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WOMEN'S BUSINESS ENTERPRISE NATIONAL COUNCIL OPPOSES SBA PROPOSED RULE ON FEDERAL CONTRACT PROCEDURES

Strangling a Golden Goose of Economic Growth

Washington, January 18 – The Women’s Business Enterprise National Council (WBENC), the leading advocate and authority on women’s business enterprises as suppliers to the nation’s top corporations, today opposed the Small Business Administration’s proposed rule to severely limit the number of industries in which women business owners can expect a fair opportunity to bid on Federal contracts, saying that it flaunts Congressional intent.
 
“The ruling is disappointing since, for years, the SBA has recognized women-owned businesses as a leading engine of the economy. Now it has taken a giant leap backwards by crippling a law that would enable the Federal Government to meet its 5 percent goal for those very business owners,” said Linda Denny, President and CEO of WBENC, the nation’s largest third party certifier of women-owned businesses.  
 
Although women-owned firms account for 41 percent of all privately-held firms in the U.S., they currently receive only 3.3 percent of the Federal contracts. The Equity in Contracting for Women Act, passed into law in 2000, would allow federal contracting officers to award up to five percent of all contracts to women-owned businesses; but the SBA has proposed a rule that would limit those goals to businesses in only four industries in the more than 2000 potential categories.
 
“The difference in Federal spend between 5 percent and 3.3 percent was $7.5-billion based on 2006 numbers,” Denny said. “This will negatively impact communities where 10.4-million women-owned firms employ more than 12.8 million people and generate $1.9 trillion in revenues.  
 
“At a time when the economy is foundering, this proposed ruling is effectively strangling a golden goose of growth,” Denny declared. For the past two decades, women-owned firms have grown at around two times the rate of all firms (42 percent vs. 24 percent).
 
“The government also can take a lesson from America’s corporations that are leveling the playing field for women’s businesses enterprises by setting goals and implementing best practice processes to drive those goals throughout their organizations,” she said. “They have been rewarded with greater quality products and services, innovation and shareholder value.”
 
 
Further raising the bar of entry for women entrepreneurs in the area of government procurement, the SBA has also proposed that in order for an agency to set aside a new contract under the proposed rule, the procuring agency would have to conduct an appropriate analysis of its own procurement history to demonstrate past discrimination against women-owned small businesses. If the SBA recommendation is accepted women owned business would be the only category subject to the additional requirement that would effectively block all opportunities.
 
“Not only is the SBA severely undercutting the spirit of the Equity in Contracting for Women Act seeking a 5 percent goal for Federal contracts with women, but also in imposing an onerous and self-deprecatory procedure on those agencies that attempt to comply,” Denny added. “Women-owned small businesses, their employees and the communities in which they do business will be the big losers.”
 
“I urge women’s business enterprises and indeed any individual who believes in leveling the playing field for women in business, to register your comments with the SBA at (http://www.regulations.gov/fdmspublic/component/main?main=SubmitComment&o=090000648037edf3) and object to this rule before the public comment period ends on February 25. You can also contact your Congressional delegate or the House Small Business Committee,” Denny concludes. For specific action steps and additional information, access the Women Impacting Public Policy website: http://www.wipp.org/news_details.asp?story_id=538&memberonly=False.
 

For information about WBENC, please access www.wbenc.org.WBENCLink is an Internet database, accessed by WBENC corporate members and certified women's business enterprises (WBEs), which contains information on certified women's businesses for purchasing managers nationwide.

About the Women’s Business Enterprise National Council (WBENC):
  • Founded in 1997, WBENC is the nation’s leading third-party certifier of businesses owned and operated by women, and the leading advocate of women’s business enterprises (WBEs) as suppliers to corporate America.
  • The average WBENC certified company has revenues of $7.7M, 39 employees and 15 years of experience.
  • Approximately 62 WBE firms have revenues in excess of $100M, and six certified WBE companies have revenues in excess of $1 billion.
  • 240 U.S. corporations are active members of WBENC and representatives of 36 corporations sit on the WBENC Board of Directors, along with nine representatives of its partner organizations and nine WBEs.
  • WBENC certification is accepted by over 1000 corporations, representing America’s most prestigious brands, as well as government entities at the state, local and Federal levels.
  • WBENC also has developed several highly regarded initiatives for recognizing excellence in corporate supplier diversity targeting WBEs (America’s Top Corporations for Women’s Business Enterprises, The WBENC Applause Awards) and women’s business enterprises (WBENC’s Woman-Owned Business Stars).
  • WEBuy is an online marketplace tool that corporations and government agencies, as well as WBEs, can use to post RFPs, sources sought, and RFIs.
  • WBENC is a 501(c)(3) nonprofit organization that seeks and accepts donations from corporations, foundations and individuals that support its mission and programs. 
  • WBENCLink is an Internet database, accessed by WBENC corporate members and certified women's business enterprises (WBEs), which contains information on certified women's businesses for purchasing managers nationwide.
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