SBA 8(a) Sole Source
Background
The 8(a) program name comes 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. To become a participant in the program, companies submit an application to the SBA and subsequently go through a rigorous approval process in which the company’s ownership, operations, financial status, and experience are evaluated. Companies that are approved are certified by the SBA for a period of nine years.
e-Management received its 8(a) certification in 2002 and is expected to graduate from the program in June 2011.
Benefits of the Program
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 in the program.
One key benefit of the 8(a) program is the opportunity to receive “sole source” contracts (not exceeding $3.5M for services and $5.5 for manufacturing). Participants in the 8(a) program are also eligible to bid on “set aside” contracts with other participants in the 8(a) program.
6 Easy Steps to Establishing an 8(a) sole source contract with e-Management
- The federal customer develops a statement of work, prepares a government estimate and obtains the necessary funding.
- The federal customer chooses e-Management to perform the work and submits a procurement request to the agency contracting officer.
- The agency contracting officer prepares and submits an “Offer Letter” to the SBA.
- After the Offer Letter is received and processed by the SBA, the process returns to the agency contracting officer who submits the Statement of Work and Request for Proposal or Quotation to e-Management.
- e-Management submits its proposal or quotation and the package is evaluated and negotiated (if necessary) by the agency.
- The contract is awarded to e-Management.
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