Federal contracting can serve as an excellent gateway to new opportunities and long-term business growth. For eligible women-owned businesses, it can be smart to look into WOSB certification, which can provide an easier path into the world of government contracting.
What Is WOSB Certification?
The United States federal government purchases most of its goods and services from the private sector in the form of government contracts. Some of these contracts are set aside for small businesses, and these are known as small business set aside contracts.
To be eligible for these contracting opportunities, you must sign up with the Small Business Administration (SBA); the agency oversees a variety of federal contracting programs for small business owners.
One of these programs is the Woman-Owned Small Business (WOSB) program. If you qualify for WOSB certification, this allows you to bid on special federal contracting jobs that are set aside just for WOSBs, and there are hundreds of these contracts available every year.
How To Qualify
For WOSB certification, you must meet certain criteria. First, your company must be 51% owned and operated by a woman or women. These women must be instrumental in the day-to-day operations and company decision-making to qualify. This means that if a husband and wife own a business, but the business is primarily run by the husband, you cannot simply give the woman an extra percent or two of ownership to qualify.
Second, to bid on set-aside contracts, your company must qualify as a small business based on the SBA’s size standards. Different industries have different size standards, and the federal government organizes industries using the North American Industry Classification System (NAICS).
To determine if your business qualifies as small, you must first find your NAICS codes, which are the codes that describe the goods or services you can provide to the federal government. You can research these codes at Census.gov. Once you have obtained your codes, you can go to https://www.sba.gov/counseling/get-started/#size-standards and enter your NAICS codes to determine if you qualify as a small business.
Lastly, it is important to note that not all women-owned small businesses are eligible for the WOSB federal contract program. The federal government allows businesses only from certain industries to participate. Typically, these are industries where women have been historically underrepresented. Of the 733 industries listed in the NAICS, 626 are allowed to participate in the WOSB certification program.
Additional Set-Aside Programs
The SBA manages many other small business set aside programs, as well. For women who can prove significant economic disadvantage, the Economically Disadvantaged Woman-Owned Business (EDWOSB) program may be an option.
To obtain EDWOSB certification, each woman who co-owns the business must have a personal net worth of $850,000 or less and $400,000 or less in adjusted gross income. This income is averaged over the three previous years. Each woman also must have $6.5 million or less in personal assets.
The SBA also manages several other programs, including the Veteran-Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) programs. These programs are available for qualifying small businesses 51% or more owned and operated by United States veterans.
The 8(a) Business Development Program is another option, and this is open to small business owners who belong to groups historically considered socially and economically disadvantaged. Social disadvantages may include your race, ethnic origin, gender, or perhaps a physical disability. You also must meet economically disadvantaged thresholds, such as those outlined above for EDWOSBs.
Another option to consider is HUBZone certification. A HUBZone is a Historically Underutilized Business Zone. These include many rural areas as well as urban areas that are considered economically disadvantaged. All Native American lands typically are considered HUBZones, as well. In some cases, an area damaged by a natural disaster also may qualify as a temporary HUBZone to help the area recover from the disaster more quickly.
Important Contracting Requirements
If you wish to bid on any government contracting jobs, whether they are set-asides or general contracts, all contractors must obtain their Unique Entity Identifier (UEI) and complete registration in the System for Award Management (SAM).
The UEI number is a 12-character code issued by the federal government to businesses, as well as to nonprofit organizations and educational facilities. If you want to participate in government contracting jobs or apply for federal grants, obtaining your UEI is required.
SAM registration is a significant requirement, and it can be a daunting task. For business owners, completing this step can take 10 or more hours. Many company owners opt to hire a third party to complete this step as it saves time and ensures that the application is completed accurately.
At Federal Contractor Registry, we handle hundreds of SAM registrations and SAM renewals throughout the year for all types and sizes of businesses. Our services also include obtaining your UEI number.
In addition to providing expert SAM registration services, we also can determine if your business is eligible for any small business set aside programs. Our team can identify your NAICS codes and determine if your business qualifies as a WOSB, EDWOSB, or perhaps another set-aside and help you with the certification process.
Whether you are interested in WOSB certification or just generally wish to bid on federal contracts, SAM registration is a crucial first step, and we can help! To get started, simply head to our homepage and click on the green New Registration tab.