For example, companies with 8 a status can receive sole-source contracts, up to $4 million for goods and services and $6.5 million for manufacturing. This is because it meets all the prerequisites of the SBA loan program. A huge benefit for government procurement personnel in choosing the 8a contracting procedure is that the agency doesn’t need to solicit bids and can select a particular 8a contractor for fulfilling its needs. This includes the ability to accept and terminate companies. Create a free website or blog at Change ). As mentioned above, the goal of the government is to award a minimum of five percent of all contracts to these eligible companies. The advantages to an 8a company are great. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Winning Process Qualify Apply Gain Approval … 8a firms can learn, as well as take part in larger projects, by partnering with another firm, while still receiving the benefits of their 8a certification. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. Change ), A Brief Overview On What is 8a certification. Alert: SBA Issues Final Rule on Consolidation of Mentor-Protégé Programs and Other Contracting Rules | SmallGovCon…. 8a firms can participate in set-aside contracts whereby the competition for the contract is only other 8a contractors. Another benefit offered by 8a certification is access to a Business Opportunity Specialist from the SBA. Proactive Measures After Getting 8a Certified: Despite the many 8a certification benefits, small businesses must still develop strategies to acquire more projects and increase revenues. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Your email address will not be published. To qualify, the individuals must be members of a specific group, such as Hispanic Americans, Native Americans, or African Americans, or they have experienced social disadvantage because of physical abilities, gender, origin, race, or similar attributes. This small business development program enables businesses to obtain support from the SBA. If you are eligible, you will receive specific privileges. There are special rules that govern teaming and joint venture relationships. Required fields are marked *, You may use these HTML tags and attributes:
. Reduction of red tape — Sole sourcing of 8a certified firms , reduces or eliminates the red tape involved in red tape involved in federal contracting. For example, your business will be eligible to receive government contracts that are set-aside. Under the 8a Business Development Program, small businesses are eligible for introduction by the SBA to contract directly with federal agencies that are in need of qualified 8a contractors in order to meet their congressional budgetary guidelines for spending. This process is referred to as 8(a) competitive bidding. Does Force Majeure Clauses Apply to Federal Government Contracts COVID 19, Basics of Small Business SDVOSB Fraud in Government Contracts, How Do Federal Government Contractors Deal With COVID-19 Problems, OMB M-20-18 Guidance and Successful Contract Performance in the Shadow of the COVID-19 Coronavirus Pandemic, Avoid the Government’s Defense of Anticipatory Repudiation in Government Contracts, Does the SBA Mentor Protégé Approval Stand No Matter What? Also, the true value of their assets cannot exceed $4 million. 8a Business Development Program Benefits All 8a certified companies are entitled to receive ‘sole-sourced’ government contracts up to a maximum of $4 million on a per contract basis for those dealing in goods and services. This business development program can help a small business grow by cutting the red tape that has customarily come with federal contracts. Becoming eligible for the 8a program offered by the SBA and qualifying for the 8a certification requirements is something that can be lucrative.