. 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.