Women in Business: The EDWOSB Sole Source Advantage

 As we commemorate Women's History Month, we'd like to highlight one of the most significant benefits that women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs) have when it comes to federal government contracting: Sole Sourcing is a term used to describe the process of obtaining a product

The Small Business Administration (SBA) offers many contracting assistance programs to assist small firms in obtaining a fair share of federal funding. Economically Disadvantaged Women-Owned Small Business is one of these schemes (EDWOSB). As per EDWOSB information, it refers to a small business that is owned at least 51 percent by one or more women and is considered economically disadvantaged. 

The Requirement

It's worth noting that according to the EDWOSB information, EDWOSB is eligible for WOSB certification, but not the other way around. A woman must manage the majority of the company, at least 51 percent, to be designated an EDWOSB, just as she must be economically disadvantaged to be considered a WOSB. Like women who operate small enterprises, this economically disadvantaged lady must make daily and long-term strategic decisions.

The WOSB Federal Contract Program was established in 2011 to improve WOSB and EDWOSB equal opportunity. Under this program, contracting officers are authorized to set aside some federal contracts for WOSBs and EDWOSBs in particular industries where these types of firms are "significantly underrepresented" (for WOSBs) or "underrepresented" (for EDWOSBs) (for EDWOSBs). However, it wasn't until 2015 that the program was made available for sole sourcing (no-bid contracts).

So, what exactly is sole sourcing as per the EDWOSB information?

A government opportunity awarded as a Sole Source means that, after performing market research, the agency has established that your company provides a unique solution at a price that cannot be matched by competitors, and thus the government does not need to compete for the opportunity. (There's a little more to it than that; see the paragraph below.) WOSBs and EDWOSBs were finally allowed to be given sole-source contracts, something that other SBA socio-economic contracting programs, such as 8(a), SDVOSB, and HUBZone concerns, had been allowed to do for years.

Contracting officers are allowed to award sole-source awards to WOSBs or EDWOSBs under certain conditions, according to a final rule issued by the US Small Business Administration (SBA) and EDWOSB information. A contract may be awarded on a sole-source basis if, after conducting market research in an industry where a WOSB or EDWOSB set-aside is authorized, the contracting officer does not have a reasonable expectation of receiving offers from two or more WOSBs or EDWOSBs concerns but identifies one WOSB or EDWOSB that can perform at a fair and reasonable price.

If you're a WOSB or EDWOSB, be ready to articulate what makes your company unique when considering sole-sourcing with your agency customers. Sole Source Authority under FAR Subpart 19.1506 can be used to set aside federal contracts for WOSBs/EDWOSBs if the contract:

Is issued under a NAICS code that qualifies as a WOSB/EDWOSB.

Is worth $6.5 million or less in manufacturing and $4 million or less in all other contracts (including options)

Can be given to the WOSB/EDWOSB information at a reasonable charge.

In terms of performance, the EDWOSB or WOSB concern has been assessed to be a responsible contractor.

Only one WOSB/EDWOSB is anticipated to complete the work, as specified by the CO.

The SBA offers a complete list of NAICS codes for EDWOSB and WOSB businesses. The government has sole-sourced over $61 million to WOSBs and EDWOSBs since sole sourcing began, with $50 million going to WOSBs and the remainder to EDWOSBs. Given that this sole source authority has only been available for less than two years, the amount of agency participation is outstanding! During the same time (FY2016-to-date), the government spent more than $500 million on WOSB and EDWOSB set-asides, with the Department of Defense, Department of Homeland Security, Department of Commerce, and Department of Agriculture being the top spending agencies.