If your firm is in the IT industry and has been thinking about moving forward with an 8(a) Certification now may be a great time to enter the federal marketplace as overall sales levels continue to be at all-time highs.  

As evidenced in the table below, the average 8(a) firm in the IT Industry had over $5MM sales in 2021. Approximately 40% of 8(a) firms are in the IT industry. Construction, Staffing, Consulting, Janitorial and Facilities Maintenance are other industries that make strong showings.

8(a) firms that wish to boost their chances of success in the federal space obtain a GSA Schedule as well. Around 43% of 8(a) IT firms take this step, and the sales results from obtaining a GSA Schedule were approximately $1.6MM last year.

Some 8(a) firms move onto the 8(a) STARS GWAC. This GWAC is setup for 8(a) firms in the IT industry. This GWAC is not open enrollment like a GSA Schedule, and therefore it is common for an 8(a) firm to obtain a GSA Schedule contract first, and then wait for enrollment to open for STARS. On average, a position on the STARS Contract was worth $2.3MM to the 8(a) IT firm in 2020. We expect these sales were at the same level or higher for 2021, the numbers are unavailable at this time.

As you can see from these three tables, 8(a) IT revenue on a per firm basis has remained strong over a long period of time. To take full advantage of this growth I generally recommend for 8(a) firms to obtain both a GSA Schedule Contract simultaneously with the firm’s 8(a) submittal. Then the firm should apply for 8(a) STARS during the first available enrollment period. Industry experts contact past clients when STARS becomes open so this important date is not missed by applicable firms. I personally find that by taking these additional steps, the value of an 8(a) Certification to a firm is maximized. Advance GSA and ez8a are two such industry experts that make this process easier for your firm. Contact them ASAP, neither charge for an initial consultation.