May 16, 2012
As ordered reported by the House Committee on Small Business on March 21, 2012
H.R. 4203 would expand the federal contracting opportunities for certain small businesses that are owned by women. Specifically, the legislation would permit federal contracting officers to award sole-source contracts, which are awarded in a noncompetitive process, to small businesses that are owned by women who are economically disadvantaged or who own businesses in certain industries where women are considered underrepresented among owners. Under the bill, in order to be eligible to provide services to the federal government women-owned small businesses would have to be certified of their status by the Small Business Administration (SBA).
Based on information from the SBA and the General Services Administration, CBO estimates that implementing H.R. 4203 would cost about $5 million per year, assuming appropriation of the necessary amounts. That amount includes the estimated costs to train contracting officers throughout the federal government and for the SBA to administer certifications under the bill. The bill could affect direct spending by agencies not funded through annual appropriations; therefore, pay-as-you-go procedures apply. CBO estimates, however, that any net increase in spending by those agencies would not be significant. Enacting H.R. 4203 would not affect revenues.
H.R. 4203 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.