New WOSB (Woman Owned Small Business) Requirements Have Been Implemented
The Small Business Administration (SBA) began accepting applications for its new WOSB certification application procedure on July 15, 2020. Economically Disadvantaged WOSBs are also covered by the new approach.
To compete for set aside contracts, the SBA revised the requirements for the EDWOSB and WOSB certification application program to require certification.
New Certification Requirements Have Been Implemented.
Enterprises could previously self-certify to WOSB rules, however, the SBA was criticized for allowing up to 40% of firms receiving awards to do so unlawfully. As part of the 2015 National Defense Authorization Act (NDAA), Public Law 113-291, Congress removed the option for businesses to self-certify their eligibility for the WOSB program. The SBA published its final certification rule in May 2020 to comply with the 2015 NDAA. Certification will be necessary under the new regulation for WOSB firms to compete for set-aside contracts and task orders.
Small businesses can apply for certification at https://beta.certify.sba.gov/. WOSB certification application can also obtain certification from qualified third parties, and the SBA will accept 8(a) and CVE certificates from the Department of Veterans Affairs. The El Paso Hispanic Chamber of Commerce, the National Women Business Owners Corporation, the United States Women's Chamber of Commerce, and the Women's Business Enterprise National Council are the four organizations currently certified by the SBA to provide third-party certification.
Firms desiring to use their 8(a) certification must upload their most recent annual review letter or their 8(a) acceptance letter if they are in their first program year, to https://beta.certify.sba.gov/. Any company desiring to use their CVE certification must upload it together with supporting paperwork proving that it is valid.
Consequences for Existing Contracts
Firms that previously depended on self-certification and currently have ongoing contracts based on that certification will be deemed WOSB certification applications throughout the contract, assuming they were eligible at the time of the offer. Self-certification for set-aside contracts and work orders are allowed until October 15, 2020. Any self-certifications on multi-year contracts lasting more than five years will be required to be certified under the new rule before the contract's fifth year ends.
After October 15, 2020, all offers on set-aside contracts will require a WOSB certification application.
SBA will begin providing certification determinations on October 15, 2020. Firms that do not certify may still be eligible for rewards outside of the WOSB certification application and EDWOSB programs, and their self-certifications may count toward an agency's WOSB award target. Firms that have not qualified using one of the recognized procedures will no longer be allowed to bid for new set-aside contracts or task orders after October 15, 2020.
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