Women and Federal Government Contracting: The Evolving Women-Owned Small Business (WOSB) Federal Contracting Program

The season of women empowerment is still very much in full swing. One of the major themes for the past few years has been equal opportunity and economic advancement for women. The “official” theme for Women’s History Month 2022 is “Providing Healing-Promoting Hope.” Healing and hope through HERstory create transparency for change and can also inspire new stories and experiences. 

As the President and CEO of a Women-Owned Small Business (WOSB), I have taken advantage of opportunities and resources through SBA to grow myself, my network, and my firm and have begun to see growth in government contracting. However, it has not always been an accessible accomplishment for women to achieve. Progress has been slow. In 1997, women-owned small businesses received 1.8 percent of federal contracts. In 2012, that figure hit 4 percent and has remained between 4 and 5 percent. In 2015, it hit 5.05 percent and in 2019 it hit 5.19 percent. 

That 2015 percentage set a record in the federal government for the highest percentage of contracting dollars awarded to women-owned small businesses in the history of the United States. It was $17.8 billion dollars injected into the U.S. economy through women-owned small business contracts. But what contributed to the percentage jumping from 1.8 percent to 4 percent? That would be the Women-Owned Small Business (WOSB) program. 

The U.S. Small Business Administrations’ WOSB program “technically began” in December of 2000. But it wasn’t implemented until 2011 – 11 years after the law passed due to low government investment (only 2.8 percent of spending support). Public Law 106-554 established this program to help the federal government meet its goal of awarding at least 5% of all contracting dollars to women-owned small businesses. Essentially, the WOSB Federal Contract Program allows Contracting Officers (COs) to set aside contracts for WOSBs, including Economically Disadvantaged Women-Owned Small Business, (EDWOSBs) ineligible NAICS (the standard used by Federal statistical agencies in classifying business establishments). Also, in December 2015, COs were allowed to make sole source awards to WOSBs (including EDWOSBs) under specific circumstances. This led to a significant increase in awards for Women-owned businesses. However, it was not the only reason. 

Do you know Maria Contreras? Maria was the 24th Administrator of the Small Business Administration from 2014 to 2017. During Maria’s term, this program was deemed a number one priority, which forced the Administration to ensure goals were met and women were equally supported. 

Since its high mark, the percentage has flirted between 4 and 5.2 percent. But who are the women that are a part of making HERstory see those opportunities for women in business and federal contracting continuing at the forefront? The woman of Congress is certainly one group. The number of women representatives who served in the 106th Congress was twice the number of women representatives who served in the 101st Congress. That was a shift in the majority that allowed the concerns of women to be pushed to the forefront of the Congressional agenda for the appropriate legislation to be passed for Equality and Women’s Rights. 

On June 8, 2000, the House Committee on Small Business held a hearing on “Women in Business” with several woman entrepreneurs, like me, who owned businesses to discuss the state of women in business and federal government contracting. During that hearing, the women shared their experiences and encouraged the committee to invest in thorough research to document the clear discrepancies and inequality for women business owners. A lot of the discrepancies were caused by a lack of understanding and a lack of diversity at the federal level. Procurement officers like to do business with people they know, like, and trust. If most of the officers were white males, that limited the number of women (both minority and white). 

Since that time, things have sort of changed, but we still have a way to go. In June 2019, I presented testimony before the Senate Committee on Small Business and Entrepreneurship regarding the “Reauthorization of SBA’s Contracting Programs.” I shared the importance of “winning sole source contracts” and how that had been a long-standing issue for many women-owned small businesses. At the time of my testimony, the federal government had only met its 5% goal of contracting with women once and has never met its 3% HUBZone goal. To my knowledge, this remains true to this day. Creating a pathway forward for veterans, women, HUBZone, and 8(a) certified companies to thrive in their businesses is important. However, accountability and proper implementation of SBA’s contracting programs are necessary to ensure a level playing field...PARITY! 

Senator Ben Cardin, the ranking member of the Small-Business and Entrepreneurship Committee, recently shared “while contracts are getting bigger and bigger, we are creating an insular club where fewer and fewer businesses successfully compete for government contracts, creating a less competitive marketplace and reducing opportunities in the process. Small businesses are bearing the brunt of this decline.” I would bet who’s at the brunt of it all, women small business owners. 

Just a few weeks ago, the U.S. Small Business Administration (SBA) announced the launch of Journey 6, an eLearning platform geared towards providing women-owned small businesses resources to compete and succeed for federal government contracts. Journey 6 is part of SBA’s bid to help improve the competitiveness of women-owned small businesses by offering small businesses content and tools. They can no longer deny us!! Women entrepreneurs own close to half of all businesses in the United States, employing 9.4 million workers and generating $1.9 trillion in revenue across all industries. The numbers don’t lie, but yet, this number is actually low in comparison.

So, this Women’s History Month, I ask that we not look at history that has been made; but look to the “history” still to be created. The future of the program is at stake. Women fought for this program which sets aside contracts for women only to bid, but it is not used enough. We must make a big push to push things forward and back on track. We must make a big push to get more direct awards in the hands of women that qualify. In addition, Congress must raise the sole source threshold and do away with the onerous justification requirements for sole-source contracts to women. The system may try to box us in, but we are breaking through that glass ceiling. 

You and I have a responsibility to increase the number of women-owned businesses obtaining government contracts at equal value. Be active in supporting women-owned businesses. Also, women entrepreneurs should be engaged in civil works and provide support to organizations that lobby for our success. 

What is Women’s HERstory? It’s whatever we choose it to be. It is ours! 

Note: Many thanks to Ann Sullivan of Madison Services Group, Inc. and the Women Veterans Business Coalition for her support with this month’s blog. I currently serve as Chair of Women Veterans Business Coalition, an organization that brings together diverse stakeholders to provide a strong, collective voice to advocate in Congress and federal agencies for policies that will strengthen businesses owned by women veterans.