Navigating the Small Business 8(a) Set Aside Program: Tips for Success
Small businesses often find it challenging to compete with larger corporations, especially when government contracts are involved. However, the Small Business Administration (SBA) has created the 8(a) set aside program, which provides opportunities for small businesses owned by socially and economically disadvantaged individuals to compete for federal contracts.
In this article, we’ll explore what this program is all about and provide you with some tips to help you navigate it successfully.
What is the 8(a) Set Aside Program?
The 8(a) set aside program is a business development program that helps small businesses owned by socially and economically disadvantaged individuals gain access to federal contracts. The goal of the program is to help these businesses become economically self-sufficient and competitive while also promoting diversity in the marketplace.
To be eligible for the 8(a) set aside program, your business must be at least 51% owned by individuals who are socially and economically disadvantaged. This can include individuals who are members of certain minority groups, have a personal net worth that is less than $750,000, and have demonstrated disadvantages in education, employment, or opportunity.
Tips for Navigating the 8(a) Set Aside Program
1. Understand the application process: The application process for the 8(a) set aside program can be lengthy and complex. It’s important to thoroughly research the program and understand the requirements before beginning your application. You should also make sure that you have all of the necessary documentation and information ready to go before submitting your application.
2. Build relationships with other businesses: Networking is key when it comes to the 8(a) set aside program. The more relationships you have with other businesses, the more opportunities you’ll have for teaming arrangements and subcontracting opportunities. Attend industry events and conferences to meet other small businesses and build your network.
3. Focus on your core competencies: When looking for federal contracting opportunities through the 8(a) set aside program, it’s important to focus on your core competencies. Understand what your business does well and what sets you apart from your competitors. This will help you identify the best contracts to go after and position your business for success.
4. Be patient: The 8(a) set aside program is competitive, and it can take time to start winning contracts. Be patient and persistent in your efforts, and continue to build relationships and pursue opportunities. Over time, your hard work will pay off.
Success Stories
One successful 8(a) set aside program participant is the technology and consulting firm, IronArch Technology. Founded in 2010 by a former government employee, IronArch Technology specializes in providing services to federal government agencies. In 2014, the company was awarded a $50 million contract by the U.S. Department of Veterans Affairs, thanks in part to their participation in the 8(a) set aside program.
Another success story is STG International, a healthcare and IT services company that has been in business for over 20 years. STG International has won numerous contracts through the 8(a) set aside program, including a $60 million contract with the U.S. Department of Health and Human Services in 2017.
Conclusion
The 8(a) set aside program is a valuable resource for small businesses that want to compete for federal contracts. Understanding what the program is all about and following these tips can help you navigate the process successfully. Remember to be patient, persistent, and focused on your core competencies, and success will follow.
