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Aspiring 8a

Five 8(a) Trends for 2021

Here are the Top Trends I see the 8(a) Certification and GSA experiencing for 2021 (and the data behind those beliefs):

 

1. Increase in Economic Disadvantage limits is causing an increase in 8(a) applications. We are experiencing an increase in wait times due to the increase in the wealth thresholds for becoming 8(a) certified. 8(a) application processing times have increased approximately 1.5 months since July. Personal net income was increased from $250K to $350K and Personal net worth was increased from $250K to $750K (with some exclusions). We expect these wait times to continue to increase throughout 2021.

 

2. Overall, 8(a) Revenue continues to increase. It appears the government will continue to increase spending coming out of the COVID-19 Pandemic. The federal dollars per 8(a) firm will continue to rise or stay the same for 2021 as they were in prior years.

 

Year

# of 8(a) Firms

Federal 8(a) Spending in (Billions US $)

Contract Dollars per 8(a) Firm (Millions US $)

2019

5,900

$51.6B

$8.7MM

2020

6,000

$52B (est.)

$8.0-9.0MM

 

3. GSA Schedule is becoming an even better bet. There were the same number of 8(a) firms on GSA Schedule from 2019 to 2020. Roughly 1,630 which represents 27% of 8(a) firms. These firms had on average $1.4MM in sales directly from their schedule which was almost a 25% increase from 2019.

 

 

2019

2020

8(a) per Firm Sales Growth

8(a) Average Sales from GSA Schedule

1,155,542

1,440,123

24.6%

 

4. GWAC Contracts for 8(a) firms provide large business opportunities. 8(a) firms that obtain positions on 8(a) STARS III or any of the other GWACs will continue to have large federal revenue opportunities that will outpace their peers.

 

5. IT and consulting firms will continue to take a lion’s share of 8(a) federal spending. However, we expect a resurgence in 8(a) construction spending in 2021 as the federal government works to catch-up on projects that could not be accomplished in 2020 due to the pandemic.

 

If you are wondering how the 8(a) Certification and/or GSA Schedule could be an advantage to help expand your business through federal contracting, I always recommend contacting an industry expert such as ez8a, Advance GSA or Advance 8a. They all have the know-how and mastery in evaluating your firm's potential, and none charge for an initial consultation.

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