Research Edge

$30 Billion Program for Woman Owned Businesses

Are you a woman business owner looking to expand your markets?  The federal government will implement a new program effective February 4, setting aside 5% of total contract value for woman owned small businesses (WOSB).   With over $30 billion in play, it’s definitely worth checking into!

Does your business qualify?  The federal government buys a huge variety of goods and services, $518 billion in 2008.  Woman owned businesses have been underrepresented in 83 different NAICS codes, which qualify for the program.  The definition of a “small business” is quite expansive, with a ceiling of $6 million in annual sales for most retail and service industries.  The business must be at least 51% woman owned, and the management and day to day operations woman controlled.  (There is another category of set asides for economically disadvantaged WOSBs, determined by income, net worth, and other variables.)

What will you need to apply?  A DUNS (Data Universal Numbering System) number, which can be obtained for free from Dun & Bradstreet, is required to do business with the government.  You should also determine all the 6 digit NAICS codes applicable to your business – multiple codes may be entered.   You will be asked for your Federal Supply Class or Product Service Class (FSC/PSC) Codes, the 4 digit codes used to identify the products or services purchased by the federal government.  Other information to have on hand includes your federal tax ID number, bank routing and account number, and general company data. 

Where to apply?  Central Contractor Registration (CCR) is the primary registrant database for the U.S. Federal Government.   CCR collects, validates, stores and disseminates data in support of agency acquisition missions.  WOSB registration is self-certifying through its website, and should take around an hour.  Be sure to also register your business with the SBA  – this will give you the opportunity to input specific keywords and a short narrative describing your product or services, increasing your chances of showing up in search results.  Additionally, you will have to file various certifications. 

Where to get procurement information?  Federal Business Opportunities is the central depository of open contract solicitations, although a number of fee based services will alert you to relevant  opportunities based on your products or services.   The Federal Procurement Data System tracks a variety of award information, with reports available for vendor, amount of contract, point of performance, NAICS codes, FSC or PSC codes, set aside program, etc.  Subcontractor data may be obtained through the FFATA Subaward Reporting System (FSRS).   Additionally, each federal agency has an Office of Small and Disadvantaged Business Utilization (OSDBU) that produces an annual forecast og goods and services to be purchased. 

For the right business, the WOSB program can be extremely profitable!