged Business Enterprise). Shomari Wilson and Nancy Alexander at Langston have worked with these programs and could probably explain it more thoroughly than I can.

Other agencies use the SBA guidelines, which have different criteria for preference programs. SBA will recognize "socially and economically disadvantaged businesses" as SDBs and/or 8(a) firms, based on the owners' having faced discrimination for their membership in a group. Some Caucasian females have applied for and received SDB and/or 8(a) certifications, but it is far from a sure thing. You have to present a convincing case that discrimination, based on your gender, has impeded your ability to grow a business.

Second: Is there a procurement preference for them? "Woman-Owned Business" is not on he list of entities currently receiving procurement preferences on prime contracts. If the woman happens to be a Service Disabled Veteran, or if the company qualifies for HUBZONE Certification, or 8(a) or SDB Certification, then the business may get those preferences. There is a goal for contracting with woman-owned businesses, but no preference to help achieve it. Prime contractors do have subcontracting goals (usually around 5%) for women-owned businesses.

What tends to confuse people even more is that Congress passed a law to allow set-asides for women-owned businesses, but it never made it through the process to become a "final rule." There was apparently a lot of concern about fraud, whether third party certifications should be required, etc. during the comment period. As it stands right now, prime contractors tend to ask for certifications, but for federal prime contracts, the companies can self-certify.

The preferences granted other designated groups include set-asides, where only firms in those categories can compete; sole source awards in some situations for 8(a) companies and service disabled veteran owned businesses; and price adjustments for evaluation in purchases made using "full and open" competition. The price adjustments are almost a non-issue because they don't apply to all agencies and because they are only applied against the large companies in the competition.

--submitted by Judy Robbins, Francis Tuttle Tech Center

Created by Carter
Last modified 2006-08-24 07:31 PM