Caucasian Women Can Get Certified!

It’s relatively well known that the Federal government spends hundreds of billions of dollars annually procuring a variety of products and services. What is not as well known is that while women own and operate almost 40 percent of all small companies, they are awarded only about 2.3 percent of all Federal procurement contracts. This is a national disgrace. The current Administration recently set a goal of more than doubling – to 5 percent -- women’s share of Federal contracts. This includes the goal to award 5 percent of all prime contracts and subcontracts to woman-owned companies.

The Federal government defines a woman-owned business as "a small business that is at least 51 percent owned by one or more women, or in the case of any publicly-owned business, at least 51 percent of the stock is owned by one or more woman and the management and daily business operations are conducted by one or more woman."

Although the new government mandate makes it clear through the 5 percent goals that Federal agencies are expected to expand contracting opportunities for women, this does not mean that contracts will be set-aside solely for woman-owned firms as is the case for other groups such as 8(a)BD and small businesses. It also does not mean that woman-owned businesses will necessarily receive any preferential treatment (e.g. price evaluation adjustments) as in the current case for small disadvantaged businesses.

It may appear that this is a "meatless bone" tossed to woman-owned businesses to soothe Congress’ and the Administration's predominantly male conscience, and to address the suspected fear by SBA officials that its programs will continue to come under attack without the inclusionary strength of women. However, there is a glimmer of hope that has resulted from the revision of the SBA’s regulations dealing with the two existing set-aside programs – the 8(a) Business Development and the Small Disadvantaged Business Programs.

Both the 8(a)BD and the SDB Programs have required that all participants be socially and economically disadvantaged. For certain designated groups (i.e., Black Americans, Hispanic Americans, Native Americans, Subcontinent Asians and Asian Pacific Americans), it is presumed that members of these groups are socially disadvantaged. Woman business-owners who fall into one of these groups also are presumed to be socially disadvantaged. The same is true not true for Caucasian women, the handicapped and disabled veterans, however.

Even the old regulations did not prohibit Caucasian woman business-owners or handicapped business-owners from being certified for the 8(a)BD Program. However, the level of proof for eligibility – a standard called "clear and convincing" evidence -- was so onerous that it was virtually impossible for these individuals to be certified. Very well documented evidence of egregious personal and persistent discrimination was required. It had to be suffered in the U.S. and on the basis of one or more of the following objective features:

Race
Ethnic origin
Gender
Physical handicap
Long-term residence in an environment isolated from the mainstream of American society
Other similar causes not common to individuals who are not socially disadvantaged.

The old regulations also essentially eliminated white woman business-owners and handicapped business-owners from the SDB Program because they could not easily attest to their social disadvantage.

The certification criteria for both programs have now changed to tip the balance a bit more in favor of women and the handicapped. This balance is based on three important truths:

The new regulations dealing with the 8(a)BD and SDB Programs have changed the evidentiary standard from the tough "clear and convincing" proof of discrimination to a more relaxed "preponderance of evidence" standard. Under the new regulations, the SBA now will consider all relevant information submitted by an applicant. For example, evidence of generalized patterns of discrimination or statistical data (e.g., only 2.3% of all Federal contracts awarded to women) showing that businesses owned by those from a specific, non-designated group are disproportionately underrepresented in a particular industry may be used to augment an individual’s case for 8(a)BD or SDB certification.

The new regulations now include a certification process for reviewing applications for SDB certification. While this could be bad news for the original designated groups, white woman business-owners and handicapped business-owners at least will have a better chance at the benefits accruing to SDB Program participants.

EZCertify.com has researched, collected and documented a data base of actual cases in which Caucasian women, handicapped individuals and other business-owners from non-designated groups have been judged to be socially disadvantaged. This data is available in various forms to purchasers of any of EZCertify.com’s products.

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