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​The Small Business Blog

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SBA Publishes Final Rule Implementing Sole-Source Contracts for WOSB and EDWOSB

9/26/2015

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On September 14, 2015, the Small Business Administration (SBA) published a Final Rule which implements the provisions of the 2015 National Defense Authorization Act (NDAA) that authorize sole-source contracts for Women-Owned Small Businesses (WOSB) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSB).  The Final Rule takes effect on October 14, 2015.  
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In addition, we anticipate the Federal Acquisition Regulation (FAR) Council will be amending the FAR shortly to include this sole-source authority for WOSB/EDWOSB so that there will not be any conflicts between the SBA rules and the FAR.  

To be clear, sole-source contracts are only allowed in industries in which set-asides for WOSB/EDWOSB have been authorized - i.e., those industries which the SBA has determined that WOSB/EDWOSB are substantially underrepresented.  Currently there are 133 WOSB NAICS codes and 197 EDWOSB NAICS codes.  In addition, sole-source contracts may only be awarded to a WOSB/EDWOSB if the Contracting Officer determines that:
  • The WOSB/EDWOSB is a responsible contractor with respect to performance of the requirement and the contracting officer does not have a reasonable expectation that 2 or more WOSB/EDWOSBs will submit offers;
  • The anticipated award price of the contract (including options) will not exceed $6.5 Million for manufacturing and $4.0 Million for all other contracts; and
  • In the estimation of the contracting officer, the award can be made at a fair and reasonable price.

Currently, there is no formal certification process for the WOSB program.  Rather, businesses certify through  self-certification or by utilizing an SBA-approved Third Party Certifier (currently there are 4 approved certifers).  However, in authorizing sole-source contracts for WOSB/EDWOSB, the 2015 NDAA also eliminated self-certification. In issuing the Proposed Rule and more recently the Final Rule, the SBA stated that they proceeded with the rulemaking for sole-source contracts because they did not want to delay its implementation in order to combine with it with a formal certification process.  At this point it is unclear whether existing WOSB/EDWOSB will have to go through the new certification process, although it is likely they will.  Thus, WOSB/EDWOSB should be on notice that such a formal certification process is forthcoming.

If you have any questions about eligibility for WOSB/EDWOSB or sole-source contracting, please contact us at (808) 369-9710 or info@holomuaconsulting.com.
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