Nearly 90% of women-owned small business sole source contracts reviewed by the SBA Office of Inspector General were improper, according to a startling report issued yesterday.
In the study, the SBA OIG concluded that because of pervasive flaws in the award of WOSB and EDWOSB sole source contracts, “there was no assurance that these contracts were awarded to firms that were eligible to receive sole-source awards under the Program.” And if that wasn’t enough, the SBA OIG reiterated its position that, as a legal matter, it is improper to award any WOSB or EDWOSB sole source contract to a self-certified company.
Under a multiple award contract, the underlying contract ordinarily governs whether a contractor qualifies as a woman-owned small business for purposes of task or delivery orders.
As demonstrated in a recent SBA Office of Hearings and Appeals decision, if a company qualifies as a WOSB or EDWOSB at the time of its initial offer on the underlying multiple-award contract, it will also qualify as a WOSB or EDWOSB for each order issued against the contract, unless the contracting officer requests recertification in connection with a particular order.
The woman-owned small business program is in the midst of major changes: from the addition of sole source authority, to lingering questions about what the heck the SBA’s plan is to address the elimination of WOSB self-certification.
I recently joined host “Game Changers” podcast host Michael LeJune of Federal Access for an in-depth discussion of recent WOSB program changes, and where the WOSB program goes from here. Click here to listen to the podcast, and visit the Game Changers SoundCloud page for more great discussions with government contracting thought leaders.
Taken as a whole, the Government-wide performance metrics for small business utilization are encouraging.
The Small Business Administration’s FY2015 report card shows that the Government exceeded its prime contracting goals across four of the five socioeconomic categories measured. Moreover, the amount of federal spend going to small businesses reached an all-time high of over 25%.
Wow! After 108 years, my Chicago Cubs are the World Series champions! I was in Minneapolis for this year’s National Veterans Small Business Engagement (which was an amazing event), and split my Game 7 viewing between the hotel bar and my room. I wish I could have been at Wrigley Field, and I wish that my grandfather (who really started the family on the whole Cubs thing) could have been alive to see it. But I am sure somewhere he is smiling along with all the other Cubs fans who couldn’t see this moment.
While my week consisted mostly of convention halls and Cubs, there was no shortage of news in the world of government contracting. In this week’s SmallGovCon Week In Review, a company was able to continue contracting with the VA even after it was indicted and convicted of fraud, a new report indicates that WOSBs are still being shut out of opportunities to earn major government contracts, a look ahead to the election and what changes may lie for federal contractors, a contractor gave a high-ranking government official free living space–and didn’t violate the ethics rules–and much more.
Welcome back after a hopefully enjoyable long 4th of July weekend! Although this week is a shortened one, there was no shortage of government contracting news floating around the county.
This week’s SmallGovCon Week In Review looks at the number of suspensions and debarments of government contractors, a proposed penalty for Pentagon contractors trying to game the system, a case of procurement fraud and much more.
The SBA has launched a new WOSB portal to help women-owned businesses better manage the WOSB self-certification process–even though Congress eliminated the statutory authority for self-certification more than a year ago.
The SBA apparently was caught off guard by Congress’s action, but I don’t understand why the SBA is spending time and resources to improve a prohibited self-certification mechanism. While the SBA continues to state that WOSB self-certification remains valid indefinitely, the SBA has yet to answer what should be a simple question: what the heck is the legal justification for continuing to promote a self-certification mechanism that Congress has explicitly eliminated?