Small Business Administration 8(a)

The 8(a) program derives from Section 8(a) of the Small Business Act. The Act, as amended by Congress, created the 8(a) program so the U.S. Small Business Administration (SBA) could help small companies owned and operated by socially and economically disadvantaged persons develop their businesses. One of the business development tools of the 8(a) program is the award of Federal contracts. Under the program, SBA acts as a prime contractor and enters into contracts with other Federal Government departments and agencies. In its role as a prime contractor, SBA awards subcontracts for their performance by certified companies.

• The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses. The 8(a) Program offers a broad scope of assistance to firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals.

• The 8(a) Program is an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The program helps thousands of aspiring entrepreneurs to gain a foothold in government contracting.

• Participation in the program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.

Benefits of the Program

• Propelled Technologies (PT) as an eligible 8(a) can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing.

• PT is able to form joint ventures and teams with other 8(a)s to bid on contracts, enhancing the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract.

Requirements and Goals of the Program

The overall program goal is to graduate 8(a) firms that will go on to thrive in a competitive business environment. There are some requirements in place to help achieve this goal. Program goals require 8(a) firms to:

• Maintain a balance between their commercial and government business.

• Limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary NAICS code.

To make sure 8(a) firms are on track to accomplish their goals and are following requirements, the SBA district offices monitor and measure the progress of participants through:

• Annual Review

• Business Planning

• Systematic Evaluations

For additional information related to our SBA 8(a) program, please contact us below.