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Aspiring 8a

The Three Key Ingredients to Successful 8(a) Contracting

Being a successful 8(a) contractor can transform your business. This is because the average flourishing 8(a) firm makes over $7MM in sales per year through federal contracting. Over the years I have helped many firms obtain their 8(a) Certification, and assisted with obtaining post-award contracts. I would like to think that this assistance helped land six of our clients on the Washington Technology’s Fast 50 for 2019, while one client earned recognition as 2018’s 8(a) firm of the year by the SBA.

 

Over the course of my career working in federal certifications and government contracting, I have come to the conclusion that there are three key elements that determine the success level for an 8(a) contractor.


1. Industry – Does the federal government buy what your firm makes or sells?


2. Location – Does the federal government purchase the goods your firm sells in relatively close proximity to where your business is located?


3. Marketing – How well engaged is your 8(a) firm at obtaining Federal Contracts?


Industry
In terms of effective 8(a) Industries, the normal staples are:

1. Information Technology;
2. Construction
3. Management Consulting and;
4. Engineering

 

With that said, some of the best performing 8(a) certified firms are in niche industries. As I think back to a few years ago, one of the best performing 8(a) firms I worked with was a medical staffing firm that obtained a large contract staffing dentists to the military.

 

Location
IT Consulting - It can be a major benefit for some firms to be located within the DC beltway. We have had many IT clients that, after obtaining a few contracts in their home states, established branch offices in DC in order to aid in their business development efforts.

 

Construction - These firms do best when located near DoD facilities, as 80% of all federal construction dollars are spent by the DoD. Many other 8(a) firms will travel, depending upon the good or service they provide.


Marketing
This is the most important element, because firms that are strong in business development will overcome the other two elements in order to take advantage of an opportunity. Therefore, the first two Elements have more importance when a firm does not have a strong business development capability.

 

Business Development Services - Marketing is so important that I always recommend working with an industry expert who offers marketing services, in conjunction with their 8(a) services. Advance 8a and ez8a are two firms that offer these services. This ensures that new 8(a) firms know who in their geographic location buys their product or service.

 

Bid Monitoring – Additionally, some industry experts like ez8a monitor federal and state websites for upcoming contracting opportunities for their clients. For some 8(a) firms a spot on a single GWAC or IDIQ contract that only comes open every three years can make or break their 8(a) experience.

 

Subcontracting Opportunities - For firms looking for sale outside of the 8(a) program, targeting large federal prime contractors can be a great way to utilize their 8(a) certification to boost sales.

 

If you are not 8(a) certified at this time, and are wondering how the 8(a) Certification or any other federal or state business certification(s) could be a long-term advantage to help expand your future business development opportunities, I always recommend contacting an industry expert such as ez8a, Advance 8a or Government Marketing. None of the aforementioned expert consultants charge for an initial consultation.

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