The 8(a) Program is a once-in-a-lifetime opportunity to shift the trajectory of your business growth with tools that have helped thousands of firms win millions of dollars in federal contracts they otherwise would not have won. The government authorizes sole-source contracts to 8(a) participants for up to $7.5 million for acquisitions assigned manufacturing North American Industry Classification System (NAICS) codes and $4.5 million for all other acquisitions. Entity-owned 8(a) program participants are eligible for sole-source contracts above these thresholds, but the Department of Defense requires approval of a formal justification if the 8(a) sole-source contract exceeds $100 million; all other federal agencies require approval for sole-source 8(a) contract actions that exceed $25 million.

Certified firms in the 8(a) program can:

• Confidently compete for and receive 8(a) set-aside and sole-source contracts.
• Receive one-on-one business development assistance for their nine-year term from dedicated Business Opportunity Specialists focused on helping firms grow and accomplish their business objectives.
• Receive specialized training from SBA District Offices designed exclusively for CEOs.
• Pursue opportunities for mentoring from successful government prime contractors and 8(a) graduates through the SBA Mentor-Protégé program.
• Connect with procurement and compliance experts who understand regulations in the context of business growth, finance, and government contracting.
• Pursue joint ventures with established businesses to increase capacity.
• Qualify to receive federal surplus property on a priority basis.
• Receive free training from SBA’s 7(j) Management and Technical Assistance program.

The qualifications for 8(a) certification are simple. However, getting through the application process is daunting, and it can take companies up to a year or more to get a decision from the SBA if the package is incomplete or not organized in the manner expected. Though the forms are online now, there are hundreds of pages of supporting documents and financials to submit.

Many applications are denied for mistakes in the application, even when the applicant is eligible. Sometimes it’s as simple as a missing document or a mistake in financial documents and inconsistencies with tax returns. If the SBA thinks the mistakes in the financial documents are an attempt to present false information, this can be difficult to impossible to overcome. There are also other significant pitfalls that can prevent certification that you may not be aware of at all, like having 70% or more of your work coming from the same business. When an 8(a) applicant is receiving over 70% of their business from another firm (Company X), the SBA could decide that the two firms are affiliated, and the applicant could be considered ineligible for certification.

The qualification basics are –

To qualify for the 8(a) program, an individual owning a business must meet the following eligibility criteria:

• Be a small business
• Not have previously participated in the 8(a) program; to include acquiring a firm that has once been in the program. Firms can only be certified one time. Individuals can only be certified one time.
• Be at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged.
• Have a personal net worth of $750 thousand or less, adjusted gross income of $350 thousand or less, and assets totaling $6 million or less.
• Demonstrate good character.
• Demonstrate the potential for success such as having been in business for two years (or submit a justification for a waiver).

Other rules apply for firms owned by entities (Tribes, Alaskan Natives, Native Hawaiian Organizations). Please contact us for additional information.