WOSB Program Changes Expand Opportunities

Federal Contracting Officers are tasked with a heavy lift in understanding and implementing small and socio-economic contracting programs. Each program has slightly different rules and quirks, increasing the challenge for mastery of the programs and where they apply. Adding to that complexity, the programs change. As an experienced federal contractor and a certified WOSB, JetCo Federal created this document to summarize the current state and applicability of the WOSB programs.

Evolution

The WOSB program began in 2000 to help federal agencies achieve their annual goal of awarding at least 5% of all contracting dollars to WOSBs. For the first fifteen years of its life, the WOSB program was set-aside only – no sole source allowed. In FY15, section 825 of the National Defense Authorization Act (NDAA) was published, giving contracting officers the ability to sole source contracts to WOSBs.

The WOSB set-aside program remains the only federal socio-economic program that is NAICS limited. Set-asides for SDVOSB, 8(a), HUBZone, and small businesses are open to any NAICS.

2000: Women’s procurement program established to assist Government in meeting 5% WOSB goal. It was set-aside only. (See Footnote 1).
2011: FAR implements set-aside program, limited to 83 NAICS for WOSB and 38 for EDWOSB.
2014: NDAA 2015 adds sole source authority, broadening Contracting Officers’ toolbox to reach WOSB goals. (See Footnote 2).
2015: FAR implements sole source authority.
2016: WOSB program expands from 83 to 113.
2017: WOSB program expands from 113 to 365 NAICS (and 80 for EDWOSB).
2022: WOSB program expands from 365 to 646 NAICS (and from 80 to 113 for EDWOSB).

WOSB Sole Sourcing

If market research indicates one WOSB and multiple small businesses, Contracting Officers must consider a WOSB sole source award before setting the solicitation aside for small businesses. (See Footnote 3) Because the WOSB Program is not a business development program, agencies must submit a J&A.

Contracting Officers can award a sole source WOSB contract if:

The contract is in a WOSB eligible NAICS code (see Footnote 4)
There is not a reasonable expectation that two or more WOSBs will submit offers
The contract can be awarded at a fair and reasonable price
The determined qualified WOSB is “responsible” with respect to contract performance
The WOSB is formally certified by the SBA (see Footnote 5)
And the anticipated award does not exceed $7 million for manufacturing requirements or $4.5 million for all other requirements

WOSB Set-Asides

In addition to sole sourcing contracts for WOSBs, Contracting Officers are authorized to restrict competition to WOSBs if:

The contract is in a WOSB eligible NAICS code (see Footnote 6)
The CO reasonably expects two or more qualified WOSBs will submit offers
The contract is awarded at a fair and reasonable price and the WOSB is deemed capable of delivering on the contract

Reputable WOSBs

JetCo Federal is one of many highly qualified WOSBs performing well on federal contracts. We work with and advocate for many of our peers, so we see firsthand the strong, second-stage companies ready to step in to support federal supplier diversity initiatives.

Below, we offer some broad market research regarding WOSB companies registered in SAM. We evaluated our primary NAICS codes to determine if ample competition exists to justify WOSB set-asides in upcoming solicitations. As of March 28, 2022, there are 99,134 WOSBs registered in SAM.

4,332 include NAICS code 541614 – Process, Physical Distribution, and Logistics Consulting
1,054 include NAICS code 493110 – General Warehousing and Storage
726 include NAICS code 561910 – Packaging and Labeling Services
127 include NAICS 322211 – Corrugated and Solid Fiber Box Manufacturing

Why It Matters

Encouraging competition is good government; programs that encourage women-owned businesses to compete expands the federal government’s pool of qualified companies. Women own more than 39% of all businesses in the U.S., employ 8% of the total private sector workforce, and contribute 4.2% of total business revenues. WOSBs comprise up 21% of SAM registrants.

The growth in the number of women-owned firms has far outpaced their revenue and employment growth. (See Footnote 7) In a 20-year span from 1997 to 2017, the number of women-owned firms grew from 26% to 39%, exceeding the increase of other sub-categories (such as minority owned, HUB Zone, etc.). The same study shows that among women-owned firms, the growth in number of employees and revenue is lacking – employment only grew by 1% (from 7% to 8%) and revenue declined from 4.4% to 4.2%.

In 2017, the Senate Committee on Small Business and Entrepreneurship published a report. Ranking Member Senator Jeanne Shaheen summarized the challenges faced by women business owners in an introductory letter.

“…women-owned businesses still grow at a slower rate and earn less revenue than male-owned firms. In fact, women entrepreneurs face persistent institutional barriers that make achieving financial parity a serious challenge with lasting consequences.” (See Footnote 8).

About JetCo Federal

JetCo Federal is a comprehensive resource for packaging, logistics, warehousing, order fulfillment, warehouse consumables, and everything in between. Our team excels in logistics, supply chain management, and contract administration, resulting in redundant, qualified suppliers and cost efficiencies for the government. We are an SBA and WBENC-certified WOSB as well as ISO 9001:2015 registered and NIST 800-171 compliant.

At JetCo Federal, we understand that the smallest item can have a big impact on operations. That’s why we consider every delivery a win, and we’re committed to re-winning every day. With a dedicated government sales team and over 14 years of experience selling to the government, we’re ready to fulfill your complex contracts and help you meet your small business contracting goals.

See Public Law 106-554 for more information on the establishment of the women’s procurement program.
Refer to the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015.
Refer to the Office of Small Business Programs, Department of Defense.
See www.sba.gov/wosb for information on WOSB eligible NAICS codes.
See beta.certify.sba.gov for information on WOSB certification.
See www.sba.gov/wosb for information on WOSB eligible NAICS codes.
Refer to The 2017 State of Women-Owned Businesses Report, prepared for American Express by Ventureneer.
Refer to “Tackling the Gender Gap – What Women Entrepreneurs Need to Thrive” by the U.S. Senate Committee on Small Business & Entrepreneurship.

Become a Supplier

Are you part of a highly qualified manufacturing team who is committed to providing the best quality products?

Let’s Chat

Quality Products and Services

For more than 14 years, the government and defense prime contractors have trusted JetCo Federal to reliably package, assemble, and deliver. We ensure uninterrupted delivery with our diverse, redundant supply chains and vertically integrated services.

Connect with Us