Women-Owned Small Business Program sole-source awards
Contracting officers must prioritize sole-source awards to certified WOSB/EDWOSB firms in underrepresented NAICS codes, within specific dollar limits, before considering small business set-asides.
Overview
FAR 19.1506 outlines the requirements and procedures for awarding sole-source contracts to Women-Owned Small Business (WOSB) and Economically Disadvantaged Women-Owned Small Business (EDWOSB) concerns under the WOSB Program. Contracting officers must consider sole-source awards to eligible WOSB/EDWOSB firms before pursuing small business set-asides, provided certain conditions are met. These include the assignment of a qualifying NAICS code, lack of reasonable expectation of competition from two or more eligible firms, and compliance with specific dollar thresholds ($7 million for manufacturing, $4.5 million for other industries). Only firms certified under 13 CFR 127.300 are eligible, and the SBA retains the right to appeal decisions not to make a sole-source award.
Key Rules
- Sole-Source Award Consideration
- Contracting officers must consider sole-source awards to EDWOSB or WOSB concerns before small business set-asides if all regulatory conditions are met.
- NAICS Code and Underrepresentation
- The acquisition must be in a NAICS code where WOSB/EDWOSB concerns are underrepresented or substantially underrepresented, as determined by SBA.
- Competition Expectation
- Sole-source is only allowed if there is no reasonable expectation of offers from two or more eligible WOSB/EDWOSB concerns.
- Dollar Thresholds
- The anticipated award price must not exceed $7 million for manufacturing or $4.5 million for other NAICS codes.
- Certification Requirement
- Only certified WOSB/EDWOSB firms are eligible; pending certifications are not sufficient.
- SBA Appeal Rights
- SBA can appeal a contracting officer’s decision not to make a sole-source award under this program.
Responsibilities
- Contracting Officers: Must verify eligibility, ensure all conditions are met, and only award to certified firms. Must not request SBA status determinations for pending certifications.
- Contractors: Must obtain and maintain proper certification under 13 CFR 127.300 and demonstrate responsibility and fair pricing.
- Agencies: Must allow for SBA appeals and ensure compliance with program requirements.
Practical Implications
This section enables agencies to directly award contracts to certified WOSB/EDWOSB firms in underrepresented industries, streamlining opportunities for women-owned businesses. Contractors must ensure timely certification and compliance with all program requirements. Common pitfalls include exceeding dollar thresholds, failing to verify certification, or misapplying NAICS codes.