The 8(a) Certification allows socially and economically disadvantaged firms preferential treatment in the award of federal contracts. Due to the advantages they are given in government contracting, the average 8(a) firm does between $6-8MM per year in federal sales. The largest sector that 8(a) firms participate in is:
Sector: 54 NAICS Codes - Professional, Scientific, and Technical Services
This sector has experienced strong growth of over 11% per year for the past two years. Increasing from just under $13B to just over $16B over this timespan.
There are nine industry groups that make up this Business Sector. The largest two are:
5415 – Computer System Design and Related Services
5416 – Scientific Research and Development Services
These two industry groups represent almost ¾ of all 8(a) sales in this sector, and both have been experiencing strong growth. To see the results for the last three fiscal years for this entire Industry Sector, see the table below:
54 NAICS Codes - Professional, Scientific, and Technical Services |
2018 |
2019 |
2020 |
|
5411 |
Legal Services |
11,570,130 |
19,611,144 |
18,019,915 |
5412 |
Accounting, Tax Preparation, Bookkeeping, and Payroll Services |
93,383,051 |
126,507,597 |
133,702,246 |
5413 |
Architectural, Engineering, and Related Services |
2,326,100,869 |
2,424,234,940 |
2,520,284,950 |
5414 |
Specialized Design Services |
28,604,088 |
19,000,981 |
19,538,656 |
5415 |
Computer System Design and Related Services |
6,360,131,698 |
7,209,031,762 |
7,803,793,214 |
5416 |
Management, Scientific, and Technical Consulting Services |
2,687,825,057 |
2,743,086,709 |
4,005,480,006 |
5417 |
Scientific Research and Development Services |
460,840,290 |
542,145,266 |
573,408,328 |
5418 |
Advertising, Public Relations, and Related Services |
26,887,809 |
48,367,513 |
42,927,266 |
5419 |
Other Professional, Scientific, and Technical Services |
973,626,584 |
1,005,190,039 |
963,375,005 |
Total |
12,968,969,576 |
14,137,175,951 |
16,080,529,586 |
Overall, we expect these industries to continue to outpace other 8(a) markets. Therefore, now would be a good time for a firm interested in federal contracting to look at obtaining an 8(a) Certification.
If you have any questions on getting qualified for the 8(a) Certification, I always recommend contacting an industry expert such as ez8a or Advance 8a. Neither charge for an initial consultation.
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