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Aspiring 8a

8(a) Certification Drives IT Revenue

If your company is in the IT Industry, and has been considering pursuing an 8(a) Certification, now may be an excellent time to enter the federal market as overall sales levels remain at all-time highs.


According to the table below, the average 8(a) firm in the IT Industry made over $5MM in sales in 2021. Approximately 40% of 8(a) firms are in the information technology industry. Other industries with strong showings include construction, staffing, consulting, janitorial, and facilities maintenance.


8(a) firms that want to improve their chances should also obtain a GSA Schedule. Last year, approximately 43% of 8(a) IT firms took this step, and the sales results from obtaining a GSA Schedule were approximately $1.6MM, in addition to their other sales.


Some 8(a) firms transition to the 8(a) STARS GWAC, which is designed for 8(a) firms in the IT Industry. Because this GWAC is not open enrollment like a GSA Schedule, it is common for an 8(a) firm to obtain a GSA Schedule contract first and then wait for STARS enrollment to open. In 2020, a position on the STARS Contract was worth $2.3MM on average to an 8(a) IT firm.


As you can see from these three tables, 8(a) IT revenue per firm has remained stable for a long time. To fully capitalize on this expansion, we generally advise 8(a) firms to obtain both a GSA Schedule Contract and an 8(a) Certification at the same time. The firm should then apply for 8(a) STARS during the first open enrollment period. I have generally notified previous clients when STARS opens so that they do not miss this important date. I’ve discovered that taking these extra steps increases a firm's value of its’ 8(a) Certification.


If you need assistance exploring your firm’s potential and capabilities with both the 8(a) Certification and GSA Schedule, I always recommend contacting an industry expert such as ez8a, Advance GSA or Advance 8a. None charge for an initial consultation.


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