Industry experts such as ez8a and Advance GSA help companies obtain the four major SBA certifications for securing federal contracts. In doing so, they advise their clients on the importance of focusing on just a few agencies—preferably one in the beginning—until you get your feet wet. To allow agencies to purchase from you more easily, they recommend obtaining a GSA Schedule contract in the near future, if not simultaneously. Additionally, a GSA Schedule provides access to other agencies and, more importantly, prepares you for securing positions on more lucrative GWACs (Governmentwide Acquisition Contracts) down the road.

The results for how the certifications perform vary greatly, but let’s look at the numbers first.

SBA Certification–GSA Avg Revenue-# of GSA Firms-% of Eligible Firms Obtaining GSA

8(a) - $1.9 Million – 1,575 – 63.4%

HUBZone - $2.6 Million – 873 – 30.1%

WOSB - $1.3 Million – 3,542 – 18.2%

SDVOSB - $2.3 Million – 1,834 – 6.3%

Highest Educated – 63.4%

If we look at the data, 8(a) firms have the highest percentage of eligible businesses taking advantage of the GSA Schedule contracting vehicle. A big reason for this is that 8(a) firms are required to go through mandatory training, and much of that training stresses the importance of having a GSA Schedule contract.

Major Operators – 30.1%

HUBZone firms are often businesses formed specifically to participate in federal contracting. Their owners intentionally establish them in HUBZone areas to take advantage of the certification. As a result, these experienced federal operators are familiar with the GSA program and understand the advantages a GSA Schedule can provide.

Under-Leveraged? – 18.2%

Women-owned small businesses tend to be smaller on average than other small businesses. While some of these firms enter federal contracting, many are too small to meet the requirements for obtaining a GSA Schedule. An 18.2% participation rate is not a bad number, but with greater awareness, it would likely be higher.

Major Gap – 6.3%

SDVOSB firms generally obtain a significant amount of revenue from the VA and the military due to set-asides and security clearance advantages. The SDVOSB firms that utilize GSA Schedules perform well with them, however, there is a major education gap regarding how a GSA Schedule can further grow their businesses.

The differences between certification types and their GSA Schedule usage—from highest to lowest—is a factor of 10x. If a firm has an SBA certification, it should make an annual determination as to whether a GSA Schedule should be part of its overall marketing strategy for the coming year. If you would like to explore how one of these certifications, or one in combination with a GSA Schedule, can exacerbate your future business development potential, I recommend contacting the aforementioned ez8a and/or Advance GSA. A free consultation where you can speak with an expert is a click or a call away.