Women-owned small businesses achieved notable success in federal procurement during 2023, securing $25.49 billion in contracts. The Department of Defense led awards with $12.3 billion, while agencies like Health & Human Services and Homeland Security provided significant opportunities. Despite falling short of the 5% federal goal, WOSBs demonstrated resilience with a 13.6% growth rate from 2019 to 2023. The expanding federal marketplace presents increasing opportunities for prepared women entrepreneurs to scale their operations.
Federal WOSB Contracting: Progress and Persistent Challenges
Despite women-owned businesses comprising 39% of all U.S. enterprises, their share of federal procurement contracts continues to fall short of mandated goals. Since 1994, federal law has required that 5% of prime contracts be awarded to women-owned small businesses (WOSBs), yet this target has only been achieved twice, in 2015 and 2019.
The Department of Defense leads the way in WOSB contracting, having awarded $12.3 billion in contracts during fiscal year 2023, representing nearly half of all federal WOSB contracts. Other notable contributors include the Departments of Health & Human Services, Homeland Security, Agriculture, and Veterans Affairs, demonstrating growing opportunities across diverse federal agencies. Among these agencies, there has been a notable increase in awards to women-owned businesses, particularly within HHS, DHS, GSA, and Agriculture.
The economic impact of WOSBs extends far beyond federal procurement. These enterprises generated $2.1 trillion in receipts according to the 2021 Annual Business Survey and currently employ approximately 10.5 million Americans. The sector has shown remarkable resilience, with a 13.6% growth rate from 2019 to 2023, contributing considerably to job creation and industrial base diversity. Recent data shows a concerning 38% decline in small businesses providing federal goods and services from 2010 to 2019. While comprehensive data is crucial for analysis, users should note that data verification is essential when evaluating procurement trends.
The Women-Owned Small Business Federal Contract Program has proven instrumental in supporting this growth, designating specific contracts across 83 NAICS codes where women are historically underrepresented. In fiscal year 2023, WOSBs secured $25.49 billion in federal contracts, representing 3.2% of total federal spending, while welcoming 1,537 first-time contractors to the federal marketplace.
Despite these achievements, WOSBs face considerable challenges in federal procurement. Contract bundling, complex procurement systems, and limited resources for bid preparation create barriers for smaller enterprises. The average WOSB share of federal contracts has remained at 3.2% over the past five years, highlighting persistent systemic challenges in program implementation.
However, success stories continue to emerge as more women-owned businesses navigate these challenges effectively. The Department of Defense’s consistent leadership in WOSB contracting demonstrates that considerable opportunities exist for prepared entrepreneurs. The designated 23% of federal spending for small businesses provides a substantial marketplace for growth and expansion.
As federal agencies work to improve their WOSB procurement performance, the focus remains on strengthening program implementation, enforcing set-aside rules, and increasing accountability. These efforts, combined with the demonstrated resilience and growth of women-owned businesses, suggest a promising future for WOSBs in federal procurement, despite current challenges.
Frequently Asked Questions
What Mentorship Programs Exist Specifically for Women Business Owners Seeking Federal Contracts?
ChallengeHer, WOSB Federal Contracting Program, and GSA initiatives provide mentorship through workshops, one-on-one guidance, networking events, and educational resources. These programs help women business owners navigate federal contracting opportunities effectively.
How Do International Women-Owned Businesses Participate in U.S. Federal Procurement Opportunities?
International women-owned businesses typically participate in U.S. federal procurement by registering in SAM, establishing U.S.-based operations, or partnering with American prime contractors. They can also utilize embassy support and SBA resources for guidance.
Can Multiple Women-Owned Small Businesses Form Joint Ventures for Larger Contracts?
Yes, multiple Women-Owned Small Businesses (WOSBs) can form joint ventures to pursue larger federal contracts. These arrangements must designate a small business as managing venturer and comply with SBA regulations for eligibility.
What Technology Platforms Help Women-Owned Businesses Track Federal Contracting Opportunities?
Women-owned businesses can track federal contracts through SAM.gov, USASpending.gov, and Certify.SBA.gov. Commercial platforms like GovWin offer additional insights. These systems provide searchable databases, opportunity alerts, and market intelligence tools.
Are There Special Financing Options for Women-Owned Businesses Pursuing Federal Contracts?
SBA offers specialized financing through 7(a) loans, microloans, and 504 programs to support women-owned businesses pursuing federal contracts. The WOSB Federal Contracting Program provides additional opportunities for accessing government procurement funds.
