Federal agencies’ contracting officers are awarding set-aside contracts without meeting the set-aside requirements associated with the Small Business Administration’s Woman-Owned Small Business (WOSB) program.
This finding, among others, appears in a report issued on May 14, 2015 by the SBA’s Office of Inspector General (OIG).
The OIG report states that as much as $7.1 million worth of contracts received by WOSBs in fiscal year (FY) 2014 may be improper. For example, 10 of 34 WOSB set-aside awards were for ineligible work, and 9 of these 34 were awarded to firms that did not provide required documentation to prove they were eligible WOSBs.
In addition to the 9 WOSB awards that did not have any ownership or control documentation in the SBA’s WOSB Repository, the OIG identified 13 of 25 firms in their audit sample that uploaded only some — but not all — of the required documentation to the Repository, thus also bringing their program eligibility into question.
Additionally, 12 businesses did not provide sufficient documentation to prove that a woman or women controlled the day-to-day operations of their firms. These firms, which received $8 million in contracts, also may be ineligible for their WOSB set-aside awards.
The OIG report is critical not only of agencies’ implementation of the federal WOSB program but also of SBA’s lax oversight. Accordingly, OIG made five recommendations to the SBA’s Associate Administrator for Government Contracting and Business Development calling for improvements in how SBA manages and administers the WOSB program.
It should be noted that even before the OIG’s report, the SBA’s WOSB program already was slated to undergo some major programmatic changes based on the National Defense Authorization Act (NDAA) for both FY 2013 and 2015. The NDAAs stipulated considerable increases SBA’s oversight responsibilities. Specifically, the FY 2015 Act will: 1) grant contracting officers the authority to award sole-source awards to WOSB firms, 2) remove firms’ ability to self-certify, and 3) require firms to be certified. The SBA is still determining how it will implement these mandated changes.
The OIG’s full report can be downloaded here: Improvements_Needed_in_SBAs_Management_of_WOSB_Program-OIG_Report_15-10