Women-Owned Small Business (WOSB) Federal Contract Program and Jobs Act Update February 2012

1. Women-Owned Small Business (WOSB)Federal Contract Program andJobs Act UpdateFebruary 2012

2. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

3. Overview of Women-Owned Small Business program • Program overview • The Women-Owned Small Business (WOSB) program authorizes contracting officers to set aside certain federal contracts for eligible: • Women-owned small businesses (WOSBs) or • Economically disadvantaged women-owned small businesses (EDWOSBs) • SBA is responsible for implementing and administering the program and the Federal Acquisition Regulatory Council is responsible for implementing SBA’s program regulations in the FAR (part 19) • Impact of this program • Levels the playing field for WOSBs to compete for and win federal contracts • Provides procuring agencies a tool to help meet their WOSB contracting goal (i.e., the Federal government must award 5% of its prime contracting dollars to WOSBs) • Ultimately, the program helps create and retain more jobs for WOSBs

4. Requirements for WOSB and EDWOSB Set Asides Contracting officers may set aside contracts for WOSBs and EDWOSBs if they meet the following requirements: A complete list of applicable NAICS codes can be found at www.sba.gov/wosb

5. Additional key information about the WOSB program • The same subcontracting limitations that apply for small business set asides apply for the WOSB program • A mentor-protégé program for the WOSBs could be implemented within the next year • By statute, the WOSB program does not authorize sole source awards

6. Parity and the WOSB Program Procurements valued over Simplified Acquisition Threshold (generally $150,000) #1 Consider HUBZone or 8(a) or SDVO SBC or WOSB/EDWOSB first #2 Small business set aside #3 Full and open competition (unrestricted; not set aside for one of the five major small business prime contracting programs) Procurements valued from $3,000 to Simplified Acquisition Threshold (generally $150,000) #1 Small business, which includes HUBZone or 8(a) or SDVO SBC or WOSB/EDWOSB #2 Full and open competition (unrestricted; not set aside for one of the five major small business prime contracting programs)

7. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

8. Eligibility Requirements for WOSBs • Meet small business size standard for primary NAICS code and contract • At least 51% unconditionally and directly owned by women who are U.S. citizens* • The woman must manage the day-to-day operations • The woman must make the long-term decisions for the business • A woman must hold highest officer position • The woman must work at the business full-time during normal working hours • No minimum amount of time the business has been operational • *We do not consider community property laws when looking at ownership.

9. Eligibility Requirements for EDWOSBs • Same requirements as WOSBs (on previous page) PLUS: • Personal net worth (assets minus liabilities) is less than $750,000 excluding: • Ownership in business and primary personal residence • Income reinvested or used to pay taxes of business • Funds reinvested in IRA or other retirement account* • Transferred assets within two years if to or on behalf of immediate family member for select purposes** • Adjusted gross income average over three years is $350,000 or less excluding: • Income reinvested or used to pay taxes of business • Fair market value of assets is $6 million or less excluding: • Funds reinvested in IRA or other official retirement account • * Must be IRA or other official retirement account that is unavailable until retirement age without significant penalty • ** Select purposes are for that individual’s education, medical expenses or other essential support or to family member in recognition of special event Note: SBA will look at a spouse’s finances if the spouse has a role in the WOSB/EDWOSB, has lent money to or provided financial support (including credit or guarantee of loan) to the business. SBA may also look at spouse’s finances if both spouses are in same or similar line of business and businesses share names, websites, equipment and employees.

10. Requirements for Joint Ventures • A WOSB/EDWOSB may submit an offer as a joint venture with another small business if the following requirements are met: • Size: Combined annual receipts or employees of joint venture must meet NAICS code assigned to contract* • EDWOSB/WOSB must be managing venturer • EDWOSB/WOSB employee must be project manager responsible for performance of the contract • EDWOSB/WOSB must receive at least 51% of net profits • The joint venture agreement must be in writing • Joint venture must meet subcontracting limitations • Note: Joint venture agreement does not have to be approved by SBA *Unless exception in 13 C.F.R. §121.103(h)(3) applies.

11. Active 8(a) firms and the WOSB program • An active 8(a) firm is eligible for the WOSB program if it also meets the following requirements: • At least 51% unconditionally and directly owned by women who are U.S. citizens* • The woman must manage the day-to-day operations • The woman must make the long-term decisions for the business • A woman must hold highest officer position • The woman must work at the business full-time during normal working hours

12. Nonmanufacturers • Resellers/nonmanufacturers can submit an offer if the NAICS code assigned to the requirement is in a designated industry and the nonmanufacturer meets the requirements in 13 C.F.R. § 121.406(b). • The SBA did not designate any NAICS codes in sectors 42, 44, and 45 for contracting assistance under the WOSB Program because these NAICS codes cover wholesalers and retailers. • Contracting officers cannot assign these NAICS codes to solicitations or contracts but must assign a solicitation or contract with the applicable manufacturing NAICS code (and then the provisions of the nonmanufacturer rule would apply to any offerors that are nonmanufacturers of the items being supplied). 12

13. Other key information about the WOSB program • Yes, the WOSB has to perform a certain amount of the work. This is often referred to as the limitations on subcontracting because it limits how much work a small business can subcontract out. These limits for this program are: • For service contracts (that are not construction), the WOSB/EDWOSB must perform at least 50% of the cost of the contract for personnel with its own employees. • For supply contracts (if you are the manufacturer), the WOSB/EDWOSB must perform at least 50% of the cost of manufacturing the supplies or products (not including the cost of materials). • For general construction contracts, the WOSB/EDWOSB must perform at least 15% of the cost of the contract with your own employees (not including cost of materials). • For specialty construction contracts, the WOSB/EDWOSB must perform at least 25% of the cost of the contract with your own employees (not including cost of materials). Does the WOSB have to perform any particular amount of work on a WOSB or EDWOSB contract or can it subcontract most of it out?

14. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

15. WOSB program certification • Self Certification • There are two ways to certify for the WOSB program: • Self certification with supporting documents, or • Third Party Certification with supporting documents • Third Party Certification • SBA has approved 4 third party certifiers to date: • El Paso Hispanic Chamber of Commerce • National Women Business Owners Corporation • US Women’s Chamber of Commerce • Women’s Business Enterprise National Council (WOSB only) • Free, no cost • Register in CCR as WOSB or EDWOSB • Compile and upload all required documents to the repository • Represent status in ORCA • Register in CCR as WOSB or EDWOSB • Obtain certification from an SBA-approved Third Party Certifier • Compile and upload all required documents to the repository • Represent status in ORCA

16. WOSB Program Repository - Overview General Login System (GLS): https://eweb.sba.gov/gls • What is the WOSB Repository? • By statute, documents verifying a WOSB/EDWOSBs eligibility must be submitted to the contracting officer (CO) • Rather than have WOSBs submit documents to the CO, the SBA has created a document warehouse • A WOSB’s documents in the repository can be accessed only by the WOSB, SBA and the CO (only if the firm gives the CO permission to access the documents). • How do I get to the repository? • Through the SBA’s General Login System - Detailed instructions of how to sign-up and use the Repository are in the Appendix of this presentation • What do I, as a Contracting Officer, need to do with the repository? • All COs should register in the Repository so a WOSB can grant you access to their documents • COs must verify that the apparent successful offeror submitted all required documents to the repository WOSB Program Repository

17. WOSB Program Repository – What to look for What documents do I need to look for in the Repository? There is a Checklist in the back of the Contracting Officer’s Guide that outlines the documents to look for: • Self Certification • Third Party Certification • Active 8(a) firms • Birth certificates, naturalization papers, unexpired passports to verify U.S. citizenship • Copy of JV agreement (if applicable) • Copy of WOSB/EDWOSB Certification (OMB approved form) • DBA certificate • Corporate information relating to verifying ownership by a woman or women • EDWOSBs: All of above and SBA Form 413, Personal Financial Statement for each woman claiming economic disadvantage. Copy of Third Party Certification from an SBA Approved Third Party Certifier Copy of JV agreement (if applicable) Copy of WOSB/EDWOSB Certification (OMB approved form) Copy of initial 8(a) Certification Copy of WOSB/EDWOSB Certification (OMB approved form)

18. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • How to set-aside a WOSB/EDWOSB contract • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

19. Reviews and Protests Eligibility Examinations Protests Any WOSB/EDWOSB found to be non-compliant must remove their designation in CCR and ORCA and contracting officer shall not award them a contract SBA may investigate the accuracy of any certification or representation made SBA will conduct regular reviews of firms who have self-certified and obtained third party certification A review will involve evaluation of documents uploaded in the repository and SBA may request additional documents and perform a site visit • SBA may investigate the accuracy of any certification or representation made as it relates to a specific WOSB/EDWOSB set aside • Only an interested party, SBA or a contracting officer may submit a protest • A protest must be submitted to the contracting officer within certain timeframe • Can only protest the ownership, control and economic disadvantage requirements • Size protests are handled under 13 C.F.R. part 121 • SBA reviews each protest and makes a final decision, which may be appealed to the Office of Hearings and Appeal SBA is committed to ensuring only eligible WOSBs benefit from the WOSB program; therefore, we utilize the following tools to ensure compliance with WOSB program requirements:

20. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • How to set-aside a WOSB/EDWOSB contract • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

21. Resources and Q&A • There are a number of resources available to help answer questions about the program: • Visit our website: www.sba.gov/wosb • You will find the latest information about the program on this site, including the Contractor Officer’s Guide for the WOSB program • Visit a local resource: • Small Business District Offices • Find your local office at: http://www.sba.gov/about-offices-list/2 • Women’s Business Centers • Find your local center at: http://www.sba.gov/content/womens-business-centers • Small Business Development Centers • Find your local center at: http://www.asbdc-us.org/ • Procurement Technical Assistance Centers • Find your local center at: http://www.aptac-us.org/new/ • Email Assistance: wosb@sba.gov Questions?

22. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • How to set-aside a WOSB/EDWOSB contract • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

23. Small Business Set-Asides and Reserves • Defines Multiple Award Contract.JA §1311 • multiple award IDIQ contract entered into under 41 USC 253h-253k • any other multiple award IDIQ contract • Requires guidance the addresses the (JA § 1331): • set aside of part or parts of a multiple award contract for small business; • notwithstanding fair opportunity requirements, set aside of orders placed against multiple award contracts for small businesses; and • reserve of one or more contract award(s) for small businesses under full and open competition multiple award procurements.

24. Small Business Set-Asides and Reserves cont’d • FAR issued interim final rule on November 2, 2011 (effective that date) at 76 FR 68032 • Comments extended until February 3, 2012 • FAR amended: • FAR Subpart 8.4 to clarify that agencies may set-asides orders and blanket purchase agreements under the GSA Schedule; • FAR Subpart 16.5 to clarify that agencies may set-aside orders for SBCs in connection with multiple award contracts • The CO is not required to issue a justification for this exception to fair opportunity

25. Small Business Set-Asides and Reserves cont’d • FAR also amended FAR Subpart 19.5 to authorize agencies to: • set aside part or parts of a multiple-award contract for SBCs, including set-asides for small business concerns under the 8(a), HUBZone, SDVOSB and the WOSB Programs; • set-aside orders placed against multiple-award contracts for SBCs, including small businesses in the 8(a), HUBZone, SDVOSB, and WOSB Programs; and • reserve one or more contract awards for SBCs, including small businesses in the 8(a), HUBZone, SDVOSB, and WOSB Programs, under full and open multiple-award procurements.

26. Small Business Set-Asides and Reserves cont’d • FAR 8.405-5(a)(2) states that when setting aside orders and BPAs against the Schedule: • The specific small business program eligibility requirements identified in part 19 apply. • FAR 16.505(b)(2)(i)(F) states that when setting aside orders for small business concerns: • The specific small business program eligibility requirements identified in part 19 apply. • What does this mean? Examples: • Offer and acceptance requirements apply for 8(a) set-aside • Dollar thresholds apply (e.g., 8(a) set-aside threshold) • Joint venture requirements

27. Small Business Set-Asides and Reserves cont’d • FAR also amended • Current contract clauses re: set-asides to address this new authority • This means that subcontracting limitations and NMR apply to these set-asides and reserves • FAR added a new clause • 52.219-13 which states that the CO will give notice of which orders, if any, to be set aside under a multiple award contract

28. Size Standard Review SBA must review 1/3 of its size standards every 18 months and must conduct a complete review every 5 years. SBA has issued the following rules to date: • Proposed to increase small business size standards for 20 industries and one sub-industry in NAICS Sector 53, Real Estate and Rental and Leasing (76 FR 70680). • The deadline for submission of comments ended on January 17, 2012. • Proposed to increase small business size standards for nine industries in NAICS Sector 61, Educational Services (76 FR 70667). • The deadline for submission of comments ended on January 17, 2012. • Proposed to increase small business size standards for 15 industries in NAICS Sector 51, Information (76 FR 63216). • The deadline for submission of comments ended on December 12, 2011. • Proposed to increase small business size standards for 37 industries in NAICS Sector 56, Administrative and Support, Waste Management and Remediation Services (76 FR 63510). • The deadline for submission of comments ended on December 12, 2011. • Proposed to increase small business size standards for 22 industries in NAICS Sector 48 49, Transportation and Warehousing (76 FR 27935). • The comment period ended on July 12, 2011. • Proposed to increase small business size standards for 35 industries and one sub-industry in NAICS Sector 54, Professional, Scientific and Technical Services and one industry in NAICS Sector 81, Other Services (76 FR 14323).  • The comment period ended on June 15, 2011.

29. Topics for discussion • Overview of the WOSB program • Eligibility requirements • Certification and Repository • How to set-aside a WOSB/EDWOSB contract • Reviews & Protests • Resources and Q&A • Jobs Act Update • Appendix – User guide for GLS and WOSB Repository

30. To log onto the General Login System (GLS), go to: https://eweb.sba.gov/gls Click here for instructions on how to use GLS Request access by clicking “Request SBA User ID”

31. When you click “Request SBA User ID,” fill in all the blue highlighted fields Create your own user ID Must click Zip look up to autofill State

32. When you click “Request SBA User ID,” fill in all the blue highlighted fields (cont’d) Select your Agency, make sure “Contracting Officer” is selected and then click “Submit” An e-mail will be sent to you with a temporary password so you can login. After you enter the temporary password, you will be prompted to create a new permanent password.

33. Once you have a user ID and password, log into GLS Enter your Information and hit “Login” General Login System Web Address: https://eweb.sba.gov/gls/

34. Read the Terms and Conditions and click OK Click “OK”

35. Once in GLS, Click on the Access Button to gain entry to the Women Owned Small Business (WOSB) Repository Click Access to gain entry to WOSB Repository

36. Select the Federal Agency Contract Officer role for the WOSB Repository Click WOSBPR Make sure “Business Owner” is selected Click ‘Submit’ Click Submit

37. After SBA approves your access, the WOSB Repository will be listed as one of your currently available applications Click WOSBPR to enter the repository

38. Once you are in the WOSB Repository, read the disclaimer Click “Help” for additional help features Read Disclaimer and Directions on how to use WOSBPR

39. How to view a firm’s uploaded documents Click on Business View to see a list of firms that have granted you access Click on a business name to see their uploaded documents NOTE – if you have not yet been authorized by any firms, you will not see anything on this page

40. How to view a firm’s uploaded documents (Cont.) Click on any document to download and view

41. How to use the Solicitation View You may also view firms by searching solicitations. Click “Solicitation View” to see solicitations.

42. How to use the Solicitation View (Cont’d) Once you click on a solicitation, you will see a list of firms who have authorized you access to their documents **Note that that a Contracting Officer will only be able to view documents of firms that have authorized them access. If you do not see a firm that you need to review, contact them and ask them to grant you access.