8(a) Overview

SDB Certification
The Small Business Administration’s 8(a) program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.

The SBA 8(a) program is designed to benefit the client as well as the contractor by:
Allowing small disadvantaged companies the ability to pursue sole-source procurements,
Allowing federal agencies the ability to offer “8(a) only” competitive bid procurements, and
Ensuring that the 8(a) company is stable and able to handle the workload - SBA does an extensive background check on the company prior to giving it an 8(a) designation.

Through sole source contracts, businesses are given an opportunity to enter the government-contracting arena and gain the experience necessary to compete in the full and open market.

How the 8(a) Program Works
The 8 (a) program is intended to benefit both the client as well as the contractor through mechanisms that ensure quality performance. Prior to acceptance into the program, the contractor is subjected to a rigorous review of its ownership, daily management, operations, experience and financial status. Only those contractors that can document disadvantaged business status and demonstrate the viability of the organization are accepted into the program. Once accepted, the contractor is required to provide the SBA with a detailed business plan that must be updated annually.

Upon acceptance, each contractor is assigned Standard Industrial Classification (SIC) codes based on the qualifications and experience of the company and key personnel. Performance of 8(a) contracts is then limited to those SIC codes. As a company gains experience and expertise, it may request additional codes from the SBA based on documentation of this experience.

Subcontracting
One of the goals of the 8(a) program is to allow non-8(a) contractors to expand their scope of services. Therefore, the 8(a) contractor is permitted, with approval of the SBA, to subcontract a portion of this work to other qualified firms. While subcontracting is restricted to maintain the integrity of the program as an opportunity for disadvantaged businesses, subcontracting limits can be as high as 85 percent, depending on the industry. Contractors develop valuable relationships, while the client benefits from a qualified, experienced, well-rounded team.

Benefit to Government Customers
Speed of Process
Contracts let in 48 Hours
Team involvement in SOW Development
Exacting Products & Services
Flexibility to negotiate Cost Openly
Contract can reflect customers budget requirements
Contractor can direct the sub-contractor
Meets the small-disadvantage requirement

Benefit To Our Vendor Partners
Speed of process and flexibility
Contracts awarded before competitive process begins
Limits cost of securing opportunity
Reduces risks of investment for development opportunity
Non protest-able award
Allow the “Team” to preserve margin
Allows Prime the ability to meet the small business requirements