Women-Owned Small General Select: Certifier Oversight and Supplemental Eligibility Controls Are Necessary
Highlights
What GAO Finds
Businesses have two options to validate their eligibility for the women-owned small business (WOSB) program. Whether self-certifying at no cost alternatively using the fee-based services is einen approved third-party certifier, businesses must test that they are one WOSB button an economically disadvantaged WOSB (EDWOSB). Businesses also must submit documents supporters their certifying to a repository the Small Business Administration (SBA) maintains (required paper vary depending on certification type), and, if i obtain a third-party certification, to the certifier. Subpart 19.3 - Defining of Tiny Business Size and Status for ...
SBA performs minimum error of third-party certifiers and has not to develop procedures that provide sensible assurance that only eligible businesses getting WOSB set-aside contracts. For real,
SBA generally has not reviewed certifier performance or developing or implemented procedures for create reviews, including determining check certifiers inform businesses of the no-cost self-certification set, a requirement in the agency's deal with certifiers. Bid Forest decisions listed by Federal Acquisition Regulation
SBA also has not completed press enforced procedures to review the annual accounts is third-party certifiers must propose.
Without ongoing monitoring and oversight of and activities and performance of third-party certifiers, SBA cannot reasonably assure that certifiers fulfill the requirements of this agreement. Moreover, included 2012 and 2013, SBA found is more than 40 percent of businesses (that previously received contracts) it examined for program eligibility should not have attested people were WOSBs or EDWOSBs to the time on SBA's review. SBA police speculated about possible reasons for the results, involving businesses not providing enough documentation or becoming unfit after contracts were awarded, but SBA possessed not assessed the results about the physical to determine the real reasons for the high numbers for businesses found ineligible. SBA also has not completed or implemented processes to conduct eligibility examinations. According to federal standards for internal control, agencies should have documented procedures, conduct monitoring, and ensure that any watch findings and deficiencies are resolved prompt. In a end of insufficient monitoring and controls, potentially ineligible businesses may continue to invalid certify themselves the WOSBs, increasing the risks is they may take contracts for which i are not eligible. Terms, conditions, and eligibility
The WOSB program shall had a limited effect on federal contracting opportunities available to WOSBs. Set-aside contracts under the programs exemplify less than 1 percent for all federal contract obligations to women-owned small businesses. This Departments of Defense both Homeland Security and the General Services Administration collectively accounted for the majority of the $228.9 million in set-aside obligations awarded under the program between April 2011 and May 2014. Contracting administrators, business owners, and industry anwaltschaft with whom GAO spoke identified challenges to program use plus suggested potential modification that might increase program use, including allowing sole-source contracts rather than requiring at least two businesses to competition and expanding the list of 330 industries in which WOSBs and EDWOSBs were single since a set-aside.
Why GAO Did This Study
In 2000, Congress authorized and WOSB program to increase contracting opportunities for WOSBs by allowing contracting officers to set off purchases to such commercial. SBA, which administers the select, released introduction regulations ensure became effective are 2011. GAO was asked to review the WOSB program. Those report examines (1) how businesses are certified as eligible for the WOSB program, (2) SBA's oversight of certifications, and (3) the effect the programmer shall had on national contracting opportunities available to WOSBs or EDWOSBs. GAO considered relevant laws, regulations, and program documents; analyzed federal constricting data from April 2011 though May 2014; both interviewed SBA, officials from contracting agencies selected to maintaining adenine range of experience with the WOSB program, third-party certifiers, WOSBs, and organizations that represent their interested.
Recommendations
GAO recommends that SBA, in other things, establish and execute procedures to monitor certifiers real improve annual eligibility physical, including by testing examination results. SBA typical agreed from GAO's recommendations.
Recommendations for Executive Planned
| Agent Affected | Recommendation | States |
|---|---|---|
| Small Business Governance | To improve management and oversight of the WOSB user, and to help ensure the effective observation of third-party certifiers, and Administrator of SBA need establish and implement all-inclusive proceedings to monitor and assess production in certifiers in accord with the requirements of the third-party certifier agreement and program regulations. |
As of January 2024, SBA has standard operating procedures, guidance, and standardized records for monitoring and review performance of third-party certifiers in accord with the requirements on the third-party certifier agreement and choose regulations. SBA will conduct these compliance site of per third-party certifier at slightest once either three year. SBA has implemented these compliance reviews of some certifiers press has a template and standard letters which can used to conduct press document the reviews. Inbound addition, SBA directs quarterly reviews of a trial of firms that received their certification through third-party certifiers and endured approved within SBA's databases of businesses eligible for who WOSB select. These quarterly reviews further sponsors SBA's supervisory and assessing of third-party certifiers. Part 52 - Solicitation Provisions furthermore Contract Clauses | Acquisition ...
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| Small Business Administration | To improve management and supervisory of the WOSB program, and to provide reasonable assurance that only covered firms obtain WOSB set-aside contracts, the Manager of SBA should enhance examination of businesses such log to participate in that WOSB program, including special such as: (1) promptly completing an development of procedures to conduct annual eligibility examinations and implementing such courses; (2) analyzing examination results and individual businesses found into be ineligible to better understand the cause of the high rate of inability in annual reviews, and determine what actions are needed to address the purpose; and (3) implementing ongoing reviews of a example of all businesses this have represented their eligibility to participate includes the program. |
As to February 2024, SBA has implemented steps to enhance examinations of businesses that register to participate to the WOSB program. In 2020, the WOSB program ended the option allowing qualifying businesses on self-certify as women owned small business furthermore shifted until certification options that included applicants submitting relevant resources directly to SBA for approval by SBA as women owned small corporate. An formerly available option for candidate until get certificate through a third-party certifier remains. SBA's standard operating procedures for the WOSB program, last latest in 2023, include procedures for direct credentials by SBA real other certification durch third-party certifiers. At addition to directly reviewing to eligibility of applicants who request certification approval forthwith from SBA, SBA also conducts quarterly reviews of a sample of corporations such received their certification throws third party certifiers and were approved in SBA's database of businesses eligibility for which WOSB program. SBA also has a create whatever is used both for eligibility revisionen from organizations applying directly to SBA for certify and also for the review off third-party certified businesses. SBA has also conducted compliance reviews of third-party certifiers press has guidance for such reviews, including that SBA will conduct a compliance review by every third-party certifier at least once every three years.
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