The U.S. Small Business Administration 8(a) Business Development Program is designed to help small businesses owned by disadvantaged individuals compete in the marketplace and gain access to government contracts. The 8(a) Certification allows these businesses to work directly with federal agencies and gain access to resources that help them grow.

Each business in the 8(a) program is classified under specific industry codes called NAICS codes (North American Industry Classification System). These codes help the government organize businesses by the type of work they do. Every few years, the SBA reviews the top NAICS codes participating in the program, measuring how much money is awarded in contracts and how quickly each industry is growing.

Let's look at the Top 10 NAICS codes in the SBA 8(a) BD Program over the past few years and explore which industries are seeing the biggest growth. Each of these codes represents a specific type of work or industry, from building construction and engineering to computer programming and security services.

The following are the Top 10 NAICS codes that received the most contract dollars in the 8(a) program over the past few years:

By analyzing contract data from 2021 to 2023, we can see which industries are experiencing the fastest growth. Here are some key takeaways:

-Engineering Services (NAICS 541330) grew by 65.19% over three years, the highest growth rate among these Top 10 industries. This suggests a significant increase in demand for engineering services, possibly due to increased infrastructure projects and other government initiatives.

-Custom Computer Programming Services (NAICS 541511) saw a total growth rate of 52.73% from 2021 to 2023, with a big jump in the last year (33.4%). This increase indicates a rising need for custom software solutions, reflecting the government's push towards modernization and digital transformation.

-Remediation Services (NAICS 562910), which involve environmental clean-up and restoration, grew by 45.77%. This could be due to heightened awareness and initiatives around environmental protection and sustainability.

Why Is the 8(a) Certification Important?

The 8(a) Certification offers critical support and exclusive opportunities for small businesses owned by economically or socially disadvantaged individuals. Certified firms benefit in several key ways:

Access to Set-Aside and Sole-Source Contracts: The certification qualifies businesses to compete for special 8(a) set-aside contracts and sole-source contracts, where they are the only contractor considered. The government can award sole-source contracts of up to $7 Million for manufacturing NAICS codes and $4.5 Million for other services. Larger sole-source contracts, especially those above $25 Million (or $100 Million for Department of Defense), may be awarded with formal approval.

Mentorship and Collaboration Opportunities: The SBA Mentor-Protégé program allows 8(a) firms to work with experienced, established companies. These mentorships provide technical guidance, industry knowledge, and connections. Additionally, 8(a) firms can form joint ventures with other businesses, expanding their capacity to take on larger projects.

Eligibility for Other Socio-Economic Contracts: 8(a) firms may also compete for other government set-asides, such as contracts designated for women-owned, veteran-owned, or HUBZone-certified small businesses, provided they meet those criteria.

The Top 10 NAICS codes in the SBA 8(a) BD Program showcase industries where federal investment is accelerating, including construction, consulting, technology, and environmental services. For small businesses owned by disadvantaged individuals, the 8(a) Certification is a valuable asset, providing exclusive access to government contracts, one-on-one support, and opportunities to partner with established firms. Leveraging these benefits can position 8(a) firms for substantial growth and competitive success.

If you're considering getting the 8(a) Certification, I always recommend contacting an industry expert such as ez8a. They can guide you through every step of the process. They help businesses understand eligibility, assess qualifications, and determine if federal contracting aligns with your marketing strategy for growth. Contact them today to learn more about how the 8(a) Certification can support your business's goals. They do not charge for an initial consultation.