H.R.1816 - WOSB Accountability Act (119th Congress)
Summary
H.R.1816, the WOSB Accountability Act, aims to refine the certification process for small businesses owned and controlled by women (WOSBs) seeking to participate in federal contracting programs. The act mandates that only WOSBs certified under Section 8(m)(2)(E) of the Small Business Act will be included in government-wide and agency goals for WOSB participation. It also addresses the transition for self-certified WOSBs already in the system, requiring them to apply for formal certification to maintain their eligibility for goal inclusion.
Expected Effects
The primary effect of this act is to enhance the integrity and accountability of the WOSB program. This is achieved by excluding self-certified WOSBs from federal contracting goals unless they obtain formal certification. The Act also requires the SBA to issue regulations and provide quarterly briefings to Congress on the implementation of these changes.
Potential Benefits
- Increased Accountability: Formal certification requirements will likely reduce instances of fraud and misrepresentation within the WOSB program.
- Improved Program Integrity: By ensuring that only verified WOSBs are counted towards federal contracting goals, the program's effectiveness in supporting legitimate women-owned businesses is enhanced.
- Fairer Competition: Standardized certification processes create a more level playing field for WOSBs seeking federal contracts.
- Enhanced Oversight: Quarterly briefings to Congress will provide greater transparency and oversight of the WOSB program's implementation.
- Targeted Support: Resources can be better directed to certified WOSBs, maximizing the impact of federal contracting opportunities.
Potential Disadvantages
- Increased Burden on WOSBs: The requirement for formal certification may create additional administrative and financial burdens for small businesses, particularly those that were previously self-certified.
- Potential Delays: The certification process could lead to delays in WOSBs accessing federal contracting opportunities, especially if the SBA and certifying entities are overwhelmed with applications.
- Administrative Costs: The SBA will incur administrative costs in processing certification applications and conducting oversight, potentially diverting resources from other small business programs.
- Unintended Consequences: The exclusion of self-certified WOSBs from goal calculations could temporarily reduce the number of WOSBs counted towards federal contracting goals, potentially impacting overall program performance.
- Limited Additional Funding: The Act explicitly states that no additional funds are authorized to carry out its requirements, which may strain existing resources.
Constitutional Alignment
The WOSB Accountability Act appears to align with the spirit of the Constitution, particularly the General Welfare Clause (Preamble), as it aims to promote economic opportunities for women-owned small businesses. Congress's authority to regulate commerce and provide for the general welfare is established in Article I, Section 8. The Act does not appear to infringe upon any specific constitutional rights or liberties.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).