Washington – According to The Washington Post, in a move applauded by woman – entrepreneurs, the Small Business Administration has drafted a formal program to give priorities to project procurements of women-owned small-businesses. Last April 2011, SBA started designating specialized projects set-aside for procurements of women-owned small-businesses.
However, many are doubtful on the awarding of contracts, which seems to be perennially slow. Industry-wise, the program does not cover investment-heavy IT and professional services industries.
The program is still a tip of the iceberg, according to most businesses and federal agencies. The implementation of the program did not boost the financial value and number of project contracts awarded to women-owned small-businesses. In a seemingly odd result, women-owned businesses still don’t get special access to federal projects said to be set-aside for the program.
Deltek analysts reported an insignificant increase of projects awarded to women-owned businesses. The limited number of industries included in the program and minimal spending on covered industries are major reasons of the insignificant rise of women-owned businesses project procurement.
Federal agencies had been awarding a slice of 5 percent to women-based business even before the initiative was implemented. From 2008 to 2010, numbers had given a good start for women-owned businesses; however, 2011 saw a big difference of $1 billion in contract value.
Small Business Administration’s newly-fueled implementation of the program is seen as an opportunity for women-owned business to see potential financial targets this year.
Federal agencies are encouraged to spend more for projects in procurement of women-owned businesses. The Army, Air Force, Navy, and Defense Department have combined to become the formidable four in awarding project contracts to women. However, for the fiscal year 2011, the Defense Department failed to meet its spending goals for women-owned businesses. There is still a big need for federal agencies to spend for services that will benefit women-based small businesses.
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