Analyzing Information on Women-Owned Small Businesses in Federal Contracting (2005) / Chapter Skim
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Executive Summary
Executive Summary
Pages 1-8
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Because of the history of legal challenges to race- and gender-conscious contracting programs at the federal and local levels, the SBA asked the Committee on National Statistics of the National Academies to conduct an independent review of relevant data and estimation methods prior to finalizing the CAWBO study. The charge to the Steering Committee on Women-Owned Small Businesses in Federal Contracting was to hold a workshop to discuss such topics as the accuracy of data and methods to estimate the use of women-owned small businesses in federal contracting; the definition of "underrepresentation" and "substantial underrepresentation" for purposes of designating industries for which preferential contracting programs might be warranted; 1
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In addition, the CAWBO study uses an inconsistent definition for the disparity ratio (comparing dollars of contract awards with numbers of businesses) , different years for estimating utilization and availability in a period of rapid growth of women-owned small businesses, and 2-digit industry SIC categories instead of the more realistically delineated 3-digit or 4-digit categories in the newly devised North American Industry Classification System (NAICS)
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Given limitations of existing data and resource constraints on data collection and modification, there is no single data source, or combination of data sources, that is wholly satisfactory for measuring availability with a specific universe definition. Moreover, given different views about an appropriate universe, there is no single availability measure that is likely to satisfy all stakeholders.
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1-3 Types of Disparity Ratios The preliminary CAWBO study calculated utilization shares in monetary terms (share of total prime contract dollars awarded) , but it calculated availability shares in numeric terms (share of total firms with paid employees)
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Thus, estimates could be developed for 3-digit NAICS subsectors and for 4-digit NAICS industry groups within subsectors to the extent that further disaggregation is substantively meaningful, statistically reliable, and feasible. 1-5 Disparity Ratio Thresholds The designation of specific values of disparity ratios to serve as thresholds for underrepresentation and substantial underrepresentation is ultimately arbitrary.
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monetary and (2) numeric disparity ratios calculated using fiscal year 2002 FPDS contracting data for utilization shares and 2002 SBO data for availability shares; and (3)
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RECOMMENDATION 3- COLLECT DATA ON SUBCONTRACTING Although a priority for the SBA is to revise the CAWBO study of women-owned small businesses in federal prime contracting as recommended above, an important longer term agenda is for the SBA to work with appropriate agencies to develop data to assess the use of womenowned and other types of small businesses in subcontracting on federal prime contracts. Subcontracting is an important arena for small businesses to gain experience and a track record that could enhance their capabilities to handle larger prime contracts, or to develop a substantial subcontracting business.
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Findings from carefully specified case studies and statistical analyses could help refine a regular series of disparity ratio estimates and contribute to analyses of discrimination and other factors as possible explanations for observed disparities. Such findings could also help the SBA refine its assistance and mentoring programs for small businesses and help contracting agencies improve their support for small businesses that seek to enter and be successful in the federal contracting market.
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