The Small Business Administration has removed the previously-set limits on federal set-asides to women-owned small companies.

The SBA issued an amendment to the Women-Owned Small Business (WOSB) program that lifted the existing caps on set-aside contract awards under that program.

The caps were $6.5 million for manufacturing contracts and $4 million for all others.

The interim final rule, published May 7, goes into effect immediately, according to the Federal Register Notice.

The provision is expected to be a major benefit for women-owned small federal contractors. It was approved by Congress and the White House in the National Defense Authorization Act of 2013, and signed by the president in January.

Under the new rule, starting on May 7, a federal contracting officer may set aside any contract for an Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) or a WOSB under the WOSB program if there is a reasonable expectation that two or more EDWOSBs will submit offers for the contract in industries where WOSBs are underrepresented, or there is a reasonable expectation that two or more WOSBs will submit offers for the contract in industries where WOSBs are substantially underrepresented, according to PilieroMazza PLLC law firm. In addition, there must be a reasonable expectation that the contract can be awarded at a fair and reasonable price, PilieroMazza said in a statement.

“It is anticipated that this change in the WOSB regulations will make the WOSB a more robust federal contracting program and will result in a higher volume of federal contracting being set aside for WOSBs and EDWOSBs than in the past,” PilieroMazza said in a statement.

More information: SBA Federal Register notice: http://goo.gl/9Gcso