Is Success Reliant on EDWOSB Certification? Investigating the Requirements and Understanding the Benefits

The world of federal contracting might seem intimidating and impenetrable, a maze of rules and procedures. However, there is a secret passageway—a golden opportunity—within this complex maze, one that can completely alter the course of a firm. A lifeline for women-owned businesses and economically disadvantaged women entrepreneurs across the country, the EDWOSB Certification unlocks this door and reveals a world of government contracts, untapped resources, and critical mentorship.

This post is for the American women company owners and entrepreneurs who are economically disadvantaged but who are also visionaries, risk-takers, and irrepressible forces of change. It digs into the world of the EDWOSB certification, examining its requirements and revealing the countless advantages that await those who dare to take advantage of this chance. This essay will act as a lighthouse, illuminating the route towards success in the EDWOSB application, whether you are just starting out in business or looking to grow it.

What Does EDWOSB Certification Mean? 

Increased access to federal contracting opportunities for women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs) is the goal of the Small Business Administration's (SBA) Women-Owned Small Business (WOSB) Federal Contracting Programme. The programme aims to assist federal agencies in achieving their target of awarding WOSBs 5% of their contracting budget.

government contracting officers have the choice to reserve some government orders or contracts solely for WOSBs or EDWOSBs under this programme. The SBA's evaluation of the under representation of WOSBs in particular industries is the basis for the decision to hold aside contracts. Out of a total of 1,023 codes, the SBA has determined 364 six-digit North American Industry Classification System (NAICS) codes for WOSBs and 80 six-digit NAICS codes for EDWOSBs.

Additionally, under specific circumstances, federal agencies may award sole-source contracts to WOSBs and EDWOSBs operating in qualified industries. These prerequisites include the absence of offers from numerous qualifying WOSBs or EDWOSBs, fair and reasonable pricing, and a total contract value below predetermined thresholds ($4 million for non-manufacturing contracts or $6.5 million for manufacturing contracts).

Since 1978, federal agency directors have been obligated to set federal procurement targets that take into account the potential of small firms, particularly those run by people from disadvantaged backgrounds both socially and economically. WOSB goals were initially left out of these objectives. Executive Order 12138, signed by President Jimmy Carter in 1979, encouraged the establishment of women-owned businesses and mandated that federal agencies support procurement opportunities and help women-owned businesses launch their EDWOSB joint ventures.

Executive Order 12138 granted the SBA authority to add WOSB procurement goals to the list of small business contracting objectives discussed with federal agencies. But by 1988, only 1% of all federal contracts went to WOSBs, leading to the enactment of the Women's Business Ownership Act of 1988 (P.L. 100-533).

What are the qualifications?

The Women-Owned Small Business (WOSB) Federal Contracting Programme has specific requirements that were established by the Consolidated Appropriations Act, 2001 (P.L. 106-554). The act states that contracts for WOSBs or economically disadvantaged women-owned small companies (EDWOSBs) may only be set aside if specific requirements are met. These prerequisites include having a reasonable expectation that two or more qualified companies will submit bids, ensuring that the contract's anticipated award price (including options) doesn't go over predetermined limits (later removed), and guaranteeing that the contract can be awarded at a fair and reasonable price.

Companies must meet eligibility requirements in order to participate in the WOSB scheme. Being a small business as the SBA defines it, being at least 51% unconditionally and directly owned and controlled by one or more women who are citizens of the United States, having women involved in managing day-to-day operations and making long-term decisions, and being certified by a federal agency, state government, the SBA, or an authorised national certifying entity are all requirements. By submitting sufficient evidence that meets with SBA guidelines, businesses may also self-certify their eligibility to the federal contracting officer.

Small businesses previously had the option to self-certify their eligibility for the WOSB programme. The P.L. 113-291 (NDAA 2015) repealed this provision, making it impossible to guarantee that contracts for the programme are exclusively given to the specified recipients. It was mandated that the SBA establish its own certification procedure for WOSBs. It is advised that WOSBs and EDWOSBs either self-certify or get third-party certification to participate in the programme, even though the SBA expected implementing the certification procedure and eliminating self-certification by July 2020. Self-certification entails maintaining an accurate profile on the System for Award Management (SAM) website and submitting certification information yearly via the SBA's certification webpage. Organisations recognised by the SBA offer third-party certification, usually for a charge.

Businesses must be both economically disadvantaged and comply with all WOSB contracting programme requirements in order to be considered EDWOSBs. The SBA bases its definition of economic disadvantage on elements such the owner's personal net worth, adjusted gross income on a three-year average, and personal assets. An EDWOSB certified owner, for instance, must have a personal net worth of no more than $750,000, an adjusted gross income of no more than $350,000 on average over the previous three years, and no more than $6 million in personal assets.

What advantages are there?

In the United States, the proportion of small enterprises owned by women is expanding quickly. The influence and significance of the approximately 12 million women-owned small businesses (WOSBs) are obvious. The federal government has a goal of allocating 5% of federal contracting dollars to WOSBs annually for more than two decades because it recognises the significance of this market. This objective seeks to level the playing field by addressing the underrepresentation of WOSBs and economically disadvantaged WOSBs in numerous businesses.

The General Services Administration (GSA) is actively seeking to increase WOSB and economically disadvantaged WOSB procurement opportunities through the federal government. By expanding the quantity of GSA contracts, including prime and subcontracting awards, given to WOSBs, they want to build on prior accomplishments. In order to increase the chances of WOSBs receiving subcontracts, GSA also hosts matchmaking occasions. The GSA promotes a range of small company categories, including those run by women-owned small businesses, through their Office of Small and Disadvantaged company Utilisation (OSDBU).

Main Points

The EDWOSB certification programme has enormous potential for American women entrepreneurs and women-owned enterprises. Business owners can open up a world of options and advance their companies to success by comprehending the qualifying requirements and utilising the advantages of this accreditation.

In order to level the playing field and increase access to federal contracting opportunities, the EDWOSB certification serves as a doorway to government contracts. Businesses that have the option to reserve contracts solely for WOSBs and EDWOSBs stand a better chance of landing lucrative government contracts, growing their clientele, and fostering growth.