WOSB (Women-Owned Small Business)

What is WOSBWOMENOWNED (Small Business)?

A Women-Owned Small Business (WOSB) is a designation given to small businesses that are majority-owned and controlled by women. This designation allows these businesses to participate in specific federal government programs and set-aside contracts aimed at promoting gender equity in government contracting.

Definition

The WOSB designation is defined and regulated by the Small Business Administration (SBA) under Title 13 Part 127 of the Code of Federal Regulations (CFR). To qualify as a WOSB, a business must meet specific criteria including being at least 51% owned and controlled by one or more women who are U.S. citizens. These women must also manage the day-to-day operations and make the long-term decisions for the company. The WOSB program helps to level the playing field for women entrepreneurs in government contracting by providing them access to set-aside contracts in industries where women are underrepresented.

Key Points

• Ownership and Control: The business must be at least 51% owned and controlled by one or more women. Control includes both day-to-day management and long-term decision-making.
• Small Business Size Standard: The business must meet the SBA's size standards for small businesses in its primary industry classification (NAICS code).
• Certification/Self-certification: While the SBA no longer offers its own WOSB certification, contractors must still attest to meeting the WOSB requirements in SAM.gov. Some agencies or prime contractors may require third-party certification.
• Economic Disadvantage (EDWOSB): A subset of the WOSB program focuses on Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs), which have additional eligibility requirements related to the owner's personal financial situation.

Practical Examples

1. Applying for a WOSB Set-Aside Contract: A woman-owned IT company discovers a federal solicitation set aside specifically for WOSBs. Because they meet the ownership and control requirements, they can bid on this contract and potentially win it over larger, non-WOSB competitors.
2. Partnering with a Large Prime Contractor: A prime contractor seeking to fulfill their small business subcontracting goals partners with a certified WOSB to meet their targets. The WOSB benefits from increased business opportunities, and the prime contractor demonstrates its commitment to supplier diversity.
3. Maintaining WOSB Compliance: A certified WOSB undergoes a routine audit by a federal agency. They must provide documentation to demonstrate ongoing compliance with the ownership, control, and size standard requirements to maintain their WOSB status.