A serious legislative threat to a longstanding, beloved SBA Certification has emerged again that could reshape the federal contracting landscape. New companion bills introduced in the U.S. Senate (S.4390) and House (H.R.8511) look to end the federal government’s Women-Owned Small Business (WOSB) Program.

A lot is at Stake: What does this Actually mean?

The "Ending Discrimination in Government Contracting Act" seeks to end the statutory authority currently encouraging women-owned firms from the U.S. Code. If this becomes law, the essence of the WOSB program would be repealed, including:

-The 5% Participation Goal: The government-wide goal of awarding at least 5% to prime and subcontractors to WOSBs would be removed.

-Set-Asides and Sole-Source Awards: Contracting Officers would lose the tools currently available to restrict competition to WOSBs that awards critical sole-source contracts.

-Subcontracting Plans: There would no longer be requirements for Large prime contractors to consider WOSBs when putting together their small business subcontracting plans.

Beyond Just WOSB: Implications of this Could Affect the 8(a) Certification and SDBs

While the impact to WOSBs is perilously clear, the reach of S.4390 could be far reaching. The bill includes language that would preclude agencies from considering race, ethnicity, or sex when awarding contracts. This is very much a direct threat to the 8(a) Business Development Program, and of course a firm’s ability to self-certify as Small Disadvantaged Businesses (SDBs).

A Bill, for Now

It is important to note that both of these are currently legislative proposals, not anything close to an active law. Many, actually most, bills never make it out of the committee phase. Despite this, federal contracting experts warn against firms getting too comfortable, especially during these times. Indistinguishable movements have already taken place at the state level, including, most recently, attempts in Texas to strip women-owned businesses of their state certifications.

What to do Now?

As a federal contractor, staying abreast of what is going on on the daily is always your best defense. These bills have already been pushed to various committees, including Small Business and Armed Services, where their future will unfold. If you are looking for guidance with your firm, I always recommend contacting an industry expert such as ez8a. They continue to keep a close eye on ALL developments. Whether these bills gain traction and move forward on their own, misguided steam as standalone legislation, or get tucked into the annual National Defense Authorization Act, ez8a will proactively update you need so you can stay awake at the wheel. Contact them today with any questions concerning this or any other federal marketplace developments, legislative or not. ez8a does not charge for an initial consultation.