13 CFR Regulation

Pt. 127

13 CFR Ch. I (1–1–20 Edition)

laws. Persons or concerns are subject
to criminal penalties for knowingly
making false statements or misrepresentations to SBA for the purpose of
influencing any actions of SBA pursuant to section 16(a) of the Small Business Act, 15 U.S.C. 645(a), as amended,
including failure to correct ‘‘continuing representations’’ that are no
longer true.
[78 FR 38820, June 28, 2013, as amended at 81
FR 31492, May 19, 2016]

PART 127—WOMEN-OWNED SMALL
BUSINESS FEDERAL CONTRACT
PROGRAM
Subpart A—General Provisions
Sec.
127.100 What is the purpose of this part?
127.101 What type of assistance is available
under this part?
127.102 What are the definitions of the
terms used in this part?

Subpart B—Eligibility Requirements To
Qualify as an EDWOSB or WOSB
127.200 What are the requirements a concern
must meet to qualify as an EDWOSB or
WOSB?
127.201 What are the requirements for ownership of an EDWOSB and WOSB?
127.202 What are the requirements for control of an EDWOSB or WOSB?
127.203 What are the rules governing the requirement that economically disadvantaged women must own EDWOSBs?

or WOSB status protest pursuant to subpart F of this part?
127.402 How will SBA conduct an examination?
127.403 What happens if SBA verifies the
concern’s eligibility?
127.404 What happens if SBA is unable to
verify a concern’s eligibility?
127.405 What is the process for requesting an
eligibility examination?

Subpart E—Federal Contract Assistance
127.500 In what industries is a contracting
officer authorized to restrict competition
or make a sole source award under this
part?
127.501 How will SBA determine the industries that are eligible for EDWOSB or
WOSB requirements?
127.502 How will SBA identify and provide
notice of the designated industries?
127.503 When is a contracting officer authorized to restrict competition or award a
sole source contract or order under this
part?
127.504 What additional requirements must
a concern satisfy to submit an offer on
an EDWOSB or WOSB requirement?
127.505 May a non-manufacturer submit an
offer on an EDWOSB or WOSB requirement for supplies?
127.506 May a joint venture submit an offer
on an EDWOSB or WOSB requirement?
127.507 Are there EDWOSB and WOSB contracting opportunities at or below the
simplified acquisition threshold?
127.508 May SBA appeal a contracting officer’s decision not to make a requirement
available for award as a WOSB Program
contract?
127.509 What is the process for such an appeal?

Subpart C—Certification of EDWOSB or
WOSB Status

Subpart F—Protests

127.300 How is a concern certified as an
EDWOSB or WOSB?
127.301 When may a contracting officer accept a concern’s self-certification?
127.302 What third-party certifications may
a concern use as evidence of its status as
a qualified EDWOSB or WOSB?
127.303 How will SBA select and identify approved certifiers?
127.304 How does a concern obtain certification from an approved certifier?
127.305 May a concern determined not to
qualify as an EDWOSB or WOSB submit
a self-certification for a particular
EDWOSB or WOSB requirement?

127.600 Who may protest the status of a concern as an EDWOSB or WOSB?
127.601 May a protest challenging the size
and status of a concern as an EDWOSB or
WOSB be filed together?
127.602 What are the grounds for filing an
EDWOSB or WOSB status protest?
127.603 What are the requirements for filing
an EDWOSB or WOSB protest?
127.604 How will SBA process an EDWOSB
or WOSB status protest?
127.605 What are the procedures for appealing an EDWOSB or WOSB status protest
decision?

Subpart G—Penalties
Subpart D—Eligibility Examinations
127.400 What is an eligibility examination?
127.401 What is the difference between an
eligibility examination and an EDWOSB

127.700 What are the requirements for representing EDWOSB or WOSB status, and
what are the penalties for misrepresentation?

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§ 127.102

127.701 What must a concern do in order to
be identified as an EDWOSB or WOSB in
any Federal procurement databases?
AUTHORITY: 15 U.S.C. 632, 634(b)(6), 637(m),
644 and 657r.
SOURCE: 75 FR 62282, Oct. 7, 2010, unless
otherwise noted.

Subpart A—General Provisions
§ 127.100 What is the purpose of this
part?
Section 8(m) of the Small Business
Act authorizes certain procurement
mechanisms to ensure that WomenOwned Small Businesses (WOSBs) have
an equal opportunity to participate in
Federal contracting. This part implements these mechanisms and ensures
that the program created, referred to
as the WOSB Program, is substantially
related to this important Congressional goal in accordance with applicable law.
§ 127.101 What type of assistance is
available under this part?
This part authorizes contracting officers to restrict competition or award
sole source contracts or orders to eligible
Economically
Disadvantaged
Women-Owned
Small
Businesses
(EDWOSBs) for certain Federal contracts or orders in industries in which
the Small Business Administration
(SBA) determines that WOSBs are
underrepresented in Federal procurement. It also authorizes contracting officers to restrict competition or award
sole source contracts or orders to eligible WOSBs for certain Federal contracts or orders in industries in which
SBA determines that WOSBs are substantially underrepresented in Federal
procurement and has waived the economically disadvantaged requirement.
[80 FR 55021, Sept. 14, 2015]

§ 127.102 What are the definitions of
the terms used in this part?
For purposes of this part:
8(a) Business Development (8(a) BD)
concern means a concern that SBA has
certified as an 8(a) BD program participant and whose term has not expired or
otherwise left the 8(a) BD program
early.

AA/GC&BD means SBA’s Associate
Administrator for Government Contracting and Business Development.
Citizen means a person born or naturalized in the United States. Resident
aliens and holders of permanent visas
are not considered to be citizens.
Concern means a firm that satisfies
the requirements in § 121.105 of this
chapter.
Contracting officer has the meaning
given to that term in Section 27(f)(5) of
the Office of Federal Procurement Policy Act (codified at 41 U.S.C. 423(f)(5)).
D/GC means SBA’s Director for Government Contracting.
Economically Disadvantaged WOSB
(EDWOSB) means a concern that is
small pursuant to part 121 of this chapter and that is at least 51 percent
owned and controlled by one or more
women who are citizens and who are
economically disadvantaged in accordance with §§ 127.200, 127.201, 127.202 and
127.203. An EDWOSB automatically
qualifies as a WOSB.
EDWOSB requirement means a Federal
requirement for services or supplies for
which a contracting officer has restricted competition or awarded a sole
source contract or order to eligible
EDWOSBs, including Multiple Award
Contracts, partial set-asides, reserves,
sole source awards, and orders set aside
for EDWOSBs issued against a Multiple
Award Contract.
Immediate family member means father, mother, husband, wife, son,
daughter, stepchild, brother, sister,
grandfather, grandmother, grandson,
granddaughter, father-in-law, motherin-law, son-in-law, and daughter-inlaw.
Interested party means any concern
that submits an offer for a specific
EDWOSB or WOSB requirement (including Multiple Award Contracts),
any concern that submitted an offer in
a full and open competition and its opportunity for award will be affected by
a reserve of an award given a WOSB or
EDWOSB, the contracting activity’s
contracting officer, or SBA.
Primary industry classification means
the six-digit North American Industry
Classification System (NAICS) code
designation that best describes the primary business activity of the concern.

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13 CFR Ch. I (1–1–20 Edition)

The NAICS code designations are described in the NAICS manual available
via
the
Internet
at
http://
www.census.gov/NAICS. In determining
the primary industry in which a concern is engaged, SBA will consider the
factors set forth in § 121.107 of this
chapter.
Same or similar line of business means
business activities within the same
four-digit ‘‘Industry Group’’ of the
NAICS Manual as the primary industry
classification
of
the
WOSB
or
EDWOSB.
Substantial underrepresentation is determined by a study using a reliable
and relevant methodology.
System for Award Management (SAM)
(or any successor system) means a federal system that consolidates various
federal procurement systems (e.g., Central Contractor Registration (CCR),
Federal Agency Registration (Fedreg),
Online Representations and Certifications Application (ORCA), Excluded
Parties List System (EPLS)) and the
Catalog of Federal Domestic Assistance into one system.
Underrepresentation is determined by
a study using a reliable and relevant
methodology.
WOSB means a concern that is small
pursuant to part 121 of this chapter,
and that is at least 51 percent owned
and controlled by one or more women
who are citizens in accordance with
§§ 127.200, 127.201 and 127.202.
WOSB Program Repository means a secure, Web-based application that collects, stores and disseminates documents to the contracting community
and SBA, which verify the eligibility of
a business concern for a contract to be
awarded under a WOSB or EDWOSB requirement.
WOSB requirement means a Federal
requirement for services or supplies for
which a contracting officer has restricted competition or awarded a sole
source contract or order to eligible
WOSBs, including Multiple Award Contracts, partial set-asides, reserves, sole
source awards, and orders set aside for
WOSBs issued against a Multiple
Award Contract.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61146, Oct. 2, 2013; 80 FR 55022, Sept. 14, 2015]

Subpart B—Eligibility Requirements
To Qualify as an EDWOSB or WOSB
§ 127.200 What are the requirements a
concern must meet to qualify as an
EDWOSB or WOSB?
(a) Qualification as an EDWOSB. To
qualify as an EDWOSB, a concern must
be:
(1) A small business as defined in part
121 of this chapter for its primary industry classification; and
(2) Not less than 51 percent unconditionally and directly owned and controlled by one or more women who are
United States citizens and are economically disadvantaged.
(b) Qualification as a WOSB. To qualify as a WOSB, a concern must be:
(1) A small business as defined in part
121 of this chapter; and
(2) Not less than 51 percent unconditionally and directly owned and controlled by one or more women who are
United States citizens.
§ 127.201 What are the requirements
for ownership of an EDWOSB and
WOSB?
(a) General. To qualify as an
EDWOSB one or more economically
disadvantaged women must unconditionally and directly own at least 51
percent of the concern. To qualify as a
WOSB, one or more women must unconditionally and directly own at least
51 percent of the concern. Ownership
will be determined without regard to
community property laws.
(b) Requirement for unconditional ownership. To be considered unconditional,
the ownership must not be subject to
any conditions, executory agreements,
voting trusts, or other arrangements
that cause or potentially cause ownership benefits to go to another. The
pledge or encumbrance of stock or
other ownership interest as collateral,
including seller-financed transactions,
does not affect the unconditional nature of ownership if the terms follow
normal commercial practices and the
owner retains control absent violations
of the terms.
(c) Requirement for direct ownership.
To be considered direct, the qualifying
women must own 51 percent of the concern directly. The 51 percent ownership
may not be through another business

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§ 127.202

entity or a trust (including employee
stock ownership plan) that is, in turn,
owned and controlled by one or more
women or economically disadvantaged
women. However, ownership by a trust,
such as a living trust, may be treated
as the functional equivalent of ownership by a woman or economically disadvantaged woman where the trust is
revocable, and the woman is the grantor, the trustee, and the sole current
beneficiary of the trust.
(d) Ownership of a partnership. In the
case of a concern that is a partnership,
at least 51 percent of each class of partnership interest must be unconditionally owned by one or more women or in
the case of an EDWOSB, economically
disadvantaged women. The ownership
must be reflected in the concern’s partnership agreement. For purposes of
this requirement, general and limited
partnership interests are considered
different classes of partnership interest.
(e) Ownership of a limited liability company. In the case of a concern that is a
limited liability company, at least 51
percent of each class of member interest must be unconditionally owned by
one or more women or in the case of an
EDWOSB, economically disadvantaged
women.
(f) Ownership of a corporation. In the
case of a concern that is a corporation,
at least 51 percent of each class of voting stock outstanding and 51 percent of
the aggregate of all stock outstanding
must be unconditionally owned by one
or more women, or in the case of an
EDWOSB, economically disadvantaged
women. In determining unconditional
ownership
of
the
concern,
any
unexercised stock options or similar
agreements held by a woman will be
disregarded. However, any unexercised
stock option or other agreement, including the right to convert non-voting
stock or debentures into voting stock,
held by any other individual or entity
will be treated as having been exercised.
§ 127.202 What are the requirements
for control of an EDWOSB or
WOSB?
(a) General. To qualify as a WOSB,
the management and daily business operations of the concern must be con-

trolled by one or more women. To qualify as an EDWOSB, the management
and daily business operations of the
concern must be controlled by one or
more women who are economically disadvantaged. Control by one or more
women or economically disadvantaged
women means that both the long-term
decision making and the day-to-day
management and administration of the
business operations must be conducted
by one or more women or economically
disadvantaged women.
(b) Managerial position and experience.
A woman, or in the case of an EDWOSB
an economically disadvantaged woman,
must hold the highest officer position
in the concern and must have managerial experience of the extent and complexity needed to run the concern. The
woman or economically disadvantaged
woman manager need not have the
technical expertise or possess the required license to be found to control
the concern if she can demonstrate
that she has ultimate managerial and
supervisory control over those who
possess the required licenses or technical expertise. However, if a man possesses the required license and has an
equity interest in the concern, he may
be found to control the concern.
(c) Limitation on outside employment.
The woman or economically disadvantaged woman who holds the highest officer position of the concern must manage it on a full-time basis and devote
full-time to the business concern during the normal working hours of business concerns in the same or similar
line of business. The woman or economically disadvantaged woman who
holds the highest officer position may
not engage in outside employment that
prevents her from devoting sufficient
time and attention to the daily affairs
of the concern to control its management and daily business operations.
(d) Control over a partnership. In the
case of a partnership, one or more
women, or in the case of an EDWOSB,
economically disadvantaged women,
must serve as general partners, with
control over all partnership decisions.
(e) Control over a limited liability company. In the case of a limited liability
company, one or more women, or in the

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13 CFR Ch. I (1–1–20 Edition)

case of an EDWOSB, economically disadvantaged women, must serve as management members, with control over
all decisions of the limited liability
company.
(f) Control over a corporation. One or
more women, or in the case of an
EDWOSB, economically disadvantaged
women, must control the Board of Directors of the concern. Women or economically disadvantaged women are
considered to control the Board of Directors when either:
(1) One or more women or economically disadvantaged women own at
least 51 percent of all voting stock of
the concern, are on the Board of Directors and have the percentage of voting
stock necessary to overcome any super
majority voting requirements; or
(2) Women or economically disadvantaged women comprise the majority of
voting directors through actual numbers or, where permitted by state law,
through weighted voting.
(g) Involvement in the concern by other
individuals or entities. Men or other entities may be involved in the management of the concern and may be stockholders, partners or limited liability
members of the concern. However, no
males or other entity may exercise actual control or have the power to control the concern.
§ 127.203 What are the rules governing
the requirement that economically
disadvantaged women must own
EDWOSBs?
(a) General. To qualify as an
EDWOSB, the concern must be at least
51 percent owned by one or more
women who are economically disadvantaged. A woman is economically disadvantaged if she can demonstrate that
her ability to compete in the free enterprise system has been impaired due
to diminished capital and credit opportunities as compared to others in the
same or similar line of business. SBA
does not take into consideration community property laws when determining economic disadvantage when
the woman has no direct, individual or
separate ownership interest in the
property.
(b) Limitation on personal net worth.
(1) In order to be considered economically disadvantaged, the woman’s per-

sonal net worth must be less than
$750,000, excluding her ownership interest in the concern and her equity interest in her primary personal residence.
(2) Income received from an EDWOSB
that is an S corporation, LLC or partnership will be excluded from net
worth where the EDWOSB provides
documentary evidence demonstrating
that the income was reinvested in the
business concern or the distribution
was solely for the purposes of paying
taxes arising in the normal course of
operations of the business concern.
Losses from the S corporation, LLC or
partnership, however, are losses to the
EDWOSB only, not losses to the individual, and cannot be used to reduce an
individual’s net worth.
(3) Funds invested in an Individual
Retirement Account (IRA) or other official retirement account that are unavailable until retirement age without
a significant penalty will not be considered in determining a woman’s net
worth. In order to properly assess
whether funds invested in a retirement
account may be excluded from a woman’s net worth, she must provide information about the terms and restrictions of the account to SBA and certify
that the retirement account is legitimate.
(c) Factors to be considered. (1) General. The personal financial condition
of the woman claiming economic disadvantage, including her personal income for the past three years (including bonuses, and the value of company
stock given in lieu of cash), her personal net worth and the fair market
value of all of her assets, whether encumbered or not, will be considered in
determining whether she is economically disadvantaged.
(2) Spouse’s financial situation. SBA
may consider a spouse’s financial situation in determining a woman’s access
to credit and capital. When married, an
individual claiming economic disadvantage must submit separate financial information for her spouse, unless
the individual and the spouse are legally separated. SBA will consider a
spouse’s financial situation in determining an individual’s access to credit
and capital where the spouse has a role
in the business (e.g., an officer, employee or director) or has lent money

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§ 127.300

to, provided credit or financial support
to, or guaranteed a loan of the business. SBA may also consider the
spouse’s financial condition if the
spouse’s business is in the same or
similar line of business as the EDWOSB
or WOSB and the spouse’s business and
WOSB share similar names, Web sites,
equipment or employees. In addition,
all transfers to a spouse within two
years of a certification will be attributed to a woman claiming economic
disadvantage as set forth in paragraph
(d) of this section.
(3) Income.
(i) When considering a woman’s personal income, if the adjusted gross
yearly income averaged over the three
years preceding the certification exceeds $350,000, SBA will presume that
she is not economically disadvantaged.
The presumption may be rebutted by a
showing that this income level was unusual and not likely to occur in the future, that losses commensurate with
and directly related to the earnings
were suffered, or by evidence that the
income is not indicative of lack of economic disadvantage.
(ii) Income received by an EDWOSB
that is an S corporation, LLC, or partnership will be excluded from an individual’s income where the EDWOSB
provides documentary evidence demonstrating that the income was reinvested in the EDWOSB or the distribution was solely for the purposes of paying taxes arising in the normal course
of operations of the business concern.
Losses from the S corporation, LLC or
partnership, however, are losses to the
EDWOSB only, not losses to the individual, and cannot be used to reduce a
woman’s personal income.
(4) Fair market value of all assets. A
woman will generally not be considered
economically disadvantaged if the fair
market value of all her assets (including her primary residence and the
value of the business concern) exceeds
$6 million. The only assets excluded
from this determination are funds excluded under paragraph (b)(3) of this
section as being invested in a qualified
IRA account or other official retirement account.
(d) Transfers within two years. Assets
that a woman claiming economic disadvantage transferred within two years

of the date of the concern’s certification will be attributed to the woman
claiming economic disadvantage if the
assets were transferred to an immediate family member, or to a trust that
has as a beneficiary an immediate family member. The transferred assets
within the two-year period will not be
attributed to the woman if the transfer
was:
(1) To or on behalf of an immediate
family member for that individual’s
education, medical expenses, or some
other form of essential support; or
(2) To an immediate family member
in recognition of a special occasion,
such as a birthday, graduation, anniversary, or retirement.

Subpart C—Certification of
EDWOSB or WOSB Status
§ 127.300 How is a concern certified as
an EDWOSB or WOSB?
(a) General. At the time a concern
submits an offer on a specific contract
(including a Multiple Award Contract)
or order reserved for competition
among EDWOSBs or WOSBs under this
Part, it must be registered in the System for Award Management (SAM) (or
any successor system), have a current
representation posted on SAM (or any
successor system) that it qualifies as
an EDWOSB or WOSB, and have provided the required documents to the
WOSB Program Repository, or if the
repository is unavailable, be prepared
to submit the documents to the contracting officer if selected as the apparent successful offeror.
(b) Form of certification. In conjunction with its required registration in
the SAM (or any successor system), the
concern must submit a copy of the
Women-Owned Small Business Program
Certification
(WOSB
or
EDWOSB) to the WOSB Program Repository and representations to the
electronic annual representations and
certifications
at
http://orca.bpn.gov,
that it is a qualified EDWOSB or
WOSB. The Women-Owned Small Business Program Certification (WOSB or
EDWOSB) and representation must
state, subject to penalties for misrepresentation, that:
(1) The concern is an EDWOSB or
WOSB or is certified as an EDWOSB or

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13 CFR Ch. I (1–1–20 Edition)

WOSB by a certifying entity approved
by SBA, and there have been no
changes in its circumstances affecting
its eligibility since certification;
(2) The concern meets each of the applicable individual eligibility requirements described in subpart B of this
part, including that:
(i) It is a small business concern
under the size standard assigned to the
particular procurement;
(ii) It is at least 51 percent owned and
controlled by one or more women who
are United States citizens, or it is at
least 51 percent owned and controlled
by one or more women who are United
States citizens and are economically
disadvantaged; and
(iii) Neither SBA, in connection with
an examination or protest, nor an SBAapproved certifier has issued a decision
currently in effect finding that it does
not qualify as an EDWOSB or WOSB.
(c) Documents provided to contracting
officer. All of the documents set forth
in paragraphs (d) and (e) of this section
must be provided to the contracting officer to verify eligibility at the time of
initial offer. The documents will be
provided via the WOSB Program Repository or, if the repository is unavailable, directly to the contracting officer. The documents must be retained
for a minimum of six (6) years.
(d) Third-Party Certification. (1) Prior
to certification in SAM (or any successor system), the WOSB or EDWOSB
that has been certified as a WOSB or
EDWOSB by a certifying entity approved by SBA, including those certifiers from which SBA will accept certifications from the U.S. Department
of Transportation’s (DOT) Disadvantaged Business Enterprise (DBE) Program, or by SBA as an 8(a) BD Participant, must provide a copy of the thirdparty Certification to the WOSB Program Repository. If the WOSB Program Repository is unavailable, then
prior to the award of a WOSB or
EDWOSB contract, the apparent successful offeror WOSB or EDWOSB that
has been certified as a EDWOSB or
WOSB by a certifying entity approved
by SBA must provide a copy of the
third-party Certification to the contracting officer verifying that it was a
WOSB or EDWOSB at the time of initial offer.

(2) The EDWOSB or WOSB must also
provide a copy of the joint venture
agreement, if applicable.
(3) The EDWOSB or WOSB must also
provide a signed copy of the WomenOwned Small Business Program Certification (WOSB or EDWOSB).
(4) The EDWOSB or WOSB must also
provide any additional documents as
requested by SBA in writing that are
necessary to satisfy the WOSB Program requirements.
(5) Within thirty (30) days of the
WOSB Program Repository becoming
available, the WOSB or EDWOSB must
provide the same documents to the repository.
(e) Non-Third Party Certification. A
concern that has not been certified as a
WOSB or EDWOSB by a third-party
certifier approved by SBA or as a DBE
or by SBA as an 8(a) BD Participant
must also provide documents to the
WOSB Program Repository. If the
WOSB Program Repository is unavailable, then prior to award of a WOSB or
EDWOSB contract, the apparent successful offeror must provide a copy of
the documents to the contracting officer verifying that it was a WOSB or
EDWOSB at the time of initial offer.
Within thirty (30) days of the WOSB
Program Repository becoming available, the WOSB or EDWOSB must provide the same documents to the WOSB
Program Repository. These documents
must be signed and include the following:
(1) Birth certificates, Naturalization
papers, or unexpired passports for owners who are women;
(2) Copy of the joint venture agreement, if applicable;
(3) For limited liability companies:
(i) Articles of organization (also referred to as certificate of organization
or articles of formation) and any
amendments; and
(ii) Operating agreement, and any
amendments;
(4) For corporations:
(i) Articles of incorporation and any
amendments;
(ii) By-laws and any amendments;
(iii) All issued stock certificates, including the front and back copies,
signed in accord with the by-laws;
(iv) Stock ledger; and
(v) Voting agreements, if any;

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§ 127.302

(5) For partnerships, the partnership
agreement and any amendments;
(6) For sole proprietorships (and corporations, limited liability companies
and partnerships if applicable), the assumed/fictitious name certificate(s);
(7) A signed copy of the WomenOwned Small Business Program Certification-WOSBs; and
(8) For EDWOSBs, in addition to the
above:
(i) SBA Form 413, Personal Financial
Statement, available to the public at
http://www.sba.gov/tools/Forms/
index.html, for each woman claiming
economic disadvantage; and
(ii) A signed copy of the WomenOwned Small Business Program Certification–EDWOSBs.
(f) Update of certification and documents. (1) The concern must update its
Women-Owned Small Business Program
Certification
(WOSB
or
EDWOSB) and EDWOSB and WOSB
representations and self-certification
in SAM (or any successor system) as
necessary, but at least annually, to ensure they are kept current, accurate,
and complete. The certification and
representations are effective for a period of one year from the date of submission or update.
(2) The WOSB or EDWOSB must update the documents submitted to the
contracting officer via the WOSB Program Repository as necessary to ensure they are kept current, accurate
and complete. If the WOSB Program
Repository is not available, the WOSB
or EDWOSB must provide current, accurate and complete documents to the
contracting officer for each contract
award. Within thirty (30) days of the
WOSB Program Repository becoming
available, the WOSB or EDWOSB must
provide the same documents to the
WOSB Program Repository.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61146, Oct. 2, 2013]

§ 127.301 When may a contracting officer accept a concern’s self-certification?
(a) General. (1) Third-Party Certifications. A contracting officer may accept a concern’s self-certification in
SAM (or any successor system) as accurate for a specific procurement reserved for award under this Part if the

apparent successful offeror WOSB or
EDWOSB provided the required documents, which are set forth in
§ 127.300(d), and there has been no protest or other credible information that
calls into question the concern’s eligibility as a EDWOSB or WOSB. An example of such credible evidence includes information that the concern
was determined by SBA or an SBA-approved certifier not to qualify as an
EDWOSB or WOSB.
(2) Non-Third Party Certification. A
contracting officer may accept a concern’s self-certification in SAM (or any
successor system) if the apparent successful offeror WOSB or EDWOSB has
provided the required documents,
which are set forth in § 127.300(e), and
there has been no protest or other credible information that calls into question the concern’s eligibility as an
EDWOSB or WOSB.
(b) Referral to SBA. When the contracting officer has information that
calls into question the eligibility of a
concern as an EDWOSB or WOSB or
the concern fails to provide all of the
required documents to verify its eligibility, the contracting officer shall
refer
the
concern
to
SBA
for
verification of the concern’s eligibility
by filing an EDWOSB or WOSB status
protest pursuant to subpart F of this
part. If the apparent successful offeror
WOSB or EDWOSB fails to submit any
of the required documents, the contracting officer cannot award a WOSB
or EDWOSB contract to that business
concern.
[75 FR 62282, Oct. 7, 2010, as amended at 77 FR
1861, Jan. 12, 2012; 78 FR 61146, Oct. 2, 2013]

§ 127.302 What
third-party
certifications may a concern use as evidence of its status as a qualified
EDWOSB or WOSB?
In order for a concern to use a certification by another entity as evidence of
its status as a qualified EDWOSB or
WOSB in support of its representations
in SAM (or any successor system) pursuant to § 127.300(b), the concern must
have a current, valid certification
from:
(a) SBA as an 8(a) BD Program participant; or

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13 CFR Ch. I (1–1–20 Edition)

(b) An entity designated as an SBAapproved certifier on SBA’s Web site
located at http://www.sba.gov/GC.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.303 How will SBA select and
identify approved certifiers?
(a) General. SBA may enter into written agreements to accept the EDWOSB
or WOSB certification of a Federal
agency, State government, or national
certifying entity if SBA determines
that the entity’s certification process
complies with SBA-approved certification standards and tracks the
EDWOSB or WOSB eligibility requirements set forth in subpart B of this
part. The written agreement will include a provision authorizing SBA to
terminate the agreement if SBA subsequently determines that the entity’s
certification process does not comply
with SBA-approved certification standards or is not based on the same
EDWOSB or WOSB eligibility requirements as set forth in subpart B of this
part.
(b) Required certification standards. In
order for SBA to enter into an agreement to accept the EDWOSB or WOSB
certification of a Federal agency, State
government, or national certifying entity, the entity must establish the following:
(1) It will render fair and impartial
EDWOSB or WOSB eligibility determinations.
(2) It will retain the documents submitted by the approved WOSB or
EDWOSB for a period of six (6) years
from the date of certification (initial
and any recertification) and provide
any such documents to SBA in response to a status protest or eligibility
examination or agency investigation or
audit.
(3) Its certification process will require applicant concerns to pre-register
in SAM (or any successor system)and
submit sufficient information as determined by SBA to enable it to determine whether the concern qualifies as
an EDWOSB or WOSB. This information must include documentation demonstrating whether the concern is:
(i) A small business concern under
SBA’s size standards for its primary industry classification;

(ii) At least 51 percent owned and
controlled by one or more women who
are United States citizens; and
(iii) In the case of a concern applying
for EDWOSB certification, at least 51
percent owned and controlled by one or
more women who are United States
citizens and economically disadvantaged.
(4) It will not decline to accept a concern’s application for EDWOSB or
WOSB certification on the basis of
race, color, national origin, religion,
age, disability, sexual orientation, or
marital or family status.
(c) List of SBA-approved certifiers. SBA
will maintain a list of approved certifiers, including certifiers from which
SBA will accept DOT DBE certifications, on SBA’s Internet Web site at
http://www.sba.gov/GC. Any interested
person may also obtain a copy of the
list from the local SBA district office
or SBA Area Office for Government
Contracting.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.304 How does a concern obtain
certification from an approved certifier?
A concern that seeks EDWOSB or
WOSB certification from an SBA-approved certifier must submit its application directly to the approved certifier in accordance with the specific
application procedures of the particular certifier. Any interested party
may obtain such certification information and application by contacting the
approved certifier at the address provided on SBA’s list of approved certifiers.
§ 127.305 May a concern determined
not to qualify as an EDWOSB or
WOSB submit a self-certification for
a particular EDWOSB or WOSB requirement?
A concern that SBA or an SBA-approved certifier determines does not
qualify as an EDWOSB or WOSB may
not represent itself to be an EDWOSB
or WOSB, as applicable, unless SBA
subsequently determines that it is an
eligible EDWOSB or WOSB pursuant to
the examination procedures under

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§ 127.402

§ 127.405, and there have been no material changes in its circumstances affecting its eligibility since SBA’s eligibility determination. Any concern determined not to be a qualified
EDWOSB or WOSB may request that
SBA conduct an examination to determine its EDWOSB or WOSB eligibility
at any time once it believes in good
faith that it satisfies all of the eligibility requirements to qualify as an
EDWOSB or WOSB.

Subpart D—Eligibility Examinations
§ 127.400 What is an eligibility examination?
(a) Purpose of examination. Eligibility
examinations are investigations that
verify the accuracy of any certification
made or information provided as part
of the certification process (including
third-party certifications) or in connection with an EDWOSB or WOSB requirement. In addition, eligibility examinations may verify that a concern
meets the EDWOSB or WOSB eligibility requirements at the time of the
examination. SBA will, in its sole discretion, perform eligibility examinations at any time after a concern selfcertifies in SAM (or any successor system) that it is an EDWOSB or WOSB.
SBA may conduct the examination, or
parts of the examination, at one or all
of the concern’s offices.
(b) Determination on conduct of an examination. SBA may consider protest
allegations set forth in a protest in determining whether to conduct an examination of a concern pursuant to
subpart D of this part, notwithstanding
a dismissal or denial of a protest pursuant to § 127.604. SBA may also consider
information provided to the D/GC by a
third-party that questions the eligibility of a WOSB or EDWOSB that has
certified its status in SAM in determining whether to conduct an eligibility examination.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.401 What is the difference between an eligibility examination
and an EDWOSB or WOSB status
protest pursuant to subpart F of
this part?
(a) Eligibility examination. An eligibility examination is the formal process through which SBA verifies and
monitors the accuracy of any certification made or information provided as
part of the certification process or in
connection with an EDWOSB or WOSB
requirement. If SBA is conducting an
eligibility examination on a concern
that has submitted an offer on a pending EDWOSB or WOSB procurement
and SBA has credible information that
the concern may not qualify as an
EDWOSB or WOSB, then SBA may initiate a protest pursuant to § 127.600 to
suspend award of the contract for fifteen (15) business days pending SBA’s
determination of the concern’s eligibility.
(b) EDWOSB or WOSB protests. An
EDWOSB or WOSB status protest provides a mechanism for challenging or
verifying the EDWOSB or WOSB eligibility of a concern in connection with a
specific EDWOSB or WOSB requirement. SBA will process EDWOSB or
WOSB protests in accordance with the
procedures and timeframe set forth in
subpart F, and will determine the
EDWOSB or WOSB eligibility of the
protested concern as of the date the
concern represented its EDWOSB or
WOSB status as part of its initial offer
including price. SBA’s protest determination will apply to the specific procurement to which the protest relates
and to future procurements.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.402 How will SBA conduct an examination?
(a) Notification. No less than five (5)
business days before commencing an
examination, SBA will notify the concern in writing that it will conduct an
examination to verify the status of the
concern as an EDWOSB or WOSB. However, SBA reserves the right to conduct
a site visit without prior notification
to the concern.
(b) Request for information. SBA will
request that the concern or contracting officer provide documentation

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13 CFR Ch. I (1–1–20 Edition)

and information related to the concern’s EDWOSB or WOSB eligibility.
These documents will include those
submitted under § 127.300 and any other
pertinent documents requested by SBA
at the time of eligibility examination
to verify eligibility, including but not
limited to, documents submitted by a
concern in connection with any WOSB
or EDWOSB certification. SBA may
also request copies of proposals or bids
submitted in response to an EDWOSB
or WOSB solicitation. In addition,
EDWOSBs will be required to submit
signed copies of SBA Form 413, Personal Financial Statement, the three
most recent personal income tax returns (including all schedules and W–2
forms) for the women claiming economic disadvantage and their spouses,
unless the individuals and their
spouses are legally separated, and SBA
Form 4506–T, Request for Tax Transcript Form, available to the public at
http://www.sba.gov/tools/Forms/
index.html. SBA may draw an adverse
inference where a concern fails to cooperate in providing the requested information. The WOSB or EDWOSB
must
retain
documentation
demonstrating satisfaction of the eligibility requirements for six (6) years
from date of self-certification.
§ 127.403 What happens if SBA verifies
the concern’s eligibility?
If SBA verifies that the concern satisfies the applicable EDWOSB or WOSB
eligibility requirements, then the D/GC
will send the concern a written decision to that effect and will allow the
concern’s EDWOSB or WOSB designation in SAM (or any successor system)
to stand and the concern may continue
to self-certify its EDWOSB or WOSB
status.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.404 What happens if SBA is unable to verify a concern’s eligibility?
(a) Notice of proposed determination of
ineligibility. If SBA is unable to verify
that the concern qualifies as an
EDWOSB or WOSB, then the D/GC will
send the concern a written notice explaining the reasons SBA believes the
concern did not qualify at the time of

certification or does not qualify as an
EDWOSB or WOSB. The notice will advise the concern that it has fifteen (15)
calendar days from the date of the notice to respond.
(b) SBA determination. Following the
fifteen (15) day response period, the D/
GC or designee will consider the reasons of proposed ineligibility and any
information the concern submitted in
response, and will send the concern a
written decision with its findings. The
D/GC’s decision is effective immediately and remains in full force and
effect unless a new examination
verifies the concern is an eligible
EDWOSB or WOSB or the concern is
certified by a third-party certifier.
(1) If SBA determines that the concern does not qualify as an EDWOSB or
WOSB, then the D/GC will send the
concern a written decision explaining
the basis of ineligibility, and will require that the concern remove its
EDWOSB or WOSB designation in SAM
(or any successor system) within five
(5) calendar days after the date of the
decision.
(2) If the concern has already certified itself as a WOSB or EDWOSB on
a pending procurement the concern
must immediately inform the officials
responsible for the procurement of the
adverse determination.
(3) If SBA determines that the concern did not qualify as an EDWOSB or
WOSB at the time it submitted its initial offer for an EDWOSB or WOSB requirement, the contracting officer may
terminate the contract, not exercise
any option, or not award further task
or delivery orders.
(4) Whether or not a contracting officer decides to allow or not allow an ineligible concern to fully perform a contract under paragraph (b)(2) of this section, the contracting officer cannot
count the award as one to an EDWOSB
or WOSB and must update the Federal
Procurement Data System–Next Generation (FPDS–NG) and other databases from the date of award accordingly.
(c) A concern that has been found to
be ineligible may not represent itself
as a WOSB or EDWOSB until it cures
the reason for its ineligibility and SBA
determines that the concern qualifies
as a WOSB or EDWOSB. A concern that

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§ 127.501

believes in good faith that it has cured
the reason(s) for its ineligibility may
request an examination under the procedures set forth in this section.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013]

§ 127.405 What is the process for requesting an eligibility examination?
(a) General. A concern may request
that SBA conduct an examination to
verify its eligibility as an EDWOSB or
WOSB at any time after it is determined by SBA not to qualify as an
EDWOSB or WOSB, if the concern believes in good faith that it satisfies all
of the EDWOSB or WOSB eligibility requirements under subpart B of this
part.
(b) Format. The request for an examination must be in writing and must
specify the particular reasons the concern was determined not to qualify as
an EDWOSB or WOSB.
(c) Submission of request. The concern
must submit its request directly to the
Director for Government Contracting,
U.S. Small Business Administration,
409 Third Street, SW., Washington, DC
20416, or by fax to (202) 205–6390, marked
‘‘Attn: Request for Women-Owned
Small Business Eligibility Examination.’’
(d) Notice of receipt of request. SBA
will immediately notify the concern in
writing once SBA receives its request
for an examination. SBA will request
that the concern provide documentation and information related to the
concern’s EDWOSB or WOSB eligibility
and may draw an adverse inference if
the concern fails to cooperate in providing the requested information.
(e) Determination of eligibility. The D/
GC will send the concern a written decision finding that it either qualifies or
does not qualify as an EDWOSB or
WOSB.
(1) If the D/GC determines that the
concern does not qualify as an
EDWOSB or WOSB, the decision will
explain the specific reasons for the adverse determination and advise the
concern that it is prohibited from selfcertifying as an EDWOSB or WOSB. If
the
concern
self-certifies
as
an
EDWOSB or WOSB notwithstanding
SBA’s adverse determination, the con-

cern will be subject to the penalties
under subpart G of this part.
(2) If the D/GC determines that the
concern qualifies as an EDWOSB or
WOSB, then the D/GC will send the
concern a written decision to that effect and will advise the concern that it
may self-certify as an EDWOSB or
WOSB, as applicable.
(f) Effect of decision. The D/GC’s decision is effective immediately and remains in full force and effect unless a
new examination verifies the concern
is an eligible EDWOSB or WOSB or the
concern is certified by a third-party
certifier. If the concern has already
certified itself as a WOSB or EDWOSB
on a pending procurement the concern
must immediately inform the officials
responsible for the procurement of the
adverse determination.
(g) Determinations of Ineligibility. A
concern that has been found to be ineligible shall not represent itself as a
WOSB or EDWOSB until it cures the
reason for its ineligibility and SBA determines that the concern qualifies as
a WOSB or EDWOSB. A concern that
believes in good faith that it has cured
the reason(s) for its ineligibility may
request an examination under the procedures set forth in this section.

Subpart E—Federal Contract
Assistance
§ 127.500 In what industries is a contracting officer authorized to restrict competition or make a sole
source award under this part?
A contracting officer may restrict
competition or make a sole source
award under this part only in those industries in which SBA has determined
that WOSBs are underrepresented or
substantially underrepresented in Federal procurement, as specified in
§ 127.501, regardless of the place of performance.
[80 FR 55022, Sept. 14, 2015, as amended at 81
FR 48593, July 25, 2016]

§ 127.501 How will SBA determine the
industries that are eligible for
EDWOSB or WOSB requirements?
(a) Based upon its analysis, SBA will
designate by NAICS Industry Subsector Code those industries in which

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13 CFR Ch. I (1–1–20 Edition)

WOSBs are underrepresented and substantially underrepresented.
(b) In determining the extent of
underrepresentation of WOSBs, SBA
may request that the head of any Federal department or agency provide
SBA, data or information necessary to
analyze the extent of underrepresentation of WOSBs.
[75 FR 62282, Oct. 7, 2010, as amended at 80 FR
55022, Sept. 14, 2015]

§ 127.502 How will SBA identify and
provide notice of the designated industries?
SBA will post on its Internet Web
site at http://www.sba.gov a list of
NAICS Industry Subsector industries it
designates under § 127.501. The list of
designated industries also may be obtained from the local SBA district office and may be posted on the General
Services Administration Internet Web
site.
§ 127.503 When is a contracting officer
authorized to restrict competition
or award a sole source contract or
order under this part?
(a) Competition restricted to EDWOSBs.
For requirements in industries designated by SBA as underrepresented
pursuant to § 127.501, a contracting officer may restrict competition to
EDWOSBs if the contracting officer has
a reasonable expectation based on market research that:
(1) Two or more EDWOSBs will submit offers for the contract; and
(2) Contract award may be made at a
fair and reasonable price.
(b) Competition restricted to WOSBs.
For requirements in industries designated by SBA as substantially underrepresented pursuant to § 127.501, a contracting officer may restrict competition to WOSBs if the contracting officer has a reasonable expectation based
on market research that:
(1) Two or more WOSBs will submit
offers (this includes EDWOSBs, which
are also WOSBs); and
(2) Contract award may be made at a
fair and reasonable price.
(c) Sole source awards to EDWOSBs.
For requirements in industries designated by SBA as underrepresented
pursuant to § 127.501, a contracting officer may issue a sole source award to an

EDWOSB when the contacting officer
determines that:
(1) The EDWOSB is a responsible contractor with respect to performance of
the requirement and the contracting
officer does not have a reasonable expectation that 2 or more EDWOSBs
will submit offers;
(2) The anticipated award price of the
contract (including options) will not
exceed $6,500,000 in the case of a contract assigned a North American Industry Classification System (NAICS) code
for manufacturing, or $4,000,000 in the
case of any other contract opportunity;
and
(3) In the estimation of the contracting officer, the award can be made
at a fair and reasonable price.
(d) Sole source awards to WOSBs. For
requirements in industries designated
by SBA as substantially underrepresented pursuant to § 127.501, a contracting officer may issue a sole source
award to a WOSB when the contacting
officer determines that:
(1) The WOSB is a responsible contractor with respect to performance of
the requirement and the contracting
officer does not have a reasonable expectation that 2 or more WOSBs will
submit offers;
(2) The anticipated award price of the
contract (including options) will not
exceed $6,500,000 in the case of a contract assigned a NAICS code for manufacturing, or $4,000,000 in the case of
any other contract opportunity; and
(3) In the estimation of the contracting officer, the award can be made
at a fair and reasonable price.
(e) 8(a) BD requirements. A contracting officer may not restrict competition to eligible EDWOSBs or
WOSBs if an 8(a) BD Participant is currently performing the requirement
under the 8(a) BD Program or SBA has
accepted the requirement for performance under the authority of the 8(a) BD
program, unless SBA consented to release the requirement from the 8(a) BD
program.
(f) Contracting Among Small Business
Programs. (1) Acquisitions Valued At or
Below the Simplified Acquisition Threshold. The contracting officer shall set
aside any acquisition with an anticipated dollar value exceeding the Micropurchase Threshold but not exceeding

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§ 127.503

the Simplified Acquisition Threshold
(defined in the FAR at 48 CFR 2.101) for
small business concerns when there is a
reasonable expectation that offers will
be obtained from at least two small
business concerns that are competitive
in terms of quality and delivery and
award will be made at fair market
prices. This requirement does not preclude a contracting officer from making an award to a small business under
the 8(a) BD, HUBZone, SDVO SBC or
WOSB Programs.
(2) Acquisitions Valued Above the Simplified Acquisition Threshold. (i) The
contracting officer shall set aside any
acquisition with an anticipated dollar
value exceeding the Simplified Acquisition Threshold (defined in the FAR at
48 CFR 2.101) for small business concerns when there is a reasonable expectation that offers will be obtained from
at least two small business concerns
that are competitive in terms of quality and delivery and award will be
made at fair market prices. However,
after conducting market research, the
contracting officer shall first consider
a set-aside or sole source award (if the
sole source award is permitted by statute or regulation) under the 8(a) BD,
HUBZone, SDVO SBC or WOSB programs before setting aside the requirement as a small business set-aside.
There is no order of precedence among
the 8(a) BD, HUBZone, SDVO SBC or
WOSB programs. The contracting officer must document the contract file
with the rationale used to support the
specific set-aside, including the type
and extent of market research conducted. In addition, the contracting officer must document the contract file
showing that the apparent successful
offeror’s certifications in SAM (or any
successor system) and associated representations were reviewed.
(ii) SBA believes that Progress in fulfilling the various small business goals,
as well as other factors such as the results
of
market
research,
programmatic needs specific to the procuring agency, anticipated award price,
and the acquisition history, will be
considered in making a decision as to
which program to use for the acquisition.
(g) Contract file. When restricting
competition to WOSBs or EDWOSBs in

accordance with § 127.503, the contracting officer must document the
contract file accordingly, including the
type and extent of market research and
the fact that the NAICS code assigned
to the contract is for an industry that
SBA has designated as an underrepresented or, with respect to WOSBs,
substantially underrepresented, industry. In addition, the contracting officer
must document the contract file showing that the apparent successful
offeror’s documents and certifications
in SAM (or any successor system) and
associated representations were reviewed.
(h) Recertification. (1) A concern that
represents itself and qualifies as a
WOSB or EDWOSB at the time of initial offer (or other formal response to a
solicitation), which includes price, including a Multiple Award Contract, is
considered a WOSB or EDWOSB
throughout the life of that contract.
This means that if a WOSB/EDWOSB is
qualified at the time of initial offer for
a Multiple Award Contract, then it will
be considered an WOSB/EDWOSB for
each order issued against the contract,
unless a contracting officer requests a
new WOSB or EDWOSB certification in
connection with a specific order. Where
a concern later fails to qualify as a
WOSB/EDWOSB, the procuring agency
may exercise options and still count
the award as an award to a WOSB/
EDWOSB. However, the following exceptions apply to this paragraph (h)(1):
(i) Where a contract is novated to another business concern, the concern
that will continue performance on the
contract must certify its status as a
WOSB/EDWOSB to the procuring agency, or inform the procuring agency
that it does not qualify as a WOSB/
EDWOSB, within 30 days of the novation approval. If the concern cannot
certify its status as a WOSB/EDWOSB,
the agency may no longer be able to
count the options or orders issued pursuant to the contract, from that point
forward, towards its women-owned
small business goals.
(ii) Where a concern that is performing a contract acquires, is acquired by, or merges with another concern and contract novation is not required, the concern must, within 30
days of the transaction becoming final,

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13 CFR Ch. I (1–1–20 Edition)

recertify its WOSB/EDWOSB status to
the procuring agency, or inform the
procuring agency that it no longer
qualifies as a WOSB/EDWOSB. If the
concern is unable to recertify its status
as a WOSB/EDWOSB, the agency may
no longer be able to count the options
or orders issued pursuant to the contract, from that point forward, towards
its women-owned small business goals.
The agency and the contractor must
immediately revise all applicable Federal contract databases to reflect the
new status if necessary.
(iii) Where there has been a WOSB or
EDWOSB status protest on the solicitation or contract, see § 127.604(f) for
the effect of the status determination
on the contract award.
(2) For the purposes of contracts (including Multiple Award Contracts)
with durations of more than five years
(including options), a contracting officer must request that a business concern recertify its WOSB/EDWOSB status no more than 120 days prior to the
end of the fifth year of the contract,
and no more than 120 days prior to exercising any option.
(3) A business concern that did not
certify itself as a WOSB/EDWOSB, either initially or prior to an option
being exercised, may recertify itself as
a WOSB/EDWOSB for a subsequent option period if it meets the eligibility
requirements at that time.
(4) Recertification does not change
the terms and conditions of the contract. The limitations on subcontracting, nonmanufacturer and subcontracting plan requirements in effect at
the time of contract award remain in
effect throughout the life of the contract.
(5) Where the contracting officer explicitly requires concerns to recertify
their status in response to a solicitation for an order, SBA will determine
eligibility as of the date the concern
submits its self-representation as part
of its response to the solicitation for
the order.
(6) A concern’s status may be determined at the time of a response to a solicitation for an Agreement and each

order issued pursuant to the Agreement.
[75 FR 62282, Oct. 7, 2010, as amended at 77 FR
1861, Jan. 12, 2012; 78 FR 26506, May 7, 2013; 78
FR 61147, Oct. 2, 2013; 79 FR 31849, June 3,
2014; 80 FR 55022, Sept. 14, 2015; 83 FR 12852,
Mar. 26, 2018; 84 FR 65665, Nov. 29, 2019]

§ 127.504 What
additional
requirements must a concern satisfy to
submit an offer on an EDWOSB or
WOSB requirement?
(a) In order for a concern to submit
an offer on a specific EDWOSB or
WOSB requirement, the concern must
ensure that the appropriate representations and certifications in SAM (or any
successor system) are accurate and
complete at the time it submits its
offer to the contracting officer, including, but not limited to, the fact that:
(1) It is small under the size standard
corresponding to the NAICS code assigned to the contract;
(2) It is listed in SAM (or any successor system) as an EDWOSB or
WOSB; and
(3) There has been no material
change in any of its circumstances affecting its EDWOSB or WOSB eligibility.
(b) The concern must also meet the
applicable limitations on subcontracting requirements as set forth in
§ 125.6 of this chapter.
(c) Ostensible subcontractor. Where a
subcontractor that is not similarly situated performs primary and vital requirements of a set-aside service contract, or where a prime contractor is
unduly reliant on a small business that
is not similarly situated to perform the
set-aside service contract, the prime
contractor is not eligible for award of a
WOSB or EDWOSB contract.
(1) When the subcontractor is small
for the size standard assigned to the
procurement, this issue may be
grounds for a WOSB or EDWOSB status
protest, as described in subpart F of
this part. When the subcontractor is
other than small or alleged to be other
than small for the size standard assigned to the procurement, this issue
may be a ground for a size protest, as
described at § 121.103(h)(4) of this chapter.
(2) SBA will find that a prime WOSB
or EDWOSB contractor is performing

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§ 127.506

the primary and vital requirements of
a contract or order and is not unduly
reliant on one or more non-similarly
situated subcontracts where the prime
contractor can demonstrate that it, together with any similarly situated entity, will meet the limitations on subcontracting provisions set forth in
§ 125.6.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013; 81 FR 34265, May 31, 2016;
84 FR 65665, Nov. 29, 2019]

§ 127.505 May a non-manufacturer submit an offer on an EDWOSB or
WOSB requirement for supplies?
An EDWOSB or WOSB that is a nonmanufacturer, as defined in § 121.406(b)
of this chapter, may submit an offer on
an EDWOSB or WOSB contract for supplies, if it meets the requirements
under the non-manufacturer rule set
forth in § 121.406(b) of this chapter.
§ 127.506 May a joint venture submit
an offer on an EDWOSB or WOSB
requirement?
A joint venture, including those between a prote´ge´ and a mentor under
§ 125.9 of this chapter (or, if also an 8(a)
BD Participant, under § 124.520 of this
chapter), may submit an offer on a
WOSB Program contract if the joint
venture meets all of the following requirements:
(a)(1) A joint venture of at least one
WOSB or EDWOSB and one or more
other business concerns may submit an
offer as a small business for a WOSB
Program procurement or sale so long
as each concern is small under the size
standard corresponding to the NAICS
code assigned to the procurement or
sale.
(2) A joint venture between a prote´ge´
firm and its SBA-approved mentor (see
§ 125.9 and § 124.520 of this chapter) will
be deemed small provided the prote´ge´
qualifies as small for the size standard
corresponding to the NAICS code assigned to the WOSB Program procurement or sale.
(b) The EDWOSB or WOSB participant of the joint venture must be designated in SAM (or any successor system)as an EDWOSB or WOSB;
(c) Contents of joint venture agreement.
The parties to the joint venture must
enter into a written joint venture

agreement. The joint venture agreement must contain a provision:
(1) Setting forth the purpose of the
joint venture.
(2) Designating a WOSB as the managing venturer of the joint venture,
and an employee of the WOSB managing venturer as the project manager
responsible for performance of the contract. The individual identified as the
project manager of the joint venture
need not be an employee of the WOSB
at the time the joint venture submits
an offer, but, if he or she is not, there
must be a signed letter of intent that
the individual commits to be employed
by the WOSB if the joint venture is the
successful offeror. The individual identified as the project manager cannot be
employed by the mentor and become an
employee of the WOSB for purposes of
performance under the joint venture;
(3) Stating that with respect to a separate legal entity joint venture, the
WOSB must own at least 51% of the
joint venture entity;
(4) Stating that the WOSB(s) must
receive profits from the joint venture
commensurate with the work performed by the WOSB;
(5) Providing for the establishment
and administration of a special bank
account in the name of the joint venture. This account must require the
signature of all parties to the joint
venture or designees for withdrawal
purposes. All payments due the joint
venture for performance on a WOSB
Program contract will be deposited in
the special account; all expenses incurred under the contract will be paid
from the account as well;
(6) Itemizing all major equipment, facilities, and other resources to be furnished by each party to the joint venture, with a detailed schedule of cost or
value of each, where practical. If a contract is indefinite in nature, such as an
indefinite quantity contract or a multiple award contract where the level of
effort or scope of work is not known,
the joint venture must provide a general description of the anticipated
major equipment, facilities, and other
resources to be furnished by each party
to the joint venture, without a detailed
schedule of cost or value of each, or in
the alternative, specify how the parties
to the joint venture will furnish such

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13 CFR Ch. I (1–1–20 Edition)

resources to the joint venture once a
definite scope of work is made publicly
available;
(7) Specifying the responsibilities of
the parties with regard to negotiation
of the contract, source of labor, and
contract performance, including ways
that the parties to the joint venture
will ensure that the joint venture and
the WOSB Program participant(s) in
the joint venture will meet the performance of work requirements set
forth in paragraph (d) of this section,
where practical. If a contract is indefinite in nature, such as an indefinite
quantity contract or a multiple award
contract where the level of effort or
scope of work is not known, the joint
venture must provide a general description of the anticipated responsibilities
of the parties with regard to negotiation of the contract, source of labor,
and contract performance, not including the ways that the parties to the
joint venture will ensure that the joint
venture and the WOSB Program participant(s) in the joint venture will meet
the performance of work requirements
set forth in paragraph (d) of this section, or in the alternative, specify how
the parties to the joint venture will define such responsibilities once a definite scope of work is made publicly
available;
(8) Obligating all parties to the joint
venture to ensure performance of the
WOSB contract and to complete performance despite the withdrawal of any
member;
(9) Designating that accounting and
other administrative records relating
to the joint venture be kept in the office of the WOSB managing venturer,
unless approval to keep them elsewhere
is granted by the District Director or
his/her designee upon written request;
(10) Requiring that the final original
records be retained by the WOSB managing venturer upon completion of the
WOSB Program contract performed by
the joint venture;
(11) Stating that quarterly financial
statements showing cumulative contract receipts and expenditures (including salaries of the joint venture’s principals) must be submitted to SBA not
later than 45 days after each operating
quarter of the joint venture; and

(12) Stating that a project-end profit
and loss statement, including a statement of final profit distribution, must
be submitted to SBA no later than 90
days after completion of the contract.
(d) Performance of work. (1) For any
WOSB Program contract, the joint venture (including one between a prote´ge´
and a mentor authorized by § 125.9 or
§ 124.520 of this chapter) must perform
the applicable percentage of work required by § 125.6 of this chapter.
(2) The WOSB partner(s) to the joint
venture must perform at least 40% of
the work performed by the joint venture.
(i) The work performed by the WOSB
partner(s) to a joint venture must be
more than administrative or ministerial functions so that they gain substantive experience.
(ii) The amount of work done by the
partners will be aggregated and the
work done by the WOSB partner(s)
must be at least 40% of the total done
by all partners. In determining the
amount of work done by the non-WOSB
partner, all work done by the nonWOSB partner and any of its affiliates
at any subcontracting tier will be
counted.
(e) Certification of compliance. Prior to
the performance of any WOSB Program
contract as a joint venture, the WOSB
Program participant in the joint venture must submit a written certification to the contracting officer and
SBA, signed by an authorized official of
each partner to the joint venture, stating as follows:
(i) The parties have entered into a
joint venture agreement that fully
complies with paragraph (c) of this section;
(ii) The parties will perform the contract in compliance with the joint venture agreement and with the performance of work requirements set forth in
paragraph (d) of this section.
(f) Past performance and experience.
When evaluating the past performance
and experience of an entity submitting
an offer for a WOSB Program contract
as a joint venture established pursuant
to this section, a procuring activity
must consider work done individually
by each partner to the joint venture as
well as any work done by the joint venture itself previously.

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§ 127.509

(g) Contract execution. The procuring
activity will execute a WOSB Program
contract in the name of the joint venture entity or the WOSB, but in either
case will identify the award as one to a
WOSB Program joint venture or a
WOSB Program mentor-prote´ge´ joint
venture, as appropriate.
(h) Submission of joint venture agreement. The WOSB Program participant
must provide a copy of the joint venture agreement to the contracting officer.
(i) Inspection of records. The joint venture partners must allow SBA’s authorized representatives, including representatives authorized by the SBA Inspector General, during normal business hours, access to its files to inspect
and copy all records and documents relating to the joint venture.
(j) Performance of work reports. The
WOSB Program participant in the joint
venture must describe how it is meeting or has met the applicable performance of work requirements for each
WOSB Program contract it performs as
a joint venture.
(1) The WOSB partner to the joint
venture must annually submit a report
to the relevant contracting officer and
to the SBA, signed by an authorized official of each partner to the joint venture, explaining how the performance
of work requirements are being met for
each WOSB Program contract performed during the year.
(2) At the completion of every WOSB
Program contract awarded to a joint
venture, the WOSB partner to the joint
venture must submit a report to the
relevant contracting officer and to the
SBA, signed by an authorized official of
each partner to the joint venture, explaining how and certifying that the
performance of work requirements
were met for the contract, and further
certifying that the contract was performed in accordance with the provisions of the joint venture agreement
that are required under paragraph (c)
of this section.
(k) Basis for suspension or debarment.
The Government may consider the following as a ground for suspension or
debarment as a willful violation of a
regulatory provision or requirement
applicable to a public agreement or
transaction:

(1) Failure to enter a joint venture
agreement that complies with paragraph (c) of this section;
(2) Failure to perform a contract in
accordance with the joint venture
agreement or performance of work requirements in paragraph (d) of this section; or
(3) Failure to submit the certification required by paragraph (e) or
comply with paragraph (i) of this section.
(l) Any person with information concerning a joint venture’s compliance
with the performance of work requirements may report that information to
SBA and/or the SBA Office of Inspector
General.
[75 FR 62282, Oct. 7, 2010, as amended at 78 FR
61147, Oct. 2, 2013; 81 FR 34265, May 31, 2016;
81 FR 48593, July 25, 2016; 81 FR 94942, Dec. 27,
2016]

§ 127.507 Are there EDWOSB and
WOSB contracting opportunities at
or below the simplified acquisition
threshold?
If the requirement is valued at or
below
the
simplified
acquisition
threshold, the contracting officer may
set aside the requirement or award the
requirement on a sole source basis as
set forth in § 127.503.
[80 FR 55022, Sept. 14, 2015]

§ 127.508 May SBA appeal a contracting officer’s decision not to
make a requirement available for
award as a WOSB Program contract?
The Administrator may appeal a contracting officer’s decision not to make
a particular requirement available for
award under the WOSB Program.
§ 127.509 What is the process for such
an appeal?
(a) Notice of appeal. When the contacting officer rejects a recommendation by SBA’s Procurement Center
Representative to make a requirement
available for the WOSB Program, he or
she must notify the Procurement Center Representative as soon as practicable. If the Administrator intends to
appeal the decision, SBA must notify
the contracting officer no later than
five (5) business days after receiving

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13 CFR Ch. I (1–1–20 Edition)

notice of the contracting officer’s decision.
(b) Suspension of action. Upon receipt
of notice of SBA’s intent to appeal, the
contracting officer must suspend further action regarding the procurement
until the Secretary of the department
or head of the agency issues a written
decision on the appeal, unless the Secretary of the department or head of the
agency makes a written determination
that urgent and compelling circumstances which significantly affect
the interests of the United States compel award of the contract.
(c) Deadline for appeal. Within fifteen
(15) business days of SBA’s notification
to the CO, SBA must file its formal appeal with the Secretary of the department or head of the agency, or the appeal will be deemed withdrawn.
(d) Decision. The Secretary of the department or head of the agency must
specify in writing the reasons for a denial of an appeal brought under this
section.

Subpart F—Protests
§ 127.600 Who may protest the status
of a concern as an EDWOSB or
WOSB?
(a) For sole source procurements. SBA
or the contracting officer may protest
the proposed awardee’s EDWOSB or
WOSB status.
(b) For all other EDWOSB or WOSB requirements. An interested party may
protest
the
apparent
successful
offeror’s EDWOSB or WOSB status.
[80 FR 55022, Sept. 14, 2015]

§ 127.601 May a protest challenging
the size and status of a concern as
an EDWOSB or WOSB be filed together?
An interested party seeking to protest both the size and the EDWOSB or
WOSB status of an apparent successful
offeror on an EDWOSB or WOSB requirement must file two separate protests, one size protest pursuant to part
121 of this chapter and one EDWOSB or
WOSB status protest pursuant to this
subpart. An interested party seeking to
protest only the size of an apparent
successful EDWOSB or WOSB offeror
must file a size protest to the con-

tracting officer pursuant to part 121 of
this chapter.
§ 127.602 What are the grounds for filing an EDWOSB or WOSB status
protest?
(a) SBA will consider a protest challenging the status of a concern as an
EDWOSB or WOSB if the protest presents sufficient credible evidence to
show that the concern may not be
owned and controlled by one or more
women who are United States citizens
and, if the protest is in connection
with an EDWOSB contract, that the
concern is not at least 51 percent
owned and controlled by one or more
women who are economically disadvantaged. SBA will also consider a protest
challenging the status of a concern as
an EDWOSB or WOSB if the contracting officer has protested because
the WOSB or EDWOSB apparent successful offeror has failed to provide all
of the required documents, as set forth
in § 127.300. In addition, when sufficient
credible evidence is presented, SBA
will consider a protest challenging
whether the prime contractor is unusually reliant on a small, non-similarly
situated entity subcontractor, as defined in § 125.1 of this chapter, or a protest alleging that such subcontractor is
performing the primary and vital requirements of a set-aside or sole-source
WOSB or EDWOSB contract.
(b) For a protest filed against an
EDWOSB or WOSB joint venture, the
protest must state all specific grounds
for why—
(1) The EDOWSB or WOSB partner to
the joint venture did not meet the
EDWOSB or WOSB eligibility requirements set forth in § 127.200; and/or
(2) The protested EDWOSB or WOSB
joint venture did not meet the requirements set forth in § 127.506.
[75 FR 62282, Oct. 7, 2010, as amended at 84 FR
65251, Nov. 26, 2019; 84 FR 65665, Nov. 29, 2019]

§ 127.603 What are the requirements
for filing an EDWOSB or WOSB protest?
(a) Format. Protests must be in writing and must specify all the grounds
upon which the protest is based. A protest merely asserting that the protested concern is not an eligible
EDWOSB or WOSB, without setting

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§ 127.604

forth specific facts or allegations, is insufficient.
(b) Filing. Protestors may deliver
their written protests in person, by facsimile, by express delivery service, email, or by U.S. mail (received by the
applicable date) to the following:
(1) To the contracting officer, if the
protestor is an offeror for the specific
contract; or
(2) To the D/GC, if the protest is initiated by the contracting officer or
SBA. IF SBA initiates a protest, the D/
GC will notify the contracting officer
of such protest.
(c) Timeliness. (1) For negotiated acquisitions, a protest from an interested
party must be received by the contracting officer prior to the close of
business on the fifth business day after
notification by the contracting officer
of the apparent successful offeror or
notification of award.
(2) For sealed bid acquisitions, a protest from an interested party must be
received by close of business on the
fifth business day after bid opening.
(3) Any protest received after the
time limit is untimely, unless it is
from SBA or the contracting officer. A
contracting officer or SBA may file an
EDWOSB or WOSB protest at any time
after bid opening or notification of intended awardee, whichever applies.
(4) Any protest received prior to bid
opening or notification of intended
awardee, whichever applies, is premature.
(5) A timely filed protest applies to
the procurement in question even if
filed after award.
(d) Referral to SBA. The contracting
officer must forward to SBA any protest received, notwithstanding whether
he or she believes it is premature, sufficiently specific, or timely. The contracting officer must send all protests,
along with a referral letter and documents, directly to the Director for
Government Contracting, U.S. Small
Business Administration, 409 Third
Street, SW., Washington, DC 20416, or
by fax to (202) 205–6390, Attn: WomenOwned Small Business Status Protest.
The contracting officer’s referral letter
must include information pertaining to
the solicitation that may be necessary
for SBA to determine timeliness and
standing, including: the solicitation

number; the name, address, telephone
number and facsimile number of the
contracting
officer;
whether
the
protestor submitted an offer; whether
the protested concern was the apparent
successful offeror; when the protested
concern submitted its offer; whether
the procurement was conducted using
sealed bid or negotiated procedures;
the bid opening date, if applicable;
when the protest was submitted to the
contracting officer; when the protestor
received notification about the apparent successful offeror, if applicable;
and whether a contract has been
awarded. In addition, the contracting
officer must send copies of any documents provided to the contracting officer pursuant to § 127.300 (if the repository is unavailable). The D/GC or designee will decide the merits of
EDWOSB or WOSB status protests.
§ 127.604 How will SBA process an
EDWOSB or WOSB status protest?
(a) Notice of receipt of protest. Upon receipt of the protest, SBA will notify
the
contracting
officer
and
the
protestor of the date SBA received the
protest and whether SBA will process
the protest or dismiss it under paragraph (b) of this section. The contracting officer may award the contract after receipt of a protest if the
contracting officer determines in writing that an award must be made to protect the public interest. Notwithstanding such a determination, the
provisions of paragraph (f) of this section apply to the procurement in question.
(b) Dismissal of protest. If SBA determines that the protest is premature,
untimely, nonspecific, or is based on
nonprotestable allegations, SBA will
dismiss the protest and will send the
contracting officer and the protestor a
notice of dismissal, citing the reason(s)
for the dismissal. Notwithstanding
SBA’s dismissal of the protest, SBA
may, in its sole discretion, consider the
protest allegations in determining
whether to conduct an examination of
the protested concern pursuant to subpart D of this part or submit a protest
itself.
(c) Notice to protested concern. If SBA
determines that the protest is timely,

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13 CFR Ch. I (1–1–20 Edition)

sufficiently specific and is based upon
protestable allegations, SBA will:
(1) Notify the protested concern of
the protest and request information
and documents responding to the protest within five (5) business days from
the date of the notice. These documents will include those that verify
the eligibility of the concern, respond
to the protest allegations, and copies of
proposals or bids submitted in response
to an EDWOSB or WOSB requirement.
In addition, EDWOSBs will be required
to submit signed copies of SBA Form
413, Personal Financial Statement, the
three most recent personal income tax
returns (including all schedules and W–
2 forms) for the women claiming economic disadvantage and their spouses,
unless the individuals and their
spouses are legally separated, and SBA
Form 4506–T, Request for Tax Transcript Form. SBA may draw an adverse
inference where a concern fails to cooperate in providing the requested information and documents; and
(2) Forward a copy of the protest to
the protested concern.
(d) Time period for determination. SBA
will determine the EDWOSB or WOSB
status of the protested concern within
fifteen (15) business days after receipt
of the protest, or within any extension
of that time that the contracting officer may grant SBA. If SBA does not
issue its determination within the fifteen (15) business day period (or within
any extension of that time the contracting officer has granted), the contracting officer may award the contract if he or she determines in writing
that there is an immediate need to
award the contract and that waiting
until SBA makes its determination
will be disadvantageous to the Government. Notwithstanding such a determination, the provisions of paragraph
(f) of this section apply to the procurement in question. The determination
must be included in the contract file
and a written copy sent to the D/GC.
(e) Notification of determination. SBA
will notify the contracting officer, the
protestor, and the protested concern in
writing of its determination. If SBA
sustains the protest, SBA will issue a
decision explaining the basis of its determination and requiring that the
concern remove its designation in SAM

(or any successor system) as an
EDWOSB or WOSB, as appropriate. Regardless of a decision not to sustain
the protest, SBA may, in its sole discretion, consider the protest allegations in determining whether to conduct an examination of the protested
concern pursuant to subpart D of this
part.
(f) Effect of determination. SBA’s determination is effective immediately
and is final unless overturned by SBA’s
Office of Hearings and Appeals (OHA)
on appeal pursuant to § 127.605.
(1) A contracting officer may award
the contract to a protested concern
after the D/GC either has determined
that the protested concern is an eligible WOSB or EDWOSB or has dismissed
all protests against it. If OHA subsequently overturns the D/GC’s determination or dismissal, the contracting
officer may apply the OHA decision to
the procurement in question.
(2) A contracting officer shall not
award the contract to a protested concern that the D/GC has determined is
not an EDWOSB or WOSB for the procurement in question.
(i) If a contracting officer receives
such a determination after contract
award, and no OHA appeal has been
filed, the contracting officer shall terminate the award.
(ii) If a timely OHA appeal has been
filed after contract award, the contracting officer must consider whether
performance can be suspended until an
appellate decision is rendered.
(iii) If OHA affirms the D/GC’s determination finding that the protested
concern is ineligible, the contracting
officer shall either terminate the contract, not exercise the next option or
not award further task or delivery orders.
(3) The contracting officer must update the Federal Procurement Data
System and other procurement reporting databases to reflect the final agency decision (the D/GC’s decision if no
appeal is filed or OHA’s decision).
(4) A concern that has been found to
be ineligible may not submit an offer
as a WOSB or EDWOSB on another procurement until it cures the reason(s)
for its ineligibility and SBA issues a
decision to this effect. A concern that
believes in good faith that it has cured

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§ 127.700

the reason(s) for its ineligibility may
request an examination under the procedures set forth in § 127.405.
[75 FR 62282, Oct. 7, 2010, as amended at 77 FR
1861, Jan. 12, 2012; 78 FR 61148, Oct. 2, 2013]

§ 127.605 What are the procedures for
appealing an EDWOSB or WOSB
status protest decision?
The protested concern, the protestor,
or the contracting officer may file an
appeal of a WOSB or EDWOSB status
protest determination with SBA’s Office of Hearings and Appeals (OHA) in
accordance with part 134 of this chapter.

Subpart G—Penalties
§ 127.700 What are the requirements
for representing EDWOSB or WOSB
status, and what are the penalties
for misrepresentation?
(a) Presumption of Loss Based on the
Total Amount Expended. In every contract, subcontract, cooperative agreement, cooperative research and development agreement, or grant which is
set aside, reserved, or otherwise classified as intended for award to EDWOSBs
or WOSBs, there shall be a presumption of loss to the United States based
on the total amount expended on the
contract,
subcontract,
cooperative
agreement, cooperative research and
development agreement, or grant
whenever it is established that a business concern other than a EDWOSB or
WOSB willfully sought and received
the award by misrepresentation.
(b) Deemed Certifications. The following actions shall be deemed affirmative, willful and intentional certifications of EDWOSB or WOSB status:
(1) Submission of a bid, proposal, application or offer for a Federal grant,
contract,
subcontract,
cooperative
agreement, or cooperative research and
development agreement reserved, set
aside, or otherwise classified as intended for award to EDWOSBs or
WOSBs.
(2) Submission of a bid, proposal, application or offer for a Federal grant,
contract,
subcontract,
cooperative
agreement or cooperative research and
development agreement which in any
way encourages a Federal agency to

classify the bid or proposal, if awarded,
as an award to a EDWOSB or WOSB.
(3) Registration on any Federal electronic database for the purpose of
being considered for award of a Federal
grant, contract, subcontract, cooperative agreement, or cooperative research and development agreement, as
an EDWOSB or WOSB.
(c) Signature Requirement. Each offer,
proposal, bid, or application for a Federal contract, subcontract, or grant
shall contain a certification concerning the EDWOSB or WOSB status
of a business concern seeking the Federal contract, subcontract or grant. An
authorized official must sign the certification on the same page containing
the EDWOSB or WOSB status claimed
by the concern.
(d) Limitation of Liability. Paragraphs
(a)–(c) of this section may be determined not to apply in the case of unintentional errors, technical malfunctions, and other similar situations that
demonstrate that a misrepresentation
of EDWOSB or WOSB status was not
affirmative, intentional, willful or actionable under the False Claims Act, 31
U.S.C. §§ 3729, et seq. A prime contractor acting in good faith should not
be held liable for misrepresentations
made by its subcontractors regarding
the subcontractors’ EDWOSB or WOSB
status. Relevant factors to consider in
making this determination may include the firm’s internal management
procedures governing EDWOSB or
WOSB status representations or certifications, the clarity or ambiguity of the
representation or certification requirement, and the efforts made to correct
an incorrect or invalid representation
or certification in a timely manner. An
individual or firm may not be held liable where government personnel have
erroneously identified a concern as an
EDWOSB or WOSB without any representation or certification having
been made by the concern and where
such identification is made without the
knowledge of the individual or firm.
(e) Penalties for Misrepresentation. (1)
Suspension or debarment. The SBA suspension and debarment official or the
agency suspension and debarment official may suspend or debar a person or
concern for misrepresenting a firm’s

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§ 127.701

13 CFR Ch. I (1–1–20 Edition)

status as an EDWOSB or WOSB pursuant to the procedures set forth in 48
CFR subpart 9.4.
(2) Civil Penalties. Persons or concerns
are subject to severe penalties under
the False Claims Act, 31 U.S.C. 3729–
3733, the Program Fraud Civil Remedies Act, 31 U.S.C. 3801–3812, and any
other applicable laws or regulations,
including 13 CFR part 142.
(3) Criminal Penalties. Persons or concerns are subject to severe criminal
penalties for knowingly misrepresenting the EDWOSB or WOSB status
of a concern in connection with procurement programs pursuant to section
16(d) of the Small Business Act, 15
U.S.C. 645(d), as amended, 18 U.S.C.
1001, 18 U.S.C. 287, and any other applicable laws. Persons or concerns are
subject to criminal penalties for knowingly making false statements or misrepresentations to SBA for the purpose
of influencing any actions of SBA pursuant to section 16(a) of the Small
Business Act, 15 U.S.C. 645(a), as
amended, including failure to correct
‘‘continuing representations’’ that are
no longer true.
[78 FR 38820, June 28, 2013, as amended at 81
FR 31492, May 19, 2016]

§ 127.701 What must a concern do in
order to be identified as an
EDWOSB or WOSB in any Federal
procurement databases?
(a) In order to be identified as an
EDWOSB or WOSB in the System for
Award Management (SAM) database
(or any successor thereto), a concern
must certify its EDWOSB or WOSB status in connection with specific eligibility requirements at least annually.
(b) If a firm identified as an EDWOSB
or WOSB in SAM fails to certify its
status within one year of a status certification, the firm will not be listed as
an EDWOSB or WOSB in SAM, unless
and until the firm recertifies its
EDWOSB or WOSB status.
[78 FR 38821, June 28, 2013]

PART 129—CONTRACTS FOR SMALL
BUSINESSES LOCATED IN DISASTER AREAS
Sec.
129.100 What definitions are important in
this part?
129.200 What contracting preferences are
available for small business concerns located in disaster areas?
129.300 What small business goaling credit
do agencies receive for awarding an
emergency response contract to a small
business concern under this part?
129.400 What are the applicable performance
requirements?
129.500 What are the penalties of misrepresentation of size or status?
AUTHORITY: 15 U.S.C. 636(j)(13)(F)(ii), 644(f).
SOURCE: 84 FR 65665, Nov. 29, 2019, unless
otherwise noted.

§ 129.100 What definitions are important in this part?
For the purposes of this part:
Concern located in a disaster area is a
firm that during the last twelve
months—
(1)(i) Had its main operating office in
the area; and
(ii) Generated at least half of the
firm’s gross revenues and employed at
least half of its permanent employees
in the area.
(2) If the firm does not meet the criteria in paragraph (1) of this definition,
factors to be considered in determining
whether a firm resides or primarily
does business in the disaster area include—
(i) Physical location(s) of the firm’s
permanent office(s) and date any office
in the disaster area(s) was established;
(ii) Current state licenses;
(iii) Record of past work in the disaster area(s) (e.g., how much and for
how long);
(iv) Contractual history the firm has
had with subcontractors and/or suppliers in the disaster area;
(v) Percentage of the firm’s gross revenues attributable to work performed
in the disaster area;
(vi) Number of permanent employees
the firm employs in the disaster area;
(vii) Membership in local and state
organizations in the disaster area; and
(viii) Other evidence that establishes
the firm resides or primarily does business in the disaster area. For example,

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