The Women Owned Small Businesses AdvantageThis course is about increasing contract opportunities for women owned small businesses. See the Government Contracting Classroom for more information.— 1 “The WOSB Advantage”This is about increasing contract opportunities for women owned small businesses. Welcome to “The WOSB Advantage” — a primer about the Women Owned Small Business Program.— 2 Introduction o Small Business Act authorizes contract set asides for WOSBs or EDWOSBs o Defined as the Women-Owned Small Business Program o Creates significant opportunities for women entrepreneurs o Learn more www.sba.gov/wosbNarrative Changes to the Small Business Act now authorize federal contracting officers to set aside certain contracting requirements for women-owned small businesses and/or economically disadvantaged women-owned small businesses. This provision of the law is known as the Women-Owned Small Business Federal Contract Program or simply, the WOSB program.The new program creates contract opportunities for women entrepreneurs. This guide will help you understand the WOSB program and walk you through the necessary steps to be a participant in the program.— 3 Program Purpose o Helps more women owned businesses win federal contracts o Assist federal agencies to meet statutorily established 5% government-wide contracting goals for women owned small businessesNarrative The program is designed to help more women owned small businesses to win federal contracts by providing a level playing field for WOSBs to compete. It is also intended to help federal agencies to meet contracting goals for women owned small businesses. That is, in accordance with legislatively established government-wide contracting goals, federal agencies are suppose to award at least 5% of all prime contract dollars awarded each year to women-owned small businesses. This program helps agencies achieve the women’s contracting goal.— 4 Regulatory GuidanceWomen Owned Small Business (WOSB) Program…Established by:Section 8(m) of the Small Business Act (15 U.S.C. 637 (m))Governed by:13 CFR Part 127FAR Subpart 19.15NarrativeThe Women Owned Small Business Program was established by Section 8(m) of the Small Business Act. It is primarily governed by 13 CFR 127 and FAR Subpart 19.15.— 5 WOSB Program SnapshotOnly designated industriesOnly WOSBs or EDWOSBs are eligibleCompetition is required for all WOSB contractsWOSBs are required to self certify as a woman owned small business (or use a third party certifier)Learn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeThe new program opens many doors for women entrepreneurs.However, not all contract opportunities are eligible and there are limitations. The women-owned small business program is defined by several key tenets: the program applies only to contracts in designated industries; only women-owned small businesses or economically disadvantaged women-owned small businesses are eligible; competition is required for WOSB contract awards; and, participating women- owned small businesses are required to self certify, or optionally use a third party certifier. Each of these provisions is discussed in the following.— 6 Only Designated IndustriesOnly contract requirements in industries designated by the SBA as underrepresented or substantially underrepresented are eligible for set-asides under the WOSB programOver 300 six-digit industry codes are eligibleView designated industries by applicable NAICS codes… www.sba.gov/wosbNarrativeOnly contract requirements in industries designated by the SBA as underrepresented or substantially underrepresented are eligible for set asides under the new women’s program.Use the hyperlink at your convenience to view eligible industries by applicable NAICS codes. Remember, and this is important, only designated industries are eligible for the WOSB program. If your business does not operate within the designated NAICS codes, the WOSB program will not benefit your firm.— 7 No Limitations on Contract AmountsNo restrictions on the dollar amounts for eligible WOSB contractsRevisions to the National Defense Authorization Act, which went into effect on May 7, 2013, removed “caps” on contract amounts under the WOSB programNarrativeWhen the WOSB program was first established, there were restrictions on the dollar amounts for contracts eligible under the program. These limitations or “caps” on contract amounts were removed, effective May 7, 2013, as a result of amendments in the National Defense Authorization Act of 2013.— 8 Eligibility – WOSB or EDWOSBWOSB…At least 51% owned and controlled by one or more women who are U.S. citizensOwnership must be direct and not subject to conditionsA woman or women must manage day to day operations and provide verifying documentsBe at or below the small business size standard for the primary NAICS code, the NAICS code assigned to the solicitation, and the contract for which it submits an offerLearn more www.sba.gov/wosb NarrativeIt goes without saying that only women-owned businesses are eligible for the WOSB program.A WOSB is defined as a small business that is at least 51% owned and controlled by one or more women who are US citizens. The ownership must be direct and not subject to conditions. A woman or women must manage the day to day operations of the business and be able to provide documents demonstrating that these requirements are satisfied.In addition, the business must be at or below the small business size standard for the primary NAICS code, the NAICS code assigned to the solicitation, and the contract for which it submits an offer.— 9 Eligibility – EDWOSBEDWOSB…Own at least 51% of business and satisfy all conditions for a WOSBPersonal net worth of less than $750,000Adjusted annual income of $350,000 or lessMarket value of all assets does not exceed $6 million (including business value and primary residence)Learn more… www.sba.gov/wosbNarrativeAn economically disadvantaged woman-owned small business must own at least 51% of the business and satisfy all conditions for a WOSB. In addition, a woman is economically disadvantaged if she has a personal net worth of less than $750,000, her adjusted gross annual income does not exceed $350,000 and the fair market value of all of her assets does not exceed $6 million.— 10 Joint VenturesCombined annual receipts or number of employees must be applicable with NAICS code assigned to contractWOSB or EDWOSB must manage the venture, be responsible for performance and receive at least 51% of profitsAgreement must be in writingJoint Venture must meet subcontracting limitationsLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdf NarrativeA WOSB or EDWOSB may submit an offer as a joint venture with another small business, if certain requirements are met. These requirements are:the combined annual receipts or number of employees for the joint venture must be applicable with the NAICS code assigned to the contract;the WOSB or EDWOSB must manage the joint venture and be responsible for the performance of the contract, and must receive at least 51% of the profits;the joint venture agreement must be in writing; and, finally, the joint venture must meet subcontracting limitations.— 11 Competition is RequiredCompetition is requiredSole source awards are not authorized NarrativeThe WOSB program requires competition. Sole source awards are not authorized.Simply put, all contract awards under the WOSB program are required to be executed in a competitive manner.— 12 WOSBs – Required to Self Certify (or use third party certifier option)Self certificationThird party certification (option)NarrativeWomen business owners participating in the WOSB program are required to self certify – with documentation, or optionally use a third party certifier, to validate their WOSB status. This is an important concept to understand. The WOSB program is not an SBA certification program.Self certification and third party certification are discussed in the following.— 13 WOSB Certification – Important ClarificationsSBA does not certify firms into the WOSB program, like it does for the 8(a) Business Development and HUBZone programsA women owned small business may self-certify and upload certain corporate documents into the WOSB repository or optionally use an SBA approved third-party certifierLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeFirst, there are some important clarifications that should be considered.Again, SBA does not certify companies into the WOSB program, like it does for the 8(a) Business Development or HUBZone programs.The WOSB program is somewhat of a hybrid certification program. That is, a business is required to self- certify and upload certain corporate documents into the WOSB repository, or as an option, be certified by a third party certifier, approved by the SBA. This is an important point. SBA does not certify firms into the WOSB program, nor does it provide any formal notification regarding certification.It is also important to note, SBA will accept certifications of 8(a) certified business development participants, as long as the 8(a) firm is 51% owned and controlled by one or more women and the business is currently in the 8(a) Business Development Program.— 14 Self CertificationNarrativeSelf certification.— 15 Self CertificationWOSBs or EDWOSBs can self certifyRegister in the SAMAccess SBA’s General Login System (GLS)Complete the WOSB/EDWOSB program certification formSubmit documents to the WOSB program repositorySubmit other documents as requestedRepresent WOSB status in SAMLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrative A woman-owned small business or economically disadvantaged woman-owned small business can self certify — to participate in the WOSB program.There are several key steps that need to be followed. First, register in the SAM; access SBA’s General Login System (GLS); complete the WOSB/EDWOSB program certification form; submit documents to the WOSB program repository; submit other documents as requested; and finally, represent the firm’s WOSB status in SAM. Each of these steps is discussed.— 16 Register in the SAMRegister in the System for Award Management (SAM)Expand SAM profile data — in the Dynamic Small Business Search DSBS databaseLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeThe first step in doing business with the federal government and self-certifying in the WOSB program is registering in the System for Award Management, more commonly referred to as SAM.SAM is an online government-maintained database of companies wanting to do business with the federal government. It is also used as a site to collect and house secure financial data for each registrant and is used by agencies to make contract payments to a contractor’s bank account through electronic funds transfer. Importantly, agencies search the SAM database for prospective vendors.Small business data entered into SAM is automatically uploaded into the Dynamic Small Business Search database page, or DSBS. However, small firms have an option to include additional information in the DSBS. Creating a complete and wining profile in SAM and DSBS, helps provide expanded access to federal contracting opportunities.— 17 Access SBA’s General Login SystemScreen shot and link to register for a GLS account… https://eweb.sba.gov/gls/dsp_addcustomer.cfm?imappsystypnm=8ASDBLearn more… www.sba.gov/wosbNarrativeTo apply for WOSB certification, you must register for an account in SBA’s General Log-in System, more commonly referred to as GLS. The GLS system provides a single log-in point for all SBA services. This streamlines and simplifies service delivery to our clients.It is easy to register for an account, if you don’t already have a GLS account. Once you register and establish a GLS ID and password, keep this information in a safe and readily available place. It is also important to note, that you will have to update your password every 90 days.To upload required documents for WOSB certification, you will first have to login to SBA’s GLS system. If you do not already have a GLS account, you can use the hyperlink on this page or in the resource section — at the end of the course — to register for a GLS account. Uploading documents to the WOSB program repository is discussed fully later in the course.By-the-way, an excellent source of information about gaining GLS access is contained in a training presentation that you can access at sba.gov/wosb. Go to the section under “getting started” and click on the training presentation and then go to the part titled, User Guide for GLS and WOSB Repository.— 18 Complete WOSB/EDWOSB Certification FormOne of the most important documents to be completed by WOSB program participants is the WOSB Program Certification FormTwo forms: (you must use appropriate form)WOSB Program Certification – WOSBs — http://www.sba.gov/content/women-owned- small-business-wosb-program-certificationWOSB Program Certification – EDWOSBs — http://www.sba.gov/content/women- owned-small-business-wosb-program-certification-edwosbsPersonal Financial Statement (SBA Form 413)– http://www.sba.gov/sites/default/files/tools_sbf_finasst413.pdfLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeOne of the most important documents to be completed by WOSB program participants is the WOSB Program Certification form. Please note there are two forms, one for WOSBs and a slightly different form for EDWOSBs. You must complete the appropriate form.All women owned small businesses and economically disadvantaged women owned small businesses that are interested in submitting an offer on a solicitation that has been set aside for WOSBs under the WOSB program must complete this certification prior to submitting the offer.Importantly, this includes checking all of the boxes in the form and having an authorized officer of the WOSB sign and date the certification. Once the certification is complete, you must upload it to the WOSB program repository along with all other required documents.Also, economically disadvantaged women owned small businesses are required to complete and upload to the repository, SBA Form 413, Personal Financial Statement, for each woman claiming economic disadvantage.— 19 Submit Required Documents to the WOSB Program RepositoryCopies of birth certificates, naturalization papers, or unexpired passports for owners who are womenCopy of the joint venture agreement, if applicableFor limited liability companies:Articles of organization (also referred to as certificate of organization or articles of formation) and any amendments; and operating agreement, as well as any amendmentsFor corporations:Articles of incorporation and any amendments; by-laws and any amendments; all issued stock certificates, including the front and back copies, signed in accordance with the by- laws; stock ledger; and voting agreements, if anyFor partnerships,Partnership agreement and any amendments; and, the assumed/fictitious name (doing business as) certificateNarrativeIn addition to the WOSB program certification form, other documents are required to be uploaded into the WOSB Program Repository. For self certification, the following documents are required:Copies of birth certificates, naturalization papers, or unexpired passports for owners who are women;A copy of the joint venture agreement, if applicable;For limited liability companies:Articles of organization and any amendments; any operating agreements, as well as any amendments.For corporations: Articles of incorporation and any amendments; by-laws and any amendments; all issued stock certificates, including the front and back copies, signed in accordance with the by-laws; stock ledger; and voting agreements, if any.For partnerships: Partnership agreement and any amendments; and, the fictitious name — or doing business as — certificate.— 20 Submit Other Documents as RequestedIt is possible that other documents are requestedDon’t be alarmedLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeSo….. you registered in SAM, you have a GLS account and login, you completed and uploaded the WOSB Program Certification form and you uploaded all of the required corporate documents, what’s next? Well, it’s possible that other documentation may be requested by the SBA. Be prepared, don’t be alarmed.— 21 Represent WOSB Status in SAMSAM is the primary government repository for contractor submitted representations and certificationsOnce the self certification process is complete, firm is eligible to represent itself as a WOSB NarrativeSAM is now the primary government repository for contractor declared and submitted representations and certifications required for conducting business with the government.Once a firm completes the self certification process as a woman owned small business — it is then eligible to represent itself in SAM as a WOSB. At this point, the firm is self certified as a WOSB.— 22 Third Party CertificationNarrativeThird-party certification.— 23 Third Party CertificationThird party certification is an optional approachWOSBs or EDWOSBs can use a third party certifierFederal agency, state government or national certifying entity approved by the SBAView approved third party certifiers… www.sba.gov/wosbNarrativeThird party certification is an optional approach. A WOSB or EDWOSB can use a third party certifier.A third party certifier is a federal agency, a state government, or a national certifying entity approved by the Small Business Administration to provide certifications of WOSBs or EDWOSBs. SBA maintains a list of approved third party certifiers on its Website.At present, there are four approved third party certifiers. Use the hyperlink here or at the end of the course to identify and learn more about SBA approved certifiers.— 24 Third Party CertificationThird Party CertificationRegister in the SAMAccess SBA’s General Login System (GLS)Obtain and provide a copy of the third party certificationComplete the WOSB/EDWOSB program certification formSubmit documents to the WOSB program repositorySubmit other documents as requestedRepresent WOSB status in SAMLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfNarrativeIf a WOSB or EDWOSB engages or receives a third party certification from an SBA approved certifier, it is required to complete or facilitate several of the same steps as if the firm was self-certifying.The firm must still register in SAM; it must gain access to SBA’s General Login System; it must complete the WOSB or EDWOSB program certification form; it must provide a copy of the third party certification; and it – not the third party certifier — is required to upload all noted documents to the WOSB program repository; and finally, the firm must represent itself in SAM as a WOSB – this is important.— 25 Repository, Mistakes and MisrepresentationsNarrativeRepository, mistakes and misrepresentations.— 26 About the WOSB Program RepositoryWOSB repository is an important toolHouses documents submitted by EDWOSBs and WOSBs – validating eligibility in the WOSB programSecure, web-based environmentContracting officers access the repository to review WOSB documentation – validating eligibility prior to contract awardLearn more (compliance guide)… http://www.sba.gov/sites/default/files/files/WOSB%20Compliance%20Guide_April2011.pdfLearn more… www.sba.gov/wosbNarrativeThe WOSB program repository is an important tool that plays a critical role in the WOSB certification process. It is a document repository maintained by SBA to house documents submitted by EDWOSBs and WOSBs – validating the firm’s eligibility in the WOSB program.The repository is a secure, web-based environment that is accessible to individual WOSBs and EDWOSBs, applicable contracting officers and the SBA.Contracting officers, prior to the award of a contract under the WOSB program, will access the repository to review the documentation submitted by the potential WOSB vendor. In such cases, the WOSB firm will authorize the contracting officer to review the documentation. The contracting officer is required to validate the firm’s eligibility in the WOSB program.Again, an excellent source of information about the repository is contained in a training presentation that you can access at sba.gov/wosb. Go to the section under “getting started” and click on the training presentation and then go to the part titled, User Guide for GLS and WOSB Repository.— 27 Avoid Common MistakesDUNS and EIN numbers in the GLS registration form should match exactly what is recorded in the firm’s SAM profileGLS registration form should be fully completed, including the 4 digit Zip Code extensionUse the Microsoft Explorer browser to access GLS and upload documentsUpload only what is requested and requiredUse low resolution when scanning documentsPersonal financial statement data should match tax records NarrativeAs a firm goes through the process of qualifying for the WOSB program, there are some common mistakes that can be avoided.when registering for a GLS account, make certain the firm’s DUNS and EIN numbers match exactly what is recorded in the firm’s SAM profile;the online GLS registration form should be fully completed, specifically making certain that the 4 digit Zip Code extension is included;use the latest version of Microsoft Explorer when working in GLS to upload documents to the WOSB program repository;upload only requested and required documents to the repository;use a low resolution when scanning documents to be uploaded; and finally,for economically disadvantaged WOSBs, make certain information submitted in personal financial statements is accurate and matches data contained in applicable tax records.
