FAR 19.1506—Women-Owned Small Business Program sole-source awards.
Plain-English Summary
FAR 19.1506 explains when a contracting officer must consider a sole-source award under the Women-Owned Small Business (WOSB) Program, including awards to Economically Disadvantaged Women-Owned Small Business (EDWOSB) concerns and other WOSB concerns eligible under the program. It covers the order of consideration before small business set-asides, the NAICS-based eligibility thresholds for underrepresentation and substantial underrepresentation, the requirement that no reasonable expectation exists of receiving two or more offers from eligible firms, and the additional conditions that must be met for a sole-source award. The section also addresses the dollar-value caps for manufacturing and nonmanufacturing acquisitions, the responsibility determination, the fair and reasonable price requirement, and the certification requirement under 13 CFR 127.300. It further prohibits contracting officers from asking SBA for a status determination on pending certification applications and gives SBA the right to appeal a contracting officer’s decision not to make a sole-source award. In practice, this section is a gatekeeping rule: it tells contracting officers when a WOSB sole-source award is legally available, and it tells contractors that certification, NAICS eligibility, and pricing all matter before a sole-source award can be made.
Key Rules
Consider sole source first
Before moving to small business set-asides, the contracting officer must consider whether a sole-source award is appropriate under the WOSB Program. This applies only if none of the exclusions in FAR 19.1504 apply.
Different rules for EDWOSB and WOSB
For EDWOSB sole-source awards, the acquisition must be in a NAICS code where SBA has determined WOSB concerns are underrepresented. For broader WOSB sole-source awards, the NAICS code must be one where SBA has determined WOSB concerns are substantially underrepresented.
No reasonable expectation of competition
A sole-source award is only available if the contracting officer does not reasonably expect offers from two or more eligible concerns. If competition among eligible firms is reasonably expected, sole source is not appropriate.
Price ceilings apply
The anticipated award price, including options, cannot exceed $8.5 million for manufacturing NAICS codes or $5.5 million for all other NAICS codes. These caps are mandatory eligibility limits for sole-source use.
Responsibility and fair price required
The eligible EDWOSB or WOSB concern must be determined responsible for performance, and the award must be made at a fair and reasonable price. Sole source does not waive normal responsibility or pricing standards.
Certification is mandatory
The contracting officer may award a sole-source contract only to a concern certified under 13 CFR 127.300 as an EDWOSB or WOSB eligible under the program. Pending certification applications are not enough, and the contracting officer may not ask SBA for a status determination on those applications.
SBA may appeal a refusal
If the contracting officer decides not to make a sole-source award to an eligible EDWOSB or WOSB concern, SBA has the right to appeal that decision. This creates oversight pressure on the contracting officer’s judgment.
Responsibilities
Contracting Officer
Must evaluate whether a WOSB or EDWOSB sole-source award is available before considering small business set-asides, confirm that no exclusion in FAR 19.1504 applies, verify the NAICS-based eligibility category, assess whether there is a reasonable expectation of receiving two or more eligible offers, ensure the price is within the applicable cap, determine responsibility, and confirm the price is fair and reasonable. The contracting officer must also verify that the firm is already certified and must not request SBA status determinations for pending certification applications.
EDWOSB Concern
Must be certified under 13 CFR 127.300 to be eligible for a sole-source award, must fall within an eligible NAICS code category, and must be able to demonstrate responsibility and accept a fair and reasonable price if selected.
WOSB Concern
Must be certified under 13 CFR 127.300 to receive a sole-source award under the WOSB Program, must be in a NAICS code where WOSB concerns are substantially underrepresented, and must satisfy the responsibility and pricing requirements.
SBA
Determines which NAICS codes are underrepresented or substantially underrepresented for purposes of the program, and may appeal a contracting officer’s decision not to make a sole-source award to an eligible EDWOSB or WOSB concern.
Agency
Must apply the WOSB sole-source rules consistently and ensure acquisition planning and market research support the contracting officer’s determination about competition, eligibility, and the appropriateness of sole-source use.
Practical Implications
This section is not a blanket authority to award sole source to a women-owned firm; it is a narrow exception with multiple conditions that all must be met.
Certification status is critical. A firm with a pending application is not eligible for a sole-source award, and the contracting officer cannot use SBA to resolve that pending status.
Market research matters because the contracting officer must decide whether two or more eligible offers are reasonably expected; if yes, sole source is off the table.
The dollar thresholds are hard limits and include options, so acquisition planning must account for the total anticipated value, not just the base period.
Contracting officers should document the NAICS category, exclusion review, competition expectation, responsibility determination, and price analysis carefully, because SBA can challenge a refusal to use sole source and the decision may be scrutinized later.
Official Regulatory Text
(a) A contracting officer shall consider a contract award to an EDWOSB concern on a sole-source basis (see 6.302-5 (b)(7)) before considering small business set-asides (see 19.203 and subpart 19.5 ) provided none of the exclusions at 19.1504 apply and- (1) The acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are underrepresented in Federal procurement; (2) The contracting officer does not have a reasonable expectation that offers would be received from two or more EDWOSB concerns; and (3) The conditions in paragraph (c) of this section exist. (b) A contracting officer shall consider a contract award to a WOSB concern (including EDWOSB concerns) eligible under the WOSB Program on a sole-source basis (see 6.302-5 (b)(7)) before considering small business set-asides (see 19.203 and subpart 19.5 ) provided none of the exclusions at 19.1504 apply and- (1) The acquisition is assigned a NAICS code in which SBA has determined that WOSB concerns are substantially underrepresented in Federal procurement; (2) The contracting officer does not have a reasonable expectation that offers would be received from two or more WOSB concerns (including EDWOSB concerns); and (3) The conditions in paragraph (c) of this section exist. (c) (1) The anticipated award price of the contract, including options, will not exceed- (i) $8.5 million for a requirement within the NAICS codes for manufacturing; or (ii) $5.5 million for a requirement within any other NAICS codes. (2) The EDWOSB concern or WOSB concern has been determined to be a responsible contractor with respect to performance. (3) The award can be made at a fair and reasonable price. (d) A contracting officer shall only award a sole-source contract to a concern that has been certified pursuant to 13 CFR 127.300 as an EDWOSB or WOSB eligible under the WOSB program. Contracting officers shall not request a status determination from SBA on pending applications for certification for EDWOSB or WOSB sole-source awards. (e) The SBA has the right to appeal the contracting officer’s decision not to make a sole-source award to either an EDWOSB concern or WOSB concern eligible under the WOSB program.