Overview
Title
An Act To establish requirements relating to certification of small business concerns owned and controlled by women for certain purposes, and for other purposes.
ELI5 AI
H.R. 7105 wants to make sure that when the government looks at businesses run by women, only those that have a special certificate count, not the ones that just say they do. But, they won't spend any extra money making sure this new system works.
Summary AI
H.R. 7105 aims to change how small businesses owned and controlled by women are certified and counted towards government contracting goals. Under this bill, only businesses that have been officially certified, rather than those that self-certify, will count towards government-wide and agency-specific goals for contracting with women-owned small businesses. The bill outlines a process for these businesses to get officially certified and requires regular updates to Congress on the certification process progress. Additionally, it mandates that no new funds will be allocated to implement these changes.
Published
Keywords AI
Sources
Bill Statistics
Size
Language
Complexity
AnalysisAI
The “WOSB Certification and Opportunity Expansion Act,” introduced as H.R. 7105, is a legislative proposal aimed at refining criteria for certification of small businesses owned and controlled by women. The primary focus of the bill is to change how these businesses are assessed and counted towards government contracting goals. While historically some women-owned businesses could self-certify, the bill mandates that only those with formal certification will now count towards these federal and agency-specific goals. Additionally, it sets forth requirements for regular updates on the progression and impact of these certifications.
General Summary of the Bill
The Act proposes measures to ensure that only women-owned small business (WOSB) concerns with formal certification are included in government procurement goals. This is a move away from allowing self-certified businesses to count, which may previously have included companies that did not fully meet the ownership and control criteria. It emphasizes formal verification under predetermined standards to improve accuracy and reliability. Additionally, the bill requires the Small Business Administration (SBA) to provide regular reports on the number of businesses seeking certification, pending applications, and administrative costs involved.
Significant Issues
Several issues arise from this legislative change. Notably, the exclusion of self-certified women-owned businesses might be perceived as excluding some companies that fit the intended criteria for such certifications but have not gone through the formal process. This moves away from more inclusive standards that previously allowed for self-identification by these businesses. Furthermore, the implementation timeline hinges significantly on administrative efficiency and rule-making, which some may view as prone to delays, especially given the one-year deadline for new regulations. The bill also imposes reporting requirements on the SBA, leading to concerns about potential administrative burdens without additional funding, as the Act follows the CUTGO policy, preventing new appropriations for its implementation.
Impact on the Public and Stakeholders
The broad impact of this bill may be mixed among the general public and specific stakeholders. For the public, transparency and confidence in government contracting processes may increase as only thoroughly vetted businesses are included in important metrics. However, the transition may result in short-term confusion as businesses shift from self-certification.
Specific stakeholders, such as women-owned small businesses, could face challenges adapting to the new certification process. While formal certification could open more doors and offer credibility, businesses that are used to self-certifying may encounter hurdles that affect their eligibility for government contracts during the transition period. Companies that successfully navigate the certification process may benefit from increased opportunities in federal procurement.
On the administrative side, the SBA will need to manage potential resource constraints carefully to avoid backlogs and delays which could slow down the implementation of this Act.
Conclusion
The bill represents a solid step toward ensuring integrity and equality in federal contracting with women-owned small businesses. However, it raises significant issues concerning the potential for exclusion, administrative burden, and challenges faced by businesses during the transition. As the bill moves forward, stakeholders will need to weigh these considerations and aim for a balance that achieves the goals it sets out without unintended negative consequences.
Issues
The exclusion of self-certified small business concerns owned and controlled by women from governmentwide and agency goals, as outlined in Section 2(a), could be seen as discriminatory or not inclusive enough, potentially disadvantaging certain businesses within the category of women-owned businesses.
The reliance on administrative timelines for the implementation of amendments based on rulemaking, as specified in Section 2(b)(2), could delay the exclusion's application, which may impact how quickly women-owned businesses must adapt to new certification requirements.
The criteria for a business to be 'deemed to have been certified' during transitional phases in Section 2(b)(1)(A) might lead to inconsistencies or confusion about certification status, which could affect the eligibility of businesses for government goals.
The lack of authorized appropriations to implement the new requirements, as mentioned in Section 2(e), could lead to resource constraints that hinder implementation, impacting the effectiveness of the Act due to financial limitations.
The quarterly briefing requirement, found in Section 2(c), could impose significant administrative burdens on the Small Business Administration, posing challenges in maintaining frequent and detailed reporting.
The rulemaking deadline of not later than one year after the date of enactment in Section 2(b)(2) could be perceived as too lenient, potentially leading to prolonged delays in enforcement and uncertainty in the business community.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The section gives the official name of the legislation, which is "WOSB Certification and Opportunity Expansion Act."
2. Exclusion of self-certified small business concerns owned and controlled by women from goals Read Opens in new tab
Summary AI
The bill changes how the government sets goals for contracts with small businesses owned by women. From now on, only those businesses certified officially will count towards these goals, not those just claiming to meet the criteria. It also requires regular updates on how many businesses apply for certification and how this affects costs and outreach efforts.