8(a) Certified firms have seven advantages when utilized properly, one building upon the other, creating great value for the certification holder. Understanding how to use these advantages allows you to position your firm for higher growth. This is why 8(a) firms show average annual sales of over $7MM per year in federal contracts.

1. Location Can Be Anywhere
Many firms think you need to be located in the Washington DC area to take full advantage of the 8(a) Certification. If you happen to be located in the DC area, this is likely good news for you, as DC has approximately 3,000 8(a) firms and could support many more. In the DC Beltway billions of contracting dollars are spent each year. If you happen to be located outside of DC area, there are many federal agencies also located near you. Many fail to realize that the federal government is often the largest employer in their city. Firms working in the construction industry should note that 80% of all federal construction spending takes place at the DoD’s military installations. Therefore, your local military base can provide your firm with a great deal of contracting dollars.

2. Normal Pricing Is Good Pricing
The 8(a) marketplace for selling products is competitive, but oftentimes an 8(a) certification provides a company with up to a 10% price leeway, due to budgetary targets that an agency is attempting to meet. So, you should expect to obtain the same rates for your product in the federal marketplace as you do currently in the private sector.

3. GSA Schedule Works in Tandem with 8(a)
A listing on GSA Advantage through a GSA Schedule contract is the best tool that contracting officers have at their disposal for conducting market research and finding your firm. Procurement officers will often access GSA Advantage for the sole purpose of buying a particular product from a firm with a specific SBA set-aside, such as the 8(a) Certification. (Note:  GSA Schedules are generally not available for construction contractors)

4. Networking is Simplified
Networking with people within the federal government that you have done work for in the past, or have a working relationship with, can provide 8(a) firms with ideas for markets to enter. For example: A security guard firm gets a janitorial contract because of good working relationships with procurement officers at a federal facility.

5. Rare Industries are Often Gems
If your firm is in a rare industry, such as aluminum extrusion, light manufacturing, real estate broker, or other non-typical 8a type firm (norms are construction, IT, staffing, janitorial, etc.), your firm may have an entire federal market category to itself. The most important factor is being able to identify where the specific contracts for your firm will originate, and getting in touch with the appropriate procurement officers.

6. Past Performance Rapidly Builds to Larger Future Sales
If the firm has past performance history of doing work as a subcontractor for the federal government, this can increase its initial contracting opportunities, because the firm will already have past performance, making it a safer choice for set-aside contracts. For example, a construction firm that is able to demonstrate to a procurement officer that they have good past performance will be able to skip over the $50,000-200,000 size contract and has the potential to start with a much larger sole-source contract.

7. Joint Venture or Mentor-Protégé Upsizes Your Capabilities
Large contracts are frequently available for 8(a) certified firms, however some 8(a) firms lack the capabilities needed to complete the contract. Having industry partners that are much larger with additional financial, management, & technical skills, and/or bonding capacity, can give you access to much larger contracts. Your 8(a) firm gets full credit for the past performance on these contracts and this leads you into having a better (6) history of past performance and high level (4) networking opportunities.

When your 8(a) firm takes advantage of one or several of the seven marketing advantages it gains sales sooner, which gives the firm the ability to start winning larger contracts faster.

If you would like to learn more about the qualifications for the 8(a) Certification, or any other federal certification, I would recommend contacting an industry expert like ez8a, Advance GSA or Advance 8a. They do not charge for an initial consultation.