Women-Owned FAQs

The WOSB Advocate acts as the agency’s liaison by developing policy and oversight to ensure that women-owned small businesses are provided the opportunity to participate in Army acquisitions.

The National goal for prime contract awards to WOSBs is 5%.

The Army was proud to be the first Federal agency to award more than $1 billion to WOSBs in fiscal year 2000. Since that time, we have increased our awards to over $4 billion in FY 2011. We continue to monitor our progress toward the 5% goal and encourage WOSBs to participate in Army procurement opportunities.

WOSBs should take the following steps:

• Keep the company’s profile current in the System for Award Management;
• Attend local and national procurement conferences, particularly those that are sponsored by Government Agencies;
• Seek opportunities through the Army’s Mentor-Protégé Program;
• Monitor the Federal Business Opportunities web site and the Army web site for forecasts and special announcements.

Qualification as a WOSB
To qualify as a WOSB, a concern must be: a small business not less than 51 percent unconditionally and directly owned and controlled by one or more women who are United States citizens.

Qualification as an EDWOSB
An eligible business must be not less than 51 percent owned by one or more women who are “economically disadvantaged” (i.e. an EDWOSB). However, SBA may waive this requirement of economic disadvantage for industries in which WOSBs are “substantially underrepresented.” The ownership of the business must be direct as defined in (13 CFR 127.201(b) Requirement for unconditional ownership.

• Ownership of a limited liability company
  In the case of a concern that is a limited liability company, at least 51 percent of each class of member interest must be unconditionally owned by one or more women or in the case of an EDWOSB, economically disadvantaged women.
• Ownership of a corporation
  In the case of a concern that is a corporation, at least 51 percent of each class of voting stock outstanding and 51 percent of the aggregate of all stock outstanding must be unconditionally owned by one or more women, or in the case of an EDWOSB, economically disadvantaged women. In determining unconditional ownership of the concern, any unexercised stock options or similar agreements held by a woman will be disregarded. However, any unexercised stock option or other agreement, including the right to convert non-voting stock or debentures into voting stock, held by any other individual or entity will be treated as having been exercised.
• Control of an EDWOSB or WOSB
  To qualify as a WOSB, the management and daily business operations of the concern must be controlled by one or more women. To qualify as an EDWOSB, the management and daily business operations of the concern must be controlled by one or more women who are economically disadvantaged. Control by one or more women or economically disadvantaged women means that both the long-term decision making and the day-to-day management and administration of the business operations must be conducted by one or more women or economically disadvantaged women.
  
  1. Managerial position and experience. A woman, or in the case of an EDWOSB an economically disadvantaged woman, must hold the highest officer position in the concern and must have managerial experience of the extent and complexity needed to run the concern. The woman or economically disadvantaged woman manager need not have the technical expertise or possess the required license to be found to control the concern if she can demonstrate that she has ultimate managerial and supervisory control over those who possess the required licenses or technical expertise. However, if a man possesses the required license and has an equity interest in the concern, he may be found to control the concern.
  2. Limitation on outside employment. The woman or economically disadvantaged woman who holds the highest officer position of the concern must manage it on a full-time basis and devote full-time to the business concern during the normal working hours of business concerns in the same or similar line of business. The woman or economically disadvantaged woman who holds the highest officer position may not engage in outside employment that prevents her from devoting sufficient time and attention to the daily affairs of the concern to control its management and daily business operations.
• Control over a partnership
  In the case of a partnership, one or more women, or in the case of an EDWOSB, economically disadvantaged women, must serve as general partners, with control over all partnership decisions.
• Control over a limited liability company
  In the case of a limited liability company, one or more women, or in the case of an EDWOSB, economically disadvantaged women, must serve as management members, with control over all decisions of the limited liability company.
• Control over a corporation
  One or more women, or in the case of an EDWOSB, economically disadvantaged women, must control the Board of Directors of the concern. Women or economically disadvantaged women are considered to control the Board of Directors when either:
  
  1. One or more women or economically disadvantaged women own at least 51 percent of all voting stock of the concern, are on the Board of Directors and have the percentage of voting stock necessary to overcome any super majority voting requirements; or
  2. Women or economically disadvantaged women comprise the majority of voting directors through actual numbers or, where permitted by state law, through weighted voting.

  Involvement in the concern by other individuals or entities. Men or other entities may be involved in the management of the concern and may be stockholders, partners or limited liability members of the concern. However, no males or other entity may exercise actual control or have the power to control the concern.

In order to restrict or set-aside contracts for WOSBs or EDWOSBs:

• The contracting officer may restrict competition in industries where SBA has determined that WOSBs or EDWOSBs are underrepresented or substantially underrepresented in Federal procurement, as specified in §127.501. Based upon analysis, SBA will designate by NAICS Industry Subsector Code industries where WOSBs are underrepresented and substantially underrepresented.
• The contracting officer must have a reasonable expectation that two or more EDWOSBs or WOSBs will submit offers for the contract and the contract award price must not exceed $5 million in the case of manufacturing contracts and $3 million in the case of all other contracts.
• The contract can be awarded at a fair and reasonable price.

WOSBs and EDWOSBs must self-certify their status in the System for Award Management (SAM) as other small businesses do. WOSBs and EDWOSBs must also submit documents to the WOSB Program Repository. If the Repository is unavailable, documents must be submitted to the Contracting Officer if the WOSB or EDWOSB is selected as the apparent successful offeror. If someone falsely self certifies, misrepresents its status as an WOSB or EDWOSB or provides false information to the Government, the SBA or another Federal agency may propose to suspend and debar you pursuant to the procedures set forth in the FAR, 48 CFR 9.4. In addition, other penalties for criminal activities may be imposed.