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Advocacy Update: Cybersecurity Maturity Model Certification (CMMC)

Posted By Advocacy Team, Friday, September 27, 2019

As reported by Bloomberg Government, the Defense Department sought comments this month on a draft of the Cybersecurity Maturity Model Certification (CMMC), which would be mandatory in 2020 for every supplier and contractor working with the department. 


WIPP submitted comments on Wednesday, September 25 reiterating that this certification process could be cost prohibitive and restrictive to small businesses. Thank you to cyber expert Angela Dingle, WIPP Board Chair and President & CEO of Ex Nihilo Management, for providing critical input. 

 

Read the full comment letter.

 

 

 

Tags:  Advocacy  cybersecurity 

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WIPP Works in Washington: 4 Things for WOSBs to Watch for the Rest of 2019

Posted By Elizabeth Sullivan, WIPP Advocacy Team, Tuesday, September 3, 2019
Updated: Thursday, September 5, 2019
Elizabeth Sullivan

Congress will be back in Washington next week, and there is certainly no shortage of items on their to-do list. One of the questions our policy team has been asked time and time again during this month-long recess is our prediction for what is to come for the rest of 2019. Will the government be funded? Will the Senate Small Business Committee’s reauthorization bill move forward? Here are four things you should be watching in the coming months:

 

  1. Funding the Government (Appropriations)

    Here we are again – headed back from August recess without clarity on whether or when the government will be funded for FY2020. If you are a federal contractor, you probably want to pull your hair out. Here is where Congress is in the process so far. The House has passed two packages, or “minibus” bills, which include: minibus 1 (H.R. 2740) - Defense, Energy & Water, Labor-HHS-Education, State-Foreign Operations and minibus 2 (H.R. 3055) - Agriculture-FDA, Commerce-Justice-Science, Interior-Environment, Military Construction-VA, Transportation-HUD. Due to tensions around funding a border wall and legislator pay raises, the House has not passed the Legislative Branch and Homeland Security bills. So technically, with most of the bills passed, the House is not in terrible shape.


    However, the Senate is woefully behind – they have not started drafting any appropriations bills. If you remember the budget deal wrangling a few weeks ago, the Senate was waiting on this agreement to proceed. It was signed into law right before legislators returned home for August recess. Senate Appropriations Committee Chair Richard Shelby (R-AL) has indicated  that the Committee hopes to pass a three-bill spending package before the end of the fiscal year, which ends on September 30.

    Not to beat a dead horse, but quick refresher on the appropriations process. There are two types of bills we will keep talking about: regular appropriation bills and continuing resolutions (CR). Continuing resolutions continue the same level of funding from the previous fiscal year into the next fiscal year – a headache for federal contractors. If 12 appropriations bills are not signed into law or a CR is not passed before the new fiscal year begins on October 1, then comes a government shutdown. Many Members of Congress have indicated that there is not an appetite for a government shutdown after the political mess the month-long partial shutdown caused into the beginning of this year. The usual pattern is that there is some type of CR from the beginning of the new fiscal year until around the holidays where the Members of Congress compromise before the clock strikes “Christmas.”


  2. Senate SBA Reauthorization

    Our Action Alert for August recess asked you to tell your Senators to urge the Senate Small Business Committee to move forward with the Small Business Administration (SBA) reauthorization bill. Thank you to many of you who did this – your voices are key to keeping up the pressure for this to happen. While I can speculate on when I think this will happen, I would rather say that it is important to keep an eye out on WIPP’s communications for the current status of the bill and any additional action we need you to take. This bill has too many of WIPP’s priorities included to let it fail.
  3. National Defense Authorization Act (NDAA)

    It has been awhile since we mentioned the NDAA, but it is still something to watch for the rest of the year. The Senate passed its $750 billion bill (S. 1790) on June 27 and the House passed its $733 billion measure (H.R. 2500) on July 12. The bill is now in the conference phase where the House and Senate have to work out the differences before sending a compromised bill to the President for signature. There are a few sticking points that could complicate the upcoming negotiations, including border wall funding and immigration, military action against Iran, and nuclear warheads. There is no shortage of provisions important to the industrial base – small business contractors – in these bills. Stay tuned for the negotiation outcomes. 

  4. 2020 Elections

    Although there is an abundance of news coverage on next year’s Presidential election, I would be remiss if I did not at least mention what is up next. Currently the Democrats are heavily in debate-mode until the end of the year trying to dwindle down the number of potential nominees. Going into the September 12 debate, there are now 10 candidates who qualify, down from the initial 21 hopefuls. Just a little throwback, in the 2016 election there were 17 Republicans vying for the nomination and 6 Democrats. So, what are the next steps? The final Democratic debate before the primary elections begin will take place in December – the first primary will take place in February in New Hampshire. On the Republican side, former Illinois Representative Joe Walsh and former Governor of Massachusetts Bill Weld have come forward to challenge President Trump. While there are no formal debates for the Republicans, state rules dictate which of these candidates will appear on the primary ballots. 


    In past Presidential elections, WIPP has held sessions at both the Democrat and Republican National Conventions. For those of you who were members in 2016, this is when we debuted the 10 Things Candidates Need to Know about Women Entrepreneurs. Look for 2020 convention activity in the future. It is also important to note that 2020 is not just about the Presidency. The entire U.S. House of Representatives is up for reelection and a third of the U.S. Senate. No matter your party affiliation, make sure you are supporting women candidates that have thrown their hat into the ring.

While the coming months will be plenty busy, it is important to remember that your voice matters. Respond to the call to action. Meet with local Congressional staff. Engage with WIPP Wednesdays. Our work on behalf of women entrepreneurs around the country cannot be done in a vacuum – we need your voice to push policy changes important to WOSBs over the finish line. Join us on the September Policy Update webinar next week to learn more! 


Tags:  Advocacy 

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Advocacy Update: Congress to Reject Section 809 Panel Recommendation

Posted By WIPP Advocacy Team, Friday, August 9, 2019
The Section 809 Panel is an independent commission created by Congress to modernize and streamline the Defense acquisition system. On April 1, 2019, WIPP signed on to a letter denouncing a recommendation from the Section 809 Panel that the Department of Defense should do away with small business set-asides and institute a 5% price preference instead. WIPP joined 25 other organizations and businesses in signing onto the letter, which was sent to top lawmakers on the House and Senate Armed Services Committees.

As a result of these collaborative efforts, both Congress and the Department of Defense have indicated this recommendation will not be adopted. Thank you to all of the WIPP Members who added their voices and joined our efforts to preserve the small business programs that give WOSBs access to the federal marketplace.

Tags:  Action Alert  Advocacy 

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Action Alert: 15 Reasons to Move SBA Reauthorization Forward in the Senate

Posted By WIPP Advocacy Team, Tuesday, July 30, 2019
Updated: Wednesday, July 31, 2019

Your legislators will be at home in their districts and states from August 5 to September 6 to meet with constituents, like you, to share updates on their efforts in Washington, D.C. They are eager to understand how these efforts are impacting you. Take advantage of this opportunity to continue WIPP’s advocacy work by engaging with your Members of Congress.  

WIPPActionAlert

WIPP has been working closely with the Senate Committee on Small Business and Entrepreneurship to make necessary changes to programs benefiting entrepreneurs through the U.S. Small Business Administration (SBA). The Committee was scheduled to vote on a bill (Chairman’s draft) combining many important changes on July 24. 

 

Unfortunately, the Committee postponed action after failing to agree on proposed regulatory changes contained in the draft legislation.  The Chairman’s draft contains 15 changes that, if passed, will be game-changers for women business owners. 

 

Now is the time to contact your Senators and ask them to express support for moving forward the SBA Reauthorization legislation, including the fifteen below highlights championed/supported by WIPP. 

 

Download our letter to send to your Senators!

 

Contracting

 

  • Raises sole source thresholds to $8 million generally and at $10 million for manufacturing contracts. 
  • Allows sole source contracts for each option year instead of the current one-time award.
  • Amendment to eliminate the rule of two language for sole source contracts from the WOSB, HUBZone, and SDVOSB programs. 
  • Solidifies Small Business Runway Extension Act, allowing for 5-year average of gross receipts for revenue based NAICS codes and adds employee based NAICS codes to the calculation by allowing them to also use a 5-year average for the purposes of size determination.
  • Requires agencies to pay small business contractors for work performed within 15 days of performance. 
  • Requires the SBA to commission an independent external study to determine which industries are underrepresented by women.
  • Allows for equity investment in women and minority owned small businesses for federal contractors by women-owned/minority-owned equity 
  • Adds the SBA as a member of the Federal Acquisition Regulatory (FAR) Council.

 

Access to Capital

 

  • Eliminates a rule that prevents SBA from distributing more than 1/55th of its microloans in any one state. 
  • Requires much needed data on microloans, of which women are the largest consumers.

 

Regulatory

 

  • Expands the role of the SBA Office of Advocacy to weigh in on regulations affecting small businesses.
  • Requires a five-year review of regulations’ effect on small businesses. 
  • Allows the Office of Advocacy to write a letter questioning an agency’s certification that a proposed rule would not have a significant impact on a substantial number of small entities, and asking the agency to reconsider.

 

Cybersecurity

 

  • Mandates that the SBA Administrator establish a program to designate employees of lead SBDCs as certified to provide cyber strategy assistance to small businesses. 
  • Directs the SBA to develop a cybersecurity clearinghouse that consolidates federal government cybersecurity information specifically for small business assistance.

Tell your Senator to open doors for women business owners by urging them to express support to the Senate Committee on Small Business and Entrepreneurship to move forward with SBA Reauthorization legislation. 

Tags:  Advocacy  SBA  Senate Small Business 

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WIPP Champions Investment Breakthrough with Equity Bill

Posted By Ann Sullivan, WIPP Chief Advocate, Wednesday, July 10, 2019
Updated: Monday, July 15, 2019

 

Championed by WIPP, The Women and Minority Equity Investment Act of 2019 (S. 1981) allows women-owned federal contracting firms to take investment by women-owned equity firms and still meet the “51% unconditionally owned and controlled” standard set by SBA to participate in the WOSB/EDWOSB program. WIPP also brought the minority-owned firms along with us in this legislation, allowing for minority-owned firms to invest in minority-owned companies. We thought it was important and the right thing to do.

 

According to my friends, Amy Millman, who runs Springboard Enterprises, and WIPP Member Sue Malone, who funds small businesses through equity investments, the legislation introduced by Senators Maria Cantwell (D-WA) and Marco Rubio (R-FL) solves a problem that has been discussed for 20 years. Representative Robin Kelly (D-IL), the first elected official to identify this problem, introduced a similar bill in the House, H.R. 3633.AnnSullivan

 

It should come as no surprise that the numbers are abysmal when it comes to equity investment in women. According to the press release issued by Senator Cantwell's office: “[The] percentage of women-owned businesses rose from 4.6% in 1972 to 40% in 2018, but they still receive less than 4% of venture funding.” Equity investment is a term that encompasses venture capital, private equity, and angel investment. Equity simply means ownership. In exchange for a percentage of ownership, the investor provides capital. An example of this investing at a very basic level is the TV show Shark Tank.

 

The flip side of the coin is that a major obstacle to investment in women-owned companies is that not enough women are investors. Only 8% of investing partners at the top 100 venture firms globally are women, according to an analysis by TechCrunch. Additionally, Fairview Capital’s 2018 Market Review of Woman and Minority-Owned Private Equity Firms shows significant growth in funds owned by women or minorities. The estimated 312 private equity firms have doubled since 2015 and represent roughly 10% of the market. 

 

Currently, if a woman-owned firm wanted to obtain an SBA certification to participate in the WOSB/EDWOSB procurement program, she basically has to swear off any investments. We know a number of cases where women who took equity investment had to shut down their government business, which is completely counterproductive to the SBA’s mission. 

 

This legislation is groundbreaking on both sides of the women-owned equation. It not only opens a path for investment in women-owned businesses who are government contractors, but also strengthens women investors, giving them a reason to ask for greater equity positions within their firms. It has been suggested to us that giving an incentive to women-owned equity firms to invest might change the dynamic in those firms. Women-owned companies looking for investment will be incentivized to ask for women-owned investment firms—we hope this will work favorably both ways. The same holds true for minority investments under this new legislation.

 

Any day now, a similar bill will be introduced in the House of Representatives. We fully anticipate this legislation will make it into law, doing away with a long-standing impediment to accessing capital. 


“We all know that access to capital is a barrier to entry and growth for women owned businesses,” stated WIPP’s President & CEO Candace Waterman upon introduction of this legislation. “This bill will not only assist these businesses, it will have a positive impact on the financial industry, as it will spur growth for women-owned equity/VC firms. We applaud Senators Cantwell and Rubio for leading this breakthrough on an issue that has been an impediment to women’s business growth.”

Tags:  Advocacy 

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Knowing the Game Changers

Posted By Ann Sullivan, WIPP Chief Advocate, Wednesday, June 5, 2019

When I started representing WIPP in Washington some 17 years ago, Republican George W. Bush was in his second year as President and Senate Democrats held their majority by a very slim margin, while the House was controlled comfortably by Republicans. Women held 62 seats in the House and 13 seats in the Senate. No women chaired Congressional Committees and two women held Cabinet posts – Ann Veneman (Department of Agriculture) and Elaine Chao (Department of Transportation).

 

Things are a little different now— but maybe not as much as one might think. President Donald Trump is also a Republican, but this time the Senate is controlled by Republicans and Democrats control the House. But the game changer is women in power. As of January 2019, there are 106 women in the U.S. House of Representatives, including delegates, and 25 women in the Senate. Seven women head Congressional Committees—not to mention Speaker of the House Nancy Pelosi, who is second in the presidential line of succession, after the vice president.

AnnSullivan

 

 Even though there were relatively few women in Congress, in those early days there were a few game changers—Senator Kay Bailey Hutchison and Senator Olympia Snowe. Senator Hutchison was the head of the Republican Policy Committee in the Senate and included us in her monthly meetings, even though we were the only women in the room. Senator Snowe supported women business owners from her position on the Small Business Committee highlighting our issues.

Today, women-owned companies in the United States make a much bigger impact than in 2002. Women owned 6.5 million nonfarm U.S. businesses in 2002, employing 7.1 million people and generating $939.5 billion in business revenues. The latest numbers, by contrast, show women own 10 million firms, generating $1.4 trillion in receipts and employing 8.4 million.

 

WIPP was founded because women business owners were not well understood and did not have “a seat at the table.” Routinely left out of important agency and Congressional meetings, women pressed for a bigger presence. Making a difference in public policy was, and is to this day, WIPP’s mission. WIPP’s first example of making a big difference was pushing for a federal program which set aside federal contracts to women-owned companies. The women’s procurement program rallied women all over the country who believed that resistance to implement this law was just plain wrong. The game changer was locking down Presidential candidate support for implementation and when President Barack Obama won – it was one of the first things he did. Our strategy of presenting our platform at both conventions attended by powerful women in both parties and our members worked.

 

With WIPP’s legislative and regulatory victories, our narrative started changing. We no longer asked for a “seat at the table.” We had it. Rather, we were seated at the head of the table. Congressional Members, staff and committees consult our organization and its members for views and testimony on every aspect of policies affecting entrepreneurs. SBA became our partner through ChallengeHER, educating women nationwide on working with the private sector. Lastly, we became an integral part of the small business community and worked diligently to build a cohesive coalition with all other parts of the community – another game changer.

Changing the game has been in WIPP’s DNA since its inception. In June, there are two additional opportunities to lead. First, the Senate will hold a hearing on contracting issues with an eye to making the small business programs more effective. WIPP will testify, addressing the disappointing performance of the WOSB/EDWOSB program and efforts to increase federal contracts to women-owned businesses.


The second opportunity is the 2019 WIPP Business Leadership Conference. Participation, just like those early days, requires everyone’s attendance. WIPP visits to Capitol Hill has never been more important. Our visibility helps all women entrepreneurs across the country, even though they may not even be aware of our efforts. Our attention to issues such as business growth requires action and this conference provides opportunity for engagement with Congressional Members and staff.

 

Unlike the early days, we are not begging for a seat at the table. But now that we have a seat, it is our responsibility to do something with that seat. Get involved. Add your voice.


Tags:  Advocacy  Congress  leadership  WIPP Annual Conference 

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WIPP Driving Legislation

Posted By WIPP Advocacy Team, Thursday, May 2, 2019

Two recent bills introduced in the House and Senate, respectively, incorporate WIPP’s recommendations for increasing access to capital and creating parity for women-owned small businesses:

 

  • Making the Microloan Program More Effective: Elimination of the SBA Microloan Program’s 1/55th rule is a top WIPP priority, and the Microloan Program Enhancement Act (S. 996) would accomplish that. Women consume 48.7% of loans through the Program, which assists borrowers obtaining loans under $50,000. Read our letter of support.
  • Requiring 15-Day Payment to Small Federal Contractors: Reinstating the accelerated payments policy for small contractors and subcontractors that expired in 2017, House Small Business Committee Members introduced the Accelerated Payments for Small Businesses Act (H.R. 2332). The bill sets a goal for federal agencies to pay both small prime contractors and large primes with small subcontractors within 15 days.

Tags:  Advocacy  legislation 

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What Is "NDAA" and Why Do I Keep Hearing About It?

Posted By Ann Sullivan, WIPP Chief Advocate, Tuesday, April 30, 2019
Around this time of year, you will start to see communications from the WIPP Advocacy Team around getting legislation important to women-owned businesses “into the NDAA.” If you have been around long enough, you have probably heard me decode this legislative strategy. WIPP has used this vehicle to pass a number of bills into law – including sole source authority for WOSBs in the FY2015 NDAA. So, the question is, how can legislation about small business wind up in something authorizing defense? Let’s start with a little history of the Act.
AnnSullivan
The National Defense Authorization Act (NDAA) is one of the last “must pass” pieces of legislation left in Congress. Since the Constitution requires that Congress provides for a common defense, this bill is considered to be “must pass.” Therefore, every year for the past 58 years, Congress has passed the NDAA. Not to be confused with defense appropriations, with “defense” in the title, the purpose of the massive bill is to authorize defense policies and programs under which the funding levels are set. 

Even though the bill is “must pass,” that does not necessarily mean it must pass on time. In 33 years, the NDAA has been passed only three times before the start of the new fiscal year. However, one of the three times was last year’s FY2019 NDAA. The other two years the NDAA was signed on time were FY1997 and FY1978. ***Note: the calendar year the bill is passed and the fiscal year for the NDAA do not align. Congress is always working on it for the next fiscal year; therefore, Congress is currently working on the FY2020 NDAA. 

So where does small business enter the mix? The bill falls under the jurisdiction of the Armed Services Committees in both the House and Senate, not the Small Business Committees. Each year, both sides of Congress craft their own version of the NDAA to pass in their respective chambers. Next, they come together with negotiators and hammer out the differences. Since this is not under Small Business Committee jurisdiction, adding small business provisions is a more internal process. Meaning, you won’t see us tell you about a public hearing to review proposed small business provisions, instead the House and Senate Small Business Committees work with the Armed Services Committee Members to include relevant small business provisions. The NDAA has not always had small business changes. In recent years, small business advocates in Congress realized that a stated U.S. national security policy—the need for a strong industrial base— justifies inclusion of small business legislation. The NDAA quickly became the go-to legislation for procurement changes to small business programs.

A prime candidate for inclusion this year is a bill that would help bring parity to sole source authority for small businesses, especially WOSBs/EDWOSBs. The Expanding Opportunities for Small Businesses Act of 2019 (H.R. 190) would increase sole source contracts for women, veterans, and HUBZones at the amounts of $4 million and $7 million each year, instead of the life of the contract. It also raises the sole source dollar threshold for construction and manufacturing from $6.5 to $7 million. This legislation passed the House and is ready for Senate action. With category management shifting the way the government buys, contracting officers will have a bigger incentive to award work to small businesses if this bill passes. It’s time to mobilize around this huge opportunity for women-owned small businesses. The NDAA might just be the mechanism to get it done. 

Tags:  Advocacy  legislation  policy 

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Mounting Debt

Posted By Ann Sullivan, Wednesday, April 3, 2019
Recently, I heard Congressman Chip Roy from Texas state that the U.S. accumulates $100 million in debt every hour. That is a staggering, unsustainable number. It begs the question – is anyone in Congress concerned about this mounting debt, given that it is budget season? Does anyone care?

AnnSullivan According to the former Treasury Secretary Robert Rubin, “Despite rising debt, interest rates have remained low, and a fiscal crisis has not occurred. That is because private demand for business investment has been sluggish in a slow recovery, the Federal Reserve has provided liquidity through its unconventional monetary policy, and financial markets often ignore unsustainable fiscal conditions for an extended time.” He goes on to say: “Now, the imperative must be to develop a political strategy, and, in that context, a narrative, that persuades the broad American public that its economic well-being depends on getting our fiscal house in order.”

Given the absence of a financial crisis, elected officials have not convinced the American public that mounting debt, even to the tune of $100 million an hour, requires action. The place where fiscal policy starts is the Senate and House Budget Committees. Since the Senate Budget Committee just passed their FY2020 budget resolution, it is instructive to note the positioning of both sides. The Republican-controlled Senate Committee lauded the plan as cutting half a trillion dollars in deficits and debt over the next five years. According to the Chair, Senator Mike Enzi (R-WY), the Senate Resolution does not increase budget caps put into place in 2011 by the Budget Control Act, thus limiting spending.

In contrast, the top Senate Democrat on the Committee, Senator Bernie Sanders (I-VT), said this: “The Senate Republican Budget is immoral and bad economic policy. In almost every instance this budget ignores the needs of ordinary Americans and what the American people want, while at the same time protecting the interests of the wealthiest and most powerful people in this country – many of whom are the largest GOP campaign contributors. This is a budget that moves this country rapidly in the direction of oligarchy. It constitutes a massive transfer of wealth from the working class to the billionaire class.”

The House Budget Committee, controlled by Democrats since January, has not yet announced its deliberation schedule on the FY2020 budget. However, there appears to be disagreement on the levels on non-defense spending among Democrats. The Chair, Representative John Yarmuth (D-KY), is pressing to lift the spending caps imposed in 2011, allowing the Congress to spend more money without requiring spending cuts to offset the decreases.

So much for a political strategy. And frankly, so much for public engagement. While some in Congress have sounded the alarm, there appears to be little appetite for making hard choices necessary to reduce the debt.

Meanwhile, while I have been writing this article, the debt just went up another $100 million. Reduction of the debt falls into the same bucket many other issues facing our country drop into—solving problems only when a crisis demands it. Short of a voter groundswell, the debt will keep piling up. You should know where your Congressional delegation stands on this important issue. Are they concerned? Have they proposed any solutions to reducing the debt? Or are they waiting for a financial crisis to force the issue?

It seems to me that asking elected officials for big solutions is a reasonable request. Answers won’t be formulated unless the voters demand it.

Tags:  Advocacy  budget  Treasury 

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Senate Committee Passes WIPP-Supported Cybersecurity Bills

Posted By Elizabeth Sullivan, Wednesday, March 27, 2019
Updated: Wednesday, April 3, 2019

The Senate Small Business Committee passed two WIPP supported bipartisan cybersecurity bills last week, the Small Business Cyber Training Act of 2019 (S. 771) and the SBA Cyber Awareness Act (S. 772). These bills are a step in the right direction to help small businesses with cybersecurity compliance as well as hold the SBA accountable to secure the sensitive data it collects. The next stop is a vote by the full Senate.

 

WIPP submitted a letter endorsing both bills to Committee Chair Marco Rubio (R-FL).

Tags:  Advocacy  cybersecurity  Senate small business 

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more Calendar

2/18/2020
WEP Training - The Ugly Truth About CMMC

2/19/2020
WIPP Member Orientation - February 2020

3/4/2020
WIPP Community Connections - March 2020

3/11/2020
WIPP Policy Update - March 2020

4/8/2020
WIPP Policy Update - April 2020

Featured Members
Karen R. Jenkins (Robinson)President & CEO, KRJ Consulting, LLC, Columbia, SC — February 2020 Member Spotlight
Amina ElgouacemPresident, NEOSTEK, Inc., Arlington, VA — January 2020 Member Spotlight

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