The Women-Owned Small Business (WOSB) Accountability Act, a bipartisan proposal aimed at tightening supervision and improving data integrity in government contracting with women-owned businesses, was unanimously passed by the House Small Business Committee.

The bill, introduced by Ranking Member Nydia Velázquez and Rep. Nick LaLota, would force the federal government to consider only certified WOSBs toward its 5% contracting goal. Currently, self-certified enterprises are included in procurement data despite the fact that they are no longer eligible for set-aside contracts.

“Ensuring that only qualified WOSBs are included in procurement goals is critical for the integrity of federal contracting processes,” says Velázquez in a statement.

The measure would also compel the Small Business Administration (SBA) to provide quarterly information on certification processing, such as application volume, turnaround times and approval rates.

The bill addresses long-standing concerns regarding the quality and dependability of government small business procurement data. Watchdog groups have identified loopholes that allow unqualified enterprises to be counted, undermining the goal of federal set-aside schemes.

The most recent measure builds on broader attempts to overhaul WOSB contracting. Senator Joni Ernst proposed changing federal small business goals in 2023 to increase accountability and supervision. Meanwhile, the SBA has enacted new rules across numerous programs, including WOSBs, to clarify ownership and control requirements. This bill now advances to the House floor for full consideration.