SBA issued a final rule this week on Wednesday, December 4, 2024, making changes to the Women-Owned Small Business (WOSB) Federal Contract Program regulations. The final rule makes administrative updates to align with current practices, procedural processes related to the launch of MySBA Certifications, and then a few notable updates outlined below.
✅ Clarifies discrepancies between Sections 124.106(a), 127.202(c), and 128.203(i) related to outside employment that may affect program eligibility; 8(a), WOSB, and VetCert language did not align. The rule confirms that WOSBs will generally be required "...to have the qualified woman that controls the concern devote full time to the business during the business's normal hours of operation." There is an exception wherein the woman on which the eligibility is based can demonstrate to SBA that they have "...ultimate managerial and supervisory control over both long-term decision making and day-to-day management of the business although the woman may not meet full-time devotion."
✅ Amends the definition of "interested party". The definition is changed to clarify that for the purposes of protesting a WOSB or EDWOSB's status, only WOSBs and EDWOSBs certified by SBA or an approved third-party certifier or that have a pending application for certification AND who submitted an offer for the WOSB / EDWOSB requirement in question are considered "interested parties". This stands to reason since only certified WOSBs / EDWOSBs who submitted an offer are eligible to receive the award. SBA states this will prevent what it calls "delay tactics" in which incumbent contractors file size or status protests solely to extend their performance.
✅ Removed the proposed language to align with the 8(a) program regarding the waiting period before reapplying for program certification after the application has been repeatedly declined within a specific timeframe. SBA has proposed the removal of that language under a subsequent 8(a) rule and therefore removed the same from the final rule here.
✅ Clarifies that when using an SBA-approved third party certifier that it is the WOSB applicant's responsibility to upload all documents necessary to be on record with the SBA, not the responsibility of the third party certifier.
✅ Clarifies that a WOSB or EDWOSB "pending application" is one which has not received a negative determination on the application.
✅ Implements Section 863 of the NDAA for FY22 requiring that once a status determination has been made that a WOSB / EDWOSB does not meet eligibility requirements, if the WOSB / EDWOSB self-certified as such for the purposes of participating on a pending procurement (while an application was pending) that the entity must update their status in SAM and failure to do so is a violation of the Small Business Act. The entity must also notify other contracting officers under which other offers, bids, or quotes have been made to provide their updated status.
Changes under this rule are effective January 5, 2025.
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