Is EDWOSB Certification the Key to Success? Exploring the Eligibility Criteria and Understanding the Benefits
In a labyrinth of regulations and requirements, the world of federal contracting can appear daunting and insurmountable. But within this intricate maze lies a hidden pathway — a golden opportunity that can transform the trajectory of a business. The EDWOSB Certification unlocks this pathway, revealing a world of government contracts, untapped resources, and invaluable mentorship, offering a lifeline to women-owned businesses and economically disadvantaged women entrepreneurs across the nation.
To the visionaries, the risk-takers, and the unstoppable forces of change — women-owned businesses and economically disadvantaged women entrepreneurs in the United States — this article is for you. It delves into the realm of the EDWOSB certification, exploring its eligibility criteria and unraveling the myriad benefits that await those who dare to seize this opportunity. Whether you are just starting your entrepreneurial journey or seeking to take your business to new heights, this article will serve as a guiding light, illuminating the path toward success in the EDWOSB application.
What is the EDWOSB Certification?
The Small Business Administration’s (SBA) Women-Owned Small Business (WOSB) Federal Contracting Program is aimed at increasing access to federal contracting opportunities for women-owned small businesses (WOSBs) and economically disadvantaged women-owned small businesses (EDWOSBs). The program seeks to help federal agencies achieve their goal of awarding 5% of their contracting dollars to WOSBs.
Under this program, federal contracting officers have the option to set aside federal contracts or orders exclusively for WOSBs or EDWOSBs. The determination to set aside contracts is based on the SBA’s assessment of the under representation of WOSBs in specific industries. The SBA has identified 364 six-digit North American Industry Classification System (NAICS) codes for WOSBs and 80 six-digit NAICS codes for EDWOSBs, out of a total of 1,023 codes.
Additionally, federal agencies can award sole-source contracts to WOSBs and EDWOSBs in eligible industries under certain conditions. These conditions include the absence of offers from multiple eligible WOSBs or EDWOSBs, fair and reasonable pricing, and a total contract value below specified thresholds ($4 million or $6.5 million for manufacturing contracts).
Since 1978, federal agency heads have been required to establish federal procurement goals that reflect the potential of small businesses, including those owned by socially and economically disadvantaged individuals. Initially, WOSB goals were not included in these goals. In 1979, President Jimmy Carter issued Executive Order 12138, which promoted women-owned business enterprises and required federal agencies to support procurement opportunities and provide assistance to women’s businesses to start their EDWOSB joint venture.
Under the authority of Executive Order 12138, the SBA added WOSB procurement goals to the list of small business contracting goals negotiated with federal agencies. However, by 1988, WOSBs only received about 1% of all federal contracts, prompting the passage of the Women’s Business Ownership Act of 1988 (P.L. 100–533).
P.L. 100–533 granted the SBA the authority to establish annual EDWOSB joint venture goals with federal agencies and extended the goal requirement to subcontracting. It also mandated the inclusion of WOSBs in small business subcontracting plans.
What is the Eligibility Criteria?
The Consolidated Appropriations Act, 2001 (P.L. 106–554) established specific requirements for the Women-Owned Small Business (WOSB) Federal Contracting Program. According to the act, federal contracting officers are only allowed to set aside contracts for WOSBs or economically disadvantaged women-owned small businesses (EDWOSBs) if certain conditions are met. These conditions include having a reasonable expectation that two or more eligible businesses will submit offers for the contract, ensuring that the anticipated award price of the contract (including options) does not exceed specified thresholds (which were later removed), and ensuring that the contract can be awarded at a fair and reasonable price.
To participate in the WOSB program, businesses must meet eligibility requirements. These requirements include being a small business according to the SBA’s definition, being at least 51% unconditionally and directly owned and controlled by one or more women who are U.S. citizens, having women involved in managing day-to-day operations and making long-term decisions, and being certified by a federal agency, state government, the SBA, or an approved national certifying entity. Alternatively, businesses can self-certify their eligibility to the federal contracting officer with sufficient documentation according to SBA standards.
In terms of certification, small businesses were previously able to self-certify their eligibility for the WOSB program. However, P.L. 113–291 (NDAA 2015) removed this ability to ensure that the program’s contracts are awarded only to intended recipients. The SBA was required to implement its own certification process for WOSBs. While the SBA anticipated implementing the certification process and removing self-certification by July 2020, it is recommended that WOSBs and EDWOSBs either self-certify or obtain third-party certification to participate in the program. Self-certification involves providing certification information annually through the SBA’s certification web page and having an up-to-date profile on the System for Award Management (SAM) website. Third-party certification, which typically involves a fee, is provided by organizations approved by the SBA.
For businesses to qualify as EDWOSBs, they must meet all the requirements of the WOSB contracting program and also be economically disadvantaged. The SBA defines economic disadvantage based on factors such as the owner’s personal net worth, adjusted gross income averaged over the previous three years, and personal assets. For example, an EDWOSB certification owner must have a personal net worth of less than $750,000, adjusted gross income of $350,000 or less averaged over the previous three years, and personal assets of $6 million or less.
What are the Benefits?
Women-owned businesses have become a rapidly growing segment of the small business community in the United States. With over 12 million women-owned small businesses (WOSBs), their influence and impact are undeniable. Recognizing the importance of this segment, the federal government has set a goal of awarding 5% of federal contracting dollars to WOSBs each year for over two decades. This goal aims to address the under representation of WOSBs and economically disadvantaged WOSBs in various industries and level the playing field.
The General Services Administration (GSA) is actively working to maximize federal procurement opportunities for WOSBs and economically disadvantaged WOSBs. They strive to build on past successes by increasing the number of GSA contracts awarded to WOSBs, including prime and subcontracting awards. Additionally, GSA organizes matchmaking events to enhance subcontracting opportunities for WOSBs. Through their Office of Small and Disadvantaged Business Utilization (OSDBU), GSA advocates for various small business categories, including women-owned small businesses.
GSA engages in activities to support the small business community, providing opportunities for them to meet contracting experts, learn about the procurement process, receive training, utilize tools like the Forecast of Contracting Opportunities, and gain insights into government contracting. They aim to surpass the Small Business Administration’s (SBA) procurement goals and have consistently achieved excellent ratings from the SBA’s annual assessment tool, with an A+ rating in their FY20 Small Business Procurement Scorecard.
As part of their commitment to small businesses, GSA stays connected with the community through outreach efforts such as workshops and training sessions. These initiatives help small businesses navigate the federal procurement process and contribute to the nation’s economic recovery. In collaboration with the U.S. Women’s Chamber of Commerce, GSA invites businesses to participate in a Virtual Meet & Match event focused on supporting the success of WOSBs. This event offers an opportunity to expand networks with GSA prime contractors through matchmaking. Although the event is centered around EDWOSB certification, all businesses are welcome to attend.
Moreover, the EDWOSB certification enables you to compete for contracts with both federal and state governments. This expands your potential customer base and allows you to pursue lucrative government contracts, which can significantly contribute to the growth and success of your business.
EDWOSB certification also grants you access to specialized resources that can help develop and improve your business operations. Organizations like the Women’s Business Enterprise National Council (WBENC) and the National Association of Women Business Owners (NAWBO) offer consultancy services and support for female entrepreneurs. These resources provide guidance, mentorship, and valuable insights to navigate the business landscape effectively.
Participating in minor-protege programs is another advantage of being an EDWOSB. These programs pair small business entrepreneurs with larger corporations, providing mentorship, industry knowledge, and training opportunities. This mentorship can be invaluable in gaining a better understanding of your industry, honing your skills, and growing your business in a competitive market.
Key Takeaways
EDWOSB certification holds tremendous potential for women-owned businesses and economically disadvantaged women entrepreneurs in the USA. By understanding the eligibility criteria and harnessing the benefits of this certification, business owners can unlock a world of opportunities and propel their enterprises toward success.
The EDWOSB certification acts as a gateway to government contracts, leveling the playing field and increasing access to federal contracting opportunities. With the ability to set aside contracts exclusively for WOSBs and EDWOSBs, businesses have a greater chance of securing lucrative government contracts, expanding their customer base, and fueling growth.
