WASHINGTON DC — Last week, U.S. Senators Shelley Moore Capito (RW.Va.) and Joni Ernst (R-Iowa) introduced Accountability in the Women-Owned Small Business Contracting Act. This legislation would require agencies to receive credit for women-owned small business (WOSB) contract targets only if awards are made to certified WOSBs and compel federal agencies that fail to meet their WOSB goals to testify before Congress.
“Women-owned small businesses are incredibly valuable to our economy and society,” Senator Capito said. “There must be clarity and accountability to ensure that the administration lives up to its duty to confirm that people are who they say they are. Fraud and ignorance in federal contracts must be avoided, and responsible agencies and managers should be held accountable if they fail to meet expectations.”
BACKGROUND:
In 1994, the Small Business Administration set a goal of awarding 5% of all federal contracts to women-owned small businesses, but they have only met that goal twice. In addition, contracts for women-owned small businesses decreased from 2020 (4.85%) to 2021 (4.63%). The Biden administration is inviting fraud by allowing federal agencies to continue awarding contracts to unqualified entities that “self-certify” as WOSB to appear as if they are meeting required contract goals.
That Accountability in the Women-Owned Small Business Contracting Act:
- Helps eliminate fraud by allowing agencies to obtain credit for their women-owned small business (WOSB) prime or subcontractor small business targets only if the contract was awarded to a certified WOSB.
- Holds federal agencies accountable by requiring agencies to submit a report and testify before Congress if they fail to meet their WOSB goals.
- Provides data to help agencies achieve their WOSB goals by requiring an interagency report to be conducted on the state of WOSBs, including factors such as inflation, supply chain disruptions, access to capital and others.
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