The 8(a) BD Program is one of the strongest tools available for small businesses to show their urge to dominate the field of federal contracting. Targeted at socially and economically disadvantaged small business owners, it offers a wide array of benefits including the ability to get Sole Source Contracts without public bidding, reducing competition, and allowing opportunities for networking. The following seven major advantages of the 8(a) Certification illuminate the ways in which it can enable a firm to access unprecedented federal spending, hastening growth. Understanding such benefits is crucial for every small business who either successfully manage, or conquer the waters, of federal contracting.

#1 Sole Source Contracting

A key advantage of the 8(a) Certification is the ability to obtain Sole Source Contracts, which I will discuss first. For those new to the 8(a) BD Program, Sole Sourcing allows federal agencies to directly award contracts to 8(a) certified firms without a competitive bidding process. This enables these firms to secure contracts at fair prices while keeping them confidential, effectively allowing them to win business without their competitors knowing about the opportunities. In fact, approximately half of the business generated by 8(a) firms comes from Sole Source Contracts.

#2 Less Competition to 8(a) Firms

The not-so-well-understood fact about the 8(a) Certification, especially among non-8(a) firms, is the significant decrease in federal competition on many levels. First, there are those set-asides by federal agencies where 8(a) firms are almost exclusively considered, often called 8(a) set-aside contracts. Then there are IDIQ and GWAC, some of their slots going to 8(a) certified companies. Securing a place on one of these contracts can substantially improve sales prospects for the 8(a) firm.

#3 High Level of Federal Spending and Opportunities

Another big plus for 8(a) firms is the huge amount of federal spending they can potentially tap into. In fact, the statistics don't lie when it comes right down to it. Out of the approximately 24 Million firms in the United States, roughly 6,500 currently hold an 8(a) Certification. Because such a small amount have received the certification, this leaves merely these certified firms to compete for tens of thousands of 8(a) contracts, which total more than $30 Billion annually. In fact, the average sales figure a typical 8(a) firm enjoys annually in federal contracts well exceeds $4 Million.

#4 Less Bureaucracy

One of the major reasons that firms avoid doing business with the federal government is the administrative headache involved. The SBA has designed the contracts coming to 8(a) firms in a way as to avoid much of the bureaucratic red tape associated with federal contracting. This will allow the business owner to focus on the operation of his or her company rather than trying to work through complicated government Requests for Quotations (RFQs).

#5 Joint Ventures and Mentor-Protégé Partnerships

Joint Venture or Mentor-Protégé relationships allow 8(a) firms to partner with other more experienced firms. In this type of arrangement, an 8(a) firm teams up with established federal contractors who have the experience in dealing with the government. The contracting experience gained through this effort opens up new opportunities for smaller 8(a) companies because they are considered for certain contracts that may be out of their reach. The outcome is that this type of collaboration not only assists the 8(a) firms in creating a solid past performance history with federal contracts, but perhaps most importantly, positions them in the future to compete for larger contracts independently.

#6 GSA Schedule Market Research Advantage

Unlike IDIQ contracts and other non-evergreen GWACs, GSA Schedules are always open for firms to apply. This creates a great opportunity for new 8(a) firms looking to maximize their future business development potential for federal contracts. Securing a GSA Schedule contract is a very strategic approach in that it is one of the first sources federal buyers use when performing market research. This research should be done by contracting officers prior to giving out contracts, whereby the 8(a) firms appear on the GSA Schedule. The buying agencies can purchase directly from the 8(a) firms. The latter will consequently show much higher visibility. Most noticeably, GSA Schedule 8(a) firms tend to realize three times the sales that small businesses with a GSA Schedule who are not part of the 8(a) BD Program realize, a distinct competitive advantage that emanates from this association.

#7 Capability to Become Large Business Concerns

8(a) firms have shown extraordinary growth for many years as recognized by the presence of 30 to 40 8(a) firms each year among the Washington Technology Fast 50, the fifty fastest-growing federal IT contractors. The design of the 8(a) BD Program arms these certified firms with seemingly unlimited opportunities, thus allowing them to set goals seemingly lofty and unreachable for many an owner, such as morphing into large business concerns. Whereas genuine growth among small businesses is seldom realized, approximately 30% of 8(a) certified firms parlay past performance and procurement relationships to become large federal prime contractors by the time they graduate from the program. A number of graduated 8(a) firms reach revenues in excess of $100 Million, reflective of the business trajectory transformation made possible by the 8(a) program.

The following FY 2023 federal contracting data illustrates the distribution of federal contracts among various racial and business size categories, revealing important trends in government procurement. This data is vital for understanding disparities in contract awards and advocates for policies promoting inclusivity in federal contracting, especially for disadvantaged groups.

The 8(a) Certification program stands as one of the most powerful tools for small businesses eager to enter and thrive in the competitive realm of federal contracting. With significant advantages such as Sole Source Contracting, reduced competition, access to substantial federal spending, and opportunities for growth, 8(a) certified firms are uniquely positioned to succeed. As illustrated, many firms not only benefit from immediate contractual opportunities but also leverage these experiences to become substantial players in the market.

If you think that federal contracting is part of your marketing strategy, I always recommend that you contact an industry expert such as ez8a. Their team is ready to guide you through the 8(a) Certification process, helping you navigate the vast opportunities it can provide. Don’t miss your chance to empower your business for success. They do not charge for an initial consultation.