8(a) firms are given the advantage of two specific contracting types. 8(a) Competed Contracts and 8(a) Sole Source Contracts. These contracts require much less effort to obtain and the probability is much higher. Most new 8(a) firms get their feet wet with 8(a) Sole Source Contracts as these contracts are easiest to win and require the least amount of effort. Once the 8(a) firm gains experience, they then move on to 8(a) Competed Set-aside Contracts, which are usually greater in value. Observe the picture/artwork, it does a good job of showing the relationship between ‘Effort Required’ with the ‘Probability of Winning’ when it comes to specific contracting types.

About 8(a) Competitive Contracts

A procurement offered and accepted for the 8(a) BD program must be competed among eligible participants if:

(i) There is a reasonable expectation that at least two eligible participants will submit offers at a fair market price;

(ii) The anticipated award price of the contract, including options, will exceed $7,000,000 for contracts assigned manufacturing NAICS codes and $4,000,000 for all other contracts; and

(iii) The requirement has not been accepted by SBA for award as a sole source 8(a) procurement on behalf of a tribally-owned or ANC-owned concern.

For all types of contracts, the applicable competitive threshold amounts will be applied to the procuring activity estimate of the total value of the contract, including all options.

About 8(a) Sole Source Contracts

The 8(a) sole source contracting vehicle provides agencies a simplified and shortened acquisition procedure:

(i) Expedited process: an 8(a) sole source contract can be executed usually within days rather than months or years;

(ii) Reduced administration: Lowering costs: procurement process and time which can be especially important for immediate needs such as disaster recovery; and

(iii) Best value, cost effective prices: agency negotiates with the firm directly to get the best value, generally if the 8(a) firm is not more than 10% above market the procurement can be accepted.

These two types of contracting vehicles provide 8(a) firms with a major advantage in the federal contracting space, and provides them with the ability to kick-start their federal contracting careers.