On March 5, the House Committee on Small Business passed a bill aimed at improving transparency and accountability in federal contracting for women-owned small businesses (WOSBs). The committee voted 25-0 in favor of H.R. 1816, the “WOSB Accountability Act.”
The bill mandates that the Small Business Administration (SBA) count only certified WOSBs in its Small Business Procurement Scorecard. Currently, while businesses can no longer self-certify for WOSB set-aside and sole-source contracts, the SBA has still been allowed to count self-certified WOSBs toward the federal government’s 5% WOSB contracting goal. H.R. 1816 seeks to change this by ensuring that only WOSBs that have undergone formal certification are included in the scorecard metrics.
Additionally, the bill introduces new reporting requirements for the SBA. It directs the agency to provide quarterly reports to the House Committee on Small Business, detailing key certification metrics. These reports will include data on application processing timelines for WOSB certification, both within the SBA and through third-party certifying entities.
The 5% goal is intended to ensure that WOSBs receive at least 5% of federal contracting dollars annually. However, this benchmark has only been met twice in nearly three decades, highlighting the challenges WOSBs face in accessing federal contracts. By refining how WOSB participation is measured, the bill aims to improve accountability and better track progress toward meeting this goal.
With the committee’s approval, H.R. 1816 now moves to the full House for consideration. Its progress as it moves through Congress can be watched here.