PRESS OFFICE News Release …

PRESS OFFICE
                                      News Release
 Release Date: December 26, 2007           Contact: Christine Mangi (202) 205-6948
                                                        Dennis Byrne (202) 205-6567
 Release Number: 07-90                     Internet Address: http://www.sba.gov/news

    SBA Submits Proposed Rule Regarding Women-Owned Small
                Business Contracting Procedures

WASHINGTON, DC -- The U.S. Small Business Administration submitted a proposed rule for
publication in the Federal Register regarding the creation of a women-owned small business
(WOSB) contracting procedure on December 20, 2007. The rule is the direct result of a statutory
study commissioned from the RAND Corporation.

The RAND study considered two methodologies, one based on the number of contracts to
WOSBs and one based on the dollar amount of contacts to WOSBs. SBA selected the dollar
amount to align with the federal government's goal of increasing the dollar amount of contracts
to WOSBs. The RAND analysis found, using this methodology, that WOSBs participating in
federal contracting were under-represented in certain industries. These industries are National
Security and International Affairs; Coating, Engraving, Heat Treating, and Allied Activities;
Household and Institutional Furniture and Kitchen Cabinet Manufacturing and; Other Motor
Vehicle Dealer.

Under this proposed rule, a contracting officer in any federal agency could set aside contracts or
work, but only within an industry in which WOSBs have been identified as under-represented or
substantially under-represented. Only small businesses owned or controlled by economically
disadvantaged women would then be eligible for these contracts.

Contracts or work under this rule may not to exceed $3 million ($5 million for manufacturing).
Furthermore, prior to reserving a procurement exclusively for WOSBs, each agency is required
to conduct an appropriate analysis of its own procurement history to determine whether there is
sufficient evidence of relevant discrimination in that industry by the procuring agency.

The proposed rule is open to public comment for 60 days after its publication in the Federal
Register.

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