Getting Ready for 8(a) Approval Before Applying

When a prospective 8(a) firm considers putting together an application, the firm should also be strategically planning what it will do after receiving its 8(a) Certification.

New 8(a) firms must recognize that they are not all created equal, and adjust their strategies accordingly. Some businesses will find it easy to enter the federal market, while others will find it slightly more difficult. However, the average 8(a) firm generates between $6MM and $8MM annually in revenue, so the odds are in your favor.

To assess your firm's strength before entering the program, consider the five factors that will determine your success:

1. Industry
2. Geographic Location
3. Past Government Experience and Federal Contacts
4. Size of the Firm when Entering the 8(a) Program
5. Luck

Over the years, I've worked with many companies that lacked the first four factors, and I wasn't sure about the fifth "luck" factor. However, with some good federal analysis, initiative, and the ability to listen, we were able to put some "lipstick on those pigs" and secure federal sales. Of course I say this with affection.

Some of the insightful 8(a) marketing advice I share with my clients:

1. The 8(a) Certification is the crown jewel of certifications. No other certification, when utilized properly, can build a business faster, period, bar none.
2. The SBA can be a useful resource for obtaining your initial sales, so take full advantage of them, but you also need to do your own federal business development.
3. It is typically easier to obtain sales slightly out of your niche with a federal contracting officer you know than to be in your perfect niche starting over at a new agency.
4. Go where the dollars are in your industry. For example, the Department of Defense is responsible for 80% of federal construction spending. Therefore, if you are in Construction, market to Military Facilities.
5. Contracting vehicles can be “King Makers”. For example, earning a place on the upcoming IT GWAC 8(a) STARS III will be worth millions in sales to an 8(a) IT firm that wins a spot.
6. Signup with major federal prime contractors early. In year five of a firm’s 8(a) Certification, the firm must show progress in weening itself off sole source 8(a) sales. Using your 8(a) for obtaining federal subcontracts with a large prime is a great way to achieve this. Remember numbers show $135B in annual small business federal prime contracts, $75B in annual small business federal subcontracting. Subcontracting is a very large pool to play in.
7. Use a sniper not a shotgun approach to federal sales. Industry experts can put together lists of federal contracting officers that have purchased your goods or services in the past 2 years. This is a much more efficient way of securing federal contracts.
8. Watch your older 8(a) competition. Remember, after nine years the clock hits midnight and Cinderella’s carriage becomes a pumpkin. Many 8(a) contracts are continuously renewed as 8(a) set-asides again. A graduated 8(a) firm is likely not able to renew its federal contract. These contacts can be low hanging fruit for a new 8(a) firm to go after. If you are unsure if you have all the capabilities needed to perform on the contract, often-times creating a joint venture with the incumbent 8(a) firm is a win-win for all.

It takes more than just submitting an application to be successful in the 8(a) BD Program. If a firm's nine years of 8(a) program eligibility are to be fully utilized, a comprehensive 8(a) plan must be developed before entering the program. If you have interest in exploring both your eligibility and potential utilizing the 8(a) Certification. I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.