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Supplier Diversity Blog by supplier.io

The Impact of New WBE Certification Rules on Federal Sub-Contracting Reporters

There are new requirements coming to the Federal Procurement Program for Women-Owned Small Business (WOSB). The WOSB program recognizes Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business (EDWOSB) companies. It is administered by the SBA and the guidelines are incorporated in the Federal Acquisition Regulations (FAR). Starting in October 2020, the SBA will require valid certification to be recognized in the program and be eligible for set aside or sole source contracts (Tier 1).

What does this mean for corporations with Federal Sub-Contracting Plans?

Corporations that have sub-contracting plans WILL NOT be required to track or monitor this certification to report the WOSB or EDWOSB spend to the government. This certification will be required only for WOSB suppliers that are competing DIRECTLY for a Federal Contract (Tier 1). This certification is not required for a participating corporation to report against a WOSB supplier for sub-contracting purposes (Tier 2). Guidelines for reporting WOSB spend to the Federal Government will remain unchanged.

Why is the SBA making this change?

The SBA is implementing these changes to level the playing field and provide easier access for WOSB companies to compete for eligible contracts in the Federal WOSB Procurement Program. By providing additional oversight and restrictions, the SBA is committed to ensuring that these women-owned businesses meet all the requirements as a small and/or economically disadvantaged women-owned business and thereby confirming that the opportunities are being awarded to eligible participants. Women-owned small businesses that do not participate in the program may continue to self-certify their status, receive contract awards outside the program, and count toward corporation sub-contracting goals.

For more information on the WOSB program:

Try CVM's Supplier Explorer free for 14 days and see what WOSB or EDWOSB suppliers you can connect with to meet your federal contracting requirements.

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