SBA encourages women-owned small businesses to seek federal contracts

The U.S. government is the largest purchaser of goods and services in the world, yet women-owned businesses are underrepresented when it comes to snagging contracts.

To expand opportunities, the Small Business Administration recently announced a 70% increase in industries eligible to compete for federal contracting set-asides for the Women-Owned Small Business federal contracting program, known as the WOSB program.

The number of industries has increased to 759 from 444 with newly eligible categories including Temporary Help Services, Home Health Care Services, Electronic Computer Manufacturing and Air Transportation Support.

“We’re trying to do everything we can to make sure more women-owned businesses have access to contract opportunities,” says Bibi Hidalgo, associate administrator for government contracting and business development at the SBA.

The federal government purchases about $560 billion in goods and services annually with a goal of awarding 5% of federal contracting dollars to women-owned small businesses each year. But that goal’s only been met twice — fiscal years 2015 and 2019 — since the WOSB federal contract program was implemented in 2011, Hidalgo says.

In FY 2020 (the latest with available data) the federal government awarded $27.14 billion in contracts to women-owned businesses — hitting 4.85% of that 5% goal. Of that total, about $388.6 million went to women-owned firms in New York, according to the SBA.

By expanding eligible industries, the agency is hoping to create more opportunities to compete on the federal level, Hidalgo says, adding “everything we’re doing is to figure out how we could get to that 5% goal.”

Congress requires the SBA to conduct a study every five years to identify industries in which small businesses owned and controlled by women are underrepresented in the federal marketplace. That recently commissioned study is what led to the expansion of eligible industries. For the list of industries, which are identified by NAICS codes, see tinyurl.com/4xf6cetx.

Ree Wackett, senior adviser at the Small Business Development Center at Stony Brook University, says she thinks the expansion will help more women-owned businesses compete.

Where to get guidance

The SBDCs, located at Stony Brook University and Farmingdale State College, assist small businesses in understanding government contracting, helps them navigate certification as a women-owned small business and assist them in bidding on government contracts. To be eligible for the WOSB federal contracting program, among criteria is the business be at least 51% owned and controlled by women who are U.S. citizens and have women managing day-to-day operations who also make long-term decisions, Wackett says.

There are third-party entities that can certify a business for a fee like the Women’s Business Enterprise National Council, but the SBA also allows you to receive certification through the agency for free at beta.certify.sba.gov.

Certification can provide a competitive edge, says Teresa Ferraro, president of Ronkonkoma-based East/West Industries. Her company designs and manufactures aircraft seats and air crew life support systems, is WOSB-certified and has been successfully competing on the federal level for decades.

“The SBA believes diversity promotes innovation, opens doors and creates partnerships that fuel the economy,” she says.

Some businesses get their feet wet competing first on the local level,for county and city contracts, says Lauren Linakis, assistant director of the SBDC at Farmingdale State College.

“The federal government when businesses come to us is usually the next level of government contracting,” she says.

Look for partners

When tackling the federal level, she recommends smaller businesses form relationships with other small businesses with complementary products and services so they can work on contracts together.  It can be a daunting process going it alone, and since these contracts can be large, teaming can sometimes be necessary to complete all aspects of the contract, she says.

Linakis also recommends businesses update their business plans to include how government contracting fits within your overall business strategy. They should also register at SAM.gov if they want to see federal contact opportunities and become a vendor to the federal government, she says.

The procurement process can be confusing, so it pays to seek help and the SBDCs, says Wackett. They can help with creating a capability statement, which outlines what the business sells and other key information, she says.

Procurement officers will usually ask for this, she says.

With the expansion of eligible industries, “It should further encourage women-owned firms to get certified,” Wackett says.

An earlier version of this article had an incorrect figure for contracts awarded in New York State