It is critical for firms entering the SBA’s 8(a) BD Program to ramp-up federal sales as quickly as possible. This is important because 8(a) firms have limited time in the program (9 years), and obtaining federal sales creates the building blocks in for more sales in the future. The normal 8(a) firm should have the goal of reaching $6-8MM per year in federal sales by year 3-4 (the average sales for 8a firms on an annual basis regardless of year).

Traditional 8(a) Marketing Plan

1. This involves meeting with SBA Business Development Specialists and requesting their assistance in sending out letters of introduction to federal buyers. Then the 8(a) firm makes follow up calls to these letters in order to setup meetings. Generally, some level of persistence in this method should create several strong leads, and ultimately a firm’s initial sale.

2. A GWAC (Government-wide Acquisition Contract), such as a GSA Schedule, provides a listing (GSA Advantage/eLibrary) of a preferred group of federal contractors whereby 8(a) firms are found during the market research process. Smaller in scale, but equally as lucrative, are agency or region specific IDIQ contracts. These types of contracts can yield a large amount of business with less marketing effort than other avenues.

3. 8(a) firms should also monitor sam.gov For most 8(a) firms there will be bidding opportunities that will be suitable for their purposes.

Advanced Tips for Marketing Your 8(a) Firm

Factor 1 of Strategy:  The basis for this strategy is that each federal agency is required to spend at least 5% of their budget with 8(a) firms. All federal agencies exceed this federal mandate. Meeting this target on an ongoing basis would be more challenging if federal agencies did not employ a strategy to get 8(a) contractors involved. That strategy is for agencies to award a percentage of their “repetitive work” to 8(a) firms. So based around this “repetitive work” the following 8(a) marketing strategy can be developed.

Factor 2 of Strategy:  The 8(a) Certification is for a 9-year duration. After that period of time the 8(a) firm has graduated and is no longer eligible for 8(a) Contracts.

When we combine these two factors we then know where to look for good future 8(a) opportunities. Repetitive type contracts in the same industry where an 8(a) firm is holding a contract and is about to graduate from the 8(a) BD Program.

Pro-Tip 1 - Find 8(a) firms that are about to graduate, or have graduated, from the 8(a) BD Program. See what contracts those firms hold, and contact the federal contracting officer that is in charge of those contracts.

Pro-Tip 2 – If your firm feels you do not have all the capabilities to handle the contract, you can then contact the existing, soon to graduate 8(a) firm, and see if they would like to joint venture with your firm.

The graduated 8(a) firm can joint venture with your firm provided the active 8(a) firm is receiving at least 40% of the revenue, completing 40% of the work and receiving 40% of the profit. Using this novel 8(a) marketing strategy in combination with a traditional 8(a) marketing process can enhance 8(a) sales, helping your 8(a) firm meet the average 8(a) sales figure years before your peers.

If your firm needs help with your marketing strategy in order to exacerbate future business development potential, or you would like to explore an 8(a) Certification, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.