Timely given that last week was National Women in Construction Week, the United States Small Business Administration (SBA) recently published a notice in the Federal Register expanding the use of 113 new North American Industry Classification System (NAICS) Industry groups for women-owned business (WOSB) set-asides. Such a determination was made following a study requested by the SBA which found that WOSBs are underrepresented and substantially underrepresented in such industry groups.
On March 3, 2016, the Small Business Administration (SBA) released the findings of a two-year study investigating the industries in which WOSBs are underrepresented in Federal contracting. Under section 8(m) of the Small Business Act (15 U.S.C § 637), the SBA is responsible for administering the WOSB Program, the purpose of which is to ensure that WOSB’s have an equal opportunity to participate in Federal contracting. The SBA’s administration of the WOSB Program also helps the Federal government attain its goal of awarding five percent of its prime contract dollars to WOSBs.
The SBA had commissioned at least one study since 2000 to identify the Federal contracting industries in which women are unrepresented. However, in 2014, Congress amended the Small Business Act to require the SBA to submit an updated report to Congress on this issue by January 2, 2016, followed by an updated report every five years. In response, the SBA requested the U.S. Commerce Department’s Office of the Chief Economist (OCE) conduct such a study, the purpose of which was to reevaluate the NAICS industry groups and identify in which groups WOSBs are underrepresented and substantially underrepresented in Federal contracting. In conclusion, the OCE found that in 254 of the 304 industries WOSBs are “less likely” to win federal contracts, and in 109 of the 304 industries WOSBs have “significant[ly] lower odds” of wining federal contracts than otherwise similarly situated non-women owned businesses. As a result of these findings, the SBA authorized the use of 113 new NAICS industry groups for WOSB and Economically Disadvantaged WOSB set-asides. Effective March 3, 2016, contracting officers will be able to make set-aside awards to WOSBs in 92 designated NAICS industry groups where WOSBs are “substantially underrepresented,” and to EDWOSBs in 21 additional NAICS industry groups where WOSBs are “underrepresented.”