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ABCs of Finance

Women-Owned Businesses and Government Contracts

A large number of the self-employed and micro-business owners today are women. In recognition of this fact the Federal Acquisition Streamlining Act of 1994 set a government wide goal of participation by small businesses owned and controlled by women of not less than 5% of the total of all prime contracts and subcontracts issued by the U.S. government each fiscal year. This Act does not set aside contracts to be issued only to women but motivates government agencies to utilize qualified Women-Owned Small Businesses (WOSB).

To take advantage of this situation, women must enter the contracting process and make their products and services known and available to those within the government who make the procurement decisions.

There are some excellent sources of information about this process established by the Small Business Administration. There are mentoring programs that encourage larger government contractors to assist new or small businesses understand the process and achieve contracting success with the government or as a subcontractor to a larger government contractor.

To be a successful government contractor, remember that the government is a customer. Evaluate the customer’s needs and how your unique product, service or knowledge can fulfill your customer’s need. To let government procurers know about your business, you should register with three primary databases. These databases can be accessed through the women’s business website at www.womenbiz.gov .

This website is sponsored by the Small Business Administration and is a wealth of information. The three databases that you should file an application with are PRO-Net, Central Contractor Registration (CCR) and Fedbizopps.gov. The PRO-Net has an on-line application that is easy and quick and will make your business available for contracting with numerous government departments. The CCR has an on-line application and will make your information available to the Department of Defense. Fedbizopps.gov will allow you to register to receive via e-mail all of the procurement proposal announcements being issued by a large number of government agencies.

You may wonder if you must be certified as a women-owned small business. Since the 5% goal is not a contract set-aside, you are allowed to self-certify for almost all contracts. To be able to self-certify, your company must be more than 50% owned by one or more women owners and controlled by women. For certain large prime contracts, you may be required to have third party certification of your status as women owned small business.

There are many contracts open to WOSBs in government purchasing. A lot of information has been made available on-line by the SBA to simplify the application process. All women need to do is get going. Your slice of the pie is waiting.

 

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