Why is the 8(a) Business Development Program Important? What is its Purpose?
By employing a strategic approach[3] to earning 8a certification contracts while they are a member of the program, eligible small firms could strengthen their capacity to develop, grow, and retain their presence in federal contracting. Other specialized tactics are used by successful 8(a) graduates to obtain federal contracts[5].
The 8(a) Business Development program's goal is to increase the capacity of underprivileged small businesses to compete in the American economy[4] by reducing competition through chances for sole-source and set-aside contracting[6].
To help 8a certification enterprises grow into sustainable businesses that can compete in the larger market as a stronger, more sustainable organization, the U.S. Small Business Administration (SBA) offers special attention through set-aside and single-source contracting opportunities[7].
Congress mandated in 1988 that small businesses receive 23% of federal government prime contracting dollars, including 5% of prime and subcontracts for disadvantaged small enterprises[8]. 23% of program applicants from FY 2008 who applied between FY 2014 and FY 2017 did not receive open competition contract awards[9].
We've identified five crucial strategic practice areas that can raise the likelihood of securing 8a certification contracts.
How to Acquire Federal 8(a) Contracts
1. Build Crucial Relationships: Companies with 8a certification must forge connections with subcontractors, teaming partners, contracting officers, clients, and PTACs in a variety of ways that affect the result of the bidding process. To establish connections:
- Create and take part in teams for prime and subcontractors [4], [10], [11].
- Look for and collaborate with large companies [4]
- Be a participant in one or more joint ventures or mentor-protégé relationships at the end of the first year [4]
- Develop teams and take part in joint ventures, mentor-protégé relationships, and prime and subcontractor roles [11].
- Establish communication channels with procurement technical assistance centers (PTACs), clients, and contracting officials [11]
2. Increased Technical Expertise: Successful 8(a)-certified companies have the knowledge or background to demonstrate to the government that they have accomplished the same or similar work. Past performance can have a favorable impact on the outcome of the bid. To improve technical proficiency:
- Prioritize winning as many 8a certifications opportunities as you can in years one through three while still adhering to size restrictions. [10]
- From fourth to sixth grade: Try to learn [11]
- Acquire the technical know-how and track record that you can by completing advantageous sole-source and set-aside contracting opportunities gained through the 8(a) program [11]
- Create new ventures based on the past success [10]
- Request a debriefing from the government after each unsuccessful bid so that you can improve your performance in the future. [11]
3. Increase the proposal quality: Successful 8(a)-certified companies comprehend the RFP's specifications and apply their growing technical writing abilities to create excellent submissions. A thorough technical description of the task to be done, competitive pricing, an efficient staffing strategy, and a well-organized presentation are just a few examples of these technical writing skills. The success of the bid may depend on the quality of the proposal. To raise the caliber of your propositions:
- Make sure you comprehend the RFP completely, and if you require clarification, ask the government any questions you may have [11]
- Create a sound staffing plan [11]
- Become more proficient in technical writing [11]
4. Implement a business development and marketing strategy: Successful 8(a)-certified businesses employ networking to promote the sale of a good or service by going to events, conferences, belonging to associations, or using other social networking platforms. The results of the bidding process might be impacted by marketing and company development tactics. Throughout the program, apply company growth and marketing strategies:
In years one through three:
- Make sure that 5% of all bids are for full and open competition, and that 95% of all bids are for 8(a) or small company set-asides [4].
- Concentrate on securing as many 8(a) opportunities as you can while adhering to size restrictions. [10]
In years four through six:
- Make sure that 25% of all bids are full and open bids and that 85% of all bids are for 8(a) or small company set-asides. [10]
- Engage in campaigns using search letters [4]
- Create new ventures based on the past success [10]
- Collaborate with other 8(a) enterprises on marketing and business development initiatives [11]
- Visit contracting officers and consumers using the government facilities that are accessible [11]
In years seven through nine (and within the extra year ten if applicable):
- Make sure that 50% of all bids are for small company set-asides or 8(a) and 50% are for full and open bids. [10]
- Continue achieving [4], [10] the 8a certification business activity targets.
5. Successful 8(a)-certified enterprises keep lines of communication open with all participants, enabling questions to be addressed and affecting the result of the bidding process [11].
- Submit the offer on time
- After submitting a bid, check in with the appropriate government official to make sure it was received in full before the deadline for submissions. [11]
Recent research of the bidding outcomes of seasoned 8a certification principals led to the conclusion that the strategic practice areas mentioned above. The assessment of prior literature also contributed to this conclusion. These strategic practice areas can be used by 8(a) company principals to create a comprehensive plan and get ready for a smooth transition from the 8a certification program to a long-lasting federal contracting business.
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