If you are a small contractor in government and national security, you are most likely familiar with the set-asides 8(a) businesses are eligible for, or you’ve seen the designation on company websites.
Did you know that as of February 2020, of all the businesses operating in the U.S., fewer than 9,000 registered as 8(a) certified?
The 8(a) Business Development Program (8(a) Program) is a benchmark of the federal government contract awarding processes: every year, they hope to award 5% of all prime/subcontracting monies to small minority-owned businesses.
A set-aside award, in general, is a program where only certain defense contractors can respond to a request for proposal (RFP) or compete for the work – other set asides that the government offers are women-owned, HUBZone (historically underutilized business zone), and service-disabled veteran-owned.
The 8(a) program also provides these small businesses with training, assistance, and most importantly, contracting opportunities that are set aside specifically for their type of organization.
These types of contractors were awarded $30.4 billion in federal contracts, including $8.6 billion in 8(a) set-aside awards in FY2019. According to a Congressional Research Service report, “The current 8(a) Program is the result of the merger of two distinct types of federal programs: those seeking to assist small businesses in general and those seeking to assist racial and ethnic minorities. The merger first occurred, as a matter of executive branch practice, in 1967 and was given a statutory basis in 1978.”
Like all government set-aside contract programs, the 8(a) program brings diverse voices to the national security space and mission set, allowing more companies to serve the DoD and fight emerging threats.
Benefits of Being an 8(a) IF YOU QUALIFY
No matter what your business is, whether it’s construction, logistics, IT, or intelligence, there is an 8(a) contract for your proposal capture team to find. To help this process stay a fair game for the greener small businesses and the massive Lockheed Martins, the government allows small businesses owned by socially or economically disadvantaged individuals to compete for contracts in any field. While the playing field is leveled and competition is a smaller pool, companies still have to work very hard to earn these wins, actively seeking out contracting opportunities, submitting proposals, and await the hopefully good news of an award.
As a part of this program, you have some benefits:
- Compete for set-aside and sole-source contracts in the program.
- Receive a specialist to support you in navigating the federal contracting arena.
- Form alliances with established companies through the Mentor-Protégé Program.
- Receive management or technical support, including training or high-level executive management.
You can compete for contract awards under multiple socio-economic programs and if your company qualifies, go on to win a few contracts (though smaller in dollar amount). If your firm is successful, it can take your business from 20-30 employees to graduating as a mid-sized contractor.
8(a) program checklist
Before embarking on the journey to becoming an 8(a) business, there are eligibility requirements and a checklist to follow. If yours qualifies, the Small Business Administration (SBA) has different designations, but this label is generally for small businesses “owned and controlled by one or more socially and economically disadvantaged individuals who are of good character and citizens of and residing in the US”.
Check to see if you meet the full criteria that went into effect July 2020:
- You must be a small business according to SBA.
- Not have previously participated in the program (that’s good if you’ve graduated!).
- The business must be 51% owned and controlled by a U.S. citizen that is either economically or socially disadvantaged (a group of people who have been historically underrepresented or subjected to ethnic, cultural or racial bias through Title 13 Part 124 of the Code of Federal Regulations).
- The owner must have a personal net worth of $750,000 or less with $6 million or less in assets. The owner’s average adjusted gross income must be $350,000 or less.
- Demonstrate good character and potential to perform on contracts.
UPCOMING 8(a) FOCUSED WORKSHOP
Are you an 8(a) company looking to expand into the DoD or Intelligence Community further? Would you like to learn how you can build your bottom line and advance national security?
The Intelligence and National Security Alliance’s 8(a) National Security Showcase, taking place June 8-9, 2021, is designed to foster business partnerships between IC agencies, prime contractors, and 8(a) businesses. This is a great place to network and create teams! This two-day virtual event offers the opportunity to market innovative national security technologies, applications, and services to procurement representatives from prime contractors and the 18 IC agencies. Register today!
INSA’s goal is to create opportunities and acquisition onramps for minority owned businesses into the national security market. The showcase directly aligns with INSA’s commitment to create a more diverse and inclusive intelligence and national security community.
