[Federal Register Volume 81, Number 42 (Thursday, March 3, 2016)]
[Notices]
[Pages 11340-11343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04762]
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SMALL BUSINESS ADMINISTRATION
Women-Owned Small Business Federal Contract Program;
Identification of Eligible Industries
AGENCY: Small Business Administration.
ACTION: Notice.
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SUMMARY: In order to carry out the Women-Owned Small Business Federal
Contract Program (WOSB Program), the U.S. Small Business Administration
(SBA) was required by section 825 of the National Defense Authorization
Act of 2015 to conduct a new study identifying the industries in which
women-owned small businesses are underrepresented in Federal
contracting and to report to Congress on the results of that study by
January 2, 2016. In accordance with this statutory mandate, SBA has
provided this report to Congress and with this notice, notifies the
public of the results of this study and identifies the industries
designated by SBA as eligible for the WOSB Program.
DATES: This notice is effective March 3, 2016. The designations of
industries contained in this notice apply to all solicitations issued
on or after the effective date.
FOR FURTHER INFORMATION CONTACT: Mr. Leo Sanchez, Office of Government
Contracting, U.S. Small Business Administration, 409 Third Street SW.,
Washington, DC 20416; (202) 619-1658; [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Under section 8(m) of the Small Business Act, 15 U.S.C. 637(m), SBA
is responsible for implementing and administering the WOSB Program,
which went into effect on February 4, 2011. The purpose of the WOSB
Program is to ensure that women-owned small businesses (WOSBs) have an
equal opportunity to participate in Federal contracting and to help
attain the Federal government's goal of awarding five percent of its
prime contract dollars to WOSBs. The WOSB Program authorizes Federal
contracting officers to restrict competition for an acquisition to
WOSBs if there is a reasonable expectation that at least two WOSBs will
submit offers that meet the requirements of the acquisition at a fair
and reasonable price and if the acquisition is for a good or service
assigned a North American Industry Classification System (NAICS) code
in which SBA has determined that WOSBs are ``substantially
underrepresented.'' The WOSB Program also authorizes contracting
officers to award a sole source contract assigned such a NAICS code to
a WOSB if only one WOSB can be identified that can perform the contract
at a fair and reasonable price. In addition, Economically Disadvantaged
Women-Owned Small Businesses (EDWOSBs) can likewise receive set-asides
and sole source awards similar to those described above for WOSBs, and
in a larger set of industries where SBA has determined that WOSBs are
``underrepresented'' but not substantially so.
In order to identify the industries eligible for set-asides under
the WOSB Program, the Small Business Act required the SBA Administrator
to conduct a study to identify those industries in which small business
concerns owned and controlled by women are underrepresented in Federal
contracting. 15 U.S.C. 637(m)(4). SBA awarded a contract to the
Kauffman-RAND Institute for Entrepreneurship Public Policy (RAND) to
complete a study of the underrepresentation of WOSBs in Federal prime
contracts by industry code. RAND published the study in April 2007.\1\
Prior to the
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effective date of this notice, SBA used the results of the RAND study
to designate 83 four-digit NAICS industry groups as either
underrepresented or substantially underrepresented by WOSBs. SBA
published the designated NAICS codes on the WOSB Program's Web page on
SBA's Web site, at www.sba.gov/wosb.
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\1\ The RAND study is available to the public at http://www.RAND.org/pubs/technical_reports/TR442.
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In 2014, Congress amended the Small Business Act to require SBA to
submit a report to Congress reflecting the results of a new study by
January 2, 2016, and then continue to conduct a new study every five
years. Public Law 113-291 825(c) (Dec. 19, 2014). In response to this
statutory mandate, SBA asked the Office of the Chief Economist (OCE) of
the U.S. Department of Commerce for assistance in conducting a new
study on the WOSB Program, which would analyze data to help SBA
determine those NAICS codes in which WOSBs are underrepresented and
substantially underrepresented in Federal contracting. OCE looked at
whether, holding constant various factors that might influence the
award of a contract, the odds of winning Federal prime contracts by
firms that were owned by women were greater or less than the odds of
winning contracts by otherwise similar businesses.
II. Overview of Study and Results
In its analysis, OCE controlled for the size and age of the firm;
its membership in various categories of firms for which the Federal
government has government-wide prime contracting goals; its legal form
of organization; its level of government security clearance; and its
Federal prime contracting past performance ratings. OCE also looked at
whether women-owned businesses typically have significantly different
experiences in winning contracts depending on their industry. OCE
performed this analysis at the four-digit NAICS industry group level.
OCE included each firm in its sample in an industry analysis if the
firm had registered as being able to perform work in that industry or
if the firm had won a contract assigned to that industry.
OCE found that women-owned businesses were less likely to win
Federal contracts in 254 of the 304 industries included in the study.
In 109 out of the 304 industries, OCE found that women-owned
businesses have statistically significant lower odds of winning Federal
contracts than otherwise similar non-women-owned businesses at the 95%
confidence level. SBA has determined that the finding by OCE of a
statistically significant lower likelihood of winning contracts
demonstrates that WOSBs are substantially underrepresented in these 109
NAICS codes. However, of these industries, 17 are in sectors 42 and 44-
45, which are not applicable to Federal contracts under SBA's
regulations. 13 CFR 121.201. These 17 industry group NAICS codes are
set forth in Table 1, Industries Part of Sectors 42 and 44-45, Not
Applicable to Federal Contracts Under SBA Regulations.
Table 1--Industries Part of Sectors 42 and 44-45, Not Applicable to Federal Contracts Under SBA Regulations
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NAICS code NAICS U.S. industry title
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4231.................................. Motor Vehicle and Motor Vehicle Parts and Supplies Merchant Wholesalers.
4233.................................. Lumber and Other Construction Materials Merchant Wholesalers.
4234.................................. Professional and Commercial Equipment and Supplies Merchant Wholesalers.
4237.................................. Hardware, and Plumbing and Heating Equipment and Supplies Merchant Wholesalers.
4238.................................. Machinery, Equipment, and Supplies Merchant Wholesalers.
4239.................................. Miscellaneous Durable Goods Merchant Wholesalers.
4242.................................. Drugs and Druggists' Sundries Merchant Wholesalers.
4246.................................. Chemical and Allied Products Merchant Wholesalers.
4249.................................. Miscellaneous Nondurable Goods Merchant Wholesalers.
4251.................................. Wholesale Electronic Markets and Agents and Brokers.
4411.................................. Automobile Dealers.
4421.................................. Furniture Stores.
4422.................................. Home Furnishings Stores.
4441.................................. Building Material and Supplies Dealers.
4442.................................. Lawn and Garden Equipment and Supplies Stores.
4512.................................. Book, Periodical, and Music Stores.
4543.................................. Direct Selling Establishments.
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Since the industry groups above cannot be used to classify Federal
contracts, SBA has excluded them from the list of industries designated
as substantially underrepresented.
In addition, OCE found that in 145 out of the 304 industries, the
odds of women-owned businesses winning contracts were lower than those
of otherwise similar non-women-owned businesses, but there was not a
statistically significant difference between the odds of winning for
the two groups. Although there was not a finding of statistical
significance for these industries, 21 of them were previously found by
the RAND study to be industries in which WOSBs are underrepresented or
substantially underrepresented. Thus, SBA has information showing
historical underrepresentation of women-owned businesses in these 21
industries, which is consistent with the OCE finding that women-owned
businesses are less likely to win contracts. As a result, SBA finds
that it possesses sufficient data to determine that WOSBs are
underrepresented in these 21 industries. SBA also believes that this
decision fulfills the intent of the Small Business Act, which
demonstrates the intent that the designations of eligible industries be
based on at least five years of data.
The full OCE study is available on SBA's Web site at www.sba.gov/wosb.
III. Eligible Industries
Based on the above, SBA finds a total of 113 industry groups
eligible for Federal contracting under the WOSB Program. This includes
21 4-digit NAICS industry groups in which WOSBs are underrepresented
(meaning contracting officers can make EDWOSB set-aside and sole source
awards in these industries) and 92 4-digit NAICS industry groups in
which WOSBs are substantially underrepresented (meaning contracting
officers can make WOSB set-aside and sole source awards in these
industries). EDWOSB concerns are eligible to be considered for both
WOSB and EDWOSB set-aside and sole
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source awards for the 113 NAICS industry groups.
The 21 NAICS codes in which WOSBs are underrepresented are set
forth in Table 2, NAICS Codes in which WOSBs are Underrepresented.
Table 2--NAICS Codes in Which WOSBs Are Underrepresented
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NAICS code NAICS U.S. industry title
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3152..................... Cut and Sew Apparel Manufacturing.
3219..................... Other Wood Product Manufacturing.
3259..................... Other Chemical Product and Preparation
Manufacturing.
3333..................... Commercial and Service Industry Machinery
Manufacturing.
3342..................... Communications Equipment Manufacturing.
3353..................... Electrical Equipment Manufacturing.
3359..................... Other Electrical Equipment and Component
Manufacturing.
3372..................... Office Furniture (including Fixtures)
Manufacturing.
4841..................... General Freight Trucking.
4885..................... Freight Transportation Arrangement.
4889..................... Other Support Activities for Transportation.
5171..................... Wired Telecommunications Carriers.
5311..................... Lessors of Real Estate.
5414..................... Specialized Design Services.
5611..................... Office Administrative Services.
5614..................... Business Support Services.
5621..................... Waste Collection.
6115..................... Technical and Trade Schools.
6243..................... Vocational Rehabilitation Services.
7223..................... Special Food Services.
8114..................... Personal and Household Goods Repair and
Maintenance.
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The 92 NAICS codes in which WOSBs are substantially
underrepresented are set forth in Table 3, NAICS Codes in which WOSBs
are Substantially Underrepresented.
Table 3--NAICS Codes in Which WOSBs Are Substantially Underrepresented
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NAICS code NAICS U.S. industry title
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1153..................... Support Activities for Forestry.
2213..................... Water, Sewage and Other Systems.
2361..................... Residential Building Construction.
2362..................... Nonresidential Building Construction.
2371..................... Utility System Construction.
2373..................... Highway, Street, and Bridge Construction.
2379..................... Other Heavy and Civil Engineering
Construction.
2381..................... Foundation, Structure, and Building Exterior
Contractors.
2382..................... Building Equipment Contractors.
2383..................... Building Finishing Contractors.
2389..................... Other Specialty Trade Contractors.
3114..................... Fruit and Vegetable Preserving and Specialty
Food Manufacturing.
3118..................... Bakeries and Tortilla Manufacturing.
3141..................... Textile Furnishings Mills.
3149..................... Other Textile Product Mills.
3231..................... Printing and Related Support Activities.
3241..................... Petroleum and Coal Products Manufacturing.
3323..................... Architectural and Structural Metals
Manufacturing.
3324..................... Boiler, Tank, and Shipping Container
Manufacturing.
3325..................... Hardware Manufacturing.
3328..................... Coating, Engraving, Heat Treating, and Allied
Activities.
3329..................... Other Fabricated Metal Product Manufacturing.
3331..................... Agriculture, Construction, and Mining
Machinery Manufacturing.
3334..................... Ventilation, Heating, Air-Conditioning, and
Commercial Refrigeration Equipment
Manufacturing.
3335..................... Metalworking Machinery Manufacturing.
3339..................... Other General Purpose Machinery
Manufacturing.
3345..................... Navigational, Measuring, Electromedical, and
Control Instruments Manufacturing.
3346..................... Manufacturing and Reproducing Magnetic and
Optical Media.
3363..................... Motor Vehicle Parts Manufacturing.
3369..................... Other Transportation Equipment Manufacturing.
3371..................... Household and Institutional Furniture and
Kitchen Cabinet Manufacturing.
3391..................... Medical Equipment and Supplies Manufacturing.
3399..................... Other Miscellaneous Manufacturing.
4831..................... Deep Sea, Coastal, and Great Lakes Water
Transportation.
4842..................... Specialized Freight Trucking.
4884..................... Support Activities for Road Transportation.
4931..................... Warehousing and Storage.
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5111..................... Newspaper, Periodical, Book, and Directory
Publishers.
5112..................... Software Publishers.
5121..................... Motion Picture and Video Industries.
5122..................... Sound Recording Industries.
5151..................... Radio and Television Broadcasting.
5172..................... Wireless Telecommunications Carriers (except
Satellite).
5174..................... Satellite Telecommunications.
5179..................... Other Telecommunications.
5182..................... Data Processing, Hosting, and Related
Services.
5191..................... Other Information Services.
5241..................... Insurance Carriers.
5242..................... Agencies, Brokerages, and Other Insurance
Related Activities.
5321..................... Automotive Equipment Rental and Leasing.
5324..................... Commercial and Industrial Machinery and
Equipment Rental and Leasing.
5411..................... Legal Services.
5412..................... Accounting, Tax Preparation, Bookkeeping, and
Payroll Services.
5413..................... Architectural, Engineering, and Related
Services.
5415..................... Computer Systems Design and Related Services.
5416..................... Management, Scientific, and Technical
Consulting Services.
5417..................... Scientific Research and Development Services.
5418..................... Advertising, Public Relations, and Related
Services.
5419..................... Other Professional, Scientific, and Technical
Services.
5612..................... Facilities Support Services.
5615..................... Travel Arrangement and Reservation Services.
5616..................... Investigation and Security Services.
5617..................... Services to Buildings and Dwellings.
5619..................... Other Support Services.
5622..................... Waste Treatment and Disposal.
5629..................... Remediation and Other Waste Management
Services.
6113..................... Colleges, Universities, and Professional
Schools.
6114..................... Business Schools and Computer and Management
Training.
6116..................... Other Schools and Instruction.
6117..................... Educational Support Services.
6211..................... Offices of Physicians.
6214..................... Outpatient Care Centers.
6215..................... Medical and Diagnostic Laboratories.
6219..................... Other Ambulatory Health Care Services.
6221..................... General Medical and Surgical Hospitals.
6231..................... Nursing Care Facilities.
6242..................... Community Food and Housing, and Emergency and
Other Relief Services.
7112..................... Spectator Sports.
7113..................... Promoters of Performing Arts, Sports, and
Similar Events.
7114..................... Agents and Managers for Artists, Athletes,
Entertainers, and Other Public Figures.
7115..................... Independent Artists, Writers, and Performers.
7211..................... Traveler Accommodation.
7212..................... RV (Recreational Vehicle) Parks and
Recreational Camps.
7225..................... Restaurants and Other Eating Places.
8111..................... Automotive Repair and Maintenance.
8112..................... Electronic and Precision Equipment Repair and
Maintenance.
8113..................... Commercial and Industrial Machinery and
Equipment (except Automotive and Electronic)
Repair and Maintenance.
8121..................... Personal Care Services.
8123..................... Drycleaning and Laundry Services.
8129..................... Other Personal Services.
8131..................... Religious Organizations.
8139..................... Business, Professional, Labor, Political, and
Similar Organizations.
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SBA has posted the list of designated NAICS codes on its Web site
at www.sba.gov/wosb and they are effective as set forth in this notice.
Dated: February 29, 2016.
A. John Shoraka,
Associate Administrator, Government Contracting and Business
Development.
[FR Doc. 2016-04762 Filed 3-2-16; 8:45 am]
BILLING CODE 8025-01-P