WOSB Accountability Act: New Rules for Women-Owned Businesses in Federal Contracting

The "WOSB Accountability Act" changes the game for women-owned small businesses (WOSBs) looking to land federal contracts. The core change? Only certified WOSBs will count towards the government's contracting goals. That means businesses that have self-certified as women-owned in the past won't be included in the tally anymore, unless they have their certification pending.

Certification Counts

The main idea here is to tighten up accountability in the Women-Owned Small Business program. Previously, businesses could self-certify as women-owned, and agencies could count them toward their goals. Now, under Section 2, only those businesses that go through a formal certification process (either through the Small Business Administration (SBA) or an approved third-party) will be counted. The goal is to make sure the numbers are legit and that the program is actually benefiting the businesses it's designed to help.

There's a grace period, though. If a business is self-certified and has applied for formal certification by the time this law kicks in, they're still considered certified until they get a final decision on their application. Think of it like having a temporary pass while your official ID is being processed. For example, say you run a small catering company that's self-certified. If you've already applied for formal WOSB certification, you're still in the game while your application is reviewed.

Keeping Tabs: Quarterly Check-Ins

To make sure this new system is working, the SBA Administrator has to give Congress quarterly updates (Section 2). These briefings will cover everything from how many businesses are applying for certification, how long it's taking, how much it's costing, and what the SBA is doing to reach out to WOSBs. It's like a regular report card to make sure things are on track.

Real-World Rollout

So, what does this mean for your average business owner? If you're already certified, you're good. If you're self-certified and haven't applied, you'll need to get on that to be counted towards contracting goals. This might mean more paperwork and potentially some waiting, but the idea is that it'll be a more reliable system in the long run. However, the bill states that no additional funds are authorized to carry out the act, which could create challenges (Section 2).

One thing to keep in mind: This bill is focused on counting WOSBs for government goals. It doesn't change the fundamental definition of who qualifies as a WOSB (Section 2). It's all about how those businesses are tracked and reported within the federal contracting system. The Administrator has one year to issue regulations to make all of this happen. (Section 2).