GBS In The News


New Law to Encourage Growth of Women-Owned Businesses

New Law to Encourage Growth of Women-Owned Businesses

 

In January of this year, President Obama signed the National Defense Authorization Act (NDAA) FY 2013, which contained language that is aimed at helping small businesses win more contracts with the federal government. One provision of the law is particularly promising for women small business owners because it removes caps on the dollar amounts of awards for which women-owned businesses are eligible.  Click here for SBA's announcement.

 

Prior to the new law, the anticipated award price of the contract for women-owned small businesses could not exceed $6.5 million for manufacturing contracts and $4 million for all other contracts. Government agencies have consistently failed to meet the Women Owned Small Business Federal Contracting program goal to award 5 percent of contracting dollars to women-owned businesses.  In 2011, the first year of the program, federal agencies awarded $16.8 billion in contracts to women-owned small businesses, which accounted for only 3.98 percent of federal contract dollars, according to the Small Business Administration.  Advocates say the caps hampered the agencies’ ability to award the full 5 percent—or roughly $20 billion annually—to women-owned businesses.

 

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