On September 14, 2015, the Small Business Administration (SBA) finalized a rule allowing sole-source awards to women-owned small businesses (WOSB’s).  The rule implements a provision of the 2015 National Defense Authorization Act (NDAA).  Sole-source awards are limited to $6.5 million in manufacturing NAICS codes, and $4 million in all other NAICS codes.

WOSB’s now enjoy federal contracting preferences similar to those available for minority-owned small businesses, service-disabled veteran-owned small businesses, HUBzone small businesses, etc.  Advocates for WOSB’s have long complained that among SBA’s socioeconomic preferences, only the WOSB program could not make sole-source awards.

For now, sole-source awards are limited to the 83 four-digit NAICS codes eligible under the existing WOSB program -- which advocates for WOSB’s have complained are too few and unduly limit opportunities.  However, the 2015 NDAA mandated an accelerated study to add additional industries.  The study must be completed by January 2, 2016.

Competitive WOSB awards within the NAICS codes presently eligible for set-aside awards may be at any dollar level, under a change made by the 2013 NDAA.  Lifting the dollar cap on competitive awards, coupled with the new sole-source authority, empowers WOSB’s to aggressively market to contracting officers.   In the event the range of eligible four-digit NAICS codes expands in 2016, then even more available contracting opportunities may be set aside for WOSB’s.

SBA must next turn its attention to certifying WOSB’s.  The 2015 NDAA also required WOSB’s to be certified as eligible, for both set-asides and sole-source awards, either by SBA, by federal or state agencies, or by a national certifying  entity approved by SBA.  However, SBA decided that certifying WOSB’s will require substantial resources, and deferred it to a subsequent rulemaking. So for the time being, WOSB’s may self-certify eligibility.

Awards to WOSB’s may be protested. Under the new rule for sole-source awards, only the contracting officer or SBA may protest the WOSB status of the awardee. For competitive awards, an interested party may protest the WOSB status of the awardee.  To date, SBA has never decided a protest of WOSB status, according to published precedents on its website.

The rule takes effect October 14, 2015.  It can be accessed here. 

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