The Women-Owned Small Business Contract Program: Legislative and Program History

SBAThe Women-Owned Small Business Federal
July 29, 2022
Contracting Program
Robert Jay DilgerContract June 5, 2024 Program: Legislative and Program History R. Corinne Blackford
The Small Business Administration’s (SBA’s) Women-Owned Small Business (WOSB) Federal The Small Business Administration’s (SBA’s) Women-Owned Small Business (WOSB) Federal
Senior Specialist in
Contracting ProgramAnalyst in Small Business Contract program is designed to provide greater access to federal contracting opportunities for is designed to provide greater access to federal contracting opportunities for
American Nationaland Economic
WOSBs and economically disadvantaged WOSBs and economically disadvantaged women-owned small businessesWOSBs (EDWOSBs). By (EDWOSBs). By
Government
doing so, the program aims doing so, the program aims Development Policy to help federal agencies achieve their statutory goal of awarding 5% to help federal agencies achieve their statutory goal of awarding 5%

of their federal contracting of their federal contracting dollars to WOSBs. dollars to WOSBs.
R. Corinne Blackford
Analyst in Small Business
Under this program, federal contracting officers may set aside Under this program, federal contracting officers may set aside federal contracts (or orders) for contracts (or orders) for
and Economic
WOSBs (including EDWOSBs) in industries in which the SBA determines WOSBs (including EDWOSBs) in industries in which the SBA determines that WOSBs are substantially underrepresented in federal procurement. Contracting officers may also set aside federal contractsWOSBs are
Development Policy
substantially underrepresented in federal procurement and for EDWOSBs exclusively in for EDWOSBs exclusively in

industries in which the SBA determines industries in which the SBA determines that WOSBs are underrepresented. The distinctions between WOSBs and EDWOSBs, as well as the definitions of the degrees to which WOSBs are underrepresented, substantially underrepresented, or not underrepresented across industries, were designed to shield the WOSB program from legal challenges related to the heightened level of legal scrutiny applied to contracting preferences after the Supreme Court’s decision in Adarand Constructors, Inc. v. Peña (1995). The prospect of legal challenges remains relevant today. While industry-specific eligibility criteria were designed to protect the WOSB program from legal challenges, the details and complexity of these criteria contributed to program implementation delays and may pose a barrier to both agency and firm participation in the program. The federal government has met the 5% procurement goal for WOSBs twice (in FY2015 and FY2019) since the goal was authorized in 1994. Most of the federal contracts awarded to WOSBs are awarded in full and open competition or through a general small business preference; relatively few federal contracts are awarded through WOSB program preferences such as contract set-asides. The SBA designed a WOSB certification process as required by P.L. 113-291, the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015. In 2020, the SBA announced a new certification process and ended businesses’ ability to self-certify as WOSBs. This change may prevent fraud as well as assist contracting officers in identifying eligible WOSBs, which could increase agency use of the program. However, it could also hinder program participation by eligible firms because firms must now complete a certification process. Congressional Research Service link to page 4 link to page 5 link to page 6 link to page 8 link to page 9 link to page 11 link to page 12 link to page 13 link to page 14 link to page 15 link to page 16 link to page 19 link to page 17 link to page 14 link to page 16 link to page 16 link to page 18 link to page 18 link to page 20 The Women-Owned Small Business Contract Program: Legislative and Program History Contents Introduction ..................................................................................................................................... 1 The WOSB Program’s Origins and Evolution ................................................................................ 2 WOSB Set-Aside Authority ...................................................................................................... 3 WOSB Sole-Source Award Authority ....................................................................................... 5 The 10-Year Program Implementation Delay ........................................................................... 6 Mandated Updates to Eligible Industries .................................................................................. 8 Evolution of WOSB Program Eligibility .................................................................................. 9 Elimination of Self-Certification ...................................................................................... 10 WOSB Program Development and Revision Timeline ............................................................ 11 A Targeted Approach to Avoid Legal Challenges ................................................................... 12 Program Outcomes ........................................................................................................................ 13 Concluding Observations .............................................................................................................. 16 Figures Figure 1. Percentage of Contract Dollars Awarded to WOSBs ..................................................... 14 Tables Table 1. Chronology of the Women-Owned Small Business (WOSB) Program............................ 11 Table 2. Women-Owned Small Business (WOSB) Procurement Goals and Percentage of Contract Dollars Awarded to WOSBs ........................................................................................ 13 Table 3. Percentage of Dollars Awarded to WOSBs by Type of Contracting Preference .............. 15 Table 4. Dollars and Percentage of Dollars Awarded to WOSBs, by Agency ............................... 15 Contacts Author Information ........................................................................................................................ 17 Congressional Research Service The Women-Owned Small Business Contract Program: Legislative and Program History Introduction The Small Business Administration’s (SBA’s) Women-Owned Small Business (WOSB) contract program is one of several programs authorized to provide WOSBs are underrepresented in federal procurement.
The SBA has identified 646 six-digit North American Industry Classification System (NAICS)

industry codes (out of 1,023) in which WOSBs are substantially underrepresented, meaning that
federal contracting officers may award set-aside and sole source contracts to WOSBs (including EDWOSBs) in these 646
industries. The SBA has also identified 113 six-digit NAICS industry codes (out of 1,023) in which WOSBs are
underrepresented, meaning that federal contracting officers may award set-aside and sole source contracts exclusively to
EDWOSBs in these 113 industries.
Federal agencies may award sole source contracts to WOSBs and EDWOSBs in eligible industries under the following
conditions: the contracting officer does not have a reasonable expectation that offers would be received by two or more
eligible WOSBs and EDWOSBs; the award can be made at a fair and reasonable price; and the anticipated total value of the
contract, including any options, does not exceed $4.5 million ($7 million for manufacturing contracts).
To participate in the program, WOSBs must
 be a small business (as defined by the SBA);
 be at least 51% unconditionally and directly owned and controlled by one or more women who are U.S.
citizens;
 have women manage day-to-day operations and make long-term decisions; and
 be certified by a federal agency, a state government, the SBA, or a national certifying entity approved by
the SBA.
EDWOSBs must
 meet all WOSB contracting program requirements;
 be owned and controlled by one or more women, each with a personal net worth less than $750,000;
 be owned and controlled by one or more women, each with $350,000 or less in adjusted gross income
averaged over the previous three years; and
 be owned and controlled by one or more women, each having $6 million or less in personal assets
(including business value and primary residence).
The statutorily required distinctions between WOSBs and EDWOSBs and among underrepresented, substantially
underrepresented, and other NAICS codes were designed to shield the WOSB program from legal challenges related to the
heightened level of legal scrutiny applied to contracting preferences after the Supreme Court’s decision in Adarand
Constructors, Inc. v. Pena (1995). That case involved contracting preferences for small disadvantaged businesses. The Court
found in that case that all racial classifications, whether imposed by federal, state, or local authorities, must pass strict
scrutiny review.
The SBA’s difficulty in defining underrepresentation contributed to a 10-year delay in the program’s implementation and
may help to explain why it took nearly six years for the SBA to implement its own WOSB certification process as required
by P.L. 113-291, the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015.
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Contents
Introduction ..................................................................................................................................... 1
The WOSB Program’s Origins ........................................................................................................ 6
Federal Agency Small Business Procurement Goals and Executive Order 12138: A
National Program for Women’s Business Enterprise ............................................................. 6
Government-Wide Small Business Procurement Goals ............................................................ 8
WOSB Set-Asides ................................................................................................................... 10
A Targeted Approach to Avoid Legal Challenges .................................................................... 11
WOSB Program Requirements ...................................................................................................... 12
Eligibility Requirements ......................................................................................................... 12
Certification............................................................................................................................. 13
Defining Economic Disadvantage ........................................................................................... 14
The 10-Year Delay in WOSB’s Implementation ........................................................................... 14
Mandated Updates of Underrepresented and Substantially Underrepresented NAICS
Codes .......................................................................................................................................... 16
Sole Source Award Authority ........................................................................................................ 17
Current Administrative Issues ....................................................................................................... 18
Current Oversight and Legislative Issues ...................................................................................... 19
Concluding Observations .............................................................................................................. 22

Figures
Figure 1. Small Business Contracting, Performance, by Type of Small Business, FY2005-
FY2021 ......................................................................................................................................... 9

Tables
Table 1. Women-Owned Small Business (WOSB) Contract Awards, Amount and
Percentage of Small Business Eligible Contracts, FY1995-FY2021 ........................................... 5

Contacts
Author Information ........................................................................................................................ 22

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SBA Women-Owned Small Business Federal Contracting Program

Introduction
The Small Business Administration’s (SBA’s) Women-Owned Small Business (WOSB) Federal
Contracting Program is one of several contracting programs Congress has approved to provide
greater opportunities for small businesses to win federal contracts. Congress’s interest in greater opportunities for small businesses to win federal contracts. Congress’s interest in
promoting small business contracting promoting small business contracting with federal agencies dates back to World War II, when there were concerns that small businesses dates back to World War II and the outbreak of fighting in
Korea. At that time, Congress found that thousands of small business concerns were being were being
threatened by war-induced shortages of materials threatened by war-induced shortages of materials coupled with an inability to obtainand had difficulty obtaining defense defense
contracts or financial assistance.1contracts or financial assistance.1 In 1953, concerned that many small businesses might fail
without government assistance, Congress passed, and President Dwight Eisenhower signed into
law, In 1953, Congress passed the Small Business Act (P.L. 83-163) the Small Business Act (P.L. 83-163). The act authorized, authorizing the SBA. the SBA.
The Small Business Act specifies that it is Congress’s declared policy to promote the interests of The Small Business Act specifies that it is Congress’s declared policy to promote the interests of
small businesses small businesses as a means to “preserve free competitive enterpriseto “preserve free competitive enterprise.”2 Congress”2 and indicated that one way to accomplish this was to award indicated that one of the
ways to preserve free competitive enterprise was to increase market competition by insuring that
small businesses received a “fair proportion” of federal contracts and subcontracts a “fair proportion” of federal contracts and subcontracts to small businesses.3 .3
Since Since 1953then, Congress has , Congress has used its broad authority to imposeimposed requirements on the federal requirements on the federal
procurement process to help small businesses procurement process to help small businesses receive a fair proportion of federal contracts and
subcontracts,participate in federal contracts. This has been accomplished primarily primarily through annual small businessthrough the establishment of federal procurement goals and various procurement goals and various
contracting preferences—including restricted competitions (set-asides), sole source awards, and
price evaluation adjustment/preference in unrestricted competitions—for small businesses.4
Congress has also authorized the following:
 government-wide and agency-specific goals for the percentage of federalcontracting preferences for small businesses—including contract set-asides and sole-source awards for WOSBs.4 Following WOSB advocacy efforts, Congress enacted the Federal Acquisition Streamlining Act of 1994 (FASA; P.L. 103-355), requiring the federal government to award at least 5% of prime contract and 5% of subcontract5 dollars to WOSBs each fiscal year.6 Agencies were later granted the authority to set aside contracts for and make sole-source awards to qualified WOSBs in order to reach the annual procurement goal.7 The WOSB program allows federal contracting officers to • set aside acquisitions exceeding the micro-purchase threshold (currently $10,000) for bidding by WOSBs in industries in which WOSBs are substantially underrepresented and contract
and subcontract dollars awarded to small businesses generally and to specific
types of small businesses, including at least 5% to WOSBs;5

1 U.S. Congress, Senate Select Committee on Small Business, 1 U.S. Congress, Senate Select Committee on Small Business, Small Business Administration, committee print, 83rd , committee print, 83rd
Cong., 1st sess., August 10, 1953 (Washington, DC: GPO, 1953), p. iii. Also, see U.S. Congress, House Committee on Cong., 1st sess., August 10, 1953 (Washington, DC: GPO, 1953), p. iii. Also, see U.S. Congress, House Committee on
Banking and Currency, Banking and Currency, Small Business Act of 1953, report to accompany, report to accompany H.R. 5141, 83rd Cong., 1st sess., May 28, 1953, H.Rept. , 83rd Cong., 1st sess., May 28, 1953, H.Rept.
83-494 (Washington, DC: GPO, 1953). For further information related to small business contracting, see CRS Report 83-494 (Washington, DC: GPO, 1953). For further information related to small business contracting, see CRS Report
R45576, R45576, An Overview of Small Business Contracting, by , by Robert Jay DilgerR. Corinne Blackford. .
2 15 U.S.C. §631(a); and 2 15 U.S.C. §631(a); and Title II of P.L. 83-163P.L. 83-163 (as amended), the Small Business Act of 1953, the Small Business Act of 1953 (as amended), see https://legcounsel.house.gov/
Comps/Small%20Business%20Act.pdf.
. 3 U.S. Congress, House Committee on Small Business, 3 U.S. Congress, House Committee on Small Business, Small Business Contracting Program Improvements Act, report , report
to accompany H.R. 3867, 110th Cong., 1st sess., October 22, 2007, H.Rept. 110-400 (Washington, DC: GPO, 2007), to accompany H.R. 3867, 110th Cong., 1st sess., October 22, 2007, H.Rept. 110-400 (Washington, DC: GPO, 2007),
p. 4. p. 4.
4 4 Set-aside is a commonly used term to referThe term set-aside commonly refers to a contract competition in which only small businesses, or specific types to a contract competition in which only small businesses, or specific types
of small businesses, may compete. Set-asides can be total or partial, depending on whether the entire procurement, or of small businesses, may compete. Set-asides can be total or partial, depending on whether the entire procurement, or
just a severable segment of it, is restricted.just a severable segment of it, is restricted.
Sole -source awards are noncompetitive procurements that are made after soliciting and negotiating with only one awards are noncompetitive procurements that are made after soliciting and negotiating with only one
source. source.
5 A prime contract is a contract between the federal government and a business, whereas a subcontract is a contract between a prime contractor and another business. 6 Federal Acquisition Streamlining Act of 1994 (FASA; P.L. 103-355). There are currently five government-wide small business procurement goals, created by different laws amending the Small Business Act: 23% for all small businesses, 5% for small disadvantaged businesses, 5% for women-owned small businesses (WOSBs), 3% forA price evaluation adjustment/preference involves a reduction in the price of bids or offers by eligible parties (in this
case for small businesses located in a Historically Underutilized Business Zone (HUBZone). The reduction is generally
equivalent to a certain percentage of the price of the bid or offer. For example, a 10% price evaluation adjustment made
to a $100,000 bid would result in the bid being reduced for comparative purposes by $10,000 to $90,000. $90,000
would then be used in determining which bid or offer is lowest priced or represents the “best value” for the
government. “Best value” is determined based on price and various nonprice evaluation factors selected by the federal
agency. For more information related to best value see 48 C.F.R. §15.304.
5 The current government-wide small business procurement goals are at least the following: 23% for all small
businesses (P.L. 100-656, the Business Opportunity Development Reform Act of 1988 (20%) and P.L. 105-135, the
Small Business Reauthorization Act of 1997 (23%)); 5% for small disadvantaged businesses (SDBs) (P.L. 100-656, the
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SBA Women-Owned Small Business Federal Contracting Program

 an annual Small Business Goaling Report to measure progress in meeting these
goals;
 a general requirement for federal agencies to reserve (set aside) contracts that
have an anticipated value greater than the micro-purchase threshold (currently
$10,000) but not greater than the simplified acquisition threshold (currently
$250,000);6 and, under specified conditions, contracts that have an anticipated
value greater than the simplified acquisition threshold exclusively for small
businesses.7 A set-aside is a commonly used term to refer to a contract
competition in which only small businesses, or specific types of small businesses,
may compete;
 federal agencies to make sole source awards to small businesses when the award
could not otherwise be made (e.g., only a single source is available, under urgent
and compelling circumstances);
 federal agencies to set aside contracts for, or grant other contracting preference
to, specific types of small businesses (e.g., 8(a) Business Development small
businesses, Historically Underutilized Business Zone (HUBZone) small
businesses, WOSBs, and service-disabled veteran-owned small businesses
(SDVOSBs));8 and

Business Opportunity Development Reform Act of 1988); 5% to women-owned small businesses (WOSBs) (P.L. 103-
355, the Federal Acquisition Streamlining Act of 1994); 3% to small businesses small businesses located in a Historically Underutilized Business Zone (HUBZone), and 5% for small businesses owned and controlled by a service-disabled veteran. For more information on small business contracting goals, see CRS Insight IN12018, Federal Small Business Contracting Goals, by R. Corinne Blackford. 7located in a HUBZone (P.L. 105-135,
the HUBZone Act of 1997—Title VI of the Small Business Reauthorization Act of 1997); and small businesses owned
and controlled by a service-disabled veteran (SDVOSBs) (P.L. 106-50, the Veterans Entrepreneurship and Small
Business Development Act of 1999).
The federal government uses aspirational procurement goals instead of requiring federal agencies to award specific
percentages of federal contracts to various types of small businesses primarily to avoid legal challenges under the equal
protection component of the Fifth Amendment’s Due Process Clause. See, for example, City of Richmond v. J.A.
Croson Co., 488 U.S. 469 (1989) (finding unconstitutional a municipal ordinance that required the city’s prime
contractors to award at least 30% of the value of each contract to minority subcontractors) and Adarand Constructors,
Inc. v. Pena 515 U.S. 200 (1995) (finding that all racial classifications, whether imposed by federal, state, or local
authorities, must pass strict scrutiny review).
6 The contracting officer must have a reasonable expectation that offers will be obtained from two or more responsible
small businesses (Rule of Two) that are competitive in terms of market prices, quality, and delivery of the goods or
services being purchased. See P.L. 115-91, the National Defense Authorization Act for Fiscal Year 2018; 15 U.S.C.
§644(j)(1); and Federal Acquisition Regulation (FAR) §19.502-2.
7 See FAR §19.203(c):
For acquisitions of supplies or services that have an anticipated dollar value exceeding the
simplified acquisition threshold … the contracting officer shall first consider an acquisition for the
small business socioeconomic contracting programs (i.e., 8(a), HUBZone, SDVOSB, or WOSB
programs) before considering a small business set-aside (see FAR §19.502-2(b)). However, if a
requirement has been accepted by the Small Business Administration (SBA) under the 8(a)
Program, it must remain in the 8(a) Program unless the SBA agrees to its release in accordance
with 13 C.F.R. parts 124, 125, and 126.
Before setting aside an acquisition over the simplified acquisition threshold for small businesses, the
contracting officer must have a reasonable expectation that offers will be obtained from two or more
responsible small businesses (Rule of Two) that are competitive in terms of market prices. See FAR
§19.502-2.
8 For Minority Small Business and Capital Ownership Development Program (8(a) program) participants, see P.L. 95-
507, A bill to amend the Small Business Act and the Small Business Investment Act of 1958 and 15 U.S.C. §637(a).
For HUBZone participants, see P.L. 105-135, the HUBZone Act of 1997—Title VI of the Small Business
Reauthorization Act of 1997, and 15 U.S.C. §657a. For WOSBs, see H.R. 5654, the Small Business Reauthorization H.R. 5654, the Small Business Reauthorization
Act of 2000, incorporated by reference in P.L. 106-554, the Consolidated Appropriations Act, 2001Act of 2000, incorporated by reference in P.L. 106-554, the Consolidated Appropriations Act, 2001, and 15 U.S.C. .
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SBAThe Women-Owned Small Business Contract Program: Legislative and Program History • set aside contracts for bidding by economically disadvantaged WOSBs (EDWOSBs) in industries in which WOSBs are underrepresented. This report reviews the origins and evolutions of the WOSB program. While the program was formally authorized by the Small Business Reauthorization Act of 2000 (H.R. 5654) and incorporated by reference in the Consolidated Appropriations Act, 2001 (P.L. 106-554),8 the program’s foundations were laid by stakeholder advocacy and executive action in the 1970s. After congressional authorization, the program faced implementation delays, which were closely followed by legislated program modifications. The federal Women-Owned Small Business Federal Contracting Program

 the SBA and other federal procurement officers to review and restructure
proposed procurements to maximize opportunities for small business
participation.
Additional requirements are in place to maximize small business participation as prime
contractors, subcontractors, and suppliers. For example, prior to issuing a solicitation, federal
contracting officers must do the following, among other requirements:
 divide proposed acquisitions of supplies and services (except construction) into
reasonably small lots to permit offers on quantities less than the total
requirement;
 plan acquisitions such that, if practicable, more than one small business concern
may perform the work, if the work exceeds the amount for which a surety may be
guaranteed by the SBA against loss under 15 U.S.C. §694b [generally $6.5
million, or $10 million if the contracting officer certifies that the higher amount
is necessary];9
 encourage prime contractors to subcontract with small business concerns,
primarily through the agency’s role in negotiating an acceptable small business
subcontracting plan with prime contractors on contracts anticipated to exceed
$750,000 or $1.5 million for construction contracts;10 and
 under specified circumstances, provide a copy of the proposed acquisition
package to an SBA procurement center representative (PCR) for his or her
review, comment, and recommendation at least 30 days prior to the issuance of
the solicitation. If the contracting officer rejects the PCR’s recommendation, he
or she must document the basis for the rejection and notify the PCR, who may
appeal the rejection to the chief of the contracting office and, ultimately, to the
agency head.11

§637(m). For SDVOSBs, see P.L. 108-183, the Veterans Benefits Act of 2003 and 15 U.S.C. §657f.
9 For additional information and analysis concerning the Small Business Administration’s (SBA’s) Surety Bond
program, see CRS Report R42037, SBA Surety Bond Guarantee Program, by Robert Jay Dilger.
10 Subcontracting plans are not required from small businesses, for personal services contracts, for contracts or contract
modifications that will be performed entirely outside of the United States and its outlying areas, or for modifications
that were within the scope of the contract. “[A]ny contractor or subcontractor failing to comply in good faith with the
requirements of the subcontracting plan is in material breach of its contract.” FAR §19.702(c). In addition, see FAR
§19.702:
Any contractor receiving a contract with a value greater than the simplified acquisition threshold
must agree in the contract that small business, veteran-owned small business, service-disabled
veteran-owned small business, HUBZone small business, small disadvantaged business, and
women-owned small business concerns will have the maximum practicable opportunity to
participate in contract performance consistent with its efficient performance.
11 See FAR §19.202-1 for the specified conditions:
(i) The proposed acquisition is for supplies or services currently being provided by a small business
and the proposed acquisition is of a quantity or estimated dollar value, the magnitude of which
makes it unlikely that small businesses can compete for the prime contract; (ii) The proposed
acquisition is for construction and seeks to package or consolidate discrete construction projects
and the magnitude of this consolidation makes it unlikely that small businesses can compete for the
prime contract; or (iii) The proposed acquisition is for a consolidated or bundled requirement.
See FAR §19.505 for a description of the appeals process.
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link to page 8 link to page 8 SBA Women-Owned Small Business Federal Contracting Program

This report focuses on the SBA’s WOSB Federal Contracting Program, authorized by H.R. 5654,
the Small Business Reauthorization Act of 2000, and incorporated by reference in P.L. 106-554,
the Consolidated Appropriations Act, 2001.12
The WOSB program is designed to help federal agencies achieve their statutory goal of awarding
at least 5% of their federal contracting dollars to WOSBs (established by P.L. 103-355, the
Federal Acquisition Streamlining Act of 1994 (FASA)) by allowing federal contracting officers to
 set aside acquisitions exceeding the micro-purchase threshold (currently $10,000)
for bidding by WOSBs (including economically disadvantaged WOSBs
(EDWOSBs)) exclusively in industries in which WOSBs are substantially
underrepresented, and
 set aside contracts for bidding by EDWOSBs exclusively in industries in which
WOSBs are underrepresented.
Congressional interest in the WOSB program has increased in recent years because the federal
government has met the 5% procurement goal for WOSBs government has met the 5% procurement goal for WOSBs only twice—in FY2015 and twice—in FY2015 and
FY2019—since the FY2019—since the WOSB procurement goal was established in 1994goal was authorized in 1994, and implemented in FY1996 and implemented in FY1996. (see Table 1).
WOSB federal contract award data suggest that federal procurement officers are using the WOSB WOSB federal contract award data suggest that federal procurement officers are using the WOSB
program more often than in the past, but the amount of program more often than in the past, but the amount of WOSB awarded contracts accountdollars awarded using WOSB preferences accounts for a for a
relatively small portion of relatively small portion of the total amount of contracts awarded to WOSBs. Most of the contracts awarded to WOSBs. Most of the federal
contracts awarded to WOSBs are awarded in full and open competition with other firms or with contracts awarded to WOSBs are awarded in full and open competition with other firms or with
another small business preference, such as an 8(a) another small business preference, such as an 8(a) or HUBZoneBusiness Development or Historically Underutilized Business Zone (HUBZone) program preference. Relatively program preference. Relatively
few federal contracts are awarded few federal contracts are awarded through the WOSB program. The WOSB Program’s Origins and Evolution Since 1978, federal agency heads have been required to establish contracting goals, in consultation with the SBA, that “realistically reflect the potential of small business concerns and small business concerns owned and controlled by socially and economically disadvantaged individuals” to participate in procurement. Each agency is required, at the conclusion of every fiscal year, to report its progress in meeting prime contract and subcontract award goals to the SBA. These reports are submitted to Congress and are made available to the public on the General Services Administration’s (GSA’s) website. Initially, WOSB goals were not included in these requirements.9 On May 18, 1979, President Carter issued Executive Order 12138, which established a national policy to promote women-owned business enterprises.10 Among other provisions, the executive order required federal agencies “to take appropriate affirmative action in support of women’s business enterprise,” including promoting procurement opportunities and providing financial assistance and business-related management and training assistance.11 8 Legislative language authorizing the WOSB through the WOSB program (see Table 1).
In addition, the Government Accountability Office (GAO) and the SBA’s Office of Inspector
General (OIG) have noted deficiencies in the SBA’s implementation and oversight of the
program. For example, the WOSB program was authorized on December 21, 2000. The SBA took
nearly 10 years to issue a final rule for the program (on October 7, 2010) and another four months
before the program went into effect (on February 4, 2011).13 The SBA attributed the delay
primarily to its difficulty in identifying an appropriate methodology to determine “the industries
in which WOSBs are underrepresented with respect to federal procurement contracting.”14
P.L. 113-291, the Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act
for Fiscal Year 2015 (NDAA 2015), enacted on December 19, 2014, prohibited small businesses
from self-certifying WOSB eligibility to ensure that the program’s contracts are awarded only to
intended recipients. NDAA 2015 also required the SBA to implement its own WOSB certification
process. The SBA issued an Advance Notice of Proposed Rulemaking in the Federal Register on
December 18, 2015, to solicit public comments on drafting a proposed rule to meet these
requirements. The proposed rule was not issued until May 14, 2019. Comments on the proposed
rule were to be submitted by July 15, 2019. The final rule implementing the certification program
and removing the self-certification option was issued on May 11, 2020.15 The effective date for

12 Legislative language authorizing the WOSB federal contracting program was initially in H.R. 4897, the Equity in program was initially in H.R. 4897, the Equity in
Contracting for Women Contracting for Women Act of 2000. 9 P.L. 95-507, a bill to amend the Small Business Act and the Small Business Investment Act of 1958, and 15 U.S.C. §644(g)(2). Also see P.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013; Small Business Administration (SBA), “Small Business Procurement Scorecard Overview,” at https://www.sba.gov/document/support-small-business-procurement-scorecard-overview; and General Services Administration (GSA), “Small Business Goaling Reports,” at https://sam.gov/reports/awards/static. 10 Executive Order (E.O.) 12138, “Creating a National Women’s Business Enterprise Policy and Prescribing Arrangements for Developing, Coordinating and Implementing a National Program for Women’s Business Enterprise,” May 18, 1979, at https://www.archives.gov/federal-register/codification/executive-order/12138.html (hereinafter cited as E.O. 12138, 1979). 11 E.O. 12138, 1979. President Clinton issued a memorandum on October 13, 1994, reaffirming the executive branch’s commitment to providing small, small disadvantaged, and WOSBs the maximum practicable opportunity to participate in federal contracting. President Clinton also issued E.O. 13157, “Increasing Opportunities for Women-Owned Small Businesses,” on May 23, 2000, to reaffirm the executive branch’s commitment to meet or exceed the 5% procurement (continued...) Congressional Research Service 2 The Women-Owned Small Business Contract Program: Legislative and Program History Under authority provided by Executive Order 12138, the SBA added WOSB procurement goals to the list of small business contracting goals it negotiated with federal agencies. At that time, WOSBs received about 0.2% of all federal contracts.12 By 1988, this percentage had grown, but to only 1% of all federal contracts.13 WOSB advocates argued that additional action was needed to help WOSBs win federal contracts because women-owned businesses were subject to “age-old prejudice, discrimination, and exploitation,” the “promotion of women’s business enterprise is simply not a high priority” for federal agencies, and federal “agency efforts in support of women’s business enterprise have been weak and have produced little, if any measurable results.”14 AdvocacyAct of 2000.
13 SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62258-62292, October 7,
2010.
14 For a discussion of the various methodological approaches considered, see SBA, “Women-Owned Small Business
Federal Contract Program,” 75 Federal Register 62259-62292, October 7, 2010.
15 SBA, “Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business
Certification,” 85 Federal Register 27650-27665, May 11, 2020.
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the new WOSB certification process was October 15, 2020, nearly six years after these
requirements were enacted on December 19, 2014.16
Table 1. Women-Owned Small Business (WOSB) Contract Awards, Amount and
Percentage of Small Business Eligible Contracts, FY1995-FY2021
($ in billions)
% of Small
WOSB
Business
and
Eligible
EDWOSB
Contracts
Set-Aside
WOSB
EDWOSB
(including
and Sole
WOSB
Sole
EDWOSB
Sole
Fiscal
double
Source
Set-Aside
Source
Set-Aside
Source
Year
Amount
counting)
Awards
Awards
Awards
Awards
Awards
2021
$24.350
4.63%
$1.206
$1.056
$0.101
$0.044
$0.005
2020
$27.272
4.85%
$1.259
$1.085
$0.107
$0.056
$0.011
2019
$25.300
5.19%
$1.080
$0.897
$0.097
$0.075
$0.011
2018
$22.923
4.75%
$0.893
$0.742
$0.093
$0.050
$0.009
2017
$20.844
4.71%
$0.723
$0.583
$0.068
$0.064
$0.009
2016
$19.670
4.79%
$0.449
$0.318
$0.035
$0.085
$0.010
2015
$17.807
5.05%
$0.287
$0.201
—
$0.086
—
2014
$17.177
4.68%
$0.177
$0.106
—
$0.071
—
2013
$15.365
4.32%
$0.101
$0.040
—
$0.061
—
2012
$16.180
4.00%
$0.072
$0.033
—
$0.039
—
2011
$16.807
3.98%
$0.021
$0.015
—
$0.006
—
2010
$17.456
4.04%
—
—
—
—
—
2009
$14.419
3.21%
—
—
—
—
—
2008
$14.420
3.21%
—
—
—
—
—
2007
$12.926
3.41%
—
—
—
—
—
2006
$11.616
3.41%
—
—
—
—
—
2005
$10.187
3.18%
—
—
—
—
—
2004
$9.092
3.03%
—
—
—
—
—
2003
$8.300
2.98%
—
—
—
—
—
2002
$6.800
2.50%
—
—
—
—
—
2001
$5.500
2.49%
—
—
—
—
—
2000
$4.600
2.88%
—
—
—
—
—
1999
$4.510
2.25%
—
—
—
—
—
1998
$4.060
2.03%
—
—
—
—
—
1997
$3.590
1.84%
—
—
—
—
—

16 SBA, “Women-Owned Small Business Federal Contracting program: Upcoming certification changes,” at
https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-federal-
contracting-program.
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% of Small
WOSB
Business
and
Eligible
EDWOSB
Contracts
Set-Aside
WOSB
EDWOSB
(including
and Sole
WOSB
Sole
EDWOSB
Sole
Fiscal
double
Source
Set-Aside
Source
Set-Aside
Source
Year
Amount
counting)
Awards
Awards
Awards
Awards
Awards
1996
$3.441
1.74%
—
—
—
—
—
1995
$3.621
1.79%
—
—
—
—
—
Sources: White House (Clinton), The State of Small Business: A Report of the President, 1996, (Washington, DC:
GPO, 1997), p. 325 [FY1995], at https://hdl.handle.net/2027/mdp.39015087497429; White House (Clinton), The
State of Small Business: A Report of the President, 1997 (Washington, DC: GPO, 1998), p. 194 [FY1996], at
https://hdl.handle.net/2027/uva.x004466169; White House (Clinton), The State of Small Business: A Report of the
President, 1998 (Washington, DC: GPO, 1999), p. 250 [FY1997], at https://hdl.handle.net/2027/
uiug.30112048180589; White House (G.W. Bush), The State of Small Business: A Report of the President, 1999-2000
(Washington, DC: GPO, 2001), p. 132 [FY1998, FY1999], at https://hdl.handle.net/2027/uva.x004572085; U.S.
Congress, House Committee on Small Business, Subcommittee on Contracting and Technology, Subcommittee
Hearing on Federal Government Efforts in Contracting with Women-Owned Businesses, hearing, 110th Cong., 1st sess.,
March 21, 2007, serial no. 110-9 (Washington, DC: GPO, 2007), pp. 4, 46 [FY2000]; U.S. Congress, House
Committee on Small Business, Subcommittee on Regulatory Reform and Oversight, SBA’s Procurement Assistance
Programs, hearing, 109th Cong., 2nd sess., March 30, 2006, serial no. 109-45 (Washington, DC: GPO, 2006), p. 31
[FY2001-FY2004]; U.S. General Services Administration (GSA), “Sam.Gov Data Bank, Static: Small Business
Goaling Report [FY2005-FY2020], at https://sam.gov/reports/awards/static; GSA, “Federal Procurement Data
System—Next Generation,” accessed on August 14, 2020 (WOSB and economically disadvantaged WOSB
(EDWOSB) set-aside and sole source awards, FY2011-FY2019); data generated using GSA, “Sam.Gov Data Bank,
Ad Hoc report,” August 2, 2021 [2020] and July 26, 2022 [2021], at https://sam.gov/reports/awards/adhoc; and
U.S. Small Business Administration, “Biden-Harris Administration Awards Record-Breaking $154.2 Billion in
Contracting to Small Businesses,” at https://www.sba.gov/article/2022/jul/26/biden-harris-administration-awards-
record-breaking-1542-billion-contracting-small-businesses.
Notes: The small business eligible baseline excludes certain contracts that the U.S. Small Business
Administration (SBA) has determined do not realistically reflect the potential for small business participation in
federal procurement (such as those awarded to mandatory and directed sources), contracts funded
predominately from agency-generated sources (i.e., nonappropriated funds), contracts not covered by the
Federal Acquisition Regulations System, acquisitions on behalf of foreign governments, and contracts not
reported in the GSA’s Federal Procurement Data System—Next Generation (such as government procurement
card purchases and contracts valued less than $10,000). About 15% to 18% of all federal contracts are excluded
in any given fiscal year. In FY2019-FY2021, in accordance with federal law, the SBA provided double credit, for
scorecard purposes only, for prime contracts awarded in disaster areas that are awarded as a local set aside and
a small business or other socioeconomic set aside when the vendor state is the same as the place of
performance (see 15 U.S.C. §644(f)) and for prime contracts awarded to businesses in Puerto Rico and covered
territories dated on or after August 13, 2018, and only for awards that do not already qualify for double credit
under 15 U.S.C. §644(f) (see 15 U.S.C. §644(x)(1)).
The WOSB Program’s Origins
The following sections provide an overview of the history of small business contracting
preferences, focusing on executive, legislative, and judicial actions that led to the creation of the
WOSB program and influenced its structure.
Federal Agency Small Business Procurement Goals and Executive
Order 12138: A National Program for Women’s Business Enterprise
Since 1978, federal agency heads have been required to establish federal procurement goals, in
consultation with the SBA, “that realistically reflect the potential of small business concerns and
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small business concerns owned and controlled by socially and economically disadvantaged
individuals” to participate in federal procurement. These reports are submitted to Congress and
are presently made available to the public on the General Services Administration’s (GSA’s)
website. Initially, WOSB goals were not included.17
On May 18, 1979, President Jimmy Carter issued Executive Order 12138, which established a
national policy to promote women-owned business enterprises.18 Among other provisions, the
executive order required federal agencies “to take appropriate affirmative action in support of
women’s business enterprise,” including promoting procurement opportunities and providing
financial assistance and business-related management and training assistance.19
Under authority provided by Executive Order 12138, the SBA added WOSB procurement goals
to the list of small business contracting goals it negotiated with federal agencies. At that time,
WOSBs received about 0.2% of all federal contracts.20 By 1988, this percentage had grown, but
to only 1% of all federal contracts.21
WOSB advocates argued that additional action was needed to help WOSBs win federal contracts
because women-owned businesses are subject to “age-old prejudice, discrimination, and
exploitation,” the “promotion of women’s business enterprise is simply not a high priority” for
federal agencies, and federal “agency efforts in support of women’s business enterprise have been
weak and have produced little, if any measurable results.”22 Their efforts led to P.L. 100-533, the efforts led to P.L. 100-533, the
Women’s Business Ownership Act of 1988. Women’s Business Ownership Act of 1988.
P.L. 100-533 provided the SBA P.L. 100-533 provided the SBA with statutory authorization to establish WOSB annual procurement statutory authorization to establish WOSB annual procurement
goals with federal agencies.goals with federal agencies. The act also extended the goaling requirement to include
subcontracts, as well as prime contracts, and added WOSBs to the list of small business concerns
to be identified in required small business subcontracting plans (at that time, small business

17 P.L. 95-507, a bill to amend the Small Business Act and the Small Business Investment Act of 1958; and 15 U.S.C.
§644(g)(2). Also, see P.L. 112-239, the National Defense Authorization Act for Fiscal Year 2013; SBA, “Small
Business Procurement Scorecard Overview,” at https://www.sba.gov/document/support-small-business-procurement-
scorecard-overview; and General Services Administration (GSA), “Federal Procurement Data System—Next
Generation: Small Business Goaling Reports (FY2005-2018),” at https://www.fpds.gov/fpdsng_cms/index.php/en/
reports.html.
18 Executive Order (E.O.) 12138, “Creating a National Women’s Business Enterprise Policy and prescribing
arrangements for developing, coordinating and implementing a national program for women’s business enterprise,”
May 18, 1979, at https://www.archives.gov/federal-register/codification/executive-order/12138.html (hereinafter cited
as E.O. 12138, 1979).
19 E.O. 12138, 1979. President Clinton issued a memorandum on October 13, 1994, reaffirming the executive branch’s
commitment to providing small, small disadvantaged, and WOSBs the maximum practicable opportunity to participate
in federal contracting. President Clinton also issued E.O. 13157, “Increasing Opportunities for Women-Owned Small
Businesses,” on May 23, 2000, to reaffirm the executive branch’s commitment to meet or exceed the 5% procurement
15 While the law did not create a WOSB contracting goal, advocates argued that women received “a mere 1.3% of federal contracting dollars ... in FY1990” despite owning approximately one-third of the nation’s businesses at that time.16 Advocacy efforts led to the enactment of FASA (P.L. 103-355), which established the annual, government-wide WOSB procurement goals of 5% of prime award and 5% of subcontract award dollars.17 Members of Congress indicated in FASA’s conference agreement that they did “not intend to create a new set aside or program of restricted competition for a specific designated group, but rather to establish a target that will result in greater opportunities for women to compete for federal contracts.”18 They added that “given the slow progress to date in reaching the current award levels, the conferees recognize that this goal may take some time to be reached.”19 WOSB Set-Aside Authority FASA conferees’ prediction that it may take time to reach the 5% goal was confirmed. The amount and percentage of federal contracts awarded to WOSBs increased slowly following the goal for WOSBs. See Executive Office of the President, “Continued Commitment to Small, Small Disadvantaged, and goal for WOSBs. See Executive Office of the President, “Continued Commitment to Small, Small Disadvantaged, and
Small Women-Owned Businesses in Federal Procurement,” 59 Small Women-Owned Businesses in Federal Procurement,” 59 Federal Register 52397, October 17, 1994; and E.O. 52397, October 17, 1994; and E.O.
13157, “Increasing Opportunities for Women-Owned Small Businesses,” 6513157, “Increasing Opportunities for Women-Owned Small Businesses,” 65 Federal Register 34035-34037, May 25, 34035-34037, May 25,
2000. 2000.
2012 U.S. Government Accountability Office (GAO), U.S. Government Accountability Office (GAO), Federal Procurement: Trends and Challenges in Contracting with
Women-Owned Small Businesses, GAO-01-346, February 16, 2001, p. 8, at https://www.gao.gov/products/GAO-01-, GAO-01-346, February 16, 2001, p. 8, at https://www.gao.gov/products/GAO-01-
346 (hereinafter 346 (hereinafter cited as GAO-01-346, GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs). ).
2113 GAO-01-346, GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs. .
2214 U.S. Congress, House Committee on Small Business, U.S. Congress, House Committee on Small Business, Women’s Business Ownership Act of 1988, report to , report to
accompany H.R. 5050, 100th Cong., 2nd sess., September 22, 1988, H.Rept. 100-955 (Washington, DC: GPO, 1988), accompany H.R. 5050, 100th Cong., 2nd sess., September 22, 1988, H.Rept. 100-955 (Washington, DC: GPO, 1988),
pp. 6-9 (hereinafter U.S. Congress, House Committee on Small Business, pp. 6-9 (hereinafter U.S. Congress, House Committee on Small Business, Women’s Business Ownership Act of 1988). ).
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subcontracting plans were required for prime contracts exceeding $500,000, or $1 million for the
construction of any public facility).23
Government-Wide Small Business Procurement Goals
In a related development, P.L. 100-656, the Business Opportunity Development Reform Act of
1988, authorized the President to annually establish government-wide minimum procurement
goals for small businesses and small businesses owned and controlled by socially and
economically disadvantaged individuals (SDBs). Congress required the government-wide
minimum goal for small businesses to be “not less than 20% [increased to 23% in 1997] of the
total value of all prime contract awards for each fiscal year” and “not less than 5% of the total
value of all prime contract and subcontract awards for each fiscal year” for SDBs.24
Advocates for a WOSB government-wide procurement goal argued that women owned
approximately one third of the nation’s businesses but received “a mere 1.3% of federal
contracting dollars ... in FY1990.”25 Their efforts led to P.L. 103-355, FASA.
FASA created a 5% procurement goal for WOSBs each fiscal year. The 5% goal was
implemented by regulations effective in FY1996.26
The conferees indicated in FASA’s conference agreement that they did “not intend to create a
new set aside or program of restricted competition for a specific designated group, but rather to
establish a target that will result in greater opportunities for women to compete for federal
contracts.”27 The conferees added that “given the slow progress to date in reaching the current
award levels, the conferees recognize that this goal may take some time to be reached.”28
Subsequently, 3% procurement goals were created for HUBZone small businesses (P.L. 105-135,
the HUBZone Act of 1997; Title VI of the Small Business Reauthorization Act of 1997) and
SDVOSBs (P.L. 106-50, the Veterans Entrepreneurship and Small Business Development Act of
1999).29
Figure 1 shows the percentage of small business-eligible federal contracts awarded to small
businesses, SDBs, WOSBs, SDVOSBs, and HUBZone small businesses from FY2005 through
FY2021. As detailed in the figure’s notes, the small business-eligible baseline excludes certain
contracts that the SBA has determined do not realistically reflect the potential for small business

23 U.S. Congress, House Committee on Small Business, Women’s Business Ownership Act of 1988, p. 8.
Presently, contractors that are not considered small must submit an acceptable small business subcontracting plan on
contracts anticipated to exceed $750,000, or $1.5 million for construction contracts. See 15 U.S.C. §633(h)(1). For
additional information on subcontracting plan requirements, see FAR §19.702(a)(1); and 15 U.S.C. §637(d)(3).
24 P.L. 100-656, the Business Opportunity Development Reform Act of 1988, 15 U.S.C. §644(g)(1). The government-
wide procurement goal for small businesses was increased from 20% to 23% by P.L. 105-135, the Small Business
Reauthorization Act of 1997.
25 Rep. John J. LaFalce, “Remarks related15 The act also extended the goaling requirement to subcontract award dollars and added WOSBs to the list of small business concerns to be identified in small business subcontracting plans (at that time, small business subcontracting plans were required for prime contracts exceeding $500,000, or $1 million for the construction of any public facility). U.S. Congress, House Committee on Small Business, Women’s Business Ownership Act of 1988, p. 8. 16 Rep. John J. LaFalce, “Remarks Related to the Women’s Business Procurement Assistance Act of 1993,” extension of to the Women’s Business Procurement Assistance Act of 1993,” extension of
remarks in the House, remarks in the House, Congressional Record, vol. 139, part 81 (June 9, 1993), p. E1439. , vol. 139, part 81 (June 9, 1993), p. E1439.
2617 The 5% goals were implemented by regulations effective in FY1996. GAO-01-346, GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs, p. 8. , p. 8.
27 18 U.S. Congress, Committee of Conference, U.S. Congress, Committee of Conference, Federal Acquisition Streamlining Act of 1994, conference report to , conference report to
accompany S. 1587, 103rd Cong., 2nd sess., August 21, 1994, H.Rept. 103-712 (Washington, DC: GPO, 1994), p. 224 accompany S. 1587, 103rd Cong., 2nd sess., August 21, 1994, H.Rept. 103-712 (Washington, DC: GPO, 1994), p. 224
(hereinafter cited as Committee of Conference, Federal Acquisition Streamlining Act of 1994). (hereinafter cited as Committee of Conference, Federal Acquisition Streamlining Act of 1994).
2819 Committee of Conference, Federal Acquisition Streamlining Act of 1994, p. 224. Congressional Research Service 3 link to page 9 The Women-Owned Small Business Contract Program: Legislative and Program History establishment of the 5% goal. Frustrated by the relatively slow progress, WOSB advocates began to lobby for additional actions, including agency authority to set aside contracts for WOSBs.20 Advocates noted that other small businesses benefited from contracting preferences such as set-asides. For example, at that time, small disadvantaged businesses (SDBs)21 as well as participants in the SBA’s 8(a) Business Development program were eligible for both set-asides and sole-source awards, Committee of Conference, Federal Acquisition Streamlining Act of 1994, p. 224.
29 This goal was phased in, with an initial goal of 1% (effective in 1999) that rose by half a percentage point each year
to its final level in 2003. The goal was later modified to include subcontract awards (P.L. 112-239, the National
Defense Authorization Act for Fiscal Year 2013).
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participation in federal procurement. About 15% to 18% of all federal contracts are excluded in
any given fiscal year.
The federal government has had difficulty meeting the WOSB and HUBZone small business
procurement goals. The 5% procurement goal for WOSBs was achieved in only 2 of the 17 fiscal
years (FY2015 and FY2019) reported in the figure. The 3% procurement goal for HUBZone
small businesses was not achieved in any of the 17 fiscal years. In contrast, the 23% procurement
goal for all types of small businesses was achieved in 10 of the 17 fiscal years reported in the
figure (FY2005 and FY2013-FY2021), including the past 9 fiscal years. The 5% procurement
goal for SDBs was achieved in each of the 17 fiscal years. The 3% procurement goal for
SDVOSBs was achieved in 10 of the 17 fiscal years (FY2012-FY2021), including the last 10
fiscal years.
Figure 1. Small Business Contracting, Performance, by Type of Small Business,
FY2005-FY2021
(percentage of small business eligible federal contracts)

Sources: U.S. General Services Administration (GSA), “Sam.Gov Data Bank, Static: Small Business Goaling
Report [FY2005-FY2020], at https://sam.gov/reports/awards/static; and U.S. Small Business Administration,
“Biden-Harris Administration Awards Record-Breaking $154.2 Billion in Contracting to Small Businesses,” at
https://www.sba.gov/article/2022/jul/26/biden-harris-administration-awards-record-breaking-1542-billion-
contracting-small-businesses.
Notes: The small business eligible baseline excludes certain contracts that the Small Business Administration has
determined do not realistically reflect the potential for small business participation in federal procurement (such
as those awarded to mandatory and directed sources), contracts funded predominately from agency-generated
sources (i.e., nonappropriated funds), contracts not covered by the Federal Acquisition Regulations System,
acquisitions on behalf of foreign governments, and contracts not reported in the GSA’s Federal Procurement
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Data System—Next Generation (such as government procurement card purchases and contracts valued less
than $10,000). About 15% to 18% of all federal contracts are excluded in any given fiscal year.
WOSB Set-Asides
As shown in Table 1, FASA conferees’ prediction that it may take some time to reach the 5% goal
was confirmed. The amount and percentage of federal contracts awarded to WOSBs increased
slowly following the establishment of the 5% goal (implemented in FY1996).
Frustrated by the relatively slow progress toward meeting the 5% goal, WOSB advocates began
to lobby for additional actions, including the establishment of a federal contracting set-aside
program for WOSBs. As mentioned, a set-aside is a commonly used term to refer to a contract
competition in which only small businesses, or specific types of small businesses, may compete.
WOSB advocates noted that other small businesses were provided contracting preferences. For
example, at that time, SDBs were eligible for contract set-asides and a price evaluation
adjustment of up to 10% in full and open competition in specified federal agencies, including the
Department of Defense (DOD); participants in the SBA’s 8(a) program were (and still are)
eligible for both contract set-asides and sole source awards; and HUBZone small businesses were and HUBZone small businesses were
(and still are) eligible for contract set-asides, (and still are) eligible for contract set-asides, sole sole-source awards, and a price evaluation source awards, and a price evaluation
adjustment of up to 10% in full and open competition above the simplified acquisition
threshold.30adjustment.22
As a first step toward the enactment of As a first step toward the enactment of a WOSB set-aside WOSB set-aside contracting programauthority, P.L. 106-165, the , P.L. 106-165, the
Women’s Business Centers Sustainability Act of 1999, required Women’s Business Centers Sustainability Act of 1999, required GAOthe Government Accountability Office (GAO) to review the federal to review the federal
government’s efforts to meet the 5% goal for WOSBs and to identify any measures that could government’s efforts to meet the 5% goal for WOSBs and to identify any measures that could
improve the federal government’s performance in increasing WOSB contracting opportunities. improve the federal government’s performance in increasing WOSB contracting opportunities.
GAO issued its report on February 16, 2001GAO issued its report on February 16, 2001:
Among, noting that [a]mong the government contracting officials with whom we spoke, there was general the government contracting officials with whom we spoke, there was general
agreement on several suggestions for improving the environment for contracting with agreement on several suggestions for improving the environment for contracting with
WOSBs and increasing federal contracting with WOSBs. They suggested creating a WOSBs and increasing federal contracting with WOSBs. They suggested creating a
contract program targeting WOSBs, focusing and coordinating federal agencies’ WOSB contract program targeting WOSBs, focusing and coordinating federal agencies’ WOSB
outreach activities, promoting contracting with WOSBs through agency incentive and outreach activities, promoting contracting with WOSBs through agency incentive and
recognition programs, including WOSBs in agency mentor-protégé programs, providing recognition programs, including WOSBs in agency mentor-protégé programs, providing

30 Several statutes at that time contained provisions to encourage contracting with SDBs, including P.L. 99-591
(originally), Making continuing appropriations for the fiscal year 1987, and for other purposes (Title X, the Defense
Acquisition Improvement Act of 1986); P.L. 99-661, the National Defense Authorization Act for Fiscal Year 1987;
P.L. 106-398, Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001; and P.L. 103-355, FASA.
Between 1987 and 1995, SDBs were eligible to receive a 10% price evaluation preference in competitive Department
of Defense (DOD) acquisitions and could compete for contracts set aside for SDBs for certain DOD acquisitions where
agency officials believed there was a reasonable expectation that offers would be received from at least two responsible
SDBs. FASA extended the authority to implement these benefits to all federal agencies, but in 1995, the Supreme Court
ruled in Adarand Constructors, Inc. v. Pena (1995) “that all racial classifications, whether imposed by federal, state, or
local authorities, must pass strict scrutiny review. In other words, they ‘must serve a compelling government interest,
and must be narrowly tailored to further that interest.’” As a result of the Adarand decision, the federal government
reexamined how it implemented “affirmative action” programs, including certain procurement preference programs. In
light of the Adarand decision, regulations to implement FASA’s provision to expand SDB program preferences to other
federal agencies were delayed. Statutory authority for SDB price evaluation adjustments expired on December 9, 2004,
for most federal procuring agencies, and at the end of 2009 for DOD, the National Aeronautics and Space
Administration, and the Coast Guard. See Adarand Constructors, Inc., v. Pena, Oyez, at https://www.oyez.org/cases/
1994/93-1841; GAO, Small Business: Status of Small Disadvantaged Business Certifications, GAO-01-273, January
19, 2001, pp. 3-6, at https://www.gao.gov/new.items/d01273.pdf; and SBA, “Small Disadvantaged Program,” 73
Federal Register 57490-57495, October 3, 2008.
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more information to WOSBs about participation in teaming arrangements, and providing
expanded contract financing.31more information to WOSBs about participation in teaming arrangements, and providing expanded contract financing.23
By the time the GAO report was published, legislation had been enacted ( By the time the GAO report was published, legislation had been enacted (H.R. 5654, the Small
Business Reauthorization Act of 2000, incorporated by reference in P.L. 106-554, the
Consolidated Appropriations Act, 2001P.L. 106-554) to ) to authorize WOSB set-asides. Federal contracting officers mayauthorize the WOSB program. As mentioned, the
WOSB program provides greater access to federal contracting opportunities for WOSBs by
providing federal contracting officers authority to set aside contracts for WOSBs (including set aside contracts for WOSBs (including
EDWOSBs) exclusively in industries in which WOSBs are EDWOSBs) exclusively in industries in which WOSBs are substantially underrepresented, and to
substantially underrepresented and may set aside contracts for EDWOSBs exclusively in industries in which WOSBs are set aside contracts for EDWOSBs exclusively in industries in which WOSBs are
underrepresented.underrepresented.24 The Consolidated Appropriations Act, 2001 (P.L. 106-554) also specified that federal contracting officers could not set aside contracts for WOSBs or EDWOSBs unless
A Targeted Approach to Avoid Legal Challenges
Congressional efforts to promote WOSB set-asides were complicated by Supreme Court
decisions on legal challenges of contracting preferences for minority contractors, including City
of Richmond v. J.A. Croson Co. (1989) (finding unconstitutional a municipal ordinance that
required the city’s prime contractors to award at least 30% of the value of each contract to
minority subcontractors) and Adarand Constructors, Inc. v. Pena (1995) (finding that all racial
classifications, whether imposed by federal, state, or local authorities, must pass strict scrutiny
review).
The Adarand Constructors, Inc. v. Pena case involved a challenge to federal subcontracting
preferences for SDBs. The plaintiff claimed that contracting preferences based on race violate the
equal protection component of the Fifth Amendment’s Due Process Clause. The Supreme Court
ruled that all racial classifications, whether imposed by federal, state, or local authorities, must
pass strict scrutiny review (i.e., they must serve a compelling government interest and must be
narrowly tailored to further that interest). Following the Adarand decision, the federal
government reexamined how it implemented “affirmative action” programs, including certain
procurement preference programs.
When developing the WOSB set-aside program, its advocates were aware that the WOSB
program would be subject to a heightened standard of judicial review given the Supreme Court’s
ruling that all racial classifications must serve a compelling government interest and be narrowly
tailored. In the House report accompanying H.R. 4897, the Equity in Contracting for Women Act
of 2000 (which was incorporated into H.R. 5654, the Small Business Reauthorization Act of
2000), advocates argued that a set aside program was needed (compelling interest) because of the
slow progress in meeting the 5% procurement goal for WOSBs. The report noted that “the drive
for efficiency in procurement often places Congressionally-mandated contracting goals for small
businesses in general, and women-owned small businesses in particular, in jeopardy.”32 The report
also noted that contract bundling (the consolidation of smaller contract requirements into larger
contracts) and the increased use of the Federal Supply Schedules increase “the efficiency of
government procurements ... [but] also may perpetuate the use of well-known firms that are not
women-owned businesses.”33 As a result,

31 GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs, p. 31.
32 U.S. Congress, House Committee on Small Business, Equity in Contracting For Women Act of 2000, report to
accompany H.R. 4897, 106th Cong., 2nd sess., September 21, 2000, H.Rept. 106-879 (Washington, DC: GPO, 2000), p.
2 (hereinafter cited as Committee on Small Business, Equity in Contracting For Women Act of 2000 report).
33 Committee on Small Business, Equity in Contracting For Women Act of 2000 report, p. 2.
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the Committee believes that the goals expressed in FASA and reaffirmed in the Executive
Order [Executive Order 13,157, issued on May 23, 2000 by President Clinton, reaffirming
the Administration’s support for increasing contracting opportunities for WOSBs] will not
be achieved without the use of some mandatory tool which enables contracting officers to
identify WOSBs and establish competition among those businesses for the provision of
goods and services.34
The House report also argued that the bill was narrowly tailored because it did not establish sole
source authority for WOSBs and limited WOSB set-asides to industries in which WOSBs are
underrepresented in obtaining federal contracts.
WOSB Program Requirements
The Consolidated Appropriations Act, 2001 (P.L. 106-554) specified that federal contracting
officers could not set aside contracts for WOSBs or EDWOSBs unless (1) they had a reasonable
expectation that two or more eligible business concerns would submit offers for the contract, (2)
the anticipated award price of the contract (including options) the anticipated award price of the contract (including options) doeswould not exceed $5 million for not exceed $5 million for
manufacturing contracts and $3 million for all other contractsmanufacturing contracts and $3 million for all other contracts, and (3) the contract award can be
made at a fair and reasonable price.
. In 2011, the set-aside award caps were increased to $6.5 million for manufacturing contracts and In 2011, the set-aside award caps were increased to $6.5 million for manufacturing contracts and
$4 million for all other contracts to account for inflation.$4 million for all other contracts to account for inflation.3525 In 2013, P.L. 112-239, the National In 2013, P.L. 112-239, the National
Defense Authorization Act for Fiscal Year 2013, removed the Defense Authorization Act for Fiscal Year 2013, removed the set-aside award value caps.26 20 A set-aside refers to a contract competition in which only some businesses (in this case, WOSBs) may compete for the award. 21 SDBs are businesses owned and controlled by socially and economically disadvantaged individuals. The 1978 amendments to the Small Business Act (P.L. 95-507) established a basic definition of socially disadvantaged individuals. 22 Between 1987 and 1995, SDBs were eligible to receive a 10% price evaluation preference in competitive Department of Defense (DOD) acquisitions and could compete for contracts set aside for SDBs for certain DOD acquisitions where agency officials believed there was a reasonable expectation that offers would be received from at least two responsible SDBs. See GAO, Small Business: Status of Small Disadvantaged Business Certifications, GAO-01-273, January 19, 2001, pp. 3-6, at https://www.gao.gov/new.items/d01273.pdf, and SBA, “Small Disadvantaged Business Program,” 73 Federal Register 57490, October 3, 2008. 23 GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs, p. 31. 24 Metrics used to designate industries are discussed in the “The 10-Year Program Implementation Delay” section. 25 DODcaps.36
Eligibility Requirements
The Consolidated Appropriations Act, 2001 (P.L. 106-554) also specified recipient eligibility
requirements (see below) and required the SBA to conduct a study to identify industries in which
WOSBs are underrepresented (and, by inference, substantially underrepresented) with respect to
federal procurement contracting. In addition, the SBA had to develop criteria to define an
EDWOSB because the act did not define economic disadvantage. The WOSB program could not
begin until those determinations were made.
To participate in the program, the act specified that WOSBs must
 be a small business (as defined by the SBA);
 be at least 51% unconditionally and directly owned and controlled by one or
more women who are U.S. citizens;37
 have women manage day-to-day operations and make long-term decisions; and
 be certified by a federal agency, a state government, the SBA, or a national
certifying entity approved by the SBA or self-certify their eligibility to the federal
contracting officer with adequate documentation according to standards
established by the SBA.

34 Committee on Small Business, Equity in Contracting For Women Act of 2000 report, p. 3.
35 Department of Defense, GSA, National Aeronautics and Space Administration, “Federal Acquisition Regulation; , GSA, National Aeronautics and Space Administration, “Federal Acquisition Regulation;
Women-Owned Small Business (WOSB) Program,” 76 Women-Owned Small Business (WOSB) Program,” 76 Federal Register 18305, April 1, 2011 18305, April 1, 2011;, and SBA, “Women- and SBA, “Women-
Owned Small Business Federal Contract Program,” 77Owned Small Business Federal Contract Program,” 77 Federal Register 1857, January 12, 2012. 1857, January 12, 2012.
3626 SBA, “Women-Owned Small Business Federal SBA, “Women-Owned Small Business Federal ContractingContract Program,” 78 Program,” 78 Federal Register 26504-26506, May 7, 26504-26506, May 7,
2013.
37 The statute specifies that ownership is to be determined without regard to community property laws.
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Certification
As mentioned, P.L. 113-291 (NDAA 2015), among other provisions, removed the ability of small
businesses to self-certify their eligibility for the WOSB program as a means to ensure that the
program’s contracts are awarded only to intended recipients. The act also required the SBA to
implement its own certification process for WOSBs. The SBA announced in the Federal Register
that it would implement its own certification process for the WOSB program and remove the
ability of small businesses to self-certify their eligibility for the WOSB program on October 15,
2020.38
In the meantime, WOSBs and EDWOSBs had to be either self-certified or third-party certified to
participate in the WOSB program. Self-certification requires the business to provide certification
information annually through the SBA’s certification web page (certify.SBA.gov) and have an
up-to-date profile on the System for Award Management (SAM) website (sam.gov) indicating
that the business is small and is interested in participating in the WOSB program.39 Self-
certification is free.
In addition, in 2011, the SBA approved four organizations to provide third-party certification
(typically involving a fee): El Paso Hispanic Chamber of Commerce, National Women Business
Owners Corporation, U.S. Women’s Chamber of Commerce, and Women’s Business Enterprise
National Council.40 Third-party certification continues to be an option.
WOSBs and EDWOSBS that are not certified are no longer eligible to participate in the WOSB
program. Other women-owned small businesses may continue to self-certify their status as a
WOSB, receive contract awards outside of the WOSB program, and count toward an agency’s
5% procurement goal.41

38 SBA, “Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business
Certification,” 85 Federal Register 27650, May 11, 2020.
39 With a few exceptions, businesses interested in bidding on a federal contract must obtain a Dun & Bradstreet Data
Universal Numbering System (DUNS) number (i.e., a unique nine-digit identification number) for each of the
business’s physical locations, and register with the federal government’s System for Award Management (SAM).
Government agencies use SAM for several purposes, including to find contractors. Businesses also must match their
products and services to a North American Industry Classification System (NAICS) code. Businesses generally have a
primary NAICS code and may have multiple NAICS codes if they sell multiple products and services. Businesses that
identify themselves as a small business in SAM must (1) meet the Small Business Act’s definition of a small business
and (2) not exceed size standards established, and updated periodically, by the SBA. See SBA, “Federal Contracting
Guide: Basic Requirements,” at https://www.sba.gov/federal-contracting/contracting-guide/basic-requirements; and
U.S. Bureau of the Census, “North American Industry Classification System,” at https://www.census.gov/eos/www/
naics/. For additional information and analysis, see CRS Report R44490, Unique Identification Codes for Federal
Contractors: DUNS Numbers and CAGE Codes, by L. Elaine Halchin; CRS Report RS22536, Overview of the Federal
Procurement Process and Resources, by L. Elaine Halchin; and CRS Report R45576, An Overview of Small Business
Contracting, by Robert Jay Dilger.
40 SBA, “Women-Owned Small Business Federal Contracting program: Get certified as a women-owned small
business,” at https://www.sba.gov/federal-contracting/contracting-assistance-programs/women-owned-small-business-
federal-contracting-program; and GAO, Women-Owned Small Business Program: Actions Needed to Address
Continued Oversight Issues, GAO-19-563T, May 16, 2019, p. 3, at https://www.gao.gov/products/GAO-19-563T
(hereinafter cited as GAO-19-563T, WOSB Program: Continued Oversight Issues).
41 SBA, “Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business
Certification,” 85 Federal Register 27650, May 11, 2020.
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Defining Economic Disadvantage
EDWOSBs must meet all WOSB contracting program requirements and be economically
disadvantaged, which, as presently defined by the SBA, means that they must be
 owned and controlled by one or more women, each with a personal net worth less
than $750,000;
 owned and controlled by one or more women, each with $350,000 or less in
adjusted gross income averaged over the previous three years; and
 owned and controlled by one or more women, each with $6 million or less in
personal assets.
The SBA defined economic disadvantage using its experience with the 8(a) program as a guide
(i.e., reviewing the owner’s income, personal net worth, and the fair market value of her total
assets).42
As of July 29, 2022, there were 6,628 certified WOSBs and 2,319 certified EDWOSBs registered
in the SBA’s online database.43 There were 85,671 self-certified WOSBs registered in the SBA’s
online database on that date.44
The 10-Year Delay in WOSB’s Implementation
As mentioned, the WOSB program’s implementation was delayed for over 10 years, primarily
due to the SBA’s difficulty in identifying an appropriate methodology to determine “the
industries in which WOSBs are underrepresented (and, by inference, substantially
underrepresented) with respect to federal procurement contracting.”45
The SBA completed a draft of the legislatively mandated study of underrepresented (and, by
inference, substantially underrepresented) NAICS industrial codes in September 2001, using
internal resources. The SBA then submitted proposed regulations to implement the WOSB
program to the Office of Management and Budget (OMB), which is required by law to review all
draft regulations before publication within 90 days of their submission to OMB.46 However, the

42 SBA, “The Women-Owned Small Business Federal Contract Assistance Program,” 71 Federal Register 34551, June
15, 2006; and SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62265, October
7, 2010.
43 SBA, “Dynamic Small Business Search,” accessed on July 29, 2022, at https://web.sba.gov/pro-net/search/
dsp_dsbs.cfm.
44 SBA, “Dynamic Small Business Search,” accessed on March 24, 2022, at https://web.sba.gov/pro-net/search/
dsp_dsbs.cfm.
45 For a discussion of the various methodological approaches considered, see SBA, “Women-Owned Small Business
Federal Contract Program,” 75 Federal Register, October 7, 2010, pp. 62259-62262.
46Contract Program: Legislative and Program History WOSB Sole-Source Award Authority The authority to make sole-source awards to WOSB was not enacted until 2014. The Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015 (NDAA 2015; P.L. 113-291) provided federal agencies with authority to award sole-source27 contracts to WOSBs (including EDWOSBs) if • the contract is assigned a North American Industry Classification System (NAICS) code28 in which the SBA has determined that WOSBs are substantially underrepresented in federal procurement; • the contracting officer does not have a reasonable expectation that offers would be received from two or more WOSBs (including EDWOSBs);29 and • the anticipated total value of the contract, including any options, does not exceed $7 million for manufacturing contracts and $4.5 million for other federal contracts.30 NDAA 2015 also gave federal agencies authority to award sole-source contracts exclusively to EDWOSBs if • the contract is assigned a NAICS code in which the SBA has determined that WOSB concerns are underrepresented in federal procurement; • the contracting officer does not have a reasonable expectation that offers would be received from two or more EDWOSB concerns; and • the anticipated total value of the contract, including any options, does not exceed $7 million for manufacturing contracts and $4.5 million for other federal contracts.31 Expansion of the WOSB program to include sole-source awards along with WOSB set-asides was meant to help federal agencies award at least 5% of federal contracting dollars to WOSBs. The 27 Sole-source contracts are noncompetitive procurements that are made after soliciting and negotiating with only one source. 28 North American Industry Classification System (NAICS) industry codes are used by federal statistical agencies to classify business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. More information is available at https://www.census.gov/naics/. Per 48 C.F.R. §19.102(b), contracting officers “determine the appropriate NAICS code by classifying the product or service being acquired in the one industry that best describes the principal purpose of the supply or service being acquired.” 29 Per Federal Acquisition Regulation (FAR) §19.1505(g), a contracting officer “may [still] make an award [as a sole-source award], if only one acceptable offer is received from a qualified EDWOSB concern or WOSB concern eligible under the WOSB Program.” The WOSB sole-source awardee must identify with an acceptable NAICS industry code, be certified, and “be a responsible contractor,” and the award must be made “at a fair and reasonable price” (see FAR §19.1506). 30 Federal Acquisition Regulation (FAR) §19.1506(c); P.L. 116-283, the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, adjusted the sole-source contract value caps to their current levels of $4.5 or $7 million. The Federal Acquisition Regulatory Council has the responsibility of adjusting each acquisition-related dollar threshold (including those for the 8(a), HUBZone, service-disabled veteran-owned, and WOSB contracting programs) on October 1 of each year that is evenly divisible by five. As a result, these thresholds may differ from those in statute. The next adjustment for inflation will take place on October 1, 2025. See 13 C.F.R. §124.506(a) and 41 U.S.C. §1908(c)(2). 31 FAR §§19.1506(a) and (c); P.L. 116-283, the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021, adjusted the sole-source contract value caps to their current levels of $4.5 or $7 million. Congressional Research Service 5 The Women-Owned Small Business Contract Program: Legislative and Program History SBA published a final rule implementing the WOSB program expansion on September 14, 2015 (effective October 14, 2015).32 The 10-Year Program Implementation Delay After the WOSB program was authorized, the SBA took nearly 10 years to issue a final rule for the program and put the program into effect four months after that.33 The SBA attributed the delay primarily to its difficulty in identifying an appropriate methodology to determine “the industries in which WOSBs are underrepresented with respect to federal procurement contracting.”34 The SBA completed a draft of the legislatively mandated study of NAICS industrial codes in which WOSBs are underrepresented (and, by inference, substantially underrepresented) in September 2001, using internal resources.35 The SBA then submitted proposed regulations to implement the WOSB program to the Office of Management and Budget (OMB).36 However, the SBA withdrew the regulations on April 24, 2002, before the review was complete “because the SBA Administrator had concerns about the content and constitutionality of its draft industry study and believed that it needed to contract with the National Academy of Science[s] (NAS) to review the draft industry study and recommend any changes the NAS believed were necessary.”37 The SBA awarded a contract to NAS in late 2003 to conduct the study. NAS completed its analysis and issued a report on the SBA’s study on March 11, 2005. The report indicated that the SBA asked NAS to conduct the review “because of the history of legal challenges to race- and gender-conscious contracting programs at the federal and local levels.”38 NAS concluded that the SBA’s study was “problematic in several respects, including that the documentation of data sources and estimation methods is inadequate for evaluation purposes.” 32 SBA, “Women-Owned Small Business Federal Contract Program,” 80 Federal Register 55019, September 14, 2015. 33 The program was authorized in December of 2000. The SBA issued the final rule on October 7, 2010, and put the program into effect on February 4, 2011. SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62258, October 7, 2010. 34 For a discussion of the various methodological approaches considered, see SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62259-62292, October 7, 2010. 35 Ibid. 36 OMB is required by law to review all draft regulations before publication within 90 days of their submission to OMB. SBA, “Women-Owned Small Business Federal Contract Program,” 75 SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62259, October 7, 2010. 62259, October 7, 2010.
The North American Industry Classification System (NAICS, pronounced Nakes) was developed The North American Industry Classification System (NAICS, pronounced Nakes) was developed
under the direction and guidance of the Office of Management and Budget (OMB) as the standard under the direction and guidance of the Office of Management and Budget (OMB) as the standard
for use by Federal statistical agencies in classifying business establishments for the collection, for use by Federal statistical agencies in classifying business establishments for the collection,
tabulation, presentation, and analysis of statistical data describing the U.S. economy. ... NAICS is a tabulation, presentation, and analysis of statistical data describing the U.S. economy. ... NAICS is a
2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the 2- through 6-digit hierarchical classification system, offering five levels of detail. Each digit in the
code is part of a series of progressively narrower categories, and the more digits in the code signify code is part of a series of progressively narrower categories, and the more digits in the code signify
greater classification detail. The first two digits designate the economic sector, the third digit greater classification detail. The first two digits designate the economic sector, the third digit
designates the subsector, the fourth digit designates the industry group, the fifth digit designates the designates the subsector, the fourth digit designates the industry group, the fifth digit designates the
NAICS industry, and the sixth digit designates the national industry. NAICS industry, and the sixth digit designates the national industry.
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SBA withdrew the regulations on April 24, 2002, before the review was complete “because the
SBA Administrator had concerns about the content and constitutionality of its draft industry study
and believed that it needed to contract with the National Academy of Science (NAS) to review the
draft industry study and recommend any changes the NAS believed were necessary.”47 The SBA
awarded a contract to NAS in late 2003 to conduct the study.
NAS completed its analysis and issued a report on the SBA’s study on March 11, 2005. The
report indicated that the SBA asked NAS to conduct the review “because of the history of legal
challenges to race- and gender-conscious contracting programs at the federal and local levels.”48
NAS concluded that the SBA’s study was “problematic in several respects, including that the
documentation of data sources and estimation methods is inadequate for evaluation purposes.”
See U.S. Census Bureau, “North American Industry Classification System,” at https://www.census.gov/naics/. 37 SBA, “Semiannual Regulatory Agenda,” 67 Federal Register 34004, May 13, 2002, and U.S. Women’s Chamber of Commerce v. U.S. Small Business Administration, November 30, 2005, at https://casetext.com/case/us-womens-chamber-of-commerce-v-us-small-business-admin. 38 National Research Council, National Academy of Sciences (NAS), Analyzing Information on Women-Owned Small Businesses in Federal Contracting, Steering Committee for the Workshop on Women-Owned Small Businesses in Federal Contracting, Committee on National Statistics, Division of Behavioral and Social Sciences and Education (Washington, DC: National Academies Press, 2005), p. 1, at https://www.nap.edu/catalog/11245/analyzing-information-on-women-owned-small-businesses-in-federal-contracting (hereinafter cited as NAS WOSB report, 2005). Congressional Research Service 6 The Women-Owned Small Business Contract Program: Legislative and Program History NAS made several recommendations for a new study, including that the SBA use more current NAS made several recommendations for a new study, including that the SBA use more current
data, different industry classifications, and consistent monetary and numeric utilization measures data, different industry classifications, and consistent monetary and numeric utilization measures
to provide more complete documentation of data and methods.to provide more complete documentation of data and methods.4939 The SBA later characterized The SBA later characterized
NAS’s analysis as indicating that the SBA study was “fatally flawed.”NAS’s analysis as indicating that the SBA study was “fatally flawed.”5040 In response to that In response to that
finding, the SBA issued a solicitation in October 2005finding, the SBA issued a solicitation in October 2005, seeking a private contractor to perform a seeking a private contractor to perform a
revised study. In February 2006, a contract was awarded to the Kaufman-RAND Institute for revised study. In February 2006, a contract was awarded to the Kaufman-RAND Institute for
Entrepreneurship Public Policy (RAND). The RAND study was published in April 2007.Entrepreneurship Public Policy (RAND). The RAND study was published in April 2007.5141
The RAND report noted that underrepresentation is typically referred to as a disparity ratio, a The RAND report noted that underrepresentation is typically referred to as a disparity ratio, a
measure comparing measure comparing the use of firms of a particular type (in this case, WOSBs)contracting of WOSBs in a particular in a particular
NAICS code to their availability for such contractsNAICS code to their availability for such contracts in that NAICS code. A disparity of 1.0 . A disparity of 1.0
suggests that firms of a particular type are awarded contracts in the same proportion as their suggests that firms of a particular type are awarded contracts in the same proportion as their
representation in that industry (there is no disparity). A disparity ratio representation in that industry (there is no disparity). A disparity ratio less than 1.0 suggests that the firms are underrepresented in federal contracting in that NAICS code. A ratio greater than 1.0 suggests that the firms are overrepresented.42 RAND identified 28 different approaches to determine underrepresentation and substantial underrepresentation of WOSBs in federal procurement, each of which yielded a different result. After examining each approach’s benefits and deficiencies, the SBA determined that underrepresentation existed in industries with a disparity ratio43 between 0.5 and 0.8, and that substantial underrepresentation existed in industries with a disparity ratio between 0.0 and 0.5.44 The SBA identified 83 four-digit NAICS industry groups in its final rule implementing the WOSB program (October 7, 2010; effective February 4, 2011): • 45 four-digit NAICS industry groups in which WOSBs were underrepresented, which became eligible for EDWOSB set-asides, and 39 NAS WOSB report, 2005, pp. 3-8, 80-87. The NAS report indicated that the less than 1.0 suggests that

See U.S. Census Bureau, “North American Industry Classification System,” at https://www.census.gov/eos/www/naics/
faqs/faqs.html#q5.
47 SBA, “Semiannual Regulatory Agenda,” 67 Federal Register 34004, May 13, 2002; and U.S. Women’s Chamber of
Commerce v. U.S. Small Business Administration, November 30, 2005, at https://casetext.com/case/us-womens-
chamber-of-commerce-v-us-small-business-admin.
48 National Research Council, National Academy of Sciences (NAS), Analyzing Information on Women-Owned Small
Businesses in Federal Contracting, Steering Committee for the Workshop on Women-Owned Small Businesses in
Federal Contracting, Committee on National Statistics, Division of Behavioral and Social Sciences and Education
(Washington, DC: The National Academies Press, 2005), p. 1, at https://www.nap.edu/catalog/11245/analyzing-
information-on-women-owned-small-businesses-in-federal-contracting (hereinafter cited as NAS WOSB report, 2005).
49 NAS WOSB report, 2005, pp. 3-8, 80-87.
The NAS report indicated that SBA’s SBA’s
preliminary disparity ratio estimates were developed for industry categories (defined by 2-digit preliminary disparity ratio estimates were developed for industry categories (defined by 2-digit
Standard Industrial Classification or SIC codes) by dividing the Standard Industrial Classification or SIC codes) by dividing the utilization share for each industry share for each industry
by the by the availability share. Utilization was defined as the share accruing to women-owned small share. Utilization was defined as the share accruing to women-owned small
businesses of the total dollar amount of contract actions for federal prime contracts over $25,000 in businesses of the total dollar amount of contract actions for federal prime contracts over $25,000 in
fiscal year 1999 for the particular industry. Availability was defined as the share of women-owned fiscal year 1999 for the particular industry. Availability was defined as the share of women-owned
businesses with paid employees among all businesses with paid employees in the particular businesses with paid employees among all businesses with paid employees in the particular
industry from the 1997 Survey of Women-Owned Business Enterprises. industry from the 1997 Survey of Women-Owned Business Enterprises.
NAS WOSB report, 2005, p. 2. NAS WOSB report, 2005, p. 2.
5040 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 Federal Register 73287, 73287,
December 27, 2007. December 27, 2007.
5141 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 Federal Register 73287, 73287,
December 27, 2007. Also, see Elaine ReardonDecember 27, 2007. Also, see Elaine Reardon, Nancy Nicosia, and Nancy Young Moore et al., , The Utilization of Women-
Owned Small Businesses in Federal Contracting, , April 17, 2007, at https://www.rand.org/pubs/technical_reports/TR442.html. at https://www.rand.org/pubs/technical_reports/TR442.html.
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SBA 42 SBA, “Women-Owned Small Business Federal ContractingContract Program,” 75 Federal Register 62259, October 7, 2010. 43 The SBA relied on the following ratios during its analysis, including one based on industry revenue (receipts) earned by WOSBs and one based on the number of women-owned firms: % Prime Contract Awards to Industry WOSBs (dollars) % Total Industry Receipts to WOSBs (dollars) % Contract Awards to Industry WOSBs (number of contracts) Total Number of Industry WOSBs 44 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 Federal Register 73287-73289, December 27, 2007. Congressional Research Service 7 The Women-Owned Small Business Contract Program: Legislative and Program History • 38 four-digit NAICS industry groups in which WOSBs were substantially underrepresented, which became Program

the firms are underrepresented in federal contracting in that NAICS code. A ratio greater than 1.0
suggests that the firms are overrepresented.52
RAND identified 28 different approaches to determine underrepresentation and substantial
underrepresentation of WOSBs in federal procurement, each of which yielded a different result.
After examining each approach’s benefits and deficiencies, the SBA defined underrepresentation
as industries having a disparity ratio between 0.5 and 0.8, where the ratio represents the WOSB
share of federal prime contract dollars divided by the WOSB share of total business receipts
within a given NAICS code. Substantial underrepresentation was defined as industries with a
disparity ratio between 0.0 and 0.5.53
Using that methodology, the SBA identified 83 four-digit NAICS industry groups in its final rule
implementing the WOSB program (October 7, 2010, effective February 4, 2011):
 45 four-digit NAICS industry groups in which WOSBs are underrepresented
(225 out of the 1,057 six-digit NAICS industry codes at that time were made
eligible for EDWOSB set-asides only), and
 38 four-digit NAICS industry groups in which WOSBs are substantially
underrepresented (171 out of the 1,057 six-digit NAICS industry codes at that
time were made eligible for WOSB (including EDWOSB) set-asides). eligible for WOSB (including EDWOSB) set-asides).5445
Mandated Updates of Underrepresented and
Substantially Underrepresented NAICS Codes
In 2014, Congress passed legislation (P.L. 113-291) requiringto Eligible Industries After the identification of eligible industries allowed the program to go into effect in 2011, Congress passed legislation in 2014 that required the SBA to update the list of the SBA to update the list of
underrepresented and substantially underrepresented NAICS codes by January 2, 2016, and then underrepresented and substantially underrepresented NAICS codes by January 2, 2016, and then
conduct a new study and update the NAICS codes every five years thereafter.conduct a new study and update the NAICS codes every five years thereafter.46 The SBA asked the The SBA asked the
Department of Commerce’s Office of the Chief Economist (OCE) for assistance in conducting a Department of Commerce’s Office of the Chief Economist (OCE) for assistance in conducting a
new study. new study.
The OCE examined the odds of women-owned businesses winning a federal prime contract The OCE examined the odds of women-owned businesses winning a federal prime contract
relative to otherwise similar firms in FY2013 and FY2014 relative to otherwise similar firms in FY2013 and FY2014 in each of the four-digit NAICS code
by industry industry groupsgroup, controlling for the firm’s size and age, legal form of organization, level of , controlling for the firm’s size and age, legal form of organization, level of
government security clearance, past federal prime contracting performance ratings, and government security clearance, past federal prime contracting performance ratings, and
membership in various categories of firms having federal government-wide procurement goals. membership in various categories of firms having federal government-wide procurement goals.
OCE found that women-owned businesses were less likely to win federal contracts in 254 of the OCE found that women-owned businesses were less likely to win federal contracts in 254 of the
304 industry groups in the study, and women-owned businesses in 109 of the 304 industry groups 304 industry groups in the study, and women-owned businesses in 109 of the 304 industry groups
had statistically had statistically significantsignificantly lower odds of winning federal contracts than otherwise similar lower odds of winning federal contracts than otherwise similar
businesses not owned by womenbusinesses not owned by women, at the 95% confidence level. at the 95% confidence level.55

52 SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62259, October 7, 2010.
53 SBA, “Women-Owned Small Business Federal Contract Assistance Procedures,” 72 Federal Register 73287-73289,
December 27, 2007.
54 SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62259-62262, October 7,
2010; and U.S. Bureau of the Census, “North American Industry Classification System: 60 digit 2007 Code files,” at
https://www.census.gov/eos/www/naics/downloadables/downloadables.html.
5547 On the basis of the OCE study, the SBA increased the number of underrepresented and substantially underrepresented four-digit NAICS codes from 83 to 113, effective March 3, 2016.48 Because OMB updates the NAICS every five years, WOSB program eligibility may be affected not just by SBA industry studies but by changes to the NAICS codes themselves. In response to OMB’s release of NAICS 2017, which replaced NAICS 2012, the SBA reduced the number of underrepresented and substantially underrepresented four-digit NAICS codes from 113 to 112, effective October 1, 2017.49 In FY2020, the SBA contracted with an independent research firm to reassess the underrepresentation of WOSBs.50 The firm used a methodology based on disparity ratios, similar 45 SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62259-62262, October 7, 2010. 46 The Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015 (P.L. 113-291). 47 David N. Beede and Robert N. Rubinovitz, “Utilization of Women-Owned Businesses in Federal Prime David N. Beede and Robert N. Rubinovitz, “Utilization of Women-Owned Businesses in Federal Prime
Contracting,” U.S. Department of Commerce, Office of the Chief Economist, Economics and Statistics Administration, Contracting,” U.S. Department of Commerce, Office of the Chief Economist, Economics and Statistics Administration,
December 31, 2015, at https://www.December 31, 2015, at https://www.sba.gov/sites/default/files/wosb_study_report.pdf;aptac-us.org/media/Department-of-Commerce-WOSB_Study_Report_Final_w-appendices-05JAN2016.pdf, and SBA, “Women-Owned and SBA, “Women-Owned
Small Business Federal Contract Program; Identification of Eligible Industries,” 81 Small Business Federal Contract Program; Identification of Eligible Industries,” 81 Federal Register 11341, March 3, 11341, March 3,
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Based on the OCE study, the SBA increased the number of underrepresented2016. 48 WOSBs were declared underrepresented in 21 industry groups and substantially and substantially
underrepresented four-digit NAICS codes from 83 to 113, effective March 3, 2016 (21 in which
WOSBs are underrepresented (EDWOSB set-asides only) and 92 in which WOSBs are
substantially underrepresented (WOSB and EDWOSB set-asides).56
OMB updates the NAICS every five years. In response to OMB’s release of NAICS 2017, which
replaced NAICS 2012, the SBA reduced the number of underrepresented and substantially
underrepresented four-digit NAICS codes from 113 to 112, effective October 1, 2017. The
underrepresented in 92 industry groups. SBA, “Women-Owned Small Business Federal Contract Program; Identification of Eligible Industries,” 81 Federal Register 11340-11343, March 3, 2016. 49 The reduction took place because NAICS 2017 merged reduction took place because NAICS 2017 merged two2 four-digit NAICS industry groups that four-digit NAICS industry groups that
affected the WOSB affected the WOSB program. After the merger,program. The merger also resulted in the number of four-digit NAICS the number of four-digit NAICS
industry groups in which WOSBs are substantially underrepresented (WOSB and EDWOSB set-industry groups in which WOSBs are substantially underrepresented (WOSB and EDWOSB set-
asides) asides) to fall from 92 to 91.57 Overall, WOSB set-asides were provided to WOSBs (including
EDWOSBs) in 364 (out of 1,023) six-digit NAICS industry codes and to EDWOSBs exclusively
in 80 (out of 1,023) six-digit NAICS industry codes.58
In FY2020, the SBA contracted with an independent research firm to reassess the
underrepresentation of WOSBs in federal contracting. The firm used a methodology similar to
that developed by the Kauffman-RAND Institute for Entrepreneurship Public Policyfell from 92 to 91. SBA, “Women-Owned Small Business Federal Contract Program NAICS Code Updates,” 82 Federal Register 47278-47287, October 11, 2017. 50 The report was prepared by Optimal Solutions Group, LLC, available at https://www.sba.gov/sites/default/files/2022-03/WOSB%20NAICS%20Analysis%20-%20FINAL%20VERSION%20%283%29%20%281%29%20%281%29%20%283%29%28R%29%20%282%29.pdf. Congressional Research Service 8 The Women-Owned Small Business Contract Program: Legislative and Program History to that developed by RAND that was that was
issued in 2007. issued in 2007. Based onOn the basis of this study, the SBA announced that, as of March 18, 2022, this study, the SBA announced that, as of March 18, 2022,
• WOSBs are substantially underrepresented in 646 six- WOSBs are substantially underrepresented in 646 six-digit North American
Industry Classification System (NAICS)digit51 NAICS industry industry codes (out of 1,023), meaning codes (out of 1,023), meaning
that federal contracting officers may award set-aside and solethat federal contracting officers may award set-aside and sole -source contracts to source contracts to
WOSBs (including EDWOSBs) in these 646 WOSBs (including EDWOSBs) in these 646 industries.
industries, and • WOSBs are underrepresented in 113 six-digit NAICS industry codes (out of WOSBs are underrepresented in 113 six-digit NAICS industry codes (out of
1,023), meaning that federal contracting officers may award set-aside and sole 1,023), meaning that federal contracting officers may award set-aside and sole
-source contracts exclusively to EDWOSBs in these 113 industries.source contracts exclusively to EDWOSBs in these 113 industries.5952 The SBA indicated that through the update, it increased the number of eligible industries by 71%. EDWOSBs became eligible for contracting preferences in 74% of NAICS industries and WOSBs in 63% of them.53 Because the list of eligible industries expanded, the potential number of small women-owned businesses eligible for the program grew. Evolution of WOSB Program Eligibility The Consolidated Appropriations Act, 2001 (P.L. 106-554) specified WOSB program eligibility requirements. In addition, the SBA had to develop criteria to define an EDWOSB because the act did not define economic disadvantage. To participate in the program, the act specified that WOSBs must • be a small business (as defined by the SBA); • be at least 51% unconditionally and directly owned and controlled by one or more women who are U.S. citizens;54 • have women managing day-to-day operations and making long-term decisions; and • be certified by a federal agency, a state government, the SBA, or a national certifying entity approved by the SBA or self-certify their eligibility to the federal contracting officer with adequate documentation according to standards established by the SBA. EDWOSBs must meet all WOSB program requirements and be economically disadvantaged, which, as presently defined by the SBA,55 means that they must be • owned and controlled by one or more women, each with a personal net worth less than $850,000, excluding ownership interest in the concern and equity interest in a primary personal residence; • owned and controlled by one or more women, each with $400,000 or less in adjusted gross income averaged over the previous three years; and 51 The most granular code level is six digits long and refers to the most specific industry description (e.g., “Baked Goods Retailers” or “Industrial Valve Manufacturing”). The shortest code level is two digits and provides the most general industry description (e.g., “Retail Trade” or “Manufacturing”). 52 SBA, “Women-Owned Small Business Federal Contract
The SBA indicated that over 85% of four-digit NAICS codes (759 of 891) were identified by this
latest study as being eligible for either WOSB or EDWOSB procurement procedures, compared
with less than half of those codes prior to this change.60
Sole Source Award Authority
P.L. 113-291 (NDAA 2015), enacted in 2014, provides federal agencies authority to award sole
source contracts to WOSBs (including EDWOSBs) eligible under the WOSB program if
 the contract is assigned a NAICS code in which the SBA has determined that
WOSBs are substantially underrepresented in federal procurement;

2016.
56 SBA, “Women-Owned Small Business Federal Contract Program; Identification of Eligible Industries,” 81 Federal
Register 11340-11343, March 3, 2016.
57 SBA, “Women-Owned Small Business Federal Contract Program NAICS Code Updates,” 82 Federal Register
47278-47287 October 11, 2017.
58 SBA, “Qualifying NAICS for the Women-Owned Small Business Federal Contracting program,” at
https://www.sba.gov/document/support—qualifying-naics-women-owned-small-business-federal-contracting-program.
59 SBA, “Women-Owned Small Business Federal Contracting Program; Identification of Eligible Industries,” 87 Program; Identification of Eligible Industries,” 87
Federal Register 15468-15481, March 18, 2022. 15468-15481, March 18, 2022.
6053 SBA, “Women-Owned Small Business Federal SBA, “Women-Owned Small Business Federal ContractingContract Program; Identification of Eligible Industries,” 87 Program; Identification of Eligible Industries,” 87
Federal Register 15470, March 18, 2022. 54 The statute specifies that ownership is to be determined without regard to community property laws. 55 EDWOSB criteria are defined at 13 C.F.R. §127.203. Congressional Research Service 9 The Women-Owned Small Business Contract Program: Legislative and Program History • owned and controlled by one or more women, each with $6.5 million or less in all assets, excluding assets invested in a qualified IRA or other official retirement account. The SBA defined economic disadvantage using its experience with the 8(a) program56 as a guide (i.e., reviewing the owner’s income, personal net worth, and the fair market value of her total assets).57 Elimination of Self-Certification P.L. 113-291, the NDAA 2015, enacted on December 19, 2014, prohibited small businesses from self-certifying WOSB program eligibility as they previously had done.58 WOSBs and EDWOSBs had to be either self-certified or third-party certified to participate in the WOSB program until the SBA certification system was established.59 NDAA 2015 eliminated self-certifications as a means to ensure that the program’s contracts are awarded only to intended, eligible program recipients.60 The SBA announced in the Federal Register that it would implement its own certification process for the WOSB program and remove the ability of small businesses to self-certify their eligibility for the WOSB program on October 15, 2020.61 Under current program requirements, WOSBs and EDWOSBs must apply for certification in order to be eligible for contracting preferences. Firms may either use the SBA’s online certification platform, WOSB.Certify.sba.gov, or apply through one of the four certifying organizations known as third-party certifiers.62 According to the SBA, it makes a firm 56 For more information on this program for disadvantaged business owners, see CRS In Focus IF12458, The SBA’s 8(a) Business Development Program, by R. Corinne Blackford. While all 8(a) program participant firms qualify as SDBs, not all SDBs are in the 8(a) program. 57 SBA, “The Women-Owned Small Business Federal Contract Assistance Program,” 71 Federal Register 34551, June 15, 2006, and SBA, “Women-Owned Small Business Federal Contract Program,” 75 Federal Register 62265, October 7, 2010. 58 Self-certification involved businesses registering and attesting to being a WOSB in the System for Award Management at SAM.gov and submitting documents regarding their status to an online repository maintained by the SBA (EDWOSBs were required to provide a personal financial statement for each woman claiming economic disadvantage). 59 The SBA approved four organizations to provide third-party certification in 2011 (typically involving a fee): El Paso Hispanic Chamber of Commerce, National Women Business Owners Corporation, U.S. Women’s Chamber of Commerce, and Women’s Business Enterprise National Council. Third-party certification by these organizations continues to be an option. 60 A study published by GAO in 2014 found that the SBA “cannot offer reasonable assurance that only eligible businesses participate in the program” (Register 15470, March 18, 2022.
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SBA Women-Owned Small Business Federal Contracting Program

 the contracting officer does not have a reasonable expectation that offers would
be received from two or more WOSBs (including EDWOSBs); and
 the anticipated total value of the contract, including any options, does not exceed
$6.5 million for manufacturing contracts (now $7.0 million) and $4.0 million for
other federal contracts (now $4.5 million).61
NDAA 2015 also provides federal agencies authority to award sole source contracts exclusively
to EDWOSBs eligible under the WOSB program if
 the contract is assigned a NAICS code in which SBA has determined that WOSB
concerns are underrepresented in federal procurement;
 the contracting officer does not have a reasonable expectation that offers would
be received from two or more EDWOSB concerns; and
 the anticipated total value of the contract, including any options, does not exceed
$6.5 million for manufacturing contracts (now $7.0 million) and $4.0 million for
other federal contracts (now $4.5 million).62
Expanding the WOSB program to include sole source contracts was designed, along with WOSB
set-asides, to help federal agencies achieve their statutory goal of awarding at least 5% of their
federal contracting dollars to WOSBs. The SBA published a final rule expanding the WOSB
program to include sole source awards on September 14, 2015 (effective October 14, 2015).63
Current Administrative Issues
Both GAO and the SBA’s OIG have issued reports and audits of the WOSB program that have
been critical of the SBA’s implementation and oversight of the program.64 For example, GAO has
criticized the SBA for delays in implementing the WOSB program and, in 2019, reported that the
SBA had not fully addressed WOSB program oversight deficiencies, first identified by GAO in
2014, related to third-party certifiers, the procedures used to conduct annual eligibility
examinations of WOSBs, and “reviews of individual businesses found to be ineligible to better
understand the cause of the high rate of ineligibility in annual reviews and determine what actions
are needed to address the causes.”65 GAO argued that

61 FAR §19.1506(b), FAR §19.1506(c), and P.L. 116-283, the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021.
The Federal Acquisition Regulatory Council has the responsibility of adjusting each acquisition-related dollar threshold
(including those for the 8(a), HUBZone, Service-Disabled Veteran-Owned, and Women-Owned Small Business
contracting programs), on October 1, of each year that is evenly divisible by five. As a result, these thresholds may
differ from those in statute. The next adjustment for inflation will take place on October 1, 2025. See 13 C.F.R.
§124.506(a); and 41 U.S.C. §1908(c)(2).
62 FAR §19.1506(a), FAR §19.1506(c), and P.L. 116-283, the William M. (Mac) Thornberry National Defense
Authorization Act for Fiscal Year 2021.
63 SBA, “Women-Owned Small Business Federal Contract Program,” 80 Federal Register 55019, September 14, 2015.
64 For example, see GAO-01-346, Federal Procurement: Trends and Challenges in Contracting with WOSBs; GAO, GAO,
Women-Owned Small Business Program: Certifier Oversight and Additional Eligibility Controls Are Needed, GAO-, GAO-
15-54, October 15-54, October 8, 20142014, p. 26, at https://www.gao.gov/, at https://www.gao.gov/products/GAO-15-54 (hereinafter cited asassets/d1554.pdf; hereinafter GAO-15-54, GAO-15-54, WOSB
Program: Certifier Oversight and Eligibility Controls)); GAO, Small Business Administration. A GAO report published in 2019 stated that “the rate of ineligible businesses has remained significant,” with about 40% of a sample of WOSBs in FY2017 found to be ineligible for the program (GAO, Women-Owned Small Business Program: Actions Needed to Address Ongoing Oversight Issues, GAO-19-168, March 2019, p. 20, at https://www.gao.gov/assets/gao-19-168.pdf; hereinafter GAO-19-168, WOSB: Ongoing Oversight Issues). In 2015, the SBA’s Office of the Inspector General (OIG) found that “15 of the 34 [WOSB] set-aside awards [analyzed between 2013 and 2014] were made without meeting the WOSB program’s requirements,” and these awards totaled approximately $7.1 million (SBA, OIG, “Improvements Needed in SBA’s Management of the Women-Owned Small Business Federal Contracting Program,” report no. 15-10, May 14, 2015, p. 4). 61 SBA, “Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business Certification,” 85 Federal Register 27650, May 11, 2020. 62 Third-party certification was available to firms prior to the elimination of self-certification and remains an option; firms certified through these organizations must still provide documentation to the SBA through the agency’s new (continued...) Congressional Research Service 10 link to page 14 The Women-Owned Small Business Contract Program: Legislative and Program History certification decision within 90 calendar days after receipt of a complete package, “whenever practicable.”63 As of May 30, 2023, certified WOSB and EDWOSB firms are required to undergo an examination every three years to maintain their certification.64 WOSBs that do not certify their status remain eligible for contract awards outside of the WOSB program (without contracting preferences), and agencies are permitted to count those awards toward their WOSB procurement goal.65 WOSB Program Development and Revision Timeline The chronology of the WOSB program provided in Table 1 summarizes the legislative and executive actions taken to create and modify the program. Table 1. Chronology of the Women-Owned Small Business (WOSB) Program Year Action 1979 President Carter issued Executive Order 12138, establishing a national policy to promote women-owned business enterprises. 1988 The Women’s Business Ownership Act of 1988 (P.L. 100-533) provided the Small Business Administration (SBA) with statutory authorization to establish WOSB annual procurement goals with federal agencies. 1994 The Federal Acquisition Streamlining Act of 1994 (P.L. 103-355) established the annual, government-wide WOSB procurement goals of 5% of prime award and 5% of subcontract award dollars. Implementing regulations became effective in FY1996. 2000 The Small Business Reauthorization Act of 2000 (H.R. 5654), incorporated by reference in the Consolidated Appropriations Act, 2001 (P.L. 106-554), authorized WOSB set-asides. 2001 The SBA completed a draft of the legislatively mandated study of North American Industry Classification System (NAICS) industrial codes in which WOSBs are underrepresented, using internal resources. The SBA withdrew proposed regulations related to industries identified as eligible for the WOSB program, which had been submitted to the Office of Management and Budget (OMB) for review. 2003 The SBA contracted with the National Academy of Sciences (NAS) to review the draft industry study and recommend changes. 2005 NAS completed its analysis and issued a report on the SBA’s study, concluding that the study was “problematic” and making recommendations for a new study. The SBA issued a solicitation seeking a private contractor to perform a revised study. certification platform before they can receive contracting preferences. The certifiers are El Paso Hispanic Chamber of Commerce, National Women Business Owners Corporation, U.S. Women’s Chamber of Commerce, and Women’s Business Enterprise National Council. 63 13 C.F.R. §127.304(a). The phrase “whenever practicable” is not defined. 64 13 C.F.R. §127.400(a). Previously, WOSB program participants annually attested to their eligibility to continue participating in the program. 65 SBA, “Women-Owned Small Business and Economically Disadvantaged Women-Owned Small Business Certification,” 85 Federal Register 27650, May 11, 2020; 13 C.F.R. §127.200(c)(2). Congressional Research Service 11 The Women-Owned Small Business Contract Program: Legislative and Program History 2006 The SBA awarded a contract to the Kaufman-RAND Institute for Entrepreneurship Public Policy (RAND). 2007 The RAND industry underrepresentation study was published. 2010 The SBA identified 83 four-digit NAICS industry groups in its final rule implementing the WOSB program, effective February 2011. 2013 The National Defense Authorization Act for Fiscal Year 2013 (P.L. 112-239) removed WOSB set-aside award value caps. 2014 The Carl Levin and Howard P. “Buck” McKeon National Defense Authorization Act for Fiscal Year 2015 (NDAA 2015; P.L. 113-291) authorized sole-source contract awards for WOSBs. Implementing regulations became effective in October 2015. NDAA 2015 eliminated WOSB self-certification. 2016 The SBA increased the number of WOSB program-eligible NAICS codes after asking the Department of Commerce’s Office of the Chief Economist (OCE) to conduct a study on WOSB utilization in federal prime contracting. 2017 OMB released NAICS 2017, which replaced NAICS 2012 and changed the number of WOSB program-eligible NAICS codes. 2020 The SBA contracted with an independent research firm to reassess the underrepresentation of WOSBs. The SBA announced implementation of its WOSB certification process. 2022 The SBA increased the number of WOSB program-eligible industries based on the study reassessing WOSB underrepresentation in industries. 2023 Annual WOSB eligibility attestation requirements were replaced by a requirement to undergo an examination every three years to maintain WOSB certification. A Targeted Approach to Avoid Legal Challenges Congressional efforts to promote WOSB set-asides were complicated by Supreme Court decisions regarding contracting preferences for minority contractors. In one case, City of Richmond v. J.A. Croson Co. (1989), the Court found unconstitutional a municipal ordinance that required the city’s prime contractors to award at least 30% of the value of each contract to minority subcontractors. In a later case, Adarand Constructors, Inc. v. Peña (1995), the Court found that all racial classifications, whether imposed by federal, state, or local authorities, are subject to “strict scrutiny.” Strict scrutiny is a standard of judicial review that requires the government to prove it has a compelling interest for its actions and that it has “narrowly tailored” them to the problem at hand.66 Following the Adarand decision, the federal government reexamined how it implemented certain procurement preference programs.67 66 This standard of judicial review is a rigorous test that will be applied to decide whether a law, regulation, or government action violates constitutional equal protection principles. For more information, see CRS In Focus IF12391, Equal Protection: Strict Scrutiny of Racial Classifications, by April J. Anderson. 67 For example, prior to the Adarand decision, between 1987 and 1995, SDBs were eligible to receive a 10% price evaluation preference in competitive DOD acquisitions. They could also compete for contracts set aside for SDBs for certain DOD acquisitions where agency officials believed there was a reasonable expectation that offers would be received from at least two responsible SDBs. FASA extended the authority to implement these benefits to all federal agencies, but in 1995, in light of Adarand, regulations to implement FASA’s provision to expand SDB program preferences to other federal agencies were delayed. Statutory authority for SDB price evaluation adjustments expired on December 9, 2004, for most federal procuring agencies, and at the end of 2009 for DOD, the National Aeronautics and Space Administration, and the Coast Guard. GAO, Small Business: Status of Small Disadvantaged Business (continued...) Congressional Research Service 12 link to page 16 link to page 16 The Women-Owned Small Business Contract Program: Legislative and Program History When developing the WOSB set-aside program, its designers were aware that the program could be subject to a heightened standard of judicial review given the Supreme Court’s rulings. In the House report accompanying H.R. 4897, the Equity in Contracting for Women Act of 2000 (incorporated into H.R. 5654, the Small Business Reauthorization Act of 2000), some WOSB advocates argued that a set-aside program was needed because of the lack of progress in meeting the 5% procurement goal for WOSBs and that the program offered a narrowly tailored solution because it limited WOSB set-asides to industries in which WOSBs are underrepresented in obtaining federal contracts.68 Program Outcomes The federal government has had difficulty meeting its WOSB procurement goals. The 5% prime contracting goal was achieved in two fiscal years (FY2015 and FY2019) since its creation, although the subcontracting goal has been met in each of the last five fiscal years (see Table 2).69 In contrast, the government has typically met prime contracting goals for small businesses in general, for SDBs, and for service-disabled veteran-owned small businesses. Table 2 shows the shares of prime and subcontract dollars awarded to WOSBs for the past five fiscal years. Table 2. Women-Owned Small Business (WOSB) Procurement Goals and Percentage of Contract Dollars Awarded to WOSBs FY2019 to FY2023 Percentage Percentage Percentage Percentage Percentage of Dollars of Dollars of Dollars of Dollars of Dollars Awarded Awarded Awarded Awarded Awarded Federal Goal FY2023 FY2022 FY2021 FY2020 FY2019 5% Prime Award Dollars 4.91% 4.57% 4.63% 4.85% 5.19% 5% Subcontract Award Dollars 5.65% 5.14% 5.24% 5.62% 5.25% Source: Small Business Administration (SBA), “Government-wide Small Business Procurement Scorecard [FY2019-FY2023],” at https://www.sba.gov/document/support-small-business-procurement-scorecard-overview. Notes: The SBA excludes certain contracts when procurement data are unavailable or because the work cannot realistically be performed by small businesses. According to the SBA’s FY2024 Goaling Guidelines, excluded contracts include acquisitions on behalf of foreign governments, contracts awarded to mandatory sources (which include Federal Prison Industries contracts and those with nonprofit agencies employing persons who are blind or have other significant disabilities), contracts funded with non-appropriated, agency-generated funds, Tricare Certifications, GAO-01-273, January 19, 2001, pp. 3-6, at https://www.gao.gov/new.items/d01273.pdf, and SBA, “Small Disadvantaged Business Program,” 73 Federal Register 57490, October 3, 2008. 68 U.S. Congress, House Committee on Small Business, Equity in Contracting For Women Act of 2000, report to accompany H.R. 4897, 106th Cong., 2nd sess., September 21, 2000, H.Rept. 106-879 (Washington, DC: GPO, 2000), pp. 2-3. The report stated that WOSB goals “will not be achieved without the use of some mandatory tool which enables contracting officers to identify WOSBs and establish competition among those businesses for the provision of goods and services.” 69 Subcontracting opportunities may be more readily available or accessible to WOSBs, particularly if a firm’s past performance as a contractor is a factor in an agency’s selection of a contractor. Agencies may consider non-cost factors such as past performance, technical expertise, or management experience when awarding contracts when they use “negotiated contracting.” To obtain the best value for the government, agencies may determine which non-price or non-cost evaluation factors to use. For more information on the procurement process, see CRS Report RS22536, Overview of the Federal Procurement Process and Resources, by Dominick A. Fiorentino. Congressional Research Service 13 link to page 17 link to page 18 The Women-Owned Small Business Contract Program: Legislative and Program History health care program contracts, and Department of Veterans Affairs Community Care Network contracts. Purchases valued at less than $10,000 are also excluded because they are not tracked in the Federal Procurement Data System. The value of contracts with these exclusions is referred to as the “small business eligible” value. Figure 1 shows the share of prime contract dollars awarded to WOSBs since FY1995, the year prior to the implementation of the WOSB procurement goals. The figure shows a gradual increase in the share of WOSB award dollars over time, from less than 2% to nearer the 5% goal. Figure 1. Percentage of Contract Dollars Awarded to WOSBs FY1995 to FY2023 Sources: SBA, “Government-wide Small Business Procurement Scorecard [FY2019-FY2023],” at https://www.sba.gov/document/support-small-business-procurement-scorecard-overview; U.S. General Services Administration (GSA), “Data Bank: Small Business Goaling Report [FY2005-FY2018]” at https://sam.gov/reports/awards/static; U.S. Congress, House Committee on Small Business, Subcommittee on Regulatory Reform and Oversight, SBA’s Procurement Assistance Programs, hearing, 109th Cong., 2nd sess., March 30, 2006, serial no. 109-45 (Washington, DC: GPO, 2006), p. 31 [FY2001-FY2004]; U.S. Congress, House Committee on Small Business, Subcommittee on Contracting and Technology, Subcommittee Hearing on Federal Government Efforts in Contracting with Women-Owned Businesses, hearing, 110th Cong., 1st sess., March 21, 2007, serial no. 110-9 (Washington, DC: GPO, 2007), pp. 4, 46 [FY2000]; White House, The State of Small Business: A Report of the President [1996-2000]. Notes: Percentages reflect the WOSB share of “small business eligible” contracts. The red line indicates the award goal. Although contracting preferences such as set-asides provide a tool for agencies seeking to award contracts to qualified WOSBs, awards made through WOSB-specific preferences constitute a relatively small share of WOSB awards. Table 3 shows that larger shares of WOSB awards were made through a general small business preference or in open, unrestricted competition. Some contracts awarded to WOSBs may also be made through a different kind of contracting preference (e.g., an SDB preference or a service-disabled veteran-owned small business preference), though data limitations prevent presentation of that information in the table. In previous years, GAO found that “[s]et-asides under the WOSB program to date have had a Congressional Research Service 14 link to page 18 The Women-Owned Small Business Contract Program: Legislative and Program History minimal effect on overall contracting obligations to WOSBs and attainment of WOSB contracting goals.”70 Table 3. Percentage of Dollars Awarded to WOSBs by Type of Contracting Preference FY2018 to FY2022 Type of Preference FY2022 FY2021 FY2020 FY2019 FY2018 WOSB Set-Aside 3.07% 3.08% 2.46% 2.27% 2.54% WOSB Sole-Source Award 0.06% 0.02% 0.03% 0.02% 0.05% Small Business Preferencea 20.72% 20.20% 17.53% 16.52% 18.47% Full and Open Competition (no preference) 63.86% 64.75% 19.95% 17.51% 13.63% Source: GSA, “Federal Procurement Data System Report,” FY2018-FY2022, at https://www.gsa.gov/policy-regulations/policy/acquisition-policy/small-business-reports. Notes: Percentages do not sum to 100 because WOSB awards may have been made through other preferences (e.g., a preference for small disadvantaged businesses). Table data underlying calculations may not match Small Business Procurement Scorecard WOSB award data. The Federal Procurement Data System report from the GSA reflects data on all prime contract awards made each year per Section 15(h)(3)(A)(ii) of the Small Business Act, without the contract exclusions or double-counting unique to the SBA Scorecard. Percentages reflect shares of all contracts rather than of “small business eligible” contracts only. a. “Small Business Preference” refers to contracts made with a small business preference unrelated to WOSB status (i.e., competitions restricted to small businesses in general). Larger agencies typically fund more contracts and award more dollars to WOSBs than other agencies do. The Department of Defense, Department of Health and Human Services, and Department of Homeland Security were the top three WOSB prime contract award agencies in terms of dollars awarded in FY2023. They were not the top agencies in terms of the percentage of prime contract dollars awarded to WOSBs. The Department of Agriculture awarded both a relatively large amount of dollars and a relatively high percentage of contract dollars to WOSBs. Table 4 shows the 10 agencies that awarded the most prime contract dollars to WOSBs in FY2023. Table 4. Dollars and Percentage of Dollars Awarded to WOSBs, by Agency FY2023 Percentage of Dollars Agency Awarded Dollars Awarded Department of Defense 3.86% $14,091,815,631.88 Department of Health and Human Services 6.68% $2,777,778,521.50 Department of Homeland Security 7.25% $1,885,511,229.58 Department of Agriculture 11.84% $1,371,403,166.13 Department of Veterans Affairs 1.59% $992,691,397.88 70 GAO-15-54, WOSB Program: Certifier Oversight and Eligibility Controls, p. 18 Congressional Research Service 15 The Women-Owned Small Business Contract Program: Legislative and Program History Percentage of Dollars Agency Awarded Dollars Awarded Department of the Treasury 9.40% $956,666,178.30 Department of Justice 8.99% $864,478,901.40 National Aeronautics and Space Administration 3.98% $823,232,634.48 Department of Commerce 12.91% $733,998,225.89 Department of Transportation 7.89% $704,395,929.33 Source: GSA, “Data Bank: Small Business Goaling Report for Fiscal Year 2023” at https://sam.gov/reports/awards/static. Notes: The table lists the top 10 agencies that awarded the most prime contract dollars to WOSBs in FY2023. “Percentage of Dollars Awarded” refers to the percentage of agency prime contracting dollars awarded to WOSBs. Small Business Goaling Report data are comparable to SBA Procurement Scorecard data in that they reflect the WOSB share of “small business eligible” contracts rather than all contracts. According to GAO, the same agencies have collectively awarded the most contracts to WOSBs for several years. GAO found that from the third quarter of FY2011 through the third quarter of FY2018, six federal agencies accounted for nearly 83% of the contract amount awarded under the WOSB program: Department of Defense (48.6%), Department of Homeland Security (12.4%), Department of Commerce (8.0%), Department of Agriculture (6.3%), Department of Health and Human Services (4.0%), and GSA (4.0%). All other federal agencies accounted for 16.8%.71 To gain insight into WOSB program use across agencies and barriers faced by contracting officers when making WOSB contract awards, Congress may be interested in qualitative assessments of contracting officer understanding and comfort with the WOSB program. Congress may also be interested in assessments of program outcomes beyond goal attainment and program utilization, such as the number of WOSB entrants into the federal market and the extent to which WOSBs become successful contractors and subcontractors. Concluding Observations TheNeeded to
Improve Confidence in Small Business Procurement Scorecard, GAO-18-672, September 27, 2018, at
https://www.gao.gov/products/GAO-18-672; GAO, WOSB: Ongoing Oversight Issues; and GAO-19-563T, WOSB
Program: Continued Oversight Issues.
65 GAO-15-54, WOSB Program: Certifier Oversight and Eligibility Controls; and GAO-19-563T, WOSB Program:
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the deficiencies in SBA’s oversight of the WOSB program limit SBA’s ability to identify
potential fraud risks and develop any additional control activities to address these risks. As
a result, the program continues to be exposed to the risks of ineligible businesses receiving
set-aside contracts.66
In addition, GAO noted that, from April 2011 through June 2018, about 3.5% of WOSB set-aside
contracts were awarded for ineligible goods or services [NAICS codes].67
In 2015, the SBA’s OIG analyzed 34 WOSB program awards made between October 1, 2013,
and June 30, 2014, (17 WOSB set-aside awards totaling $6.6 million and 17 EDWOSB set-aside
awards totaling $7.9 million) and found “15 of the 34 set-aside awards were made without
meeting the WOSB program’s requirements,” and these awards totaled approximately $7.1
million.68 Specifically, 10 of the 34 WOSB program set-aside awards were made “for work that
was not eligible to be set aside for the program” and 9 of the 34 awards went to firms that did not
have any documentation in the WOSB program’s repository, including 7 of the 17 WOSB set-
aside awards, or 41%, and 2 of the 17 EDWOSB set-aside awards, or 12%.”69 The SBA OIG
found that “this occurred because agencies’ contracting officers did not comply with the
regulations prior to awarding these awards and SBA did not provide enough outreach or training
to adequately inform them of their responsibilities and the program’s requirements.”70
In a related development, in 2018, the SBA’s OIG analyzed 56 WOSB sole source contracts
awarded between January 1, 2016, and April 30, 2017, and found that 50 of the 56 contracts,
totaling approximately $52.2 million, were made “without having the necessary documentation to
determine eligibility” of the award recipients.71 Examples of missing documentation included
WOSB and EDWOSB self-certifications, articles of incorporation, birth certificates, and financial
information.72
Current Oversight and Legislative Issues
Issues of particular interest to Congress during the 117th Congress may include congressional
oversight of the SBA’s implementation of the WOSB program’s certification procedures;
congressional oversight of the SBA’s training of federal procurement officers to ensure that
WOSB awards are made only to eligible firms in eligible industries; the performance of federal

Continued Oversight Issues, pp. 3, 4.
66 GAO-19-168, WOSB: Ongoing Oversight Issues, pp. 10-25; and GAO-19-563T, WOSB Program: Continued
Oversight Issues, p. 5.
67 GAO-19-563T, WOSB Program: Continued Oversight Issues, p. 5.
68 SBA, OIG “Improvements Needed in SBA’s Management of the Women-Owned Small Business Federal
Contracting Program,” Report No. 15-10, May 14, 2015, p. 4, at https://www.sba.gov/document/report-15-10-
evaluation-report-15-10-improvements-needed-sbas-management-women-owned-small-business-federal (hereinafter
cited as SBA, OIG report, SBA’s Management of the WOSB Program).
69 Four of the set-aside awards “were improperly set-aside using NAICS codes that SBA had not identified as being
substantially, underrepresented or underrepresented by women-owned businesses. The other six awards should have
been set aside for an EDWOSB but were misclassified as WOSB set-aside awards.” See SBA, OIG report, SBA’s
Management of the WOSB Program, pp. 4, 5.
70 SBA, OIG report, SBA’s Management of the WOSB Program, p. 4.
71 SBA, OIG “SBA’s Women-Owned Small Business Federal Contracting Program,” Report No. 18-18, June 20, 2018,
p. 4, at https://www.sba.gov/document/report-18-18-sbas-women-owned-small-business-contracting-program
(hereinafter cited as SBA, OIG report, SBA’s WOSB Federal Contracting Program).
72 SBA, OIG report, SBA’s WOSB Federal Contracting Program, p. 4.
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agencies in achieving the 5% procurement goal for WOSBs; and the WOSB program’s efficacy in
helping to meet the 5% goal.
As shown in Table 1, federal procurement officers’ use of the WOSB program has increased from
about $21 million in FY2011 to $1.206 billion in FY2021, with most of that increase resulting
from rising use of WOSB set-asides (from $15 million in FY2011 to $1.1 billion in FY2021).
Although WOSB program usage is increasing, WOSB set-asides and sole source awards continue
to account for a relatively small portion of the federal contracts awarded to WOSBs. Although the
WOSB program has been operational since 2011, many federal agencies have little experience
with the program.
For example, in FY2021, about 35% of the federal contracts awarded to WOSBs were awarded in
full and open competition with other firms, about 60% were awarded with another small business
preference (such as the 8(a) and HUBZone programs), and about 5% were awarded with a WOSB
preference.73
Also, GAO found that from the third quarter of FY2011 through the third quarter of FY2018, six
federal agencies accounted for nearly 83% of the contract amount awarded under the WOSB
program: DOD (48.6%), Department of Homeland Security (DHS) (12.4%), Department of
Commerce (8.0%), Department of Agriculture (6.3%), Department of Health and Human Services
(4.0%), and GSA (4.0%). All other federal agencies accounted for 16.8%.74
GAO conducted an audit of the WOSB program from October 2017 to March 2019. As part of the
audit, GAO interviewed 14 stakeholder groups (staff from DHS, DOD, and GSA, eight
contracting officers within these agencies, and three WOSB third-party certifiers) to obtain their
views on WOSB program usage. The stakeholder groups identified several positive aspects about
the WOSB program, including that it provided WOSBs greater opportunities to win federal
contracts, and that the SBA had several initiatives underway to help improve collaboration
between federal agencies and the small business community.75 The stakeholders also identified
several impediments that limited the WOSB program’s use by federal contracting officers,
including the following:
 Sole Source Authority Rules.
Executing sole source authority under the WOSB program is difficult for contracting
officers because rules for sole source authority under the WOSB program are different
from those under SBA programs.... For example, the FAR’s [Federal Acquisition
Regulation] requirement that contracting officers must justify, in writing, why they do not
expect other WOSBs or EDWOSBs to submit offers on a contract is stricter under the
WOSB program that it is for the 8(a) program.76

73 Data generated using GSA, “Sam.Gov Data Bank, Ad Hoc report,” July 26, 2022, at https://sam.gov/reports/awards/
adhoc.
74 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 29. From the third quarter of FY2011 through the third quarter of
FY2018, these six federal agencies accounted for about 77.6% of total federal contract award amounts: DOD (65.2%),
Department of Homeland Security (DHS) (3.98%), Department of Commerce (0.6%), Department of Agriculture
(1.16%), Department of Health and Human Services (4.5%), and GSA (2.14%). All other federal agencies accounted
for 12.4%. GSA, Federal Procurement Data System—Next Generation, accessed on April 21, 2020, at
https://www.fpds.gov/fpdsng/.
75 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 34.
76 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 31.
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 Industry Restrictions.
13 of the 14 stakeholder groups ... commented on the requirement that WOSB program set-
asides be awarded within certain industries, represented by NAICS codes. For example,
two third-party certifiers ... recommended that the NAICS codes be expanded or eliminated
to provide greater opportunities for WOSBs to win contracts under the program.77
 Eligibility Documentation Requirements.
7 of the 14 stakeholder groups discussed the requirement for the contracting officer to
review program eligibility documentation and how this requirement affects their decision
to use the program.
For example, staff from one contracting office said that using the 8(a) or HUBZone
programs is easier because 8(a) and HUBZone applicants are already certified by the SBA;
therefore, the additional step to verify documentation for eligibility is not needed.... GSA
officials noted that eliminating the need for contracting officers to take additional steps to
review eligibility documentation for WOSB-program set-asides could create more
opportunities for WOSBs by reducing burdens on contracting officers.78
 Need for Additional Guidance.
13 of the 14 stakeholder groups discussed guidance available to federal contracting officers
under the WOSB program. For example, two third-party certifiers identified the need for
additional training and guidance for federal contracting officers, and staff from two federal
contracting offices said that the last time that they had received training on the WOSB
program was in 2011, when the program was first implemented.79
In a related development, during the 116th Congress, the House passed legislation (H.R. 190, the
Expanding Contracting Opportunities for Small Businesses Act of 2019) that would have, among
other provisions, eliminated the inclusion of option periods in the award price for sole source
contracts awarded to qualified HUBZone small businesses, SDBs, SDVOSBs, and WOSBs
(including EDWOSBs). This provision would have increased the number of contracts available
for sole source awards to these recipients because the option years would not count toward the
statutory caps on sole source awards (the WOSB sole source caps are currently $7 million for
manufacturing contracts and $4.5 million for other federal contracts).
Also, some WOSB advocates have suggested that the WOSB program should be amended to (1)
eliminate the distinction and disparate treatment of WOSBs and EDWOSBs when awarding
contracts, and/or (2) allow set-asides and sole source awards to WOSBs (including EDWOSBs)
in all NAICS industry codes regardless of WOSB representation, as is the case for other small
business preference programs.80 Both legislative options could lead to an increase in the amount
of contracts awarded to WOSBs. In the first instance, WOSBs would be eligible for set-asides and
sole source awards in both underrepresented and substantially underrepresented NAICS codes,
instead of just substantially underrepresented NAICS codes. In the latter instance, WOSBs and
EDWOSBs would be eligible for set-asides and sole source awards in all NAICS industry codes,
not just underrepresented or substantially underrepresented NAICS industry codes.
As mentioned in the “A Targeted Approach to Avoid Legal Challenges” section, one of the
reasons the WOSB program provides disparate treatment to WOSBs and EDWOSBs, and makes

77 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 32.
78 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 33.
79 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 34.
80 For example, see Rachel N. Herrington, “Five Years In: A Review of the Women-Owned Small Business Federal
Contracting Program,” Public Contract Law Journal, vol. 45, no. 2 (Winter 2016), pp. 359-382.
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distinctions among underrepresented, substantially underrepresented, and other NAICS industry
codes was to address the heightened level of legal scrutiny related to contracting preferences
following the Supreme Court’s decision in Adarand Constructors, Inc. v. Pena. The Supreme
Court ruled that all racial classifications, whether imposed by federal, state, or local authorities,
must pass strict scrutiny review (i.e., they must serve a compelling government interest and must
be narrowly tailored to further that interest). Although the WOSB program is not based on racial
classifications, it was expected to receive a heightened level of judicial scrutiny. As such, it lead
the WOSB program’s advocates to create these distinctions in an effort to shield it from legal
challenges.
Concluding Observations
As mentioned in the “Introduction” the WOSB program is one of several contracting programs WOSB program is one of several contracting programs
that Congress has approved to provide greater opportunities for small businesses to win federal that Congress has approved to provide greater opportunities for small businesses to win federal
contracts. Its legislative history contracts. Its legislative history is relatively complicated when compared to most other contracting programs, primarily due to the industry-based eligibility criteria and the distinction between WOSBs and EDWOSBs. These program featuresis a bit more complicated than others, primarily due to the
distinctions between WOSBs and EDWOSBs and among underrepresented, substantially
underrepresented, and other NAICS codes. These distinctions, and the SBA’s difficulty in , and the SBA’s difficulty in
defining them, led to defining them, led to the 10-year delay in the program’s implementationprogram implementation delays and may also help and may also help to
explain why the SBA’s implementation of the SBA’s certification program was delayed nearly
six years.
The SBA’s implementation of the WOSB program is likely to remain a priority for congressional
oversight during the 117th Congress, as is federal agency use of the program. As mentioned, the
federal government has met the 5% procurement goal for WOSBs only twice (in FY2015 and
FY2019) since the goal was authorized in 1994, and implemented in FY1996.
Also, the data on WOSB federal contract awards suggest that federal procurement officers are
using the WOSB program more often than in the past, but the program accounts for a relatively
small portion of WOSB contracts. Most of the federal contracts awarded to WOSBs are awarded
in full and open competition with other firms or with another small business preference program
(such as the 8(a) and HUBZone programs). Relatively few federal contracts are awarded through
the WOSB program. Determining why this is the case, and if anything can, or should be done to
address this, is likely to be of continuing congressional interest.


Author Information

Robert Jay Dilger
R. Corinne Blackford
Senior Specialist in American National Government Analyst in Small Business and Economic

Development Policy

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explain the government’s ongoing struggle to reach the statutory WOSB procurement goal for prime contract awards. While industry-specific eligibility criteria were designed to protect the WOSB program from legal challenges, the details and complexity of these criteria, and the mandated updates to them, may discourage both agency and firm participation in the program. The implementation of the SBA WOSB certification process could assist contracting officers in identifying eligible WOSBs and thus increase agency program utilization—WOSBs may have historically received a small proportion of prime contracting dollars through WOSB preferences because agencies were concerned about granting preferences to ineligible, albeit self-certified, firms. However, certification requirements could also hinder eligible firms from seeking certification, which 71 GAO-19-168, WOSB: Ongoing Oversight Issues, p. 29. Congressional Research Service 16 The Women-Owned Small Business Contract Program: Legislative and Program History would reduce firms’ program utilization; agencies may then continue to make WOSB awards at levels beneath the WOSB procurement goal. Some WOSB advocates have suggested that the WOSB program should be amended to (1) eliminate the distinction and disparate treatment of WOSBs and EDWOSBs and/or (2) allow set-asides and sole-source awards to WOSBs (including EDWOSBs) in all NAICS industry codes regardless of WOSB representation, as is the case for other small business preference programs.72 Both legislative options could lead to an increase in the amount of contracts awarded to WOSBs. In the first instance, WOSBs in both underrepresented and substantially underrepresented NAICS codes would be eligible for set-asides and sole-source awards, instead of just those in substantially underrepresented NAICS codes. In the latter instance, WOSBs and EDWOSBs would be eligible for set-asides and sole-source awards in all NAICS codes. However, either program change could raise the prospect of legal challenges. While Congress may be interested in how agencies can make progress toward WOSB procurement goals, it may also consider whether the WOSB goal and program still reflect the aims of the government as a buyer. The government is not currently pursuing a WOSB goal that corresponds to the share of women-owned firms, which is higher than 5%.73 It is also not pursuing a goal related to WOSB underrepresentation among contractors. Congress may be interested in authoritative studies on policies oriented toward, for example, increasing WOSB market share in industries in which WOSBs are underrepresented or in which WOSBs face discrimination by buyers, including federal agencies. Some scholars have concluded that “in terms of broad policy intent and intended outcomes not much has changed since 1988.”74 Author Information R. Corinne Blackford Analyst in Small Business and Economic Development Policy Acknowledgments Research conducted by Robert Jay Dilger, former Senior Specialist in American National Government, was used in the preparation of this report. 72 For example, see Rachel N. Herrington, “Five Years In: A Review of the Women-Owned Small Business Federal Contract Program,” Public Contract Law Journal, vol. 45, no. 2 (Winter 2016), pp. 359-382, at https://www.jstor.org/stable/26419510; see also SBA, “FY 2025 Legislative Proposals,” FY 2025 Congressional Budget Justification (pp. 14-15). 73 According to Census Bureau data, women owned 12.4 million businesses out of 32.9 million businesses (about 38%) in 2020. U.S. Census Bureau, “Census Bureau Releases Nonemployer Business Data by Demographic Characteristics of Owners,” press release, February 28, 2024, at https://www.census.gov/newsroom/press-releases/2024/nonemployer-business-data.html. 74 S. Pandey and A. S. Amezcua, “Women’s Business Ownership and Women’s Entrepreneurship,” Small Business Economics, vol. 54 (November 23, 2018), p. 1123. Women’s business ownership increased significantly from 1972 to 1987, from less than 5% to approximately 30% (p. 1139). The WOSB goal may reflect the circumstances that spurred advocacy on behalf of WOSBs in the 1970s and 1980s, rather than current conditions in which WOSBs are a large share of firms overall but a small share of federal contractors. Congressional Research Service 17 The Women-Owned Small Business Contract Program: Legislative and Program History


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