Benefits
of the Program
- Participants can receive
sole-source contracts, up to a ceiling of $3 million for
goods and services and $5 million for manufacturing. While
SBA helps 8(a) firms build their competitive and
institutional know-how, the agency also encourages them to
participate in competitive acquisitions.
- Federal acquisition policies
encourage Federal agencies to award a certain percentage
of their contracts to SDBs. To speed up the award process,
the SBA has signed Memorandums of Understanding (MOUs)
with 25 Federal agencies allowing them to contract
directly with certified 8(a) firms.
- Recent changes permit 8(a)
firms to form joint ventures and teams to bid on
contracts. This enhances the ability of 8(a) firms to
perform larger prime contracts and overcome the effects of
contract bundling, the combining of two or more contracts
together into one large contract.
Program goals require 8(a)
firms to maintain a balance between their commercial and
government business. There is also a limit on the total dollar
value of sole-source contracts that an individual participant
can receive while in the program: $100 million or five times
the value of its primary SIC code. The overall program goal is
to graduate firms that will go on to thrive in a competitive
business environment.
To achieve this end, SBA
district offices monitor and measure the progress of
participants through annual reviews, business planning, and
systematic evaluations. 8(a) participants may take advantage
of specialized business training, counseling, marketing
assistance, and high-level executive development provided by
the SBA and its resource partners. They may also be eligible
for assistance in obtaining access to surplus government
property and supplies, SBA-guaranteed loans, and bonding
assistance.
Eligibility
Requirements
To qualify for the program, a
small business must be owned and controlled by a socially and
economically disadvantaged individual. Under the Small
Business Act, certain presumed groups include African
Americans, Hispanic Americans, Asian Pacific Americans, Native
Americans, and Subcontinent Asian Americans. Other individuals
can be admitted to the program if they show through a
"preponderance of the evidence" that they are
disadvantaged because of race, ethnicity, gender, physical
handicap, or residence in an environment isolated from the
mainstream of American society. In order to meet the economic
disadvantage test, all individuals must have a net worth of
less than $250,000, excluding the value of the business and
personnel residence.
Successful applicants must also
meet applicable size standards for small business concerns; be
in business for at least two years; display reasonable success
potential; and display good character. Although the two-year
requirement may be waived, firms must continue to comply with
various requirements while in the program.
Applying to
the 8(a) Program
You can apply to the 8(a)
Program by contacting any SBA district office. For more
information or questions, call the Division of Program
Certification & Eligibility at (202) 205-6417.
Tips on Marketing to the
Federal Government
Once certified by the SBA you
will need to market your firm. Marketing to the government
requires essentially the same skills and techniques that are
necessary for effective marketing to the private sector. Some
of the questions you will need to answer in developing your
marketing strategy, include the following:
- Does the government use the
product or service that I provide?
- If so, where is this product
or service needed?
- Will my product or service
provide a unique resource that the government would use if
it became aware of what I can offer?
- How do I find the
opportunities?
- How can I effectively
compete with other businesses?
A wide range of resources are
available to assist you answer these questions. To take
advantage of the annual $200 billion government market for
private sector goods and services, small businesses need to
understand basic government programs that can benefit
them—and know where to look for these opportunities.
The Commerce Business Daily
and CBDNet. Proposed procurement actions expected to
exceed the sole-source 8(a) award requirements threshold or
designated as SDB-eligible are published in the U.S.
Department of Commerce’s Commerce
Business Daily (CBD). The CBD may be obtained from the
Government Printing Office (GPO), SBA Small Business
Development Centers (SBDC), or the CBD website.
Agency Websites. Many
agencies publish their requirements on their own home pages.
Agency websites can be useful to small businesses that supply
regionally and locally.
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