Overview
This section prescribes the conditions and dollar thresholds under which a contracting officer may award non-competitive, sole-source contracts to Economically Disadvantaged Women-Owned Small Businesses (EDWOSB) or Women-Owned Small Businesses (WOSB) before considering general small business set-asides.
Key Rules
- Prioritization: Contracting officers must consider EDWOSB or WOSB sole-source awards before considering general small business set-asides, provided specific criteria are met.
- NAICS Code Requirements:
- EDWOSB: The acquisition must be in a NAICS code where SBA determines WOSBs are "underrepresented."
- WOSB: The acquisition must be in a NAICS code where SBA determines WOSBs are "substantially underrepresented."
- The "Rule of Two" Exception: Sole-source awards are only permitted if the contracting officer does not expect to receive offers from two or more qualified EDWOSB/WOSB concerns.
- Statutory Thresholds: The total contract value, including options, must not exceed:
- $8.5 million for manufacturing NAICS codes.
- $5.5 million for all other NAICS codes.
- Mandatory Certification: Awards can only be made to firms that have been formally certified as an EDWOSB or WOSB by the SBA; firms with "pending" applications are ineligible for sole-source awards.
- Determination Requirements: The contractor must be deemed responsible, and the award must be made at a fair and reasonable price.
Practical Implications
- Marketing Strategy: WOSB/EDWOSB firms should focus on identifying agencies with requirements in "underrepresented" NAICS codes where they can demonstrate they are the only viable woman-owned provider, allowing the agency to bypass the standard competitive process.
- Certification Importance: Since "pending" status is insufficient for sole-source awards, firms must complete the full SBA certification process before pursuing these specific opportunities to ensure contracting officers have the legal authority to award the contract.