Unlocking success in the federal marketplace begins with understanding the benefits of the 8(a) Certification. This certification not only reduces competition, but also improves how federal agencies see your business. Let's break down the top five basic advantages of obtaining the 8(a) Certification, a smart move for any business.

Limited Competition - Around 5% of all federal contracts are reserved for 8(a) firms. Federal agencies consistently surpass this goal, averaging around 8-9%. Considering there are approximately 24 million businesses in the United States and less than 6,500 firms successfully obtaining the 8(a) Certification, it's no surprise that these certified firms typically achieve annual sales exceeding $5MM.

Sole Source Contracts - Imagine a streamlined procurement process where a procurement officer meets directly with the owner of an 8(a) firm to discuss the details and pricing of a contract. This is the essence of a Sole Source Contract, bypassing formalized bidding processes, similar to how small businesses conduct transactions. The contract can be formalized, provided the 8(a) firm stays within 10% of market rates. This not only benefits contracting officers by speeding up the award process (days or weeks compared to six to nine months), but also constitutes approximately half of all 8(a) sales, amounting to around $16B annually. The streamlined process significantly reduces administrative burdens, particularly for new firms in the federal marketplace.

Key Point: Building rapport with contracting officers is vital for 8(a) firms to routinely secure sole source contracts. Trustworthiness and delivering high-quality work play a crucial role in this process.

Limits: Sole source contracts are capped at $4MM for goods and services and $7MM for manufacturing.

Boosts GSA Schedule and GWAC Effectiveness - Federal agencies favor various contracting vehicles, and GSA Schedule and Government-wide Contracting are at the top of their list. When procurement officers utilize these vehicles and aim to meet their 8(a) social inclusiveness goals, they actively seek out 8(a) firms on those contracts. This boosts the overall performance of 8(a) firms compared to other contract holders. Additionally, specific GWACs, like 8(a) STARS for Information Technology Companies, offer a substantial increase in sales by narrowing competition.

Better Pricing - All 8(a) firms are small businesses with similar capabilities and cost structures. As a result, they generally secure better pricing than their non-certified counterparts. This advantage is attributed to their access to sole source and set-aside contracts.

Construction Contractor Friendly - Opportunities for 8(a) Construction projects are widespread across the United States. Since 80% of Federal Construction occurs at DoD facilities (Army, Navy, Air Force, and Marine Bases) located in all 50 states and US Territories, 8(a) firms can secure routine work near their headquarters. Military facilities often engage with 2-3 different 8(a) firms on an ongoing basis, providing a steady stream of work for certified firms.

The 8(a) Certification is your key to unlocking opportunities, reducing competition, and propelling your business to new heights. If you are ready to take the next step by becoming 8(a) certified, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.