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Evans & Chambers is now an 8(a) company
That’s right. Evans & Chambers joined the 8(a) program in July of this year, after operating without it for over 5 years in the government contracting community. Occasionally I’m asked about the 8(a) program by prospective employees during interviews and business owners who are not in the government arena. To help better explain the 8(a) program and why you should be aware of it, I’ve written this quick primer.
From the SBA web site: “The SBA’s 8(a) BD Program, named for a section of the Small Business Act, is a business development program created to help small disadvantaged businesses compete in the American economy and access the federal procurement market.” A small disadvantaged business (SDB) is one whose revenues do not exceed $21.5 million per year(for our industry), owned by one or more socially or economically disadvantage individuals (Black, Hispanic, Native American, Asian Pacific, etc), owned by owners of good character, and able to demonstrate potential for success.
It’s not particularly easy to obtain. The applicant firm must have been operational for at least two full years, and show increasing operating revenues each year in the primary industry in which the applicant firm is seeking 8(a) program certification. The owners can also not be worth too much money. It makes sense: the SBA wants to know that the SDB has the ability to make use of the assistance they’ll provide, yet not owned by principles who can finance the business using their personal fortunes.
Even though we have successfully won contracts and built exemplary past performance based on our own merits, Evans & Chambers sees the 8(a) status as a means to solidify our position as a leader in the government contracting landscape. We can achieve this by utilizing these key benefits available solely to the 8(a) participants:
- Participants can receive sole-source contracts, up to a ceiling of $3 million for goods and services.
- Participants can bid on competitive acquisitions that are ‘set-aside’ for 8(a) and SDBs. Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to 8(a) companies.
- To speed up the award process, the SBA has signed Memorandums of Understanding (MOUs) with 25 Federal agencies allowing them to contract directly with certified 8(a) firms.
While the 8(a) designation is a big help, simply attaining our 8(a) status will not bring business like that movie Field of Dreams. Evans & Chambers must continue to emphasize what makes us unique, network constantly, and put in the hard work to market directly to the government in order to achieve that next level of success.
Hope that helps. If you have more questions, contact me or check out the 8(a) FAQ page on the SBA site.
