Tag Archives: Sole Source Authority

But Wait – There’s More

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By Ann Sullivan, WIPP’s Chief Advocate

The first quarter of 2016 was big for us. The Federal Government met its goal of awarding 5% of all contracts – $17.8 billion – to women-owned firms. This was only possible because of the Women-Owned Small Business (WOSB) procurement program which allows contracting officers to set aside contracts for women only to bid on.

In February, the FAR Council added sole source authority to the program. Now, contracting officers can use the program to award sole source contracts to women-owned businesses that are uniquely qualified to perform the work the government needs. All of the other small business procurement programs have sole source authority, so it was important to bring parity to the WOSB program.

In March, the WOSB program was expanded to include 113 industry codes. The same law that added sole source authority also called for SBA to update a study on participation in federal contracting by women-owned businesses. The last study was done in 2007. The new study found more industries where women are underrepresented and now those industries are part of the WOSB program – an expansion that will provide additional procurement opportunities.

While we have been making gains on that front, there is much more to do to open doors to federal agency contracts for women-owned companies. Never content to rest on our laurels, the WIPP policy team in Washington, DC is ready to tackle two new procurement issues.

First, we must increase access for women-owned firms to multiple-award contracts. The government increasingly buys its products/services through these ongoing contracts, like Indefinite Delivery, Indefinite Quantity (IDIQ) contracts, and other large contracts. Often, these contracts select vendors through an initial competitive process and then issue task orders to that group of vendors only. Some multiple-award contracts have a “track” for large businesses and a “track” for small businesses. Others, though, have different tracks within the small business track. For example, they may have a HUBZone track, an 8(a) track and a veteran’s track. In those instances, WOSBs should also have their own track. We will be asking for parity in these cases.

Second, there should be parity in sole source contract ceilings. Sole source contracts are capped – they are not unlimited. Every five years, the FAR Council adjusts the cap for inflation. In October, all the other small business programs’ caps were increased. The HUBZone program, for example, now has sole source awards capped at $4 million for most products/services and $7 million for manufacturing. Women did not get an increase — our manufacturing cap is a half a million less at $6.5 million. Again, the theme is parity. We will be pressing the FAR Council to adjust the WOSB sole source to match the increases of other programs.

WIPP’s advocacy is always in motion and in the federal contracting space, there is always much more to be done. So, join us in the effort. When talking to federal agencies or elected officials, echo our two asks. Everyone’s voice is important.

FAR Council Embraces Sole Source

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By: Jake Clabaugh, WIPP Government Relations

Women Impacting Public Policy (WIPP) recently submitted comments on the interim rule implementing sole source authority into the Federal Acquisition Regulation (FAR).  For more details please read WIPP’s full comment here.

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WIPP’s 15-year effort to expand contracting opportunities for women entrepreneurs cleared an important hurdle with sole source authority finalized in the government’s contracting rulebook. The Federal Acquisition Regulation (FAR) is the government’s official source for rules when it comes to awarding contracts. Implementing sole source authority into the FAR means that women entrepreneurs wll now be competing on a level playing with other small business contracting programs.

WIPP’s comment on this rule acknowledged the FAR Council for recognizing the “urgent and compelling need” to grant contracting officers this authority. Their recognition is the culmination of years of hard work and advocacy to bring parity for women-owned contracting firms.

Although the Small Business Administration (SBA) published sole source rules last fall, some contracting officers had been waiting for official language to be put into the FAR before they would use sole source authority.  WIPP members have experienced this inconsistency firsthand and WIPP’s comment highlighted how important it is for the FAR to eliminate the conflict.

The FAR Council’s rule became effective on December 31, 2015 – a great way to start the New Year. Contracting officers now have official instructions to award sole source contracts through the WOSB Procurement Program. We encourage women business owners to comment on this important victory for our community. If you wish to echo WIPP’s comments, you can submit them electronically using Regulations.gov and search for “FAR Case 2015-032.” Please use the “Comment Now” option, which will provide instructions for uploading your document and ensure that your voice is heard.

 

WOSB Sole Source Takes Final Step

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sole sourceThe contracting rulebook used by most federal agencies embraced the new sole source authority for women entrepreneurs. In the final step of a multi-year effort – with WIPP at the helm – the government gave the final green light for contracting officers to award sole source contracts to women business owners.

 

Deciding that finalizing the sole source authority of the WOSB program was an urgent and compelling need, the FAR Council issued an interim rule on December 31, 2015, to immediately allow contracting officers to award sole source contracts in the WOSB program. While the Small Business Administration (SBA) already finalized their rules for WOSB sole source on September 14, 2015, the FAR Council needed to issue guidance to contracting officers on how to use the program. This rule provides that guidance and is effective immediately. Notably, the FAR Council determined that sole source applies to acquisitions at or below the acquisition threshold.

 

As a reminder, sole source contracts are allowed in the WOSB program when four conditions are met:

 

  1. Contract falls in a NAICS code approved for the WOSB program.
  2. The value of the contract, including options, is under $4 million ($6.5 million for manufacturing contracts).
  3. The contract can be awarded at a fair or reasonable price.
  4. The contracting officer does not have a reasonable expectation that two or more WOSBs/EDWOSBs will submit offers at a fair and reasonable price.

 

The interim rule is available here, with comment due February 29, 2016. While a final rule will ultimately be issued, this rule makes sole source effective in the FAR as of December 31, 2015.

So Close and Yet So FAR

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Despite its official passage into law and SBA’s implementation, some contracting officers in federal agencies are waiting for the addition of official language to the Federal Acquisition Regulation (FAR) to use the new sole source authority in the women’s procurement program. We have seen first hand that regardless of SBA’s assurances that the law is ready to use, some agencies are reticent to use the new authority until the FAR has officially adopted the change in law. The Federal Acquisition Regulatory Council has already drafted the rule, which is currently in a review phase. And so we wait.

 

sole sourceOn October 14th, after many years of advocacy spearheaded by WIPP, sole-source authority for Women Owned Small Businesses (WOSB) officially went into effect.  The Small Business Administration (SBA) fast-tracked its official rule authorizing WOSB sole-source, allowing Contracting Officers to cite the rule and award sole source contracts. SBA encouraged agencies to use the new law upon release—before the October 14 date.  

 

How can women business owners speed the process and become an early pioneer in sole source contracts? Sharing key information with federal agencies is important. Small business offices as well as the contracting community need education on the program.  Since this is the newest small business contracting program on the books, many acquisition officials are still getting used to it.  The sole source piece, although mirroring the HUBZone program, is brand new and worthy of explanation.

 

Resources from WIPP such as the criteria for a WOSB sole source article, SBA’s final rule on sole source, and any future rulings by federal agencies reinforcing sole source awards for WOSBs, can help Contracting Officers support a sole source justification. ChallengeHER events now being held around the country are an excellent venue for learning about the WOSB program and recent changes.  

 

And, it is important to dispel the myth that sole source justifications can only be used if your company is the only company in the universe that has a particular product or performs a specific service. Take a look at other sole source justifications found at FBO.gov. You will find that reasons such as close proximity to the buyer, employing the most highly skilled staff, and the ability to customize a product have all served as justifications for sole-source awards in other programs.
We are so close but every day that the FAR Council fails to act, some woman owned company stands to lose what could have been a contract award.  WIPP, through its advocacy, will continue to do what it takes to get this final piece in place.  

Sole Source Authority for the WOSB Program is Official Today!

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sole sourceWIPP has reason to celebrate with all women business owners. As of today, contracting officers now have the authority to award sole-source contracts to women-owned small businesses. This authority will level the playing field in the federal marketplace and provide additional opportunities for women entrepreneurs to expand their businesses.

So how do you get a sole sourced contract? There are four questions to ask when considering if a contract can be awarded to a WOSB via sole source authority:

  1. Is the contract in a WOSB or EDWOSB eligible NAICS code?

The Women Owned Small Business (WOSB) Procurement program is unique in that it is only applicable to contracts in certain NAICS codes. In addition some NAICS codes are open to all WOSBs, while some are only available to Economically-Disadvantaged WOSBs (EDWOSBs). You can check if a contract’s NAICS codes are in the program on the SBA website www.sba.gov/wosb. Again, the NAICS code of the contract, not just your company, is important.

  1. Is the contract (including options) valued at $6.5 million or less for manufacturing contracts or $4 million or less for all other contracts?

Similar to other small business contracting programs, WOSB sole source contracts are limited to certain sizes. For manufacturing contracts (the 31-33 NAICS codes) that cap is $6.5 million, while all other contracts have a cap of $4 million. This is including all options on the contract.

  1. Can the contract be awarded to the WOSB or EDWOSB at a fair and reasonable price?

The law also requires that the contract can be awarded at a “fair and reasonable price.” This common term in federal contracting is described in the FAR – essentially the federal procurement rulebook.  Good news – if you are submitting pricing that is on the GSA schedule, it is already considered fair and reasonable.

  1. Lastly, in the determination of the contracting officer, is there a reasonable expectation that there is only one WOSB/EDWOSB that can perform?

The final requirement for a sole-sourced contract in the WOSB program is the contracting officer’s determination, through market research, that only one WOSB/EDWOSB can perform the requirement. Many people find this component especially difficult, however, it is important to note that agency-specific requirements may make your solution unique. Also, if it is determined that 2 or more WOSB/EDWOSBs can perform, the contract can be set-aside through the WOSB program.

If the answer to all four questions was yes – you have yourself a strong case for a WOSB sole source contract.

Keep an eye out for additional education from WIPP on sole source authority.  WIPP will be working with the SBA and OSDBU offices to help educate both women business owners and contract officers on sole source authority.

Don’t forget! If you are looking for federal contracting opportunities, make sure to get your business listed in WIPP’s National Directory of Women-Owned Small Businesses.

Celebrating National Women’s Small Business Month

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10mil

by AnnaKate Moeller, WIPP Programs Manager

This October we are particularly excited to celebrate National Women’s Small Business Month because of the release of the results of the 2012 Survey of Business Owners (SBO) and the SBA issuing the final rule on Sole Source Authority. It has been a big year for women in business to say the least.

The theme for this year’s National Small Business Month is “10 Million Strong” recognizing the 2012 SBO results of the nearly 10 million women-owned businesses currently in the United States. This is a 27.5% increase from 2007 survey results, showing that women-owned businesses are growing and in turn boosting the economy.

We also have cause to celebrate as the Small Business Administration issued the final rule improving access to federal contracting opportunities for women-owned small businesses with Sole Source Authority. This rule is expected to be effective and available for use by federal agencies on October 14, 2015.

As we celebrate 10 Million Strong this October, WIPP will be highlighting women business owners on our boards, throughout our member base and networks. Please check out our twitter, Facebook and blog throughout the month to hear the stories of these female leaders.

Success: Sole Source Finalized

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by Ann Sullivan, WIPP Government Relations 

When you’ve been working on a program for 15 years, it’s almost anti-climatic when you realize you won and it’s over. I suppose lawyers feel this way when they win a big case, or business owners when they close a major contract.

For me, the SBA announcement integrating a sole source component into the WOSB procurement program on October 14, 2015 marks the end of a long campaign by Women Impacting Public Policy (WIPP). First, we fought for eleven years to establish a program that gives a government buying preference to women-owned companies whose industries have been underrepresented. Not an easy fight – we had plenty of Congressional and White House opponents—it wasn’t until the Obama Administration came into power that the program was established. At the time, SBA Administrator Karen Mills made it her number one priority, which we will always be thankful for. We had strong Congressional proponents – Senators Cantwell and Shaheen and Representatives Speier and Graves.

Then, we had to make the program work. That required two major changes to the program in 2013 and 2014. The first change required lifting the award caps the law imposed on the program. The WOSB procurement program limited contract awards through the program to $4 million ($6.5 million for manufacturing). In 2013, Congress helped us get rid of those caps. The last big piece was the sole source piece—allowing contracting officers to award sole source contracts to women-owned companies through the program. This major change gives the program parity with other small business programs and again, required Congressional action. Effective October 14, agencies will be able to use this mechanism to award contracts to women whose companies offer innovative products and services.

As with all government programs, the rules are a little complicated and the ability to self-certify as a woman owned business will eventually have to change, due to Congressional direction in 2014. But for now, self-certification remains the law and women should be actively pursuing contracts through the WOSB procurement program whether or not they are self-certified or certified by a third party.

It is important to note that not all industries (NAICS codes) qualify for the program. You can find a list at http://www.SBA.gov/WOSB. We have developed a one pager that go through the rules of the sole source portion of the program and our GiveMe5 program has comprehensive information on the WOSB program. In addition, our ChallengeHER events are all over the country so that women can find out more about the program. The information can all be found at www.wipp.org.

The WOSB procurement program is in good hands. All the major pieces to make it successful are in place. When we started this effort in 2002, women received 2.7% of government contracts. Since the program has been in place, more than $500 million has been set-aside for women- owned companies. In fact, in 2014 the government awarded 4.7% of its contracts to WOSBs –a 75% increase since 2002. Now women business owners need to know how to use it with the help of SBA, the federal contracting community and organizations, such as WIPP.

Fifteen years seems like a long time, but when you are fighting for something—somehow it doesn’t seem that long. WIPP members and coalition partners were with us every step of the way. For this, I am exceedingly grateful.

August 2015 WIPP National Partner of the Month

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Lynn Sutton

August WIPP National Partner of the Month: Lynn Sutton 

WIPP sat down with Lynn to hear a little bit more about her business and relationship with WIPP…

 

Tell us a little about your company and its mission.

Advantage Building Contractors, Inc. is a federal government contractor specializing in design build, general construction, and facilities support.  The company was founded by Patricia Summers and I in 2002 as a residential roofing specialty trades contractor. In 2010 Advantage made its way into the federal arena and within a year, Advantage was awarded the first WOSB set aside contract in construction. Like most other small businesses getting started with the federal government, Advantage faced the brutal challenges of developing business in the absence of no relevant past performance and, specific to construction, little bonding capacity. We were able to build our capabilities through sole source opportunities, teaming partners and relentless follow-up with agencies. Our Mission Statement is “We’re on a mission to make our customer’s job easier.”

Have you always been an entrepreneur?  If not, what, or who, inspired you to take this leap? 

I grew up in Philadelphia and was raised within a family who valued an intense work ethic and entrepreneurship. My grandfather was a shoemaker in the early 1900’s and my grandmother worked tirelessly at home raising seven children while instilling in them to pursue and achieve all of their dreams. My father played the single most influential role in inspiring me to be an entrepreneur. He had several businesses and influenced me to create my own opportunities. I began by selling greeting cards before the age of nine and shortly thereafter I worked for my Father who was an Amway Distributor until I was able to start my own Distributorship.

 

How are you engaged in your community (or state or national scene) in philanthropic or political causes?

Since I have experienced success in federal contracting, many other small business owners, especially women, have come to me looking for guidance. I am Editor of Hattie’s Hammer, a blog that serves as a resource to help women and disadvantaged groups navigate the federal market by providing information regarding current events, programs, opportunities, and legislation. Hattie’s Hammer is a local and national platform in which I contribute to the collective social conscience by promoting awareness of the need for small businesses to participate in federal contracting as a means to overcome many of the socioeconomic challenges women and disadvantaged businesses face on a daily basis. I must add all of us have the ability to engage by supporting organizations that are advocating on their behalf and respond to sources sought when possible.

 

Have you advocated for an issue or a cause important to you (for example:  called or written to your elected official, spoken publicly, or written an op-ed).

One of the most impactful highlights of my life was having the opportunity to represent WIPP by providing testimony to the US Senate in support of the Women’s Small Business Parity Act and Sole Source Authority in July 2014.

My first major cause was participating in a campaign to stop a Mayor from being elected in Philadelphia. Decades later, I was a community organizer for the National Organization for Women for the rally to support The Violence Against Women Act in Washington, DC. Prior to that I at the National Gay and Lesbian Task Force. We had many critical issues to tackle. I am humbled to have been a contributor to equal rights and marriage for LGBT couples. Trish and I have been partners for almost twenty years and we were finally able to get married on June 29, 2015.

 

What value/resources has WIPP brought you (training or education, member or political connections/access, awareness of policies that affect your business and its growth, etc.) that have been helpful to you?

One of the most incredible resources WIPP has brought to both me personally and my business, is the network of professionals that have provided support and information that has been invaluable. Through connections of WIPP members and Board Members, I have been able to meet with key agency decision makers, exponentially increase our bonding capacity, and enhance my company’s exposure to opportunities through multiple teaming partnerships. My life has changed with great relationships and role models that take my breath away. I’ll affirm for everyone that the value, resources, education, connections, or whatever you desire is happening for you right now. I am just starting on this path and look forward to contribute as I grow.

 

Click here to read Lynn’s full bio.