Summary of HR 1816: WOSB Accountability Act

Bill Overview

• Bill Number: HR 1816
• Title: WOSB Accountability Act
• Introduced: March 3, 2025
• Status: Received in the Senate, read twice, and referred to the Committee on Small Business and Entrepreneurship.

Purpose and Intent

The WOSB Accountability Act aims to enhance the integrity of federal procurement processes by establishing stricter certification requirements for women-owned small businesses (WOSBs). The primary goal is to ensure that only certified WOSBs are counted towards federal procurement goals, thereby reducing the risk of fraud associated with self-certification.

Key Provisions

1. Certification Requirement:

   • The bill mandates that only small businesses owned and controlled by women and certified under the Women-Owned Small Business (WOSB) program will be counted towards federal procurement goals.
   • This change phases out the practice of including self-certified women-owned businesses in these calculations.

2. Implementation Timeline:

   • The bill will take effect two fiscal years after the Small Business Administration (SBA) issues the necessary regulations.
   • The SBA is required to issue these regulations within one year of the bill's enactment.

3. Self-Certification Transition:

   • Self-certified women-owned small businesses can still be included in procurement goals if they self-certified before the enactment of this provision, have filed a certification application, and have not yet received a determination from the SBA.

4. Reporting Requirements:

   • The SBA must provide quarterly briefings to the House and Senate Committees on Small Business, detailing application numbers, approval timelines, costs, outreach efforts, and any legislative recommendations.

Impact

• Affected Parties:

  • The legislation primarily impacts women-owned small businesses seeking federal contracts, as it restricts eligibility to those that are certified.
  • Federal agencies will need to adjust their procurement strategies to comply with the new certification requirements.

• Fraud Prevention:

  • By eliminating self-certification, the bill aims to reduce fraudulent claims and ensure that federal contracting dollars are directed to legitimate women-owned businesses.

Legislative Process

• The bill was reported favorably by the Committee on Small Business without amendments and passed the House on June 3, 2025, after a debate and a voice vote.
• It is currently under consideration in the Senate.

Conclusion

The WOSB Accountability Act represents a significant step towards ensuring that federal procurement goals are met with verified and certified women-owned small businesses, thereby enhancing accountability and reducing opportunities for fraud in government contracting.