Let’s Fix This

By: Ann Sullivan
WIPP Works in Washington

As most of you know, WIPP has been at the forefront of fighting for a successful women’s procurement program for more than a decade. Eleven years after the law was passed, the Small Business Administration (SBA) finally put the program into place. With every objection, we overcame it by securing a lifting of the dollar caps on awards and getting sole source authority in the program (pending SBA final rulemaking). 

Enter a report by the SBA Office of Inspector General (OIG), which took a look under the hood of the WOSB procurement program. And they didn’t like what they saw. The report found that contracts awarded through the program had been done so mistakenly. A major issue was failure of women-owned businesses to fully register in not just the System for Award Management (SAM), but also in the SBA Repository. To be eligible, a WOSB must register in both. Many overlooked the repository (more on that below).

Citing misuse and confusion by contracting officers, the report raised concerns about management of the WOSB procurement program. Critical oversights included improperly setting aside contracts in industries not served by the WOSB program as well as failures by women business owners to upload all the necessary documents to the WOSB repository.

Efforts to educate contracting officers already include adding WOSB to the contracting education curriculum at agencies as well as SBA’s ChallengeHER program (done in partnership with WIPP), which educates both procurement professionals and entrepreneurs. Women business owners too can be part of the solution.

WIPP encourages all women business owners to ensure they are updated in the SAM; make sure all necessary documents have been uploaded to the WOSB repository (find the full list under repository links on SBA’s WOSB page); and ensure a contract is being set-aside in the right NAICS codes (find the WOSB and EDWOSB NAICS codes here). A webinar with SBA on certification is available on WIPP’s website.

The WOSB procurement program was created to help women entrepreneurs. With it came the rules of how the program can be used. It is up to us, as possible beneficiaries, to be just as responsible as a contracting officer. It will come as no surprise to those familiar with federal contracting that those officers have a difficult job. Ensuring that we have all done our part, to be properly certified and registered in the repository, is simply good business to keep contracting officers interested in the program.

The report’s author, SBA’s Office of Inspector General, is also the lead on fighting fraud in the program. WIPP has long advocated in support of this program and increasing access to federal markets for genuine women business owners. If you suspect fraud in the program, report it to SBA. It is the OIG’s responsibility to follow up on all reports of fraud. We should at least know the timetable and number of reports for these investigations. Given the relative newness of the program, everyone will benefit from understanding the program and the access to federal contracting it provides to women owned companies.

I would also add, as someone who has very personally fought for the success of this program, that those companies wrongfully taking advantage of this program are hurting everyone. While we all feel pressures to gain an edge in competition and in business, fraudulently using this program only stands to threaten all women entrepreneurs. It embarrasses me as a women business owner myself that women would so recklessly throw aside this enormous opportunity.

Keeping this program beyond reproach is critical to both the program’s future and WIPP’s advocacy. The first step is informed women entrepreneurs. I challenge everyone to make sure you have submitted all the required documentation to the WOSB repository, know the rules of the program, and if you see fraud, report it.  

Small Things Come in Big Packages

By: Ann Sullivan

In an epic week fueled by bipartisanship, the Senate Small Business Committee and the House Armed Services Committee put small business issues front and center in a way that was nothing short of amazing.  This just goes to show that the “do-nothing Congress” does in fact do plenty when it comes to small business. 

Let’s first talk about the Senate Small Business Committee.  Across its Senators, they introduced and are expected to pass three bills important to WIPP. One bill would extend the Small Business and Innovative Research program (SBIR) and a related program the Small Business Technology Transfer program (STTR) and included a mandate to do better outreach to women and minorities (thanks to Michigan’s Senator Gary Peters). The government funds innovative products and services through federal grants to bring the products to commercialization.  Don’t know about it—look into it at: SBIR.gov. By the way, this is part of WIPP’s access to capital platform – so another accomplishment for our advocacy.

Are you a contractor?  Then you might be interested in the introduction of The Small Business Transforming America's Regions Act of 2016.   If you aren’t aware of the HUBZone program, you should look into it.  The government gives a bid preference to companies who invest in low-income areas.  It could supplement the WOSB program you already belong to.  At least check it out at SBA’s HUBZone Page.

Need capital?  The Committee is expected to modernize the Microloan Program administered by the SBA.  The program lends $50,000 and below to companies who need capital.  In case you didn’t know it, there is a whole nationwide network of lenders who stand ready to lend, backed by the government’s guarantee against failure.

Now onto the House Armed Services Committee.  This Committee and its counterpart, the Senate Armed Services Committee, prepare a bill each year, the National Defense Authorization Act (NDAA) that funds all military operations.  It is a must-pass bill because the military requires certainty in funding.  In order for the US to keep its competitiveness, it must have a strong and diverse industrial base.  That’s where small businesses come in.

 To that end, a whole section of the bill is devoted to small business contracting changes and strengthening resources for women entrepreneurs including women’s business centers.  The bill:

•       Requires an annual report on the share of contract dollars awarded to small businesses without any exclusions

•       Establishes a pilot program that enables contractors to receive a past performance rating by submitting a request to the contracting officer and/or prime contractor

•       Requires the SBA to develop a list of no-cost programs that assist small businesses in compliance with Federal regulations. 

•       Strengthens agency small business offices to recommend which small business set-aside programs should be used for each contract at their agency.

•       Requires commercial market representatives (CMRs) to assist prime contractors in identifying small business subcontractors and assess the prime’s compliance with their subcontracting plans

•       Adds HUBZone and SDVOSB to small business office oversight (previously not listed in statute but already happening in practice)

In case you do not remember, the Women’s Business Center reforms would raise the funding authorization level by 50% from $14.5M to $21.75M and increase grants to individual centers as well as streamline the program. Better program, better training for women.

How did all of this happen?  Champions.  The leadership of the House Small Business Committee, which passed the provisions now part of the NDAA, worked together hand-in-glove to assist our businesses.  Chair Steve Chabot (R-OH) and Ranking Member Nydia Velazquez (D-NY) set the gold standard of getting things done without a partisan fuss.  Similarly, the Senate Small Business Committee, under the guidance of Chair David Vitter (R-LA) and Ranking Member Jeanne Shaheen (D-NH) worked together to introduce reforms good for small businesses.

The real story behind all of this activity is the power of small businesses uniting to ask for changes in contracting and better resources to succeed.  Organizations, such as WIPP are the champions, walking the halls of Congress to press for better programs and fairness in contracting.

While I would agree that Congress is more partisan than ever before, there are bright spots.  This past week was certainly one—all made possible by elected officials crossing party lines for the good of women-owned companies.  If you ever wondered what your WIPP membership is paying for or if you need a reason to join WIPP, look no further.  The advocacy WIPP provides on your behalf is the best return on investment you may ever find.  It requires almost none of your time, requires a minimal monetary investment (dues) and you get a whole team dedicated to advancing your agenda to the Congress on a daily basis. 

I call that value.

Sole Source Marches Forward

By: Ann Sullivan
WIPP Works in Washington

Just a few days ago, the Small Business Administration announced a proposed regulation that puts in motion sole source authority for the WOSB procurement program.

SBA did a very wise thing—it separated out the sole source authority piece from the certification portions of the law.  Why?  Because sole source authority is standard language included in the HUBZone and Service-Disable Veterans programs.  It is not a heavy lift to basically cut and paste the language into the WOSB program.

The certification piece, on the other hand, is not standard language.  Each small business program administered by SBA has different certification requirements.  The law also reads that SBA doesn’t have to put in place a certification program for WOSBs.  SBA can choose to accept other federal agency, state certifications or 3^rd party certifications. Or, SBA could establish its own certification for WOSBs if it so chooses. 

This determination will require a thorough examination of resources SBA can devote to establishing and policing the certification and whether it could launch a program without significant delays as have been experienced in other programs. 

Yet another consideration SBA will have to make is what to do with the tens of thousands of women who self-certified for the program.  Without a proper transition, the program would be thrown into chaos. 

For these reasons, the certification part of the law needs much more consideration and public comment than does the sole source portion of the law.

Now you need to take action.  If you agree with SBA’s expeditious implementation of sole source, you need to let your voice be heard.  Go to www.regulations.gov.  Keyword:  SBA.  Click on the regulation and you will see the opportunity to comment. Let the SBA know that women business owners are waiting excitedly on this change.  

In case you are not familiar with sole source authority, it allows contracting officers to award a sole source award through the WOSB procurement program, given the contracting officer does not have a reasonable expectation that two or more businesses will submit offers.  Sole source contracts through the program are limited to $4-6.5 million depending on the industry. 

SBA has taken the first step toward putting the WOSB procurement program on equal footing with other SBA programs.  We expected no less.