What is the 8(a) program?
The 8(a) program name is from Section 8(a) of the Small Business Act. The Act, as amended by Congress, created the 8(a) program so the U.S. Small Business Administration (SBA) could help small companies owned and operated by socially and economically disadvantaged persons develop their businesses.
What does it mean to be 8(a) certified?
One of the business development tools of the 8(a) program is the award of Federal contracts. Under the program, SBA acts as a prime contractor and enters into contracts with other Federal Government departments and agencies. In its role as a prime contractor, SBA awards subcontracts for their performance by certified companies.
What are the benefits of becoming 8(a) certified?
1.Sole source contracts – One of the most attractive benefits of the 8(a) program is the ability to receive sole-source opportunities/awards. An 8(a) BD participant may receive a contract, without competing for it, for contracts up to $4 million for goods and services and up to $7 million for manufacturing. As you can imagine, this benefit is invaluable as an 8(a) business can self-market its capabilities and solutions to a potential government customer in order to get a contract without having to openly compete against other businesses.
2.Set aside opportunities – To meet their small business goals, the Federal government can reserve certain acquisitions for small businesses. A set aside, total or partial, can be for all small businesses or for a specific category of small business. For example, should a contracting agency identify two or more qualified 8(a) companies that are capable of fulfilling a contract’s requirements, that opportunity may be set-aside for 8(a) businesses. This means that if a company is not 8(a) certified it would not be able to compete for that opportunity. A set-aside opportunity is another way to limit competition and give 8(a) participants access to potential opportunities.
3.Teaming opportunities – Teaming is extremely beneficial for businesses. It should be included in a business’ strategy to build its capabilities and past performance, and to gain access to opportunities. The 8(a) program encourages teaming and does so through its Mentor-Protégé Program and joint venture (JV) opportunities. The Mentor-Protégé program is designed to enable successful firms to act as mentors and provide various forms of business development assistance to 8(a) program participants who are the protégés. The goal of the 8(a) BD Mentor-Protégé Program is to enhance the capabilities of 8(a) Program Participants and to improve their ability to successfully compete for both government and commercial contracts. In brief, a joint venture is when two or more businesses enter a temporary partnership. This partnering is usually associated with a specific contract or product that it is mutually beneficial to both businesses. By encouraging 8(a) participants to pursue teaming opportunities, SBA enables participants to succeed even after they exit the program.
In summary, there are many benefits for 8(a) BD program participants. These benefits ultimately help participants develop so they can successfully compete in the market during their 9-year program term and after.
Why come to Preferred Bonding for the 8(a) program?
We have an affinity for the small contractor developing their business. We have worked with 8a’s since 1995 and have an understanding of how the program works. We have the sureties that work with us who also understand the program. We make sure you get the bond for the federal contract, so you can stay busy and get more federal contracts that you are able to bond.