This bill modifies how women-owned small businesses are counted toward government contracting goals, focusing on those formally certified rather than self-certified, while ensuring ongoing reporting and oversight.
Nydia Velázquez
Representative
NY-7
The WOSB Certification Expansion and Opportunity Act modifies how women-owned small businesses (WOSBs) are counted toward government contracting goals, excluding self-certified WOSBs and including only those formally certified. It requires the Administrator to issue regulations implementing these changes within one year of enactment. The Act mandates quarterly briefings to the House and Senate Small Business Committees on the implementation progress. No additional funds are authorized to carry out the Act.
WOSB Certification Gets Real: New Bill Tightens Rules for Women-Owned Business Contracts
The "WOSB Certification Expansion and Opportunity Act" shakes up how women-owned small businesses (WOSBs) get counted for government contracts. Basically, it's saying "show me the paperwork" – self-certification alone won't cut it anymore.
Certification Central
The big change is that only formally certified WOSBs will count towards the government's goals for awarding contracts to women-owned businesses. This means going through the official process outlined in Section 8(m)(2)(E) of the Small Business Act. Think of it like getting a gold star instead of just saying you deserve one. The bill aims to make sure the WOSB designation is legit and not being misused.
For businesses that were self-certified before this change, there's a grace period. If you were already self-certified, and you've applied for the formal certification, you're still in the game – temporarily. This only applies until a decision is made on the formal application. So, if you are in this group, get that application in!
Real-World Rollout
Imagine you're running a small catering company, "Catering Queens," and you've been self-certified as a WOSB. Under this new rule, you'll need that formal certification to be considered for government catering contracts that are set aside for women-owned businesses. Without it, you might miss out on opportunities.
Or, picture "Tech Titans," a software development firm that's already gone through the formal WOSB certification. This bill could mean less competition from businesses that haven't met the same standards, potentially making it easier for "Tech Titans" to win contracts.
The Small Business Administration (SBA) has one year from the bill's enactment to issue the regulations to put this into action. They also have to give quarterly updates to the House and Senate Small Business Committees. These briefings will cover the number of applications, how long things are taking, what it's costing, and how they're getting the word out. The bill is clear that small business concern, owned and controlled by women has the meaning given that term in section 3 of the Small Business Act (15 U.S.C. 632). Sec. 2 (b)(3).
The Bottom Line
This bill, the "WOSB Certification Expansion and Opportunity Act", is tightening the reins on the WOSB program. While it could create a fairer playing field by weeding out less-than-legit claims, it also adds another layer of process for businesses already juggling a lot. The mandated briefings to Congress show they're keeping an eye on how this rolls out. One key detail: the bill specifically says no extra money is authorized to make this happen (Sec. 2(e)), which makes you wonder if the SBA has the resources to handle the potential influx of certification applications efficiently.