WOSB sole-sourcing on fast track

But WOSB continuing self-certification may be in legal limbo

Less than five months after Congress approved sole-source set-aside contracts for the Small Business Administration’s Women-Owned Small Business (WOSB) program, the SBA has proposed regulations to implement the new authority.

But while women business owners were cheering the new proposed rule, there were questions about the SBA’s ability to continue allowing women to self-certify their companies as women-owned.

Congress included the sole-source WOSB authority and the elimination of the self-certification option in the fiscal 2015 national defense authorization bill approved in December 2014.

Women Impacting Public Policy (WIPP), which lobbied for the sole-source authority, reacted positively to the SBA’s proposed rule: “WIPP applauds swift movement by the SBA to bring parity to women contractors.”

The new regulation is expected to take effect by the end of the year.

Under the new authority, if a contracting officer cannot identify two or more WOSBs that can perform at a fair and reasonable price, the contracting officer may award a sole-source to a WOSB that can perform the work. The value may not exceed $6.5 million for manufacturing and $4 million for all others.

The new rule also pushes up the deadline for a new disparity study to determine in which industries women are underrepresented to Jan. 2, 2016.

However, the new rule does not resolve ongoing concerns about Congress’ abrupt elimination of the self-certification option for women-owned small businesses, according to Steven Koprince, government contracting attorney.

While the SBA stated in the new rule that WOSB self-certification may continue until the SBA adopts a regulatory framework for a formal certification program, that stance may not be on solid legal footing, Koprince wrote in a blog entry (http://goo.gl/TyZ4ed).

“SBA adopts a pragmatic approach that nonetheless may be legally problematic given that Congress did not authorize a continuation of WOSB self-certification pending SBA regulatory action,” Koprince wrote.

“I am concerned that the SBA’s apparent backing of continued self-certification may lack a solid legal foundation, and could result in adverse consequences for WOSBs who rely on the SBA’s statements,” Koprince wrote. More information:

More information: SBA proposed rule: https://goo.gl/AtSKDn

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