Women-Owned Firms 

in Federal Procurement: 

A National Survey 

Prepared for 

The National Women’s Business Council 

Prepared by 

The National Foundation 

for Women Business Owners 

© NFWBO, July 2000 

1411 K Street, NW, Suite 1350
 

Washington, DC 20005-3407
 

(202) 638-3060
 

Fax (202) 638-3064
 

E-mail: info@NFWBO.org 

Home page: http://www.nfwbo.org 
National Foundation for Women Business Owners 

Table of Contents 

Introduction ................................................................ 1
 

Executive Summary ......................................................... 2
 

History of Involvement in Federal Procurement .................................... 5
 

Current Issues and Challenges ................................................ 7
 

Agency Procurement Programs ............................................... 11
 

Women Federal Contractors and Their Firms .................................... 13
 

Policy Recommendations .................................................... 16
 

Study Methodology ......................................................... 18
 

Women-Owned Firms in Federal Procurement: A National Survey i 
 

National Foundation for Women Business Owners 

Introduction 

In its 1998 annual report to Congress, the National Women’s Business Council (NWBC) 

reported on a statistical study it had undertaken concerning woman-owned firms in Federal 

contracting. This analysis showed that the participation of women-owned firms in Federal 

contracting had grown from $3.2 billion in fiscal year 1987 to $5.2 billion in FY1997. In FY1997, 

some 5,722 women-owned businesses were involved in 446,332 prime contract actions 

amounting to $3.3 billion. Another $2.3 billion was awarded to women-owned enterprises in 

subcontract actions. 

During the course of that study, the NWBC obtained some detailed information on many of the 

individual contract actions performed by women-owned firms in FY1997, including the amount of 

awards, the industry category of the awards, and the location of the businesses. This 

information was summarized in a database provided to the NWBC by Eagle Eye Publishers. 

The National Foundation for Women Business Owners (NFWBO) was asked to conduct a 

three-phase study for NWBC on the information contained in this database. Phase I was a 

detailed analysis of the information contained in the database. Phase II was a qualitative focus 

group study among a select number of women business owners contained in the database. 

Phase III — this report — is a quantitative nationwide survey among a random sample of all of 

the women business owners in the database. 

This executive report sheds additional light on some of the issues affecting women-owned firms 

in Federal procurement. It draws upon newly available information from a national survey taken 

among women business owners from a variety of industries who had a prime Federal contract 

in FY1997. The results of this study add to public knowledge of the characteristics, contributions, 

and challenges of women-owned businesses in the Federal procurement arena, and form a 

framework for public policy recommendations and further programmatic efforts. 

Women-Owned Firms in Federal Procurement: A National Survey 1 
 

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National Foundation for Women Business Owners 

Executive Summary 

IFederal procurement process proactively and early on in their business development. Almost

t appears that the women business owners interviewed for this study became involved in the 

three-quarters (72%) of the women who started their businesses themselves had their first 

Federal contract within three years (46% within the first year). For the businesses that were not 

founded by the women business owners we interviewed, almost half (45%) were already 

involved in Federal procurement when they became the owner, and an additional 38% received 

their first Federal contract within three years of acquiring the business. 

The most significant obstacles these women encountered when first becoming involved in

Federal contracting were dealing with the paperwork (20%), understanding the process 

(20%), and complying with requirements (17%). Just 12% of the women say that they 

encountered no problems or obstacles when they first became involved in Federal contracting. 

Bprocurement process. Fully 90% of all the women we interviewed plan to continue doing

y and large, the women business owners interviewed are satisfied with the Federal 

business with the Federal government, and of these, more than half (54%) expect to expand 

their business. 

Competition is cited as the most important challenge facing women Federal contractors at

the present time, and a majority of the contracts the women interviewed receive (56%) 

comes through full and open competition. This may be the reason why a large majority (70%) of 

the women favor having women designated as a "presumed group” in the procurement process: 

presumed group status would effectively give them more of a competitive edge. 

Aview favorably, such as the electronic posting of bids (which 50% view positively) and more

mong recent trends in Federal procurement, there are trends that these women contractors 

prompt Federal payments (50% view positively). There are also trends that are viewed 

negatively, such as the reduction in the number of procurement officers (which 45% view 

negatively) and the bundling of procurements (30% view negatively). 

Women-Owned Firms in Federal Procurement: A National Survey 2 
 

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National Foundation for Women Business Owners 

Pparticipated in joint ventures, that is, teaming up with other businesses to jointly bid on a

erhaps in response to the trend toward bundling, some women business owners have 

Federal procurement opportunity. About a third (36%) of the women interviewed have tried this, 

and report satisfying results. Ninety percent (90%) of them say they would do it again. 

Not surprisingly, most of the contracts the women interviewed have are with the Department

of Defense (prime 52%, subcontracts 32%), followed by the Department of Agriculture 

(prime 14%, subcontracts 3%), the Department of Transportation (prime 13%, subcontracts 

15%), the Department of Veterans Affairs (prime 13%, subcontracts 1%), the General Services 

Administration (prime 12%, subcontracts 9%), and the Department of the Interior (prime 11%, 

subcontracts 8%). Firms that are prime contractors have contracts with an average of 1.8 

Federal agencies; firms that have subcontracts have them with an average of 1.2 Federal 

agencies. 

Pwomen business owners interviewed are most familiar with the DOD's Central Contractor

erhaps because the majority of their contracts are with the Department of Defense, the 

Registration System (CCRS). Fifty-eight percent (58%) of the women interviewed report using it, 

and of these, 68% say it is helpful to them in the Federal procurement process. The next most 

familiar program is the online bid posting or matching system, such as eps@gsa, which is used 

by 40% of the women interviewed and rated as helpful by 70% of its users. 

The two programs that were judged by their users to be the most helpful were also the two

least-utilized programs. They are the GSA SmartPay or other credit card for receiving 

agency payment (used by 18% of the women yet rated as helpful by 90% of its users), and the 

mentor-protégée program (used by only 5% of the women yet rated as helpful by 88% of its 

users). These two programs deserve more widespread marketing. 

There is a difference between women business owners who reside inside and outside of the

Washington, DC area in both the use and evaluation of these procurement-related Federal 

government programs. Women with businesses geographically close to Washington, DC are 

more likely to use a greater number of the programs than women outside the area, suggesting 

that there would be a benefit in educating potential contractors and promoting these programs 

outside of the Washington, DC area. 

The women business owners interviewed receive an average of just under 50% of their

revenues from the Federal government. This is up from an average of approximately 40% 

ten years ago, but has remained the same for the past five years. 

Women-Owned Firms in Federal Procurement: A National Survey 3 
 

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National Foundation for Women Business Owners 

Three-fourths (74%) of the women interviewed are certified as women business owners in

some capacity. Sixty-six percent (66%) are certified as a woman-owned small business 

(WOSB or SBE), 50% are certified as a women’s business enterprise (WBE), 30% are certified 

as a small disadvantaged business (SDB or DBE), and 15% are certified as an 8(a) firm. 

Women of color are more likely to be certified in each category than are white women. 

Forty-four percent (44%) of the businesses in this study are in goods-producing industries,

and 56% are in services. The companies are small — almost 70% have fewer than 10 fulltime employees, and 58% have gross annual sales of under $1 million. The women business 

owners themselves are largely between the ages of 35 and 54 (66%), married (73%), white 

(74%), and well-educated (51% hold a bachelor's degree or better). Women of color are better 

represented in this population of Federal contractors (26%) than they are in the general 

population of U.S. women business owners (13%).1 

When asked what should be done to help women-owned businesses conduct business with

the Federal government, the women interviewed suggested: teaching business owners 

how to get Federal contracts (17%); continuing and improving the existing programs of 8(a), 

HUB, and other set-aside programs (14%); improving communications about what contracts are 

available (12%); offering financial assistance, including access to capital and low interest loans 

(5%); monitoring and enforcing set-aside quotas and the 5% goals (4%); and increasing setaside program opportunities (4%). 

1

National Foundation for Women Business Owners, 1996 Facts on Women-Owned Businesses: Trends

Among Minority Women-Owned Firms, 1997. 

Women-Owned Firms in Federal Procurement: A National Survey 4 
3/4 of Women Business Owners

Received First Federal Contract

Within 3 Years 

80 

38 

14 

45 

72 

27 

0 

Within first 3 yrs 4+ years Already involved 

When First Contract Was Received 

WBO Founded WBO Acquired 

Women-Owned Firms in Federal Procurement 

(c) NFWBO 2000 

70 

60 

Percent

50 

40 

30 

20

10

0 

 

National Foundation for Women Business Owners 

History of Involvement in Federal Procurement 

It appears that the women business owners interviewed for this study became involved 

in the Federal procurement process proactively and early on in their business 

development. Almost three-quarters (72%) of the women who started their businesses 

themselves had their first Federal contract within three years (46% within the first year). 

For the businesses that were not founded by the women business owners we 

interviewed, almost half (45%) 

were already involved in 

Federal procurement when 

they became the owner, and 

an additional 38% received 

their first Federal contract 

within three years of acquiring

inherited, or acquired through 

some other means. 

Seventy-nine percent (79%) of
 

the firms located in Virginia,
 

Maryland, or the District of
 

Columbia had their first Federal contract within three years, compared with 63% of the firms
 

located outside of this geographic area.
 

Seventy percent (70%) of the firms which have only defense-related contracts had their first
 

Federal contract within three years, as did 78% of the firms with a mixture of defense and nondefense related work. Of firms which have no defense-related work, only 59% received their first
 

contract in three years.
 

Firms owned by women of color and firms owned by white women were equally likely to have
 

their first Federal contract in three years (66% in both instances).
 

The most significant obstacles these women encountered when first becoming involved 

in Federal contracting were dealing with the paperwork (20%), understanding the 

process (20%), and complying with requirements (17%). Just 12% of the women say that 

they encountered no problems or obstacles when they first became involved in Federal 

contracting. 

the business. 

Eighty percent (80%) of the 

women interviewed for this study

founded their own business, and 

the remaining 20% of the 

businesses were purchased, 

Women-Owned Firms in Federal Procurement: A National Survey 5 
Paperwork, Learning the Process Most

Significant Obstacles When Entering

Gov't Procurement

What Significant Obstacles Did You First Encounter?

Complex paperwork

Learning rules of the road 

Complying with requirements 

No problems/obstacles

0 

20

20

17

12 

15 20

Percent

5 10 

Women-Owned Firms in Federal Procurement

Note: Open-ended question; multiple responses allowed. 

(c) NFWBO 2000 

25 

 

 

National Foundation for Women Business Owners 

Firms with fewer than five years 

experience in the procurement 

process are more likely to cite 

learning the process (40%) and 

complying with requirements 

(40%) as having been significant 

obstacles, compared to an overall 

average of 20% and 17%, 

respectively. 

Firms with an 8(a) certification are 

also more likely to say that 

understanding the process was 

their most significant obstacle 

(44%, compared to an average of 

20%). All (100%) of the 8(a) firms 

interviewed say that they 

encountered some obstacle when 

becoming involved in Federal contracting, compared with the overall figure of 12% who say they 

encountered no problems. 

[I was] “clueless. Everything was new. Most procedures were opposite from my 

commercial experiences. Learning the Federal codes; just becoming familiar with 

the FAR [Federal Acquisition Regulations]; knowing who was the customer.” 

[The most significant obstacle for me was] “getting to talk to the right people, 

getting questions answered that you don’t understand. Also the red tape, all the 

things you have to do to get government approval.” 

— Verbatim comments from women 

business owners interviewed 

Women-Owned Firms in Federal Procurement: A National Survey 6 
 

Nearly All Women Plan to Continue 

in Federal Procurement

Of These, 54% Expect to Increase Business

Continue Fed Procurement Among these 90%, business will...

100 

90 

6 4 

Increase 80 54 

35 

11 

Percent

60 

Remain same 

40 

20 Decrease

0 0 20 40 60 80 Yes No Don't know

Percent Women-Owned Firms in Federal Procurement

(c) NFWBO 2000 

 

National Foundation for Women Business Owners 

Current Issues and Challenges 

By and large, the women business owners interviewed are satisfied with the Federal 

procurement process. Fully 90% of all the women we interviewed plan to continue doing 

business with the Federal government, and of these, more than half (54%) expect to 

expand their business. 

The women business owners 

interviewed for this study fell into 

two basic groups: those who 

describe themselves as currently 

doing business with the Federal 

government (80%), and those 

who had a prime Federal 

contract in FY1997 but say they 

with the Federal government 

(20%). 

are not currently doing business 

Ninety percent (90%) of all 

women interviewed plan to 

continue in Federal procurement, 

and 54% of them expect that their 

business with the Federal 

government will increase. 

Among those who describe 

themselves as currently doing 

business with the Federal government, 95% plan to continue such business over the next three 

to five years, and 56% believe that their Federal business will increase. 

This is one measure of satisfaction with the Federal procurement process among those who are 

“in the loop.” As such, it is interesting to note that 71% of those who describe themselves as not 

currently doing business with the Federal government plan to continue in the Federal contracting 

arena over the next three to five years, and 50% of them expect to expand their business. 

To the extent that dissatisfaction does exist, it is expressed by the women business owners 

whose Federal business has declined in the past several years. These women number 36% of 

the women interviewed. They cite the following reasons for this decline: increased competition 

(20%); cutbacks in government spending (20%); less demand for their services (19%); bundling 

of contracts (13%); or lack of information (11%). 

Dissatisfaction is also expressed by the women business owners who describe themselves as 

not currently involved in the procurement process. They give the following reasons for not being 

Women-Owned Firms in Federal Procurement: A National Survey 7 
Greatest Current Challenge is 

Competition
 

What are the most important challenges you are currently facing? 

Competition 

Managing relationships 

Keeping up with changes 

Getting contracts 

Getting paid in timely fashion 

0 5 

19 

15 

12 

10 

10 

10 15 20 

Percent 

Women-Owned Firms in Federal Procurement
 

Note: Open-ended question; multiple responses allowed.
 

(c) NFWBO 2000 

Most Contracts Come Through 

Full and Open Competition
 

What percent of your contracts were awarded through ... 

Full and open competition 56 

Small business set-aside 32 

8(a) program 8 

SDB program 3 

0 

Women-Owned Firms in Federal Procurement 

(c) NFWBO 2000 

10 20 30 40 50 60 

Percent 

 

National Foundation for Women Business Owners 

currently involved: there is nothing is available in their local area or in their line of work (21%); 

they have not been the lowest bidder (19%); or they are not getting the business (14%). 

Competition is cited as the most important challenge facing women Federal contractors 

at the present time, and a majority of the contracts the women interviewed receive 

(56%) comes through full and open competition. This may be the reason why a large 

majority (70%) of the women 

favor having women 

designated as a "presumed 

group” in the procurement 

process: presumed group 

status would effectively give 

them more of a competitive 

edge. 

The women business owners 

who are currently doing business 

with the Federal government cite 

competition as the most important 

challenge they are currently facing 

(19%), followed by managing the 

relationship with procurement 

officials (15%), keeping up with 

regulatory law changes (12%), 

getting contracts (10%), and 

getting paid on time (10%). 

Although they receive the majority 

(56%) of their contracts through 

full and open competition, women 

business owners also receive 

small business set-asides (32%), 

8(a) set-asides (8%), and 

participate in SDB programs 

(3%). 

Seventy percent (70%) of all the 

women interviewed say that they 

would favor giving women 

“presumed group” status in the 

Federal procurement process 

(46% strongly favor, 24% 

somewhat favor). 

This figure of 70% is remarkably 

consistent across all subgroups studied. That is, it does not substantially vary by number of 

Women-Owned Firms in Federal Procurement: A National Survey 8 
Impact of Electronic Bids Is Positive, 

Bundling Is Negative 

What is the impact of these procurement trends on your business today? 

Electronic posting of bids 

Prompt Federal payments 

Prompt payments as subcontractor 

Decentralization of purchases 

Certification requirements 

Reduced number of COs 

Bundling of procurements 12 

17 

17 

18 

2

21 

25 

25 

21 

21 

9 

30 

45 

50 

50 

0 10 20 30 40 50 60 

Women-Owned Firms in Federal Procurement 

(c) NFWBO 2000 

Percent 

Positive Negative 

 

National Foundation for Women Business Owners 

years in Federal procurement, annual sales revenues, the percentage of revenues from 

procurement, type of industry, whether the contracts are defense or non-defense related, 

whether the business is currently involved in Federal procurement or not, whether there is a 

certification and the type of certification for the woman-owned business, whether the contracts 

are prime or subcontracts, whether the contract resulted from a set-aside or not, the ethnicity of 

the owner, and whether the business is located near Washington, DC or not. 

[My most important challenge is] “just being able to compete with the large 

companies. If you’re a small company, it’s sometimes harder to get the job.” 

“Quoting competitively, successfully bidding. Having the lower prices to offer.” 

“It’s just so competitive. We used to bid against four companies and now it’s 

forty.” 

— Verbatim comments from women

 business owners interviewed 

Among recent trends in Federal procurement, there are trends that these women 

contractors view favorably, such as the electronic posting of bids (which 50% view 

positively) and more prompt Federal payments (50% view positively). There are also 

trends that are viewed 

negatively, such as the 

reduction in the number of 

procurement officers (which 

45% view negatively) and the 

bundling of procurements 

(30% view negatively). 

The electronic posting of bids is 

viewed more favorably by women 

in the Washington, DC area than 

by women elsewhere. Eightyeight percent (88%) of women 

whose businesses are located 

near Washington, DC say that the 

electronic posting of bids has a 

positive impact on their business, 

compared with only 43% of 

women outside of this geographic 

area. 

Women-Owned Firms in Federal Procurement: A National Survey 9 
 

National Foundation for Women Business Owners 

Women with businesses near Washington, DC are also more likely to say that the bundling of 

procurements hurts their business than women outside of this area. Forty-eight percent (48%) of 

women with businesses near Washington, DC say that the bundling of procurements has a 

negative impact on their business, compared with only 26% of women business owners outside 

of this area. 

The promptness of payment from prime contractors when one is a subcontractor and the 

decentralization of government purchases were mainly viewed as having no impact on business 

by these women. Similar percentages of the women interviewed viewed them positively and 

negatively in this study. Twenty-five percent (25%) of the women interviewed say that prompt 

payment has had a positive impact on their business, while 17% say it has had a negative 

impact. Twenty-one percent (21%) of the women interviewed say that decentralization of 

government purchases has had a positive impact on their business, while another 21% say it 

has had a negative impact. 

Although efforts have been made to certify women business owners as socially and 

economically disadvantaged, only 22% of those interviewed say that such certification 

requirements have had a positive impact on their business today, and a similar number, 25%, 

say that they have had a negative impact. 

Perhaps in response to the trend toward bundling, some women business owners have 

participated in joint ventures, that is, teaming up with other businesses to jointly bid on 

a Federal procurement opportunity. About a third (36%) of the women interviewed have 

tried this, and report satisfying results. Ninety percent (90%) of them say they would do 

it again. 

Overall, 75% of the women business owners who have tried participating in a joint venture report 

being satisfied with the experience. 

Businesses in the services industries are more likely to have tried a joint venture than 

businesses in the goods-producing industries (48% vs. 20%). Of those who have tried a joint 

venture, businesses in the services industries are also more likely to have actually won the 

contract than those in the goods-producing industries (70% vs. 57%). 

Businesses which are both prime contractors and subcontractors, and businesses that have an 

8(a) certification are more likely than average to have participated in a joint venture. Forty-seven 

percent (47%) of businesses that are both prime contractors and subcontractors, and 52% of 

businesses with an 8(a) certification, have tried joint ventures, compared to an average of 36% 

of all businesses studied. 

Women with businesses located near Washington, DC are more likely to have tried a joint 

venture than women located outside of this area. Sixty-eight percent (68%) of women with 

businesses near Washington, DC say they have formed a joint venture to bid on a Federal 

contract, and of these, 82% report winning the contract. For women with businesses located 

outside of the Washington, DC area, 31% say they have formed a joint venture to bid on a 

Federal contract, and of these, 61% report winning the contract. 

Women-Owned Firms in Federal Procurement: A National Survey 10 
DOD's CCRS is Most Used 

Agency Program

DOD's CCRS 

Online bid posting/matching

Procurement fairs or seminars

Elect Commerce Res Center

Agency small business office

SBA's PRO-Net program 

Procurement Tech Assist Cntr 

GSA's Fed supply schedule

GSA's SmartPay credit card

Mentor-Protegee program

0 

58

40

38

35

28

24

23

21

18

5 

10 20 30 40 50 60 70

Percent Used

Women-Owned Firms in Federal Procurement 

(c) NFWBO 2000 

 

National Foundation for Women Business Owners 

Agency Procurement Programs 

Not surprisingly, most of the contracts the women interviewed have are with the 

Department of Defense (prime 52%, subcontracts 32%), followed by the Department of 

Agriculture (prime 14%, subcontracts 3%), the Department of Transportation (prime 13%, 

subcontracts 15%), the Department of Veterans Affairs (prime 13%, subcontracts 1%), 

the General Services Administration (prime 12%, subcontracts 9%), and the Department 

of the Interior (prime 11%, subcontracts 8%). Firms that are prime contractors have 

contracts with an average of 1.8 Federal agencies; firms that have subcontracts have 

them with an average of 1.2 

Federal agencies. 

Women business owners with 

companies located outside of the 

Washington, DC area have more 

defense-related contracts than 

companies located “in the 

Beltway.” Fifty-four percent (54%) 

of businesses located outside of 

the Washington, DC area have a 

prime contract with the 

Department of Defense, 

compared with 44% of 

businesses located in or near 

Washington, DC. Thirty-six 

percent (36%) of businesses 

located outside of the 

Washington, DC area have a 

subcontract with the Department 

of Defense, compared with only 14% of businesses located in or near Washington, DC. 

Perhaps because the majority of their contracts are with the Department of Defense, the women 

business owners interviewed are most familiar with the DOD's Central Contractor Registration 

System (CCRS). Fifty-eight percent (58%) of the women report using it, and of these, 68% say it 

is helpful to them in the Federal procurement process. The next most familiar program is the 

online bid posting or matching system, such as eps@gsa, which is used by 40% of the women 

interviewed and rated as helpful by 70% of its users. 

The two programs that were judged by their users to be the most helpful were also the two leastutilized programs. They are the GSA SmartPay or other credit card for receiving agency 

payment (used by 18% of the women yet rated as helpful by 90% of its users), and the mentorprotégée program (used by only 5% of the women yet rated as helpful by 88% of its users). 

These two programs deserve more widespread marketing. 

Women-Owned Firms in Federal Procurement: A National Survey 12 
Ranking of Federal Agency Procurement Programs by Geography 

Agency Program Percent Used 

Percent Helpful 

(Among Users) 

Total DC Area Other Total DC Area Other 

Department of Defense’s Central 

Contractor Registration System 58 36 61 68 67 68 

Online bid posting or matching 

system, such as eps@gsa 40 52 38 70 92 64 

Procurement fairs or seminars 38 56 35 67 57 69 

Electronic Commerce Resource 

Centers 35 56 31 70 69 76 

Agency small or disadvantaged 

business utilization offices 28 44 26 60 64 58 

The Small Business 

Administration’s PRO-Net program 24 28 24 53 67 53 

Procurement Technical Assistance 

Centers 23 24 23 68 83 66 

The General Services 

Administration’s Federal supply

schedule 

21 36 19 63 78 60 

The GSA SmartPay or other credit 

card for receiving agency payment 18 32 16 90 100 86 

A mentor-protégée program 5 16 3 88 100 75 

 

National Foundation for Women Business Owners 

There is a difference between women business owners who reside inside and outside of the 

Washington, DC area in both the use and evaluation of these procurement-related Federal 

government programs. Women with businesses geographically close to Washington, DC are 

more likely to use a greater number of the programs than women outside the area, suggesting 

that there would be a benefit in educating potential contractors and promoting these programs 

outside of the Washington, DC area. 

The women business owners who are currently involved in the Federal procurement process 

were asked if they had used various procurement-related Federal programs, and if so, to rate 

the program’s helpfulness. The following table shows the programs ranked by usage. 

Women-Owned Firms in Federal Procurement: A National Survey 13 
About Half of All Revenues Come

 From Federal Government 

No Change in Past 5 Years 

60 

% of Revenues From Fed Procurement

50 

40 

30 

20 

10 

0 

10 years ago 5 years ago Currently 

Women-Owned Firms in Federal Procurement 

(c) NFWBO 2000 

40 

49 48 

 

National Foundation for Women Business Owners 

Women Federal Contractors and Their Firms 

The women business owners interviewed receive an average of just under 50% of their 

revenues from the Federal government. This is up from an average of approximately 

40% ten years ago, but has remained the same for the past five years. 

Among the companies that were 

in business ten years ago, an 

average of 40% of their revenues 

came from Federal government 

contracts at that time. For the 

companies that were in business 

five years ago, an average of 

49% of revenues came from 

Federal contracts. Today, the 

women business owners 

interviewed report that an 

average of 48% of their current 

revenues come from Federal 

government contracts. 

Women business owners who 

reside near the Washington, DC 

area report a higher percentage 

of revenues from the Federal 

government than women located 

elsewhere. An average of 59% of annual revenues are derived from Federal government 

contracts for businesses in or near Washington, DC, compared with an average of 46% of 

revenues for companies outside of this area. 

Companies with defense-related contracts report that a higher percentage of revenues come 

from the Federal government than companies that have no defense-related work. An average of 

63% of revenues come from the Federal government for companies that have only defenserelated contracts, as does an average of 67% of revenues for companies that have a mixture of 

defense and non-defense related work. For companies that have only non-defense related 

Federal government contracts, an average of only 50% of their revenues come from the Federal 

government. 

Women-Owned Firms in Federal Procurement: A National Survey 14 
Women of Color Are More 

Likely to be Certified

90 

80 

70

Percent Certified

60 

50 

40 

30 

20 

10 

0 

12 

61 

40 

4 

83 80 76 

49 

SDB/DBE WOSB WBE 8(a)

Women of Color White Women 

Women-Owned Firms in Federal Procurement

(c) NFWBO 2000 

 

National Foundation for Women Business Owners 

Three-fourths (74%) of the women interviewed are certified as women business

owners in some capacity. Sixty-six percent (66%) are certified as a woman-owned 

small business (WOSB or SBE), 50% are certified as a women’s business enterprise 

(WBE), 30% are certified as a small disadvantaged business (SDB or DBE), and 15% are 

certified as an 8(a) firm. Women of color are more likely to be certified in each category 

than are white women. 

For women of color, 83% are 

certified as an SDB or DBE, 80% 

are certified as a WOSB, 76% 

are certified as a WBE, and 49% 

are certified as an 8(a) firm. For 

white women, 61% are certified 

as a WOSB, 40% are certified as 

a WBE, 12% are certified as an 

SDB or DBE, and 4% are 

certified as an 8(a) firm. 

Certified firms are more likely to 

be found near the Washington, 

DC area than elsewhere. This is 

true for 8(a) firms (24% vs. 

14%), SDB or DBE-certified 

firms (52% vs. 26%), WBEcertified firms (60% vs. 48%), 

and WOSB or SBE-certified 

firms (76% vs. 64%). 

Firms with only defense-related contracts are less likely to be 8(a) certified than the average firm 

studied (5% vs. 15%). 

Since many of these certification programs were designed to help firms enter into the Federal 

procurement arena, it is not surprising to find that younger firms are more likely to be certified as 

8(a) or SDB/DBE than their older counterparts. Twenty-five percent (25%) of firms that have 

been in Federal procurement for less than five years are more likely to be 8(a) certified, as 

compared to an overall average of 15%. Forty percent (40%) of these younger firms are certified 

as SDB or DBE, compared with an overall average of 28%. 

Older firms are more likely to be certified as WOSB or SBE than other firms. Sixty-eight percent 

(68%) of firms that have been in Federal procurement for five or more years are certified as 

WOSB or SBE, compared with an overall average of 55%. 

Forty-four percent (44%) of the businesses in this study are in goods-producing 

industries, and 56% are in services. The companies are small — almost 70% have fewer 

than 10 full-time employees, and 58% have gross annual sales of under $1 million. The 

women business owners themselves are largely between the ages of 35 and 54 (66%), 

Women-Owned Firms in Federal Procurement: A National Survey 15 
 

 

Most Women Federal Contractors Are 

Small in Size and Revenues

Employment Annual Revenues 

80 80

69 

26 

5 

< 10 10 to 99 100 + 

58 

26 

10 

60 60

20 20

PercentPercent

40 40 

0 0

< $1M $1M to $4.9M $5M + 

Women-Owned Firms in Federal Procurement

(c) NFWBO 2000 

 

National Foundation for Women Business Owners 

married (73%), white (74%), and well-educated (51% hold a bachelor's degree or better). 

Women of color are better represented in this population of Federal contractors (26%) 

than they are in the general 

population of U.S. women 

business owners (13%).2 

Twenty-eight percent (28%) of all 

the companies studied are in the 

construction industry, followed by 

14% in professional, scientific, or 

technical services, and 13% in 

manufacturing. 

than 10 full-time employees. 

Sixty-nine percent (69%) of the 

companies studied have fewer 

However, the average number of 

full-time employees overall is 

18.1. 

Firms that are located near 

Washington, DC are more likely 

to have sales in the $1 million to $4.9 million range than firms outside of this area. Fifty-four 

percent (54%) of firms located in or near Washington, DC have annual sales in this range, 

compared with only 21% of firms outside of this area. 

Women business owners who describe themselves as not currently doing business with the 

Federal government are younger in general than the owners of businesses that currently have 

Federal contracts. Forty-one percent (41%) of women whose businesses are not currently 

involved in Federal procurement are between 35 and 44 years of age, compared with only 24% 

of women whose businesses are currently involved. 

Women Federal contractors outside of the Washington, DC area are more likely to be 

Caucasian than women with businesses located in or near Washington, DC. Seventy-eight 

percent (78%) of the women interviewed outside of the Washington, DC area are white, 

compared with only 54% of the women whose businesses are located in the DC area. 

Similarly, women with only defense-related contracts are also more likely to be Caucasian. 

Eighty-six percent (86%) of women with businesses that only have defense-related work 

describe themselves as white, compared with 63% of those with a mixture of defense and nondefense related work, and 76% of those with only non-defense related work. 

2

National Foundation for Women Business Owners, 1996 Facts on Women-Owned Businesses: Trends

Among Minority Women-Owned Firms, 1997. 

Women-Owned Firms in Federal Procurement: A National Survey 16
Greater Educational Outreach Leads 

Programmatic Recommendations

What should be done to help women-owned businesses?

Teaching how to get contracts 17 

Improving existing programs 14 

Improving communications 12 

Financial assistance 5 

Enforcing quotas and goals 4 

More set-aside programs 4 

0 5 10 15 20 

Percent 

Women-Owned Firms in Federal Procurement 

Note: Open-ended question; multiple responses allowed. 

(c) NFWBO 2000 

 

National Foundation for Women Business Owners 

Policy Recommendations 

Throughout the survey, the women business owners — through their answers to questions 

about challenges, use of Federal programs, and their history of getting involved with Federal 

procurement — offer guideposts for the National Women’s Business Council and Federal 

procurement policy makers on steps that can be taken to improve the success of women 

currently involved in federal procurement as well as those who are seeking to enter this market. 

In addition, the women interviewed were asked directly what recommendations they would make 

to procurement policy makers. 

When asked directly what should 

be done to help women-owned 

businesses conduct business 

with the Federal government, the 

women interviewed suggested: 

teaching business owners how to 

get Federal contracts (17%); 

continuing and improving the 

existing programs of 8(a), HUB, 

and other set-aside programs 

(14%); improving 

communications about what 

contracts are available (12%); 

offering financial assistance, 

including access to capital and 

low interest loans (5%); 

monitoring and enforcing setaside quotas and the 5% goals 

(4%); and increasing set-aside 

program opportunities (4%). 

Other recommendations mentioned by the women interviewed include: mentoring programs 

(3%); better communication with Federal employees (3%); being treated fairly without prejudice 

or discrimination (3%); more information about existing programs (2%), and help getting bonded 

(2)%. 

Other ways to improve the system as mentioned by the women Federal contractors interviewed 

in this study include the following: 

!	 Provide additional assistance in the three areas cited as the most significant obstacles 

the women business owners encountered when first becoming involved in the Federal 

procurement process: dealing with the paperwork, understanding the process, and 

complying with requirements. 

Women-Owned Firms in Federal Procurement: A National Survey 17 
 

National Foundation for Women Business Owners 

!	 Consider ways to give women business owners more equitable access to the 

procurement process, including the designation of women as a “presumed group.” 

!	 Encourage women business owners to consider the concept of joint ventures as a 

response to the difficulties presented by the trend toward bundling of procurements. 

!	 Promote better utilization of the GSA SmartPay or other credit card for receiving agency 

payment, which was rated as helpful by 90% of its users yet is only used by 18% of the 

women interviewed. 

!	 Promote better utilization of the mentor-protégée program, which was rated as helpful by 

88% of its users yet is only used by 5% of the women interviewed. 

!	 Educate contractors and potential contractors outside of the Washington, DC area on 

the use of other Federal agency procurement programs, including the online bid posting 

or matching system, procurement fairs or seminars, Electronic Commerce Resource 

Centers, agency small or disadvantaged business utilization offices, and the GSA’s 

Federal supply schedule. 

In the words of the women interviewed: 

“[The government] is pulling away. They should enforce the small 

business set-aside for women-owned businesses from the Federal 

government.” 

“The programs you mentioned, I knew nothing about. They should 

get out a list of all the services and programs that are available. 

The mentoring programs sounds good. The online program 

sounds good, sounds like it would work.” 

“I think everyone should be assigned a mentor for more training in 

two areas: contract management and proposal development.” 

“The mentor/protégée programs and other programs listed, if the 

Federal government would give us more information on these 

[programs] when we as small business owners get started, we 

would have better access and/or knowledge of what’s out here and 

available to us as women business owners.” 

“A true set-aside for WBE, like the 8(a) program. Just don’t give 

us percentages unless you put some teeth in them. Give us 

contracts, not percentages. Penalties if the percentages are not 

obtained. Give a priority to WBE manufacturers.” 

“The programs are there. Make the goals mandatory for women, 

meet the goals that are set forth by the Federal government.” 

Women-Owned Firms in Federal Procurement: A National Survey 18 
 

National Foundation for Women Business Owners 

Study Methodology 

A telephone survey was conducted among the woman-owned businesses in the NWBC’s Eagle 

Eye database from mid-March to mid-April, 2000. Over 4,700 businesses were contacted at 

least once. Interviews were conducted by CJ Olson Market Research of Minneapolis, MN, a 

woman-owned business. 

Two hundred and seven (207) completed interviews were obtained as follows: 165 interviews 

with women business owners who describe themselves as currently doing business with the 

Federal government, and 42 interviews with women who had a prime Federal contract in 

FY1997 but who describe themselves as not currently doing business with the Federal 

government. 

The sampling error for a sample size of 207 is ± 7.1% at the 95% level of confidence. This 

means that, 95 times out of 100, the survey results will be within 7.1% of true population values. 

Women-Owned Firms in Federal Procurement: A National Survey 19