Study of Women’s Contracting Raises More Questions Are woman-owned businesses getting their fair share of federal contracts? Researchers at the Rand Corp. say that depends on how you slice it. “Depending on the measure used, underrepresentation of [woman-owned small businesses] in government contracting occurs either in no industries or in up to 87 percent of industries,” the researchers said in their report to the Small Business Administration. Rand did not advocate which measure should be used. Completion of the Rand study is a key step toward implementing the long-delayed set-aside program for woman-owned businesses. In 2000 Congress authorized set-aside contracts for disadvantaged women in industries where woman-owned firms are underrepresented in federal contracting, and approved set-asides for all woman-owned firms in industries where women are substantially underrepresented. The Rand results give SBA broad leeway in determining which businesses will be eligible. SBA said it is reviewing the findings. Women’s business advocates immediately jumped on the 87% finding and called for quick implementation of the set-aside program. The Rand researchers conducted what are known as “disparity studies,” a common technique for determining whether there is evidence of discrimination. They found that when they examined the total number of contracts awarded, woman-owned small businesses were underrepresented in more than half of the industry categories studied over a three-year period. But when they measured the dollar value of the same federal contracts, there was little evidence that woman-owned firms were underrepresented. Rand said: “Most studies examining whether disadvantaged businesses are underrepresented among federal contractors have focused on the number of contracts awarded. If disadvantaged firms receive fewer contracts than their total representation in the industry studied, they are deemed to be underrepresented.” However, the government calculates its small business goals in dollars, not number of contracts. Implementation of the women’s set-aside program has been delayed for six-and-a-half years while SBA commissioned three reviews to determine which industries will be eligible for the program. In its semiannual regulatory forecast, the agency said it expects to issue a final rule by July, but that schedule is not binding. SBA said woman-owned companies received 3.3% of prime contract dollars in 2005, the most recent figures available. Congress has set a goal of 5%, but the government has never reached it. Legislation passed by the House would raise the goal to 8%. (See story, page 1.) The report, “The Utilization of Woman-Owned Small Businesses in Federal Contracting,” is available at www.rand.org/pubs/technical_reports/2007/RAND_TR442.pdf.