Widespread WOSB and EDWOSB Contracting Problems

A recent SBA OIG report found that the overwhelming majority – 50 out of 56 contracts reviewed – of Woman-Owned Small Businesses (WOSBs) sole source awards were awarded improperly. The SBA OIG found that the SBA generally failed to comply with a 2015 NDAA requirement moving WOSBs and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) from a self-certification system to a third party-run certification system. The SBA OIG faulted the agency for failing to implement a government-run certification program and for permitting the improper award of contracts to firms that self-certify. The SBA OIG called on the agency to implement a government-run certification program for WOSBs and EDWOSBs, among other recommendations.