Federal Small Business 8(a) Programs
Background: The Law: The Small Business Act of 1953 states that minority-owned businesses (and small businesses generally) should enjoy the "maximum practical opportunity" to participate in federal contacting. The Small Business Act established the Small Business Administration (SBA) to assist such businesses and to insure they receive a "fair proportion" of federal contracts. As in the case of women-owned businesses (WOSBs), Congress has established a 5-percent government-wide goal for awards to small disadvantaged businesses (SDBs).
Section 8(a) of the Small Business Act empowers the SBA to enter into contracts with other agencies to provide supplies, services and construction. In contracting with another agency, the SBA subcontracts all of the performance requirements to a "socially and economically disadvantaged small business concern." Vendor participation is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.
A small business must be at least 51% owned and controlled by a socially and economically disadvantaged individual or individuals. Presumed disadvantaged groups are the same as the 8(a) Program. Other individuals can qualify if they show by a "preponderance of the evidence" that they are disadvantaged.
SBA Proposes Revision of Size Standards To Expand Opportunities for Small Businesses
WASHINGTON – The U.S. SBA is proposing increases in the size definitions for three broad commercial sectors. The proposed increases cover size standards for 71 different types of businesses, two-thirds of them in retail trade sectors. The rest are in accommodations and food services, and other services.
The changes, if adopted, will expand eligibility to small businesses and help them gain access to SBA’s financial assistance, contracting and other programs.
Small Business Certification Conducts to Current Business
Any business could apply for disadvantaged business or small business standing and approval to SBA? Small and disadvantaged businesses certified under the 8(a) program compete for set-aside contracts that are often easier to succeed for certified businesses. Certification requires paper work; Let OGM services you through the entire process and includes all the required forms. Get started succeed contracts today through the 8 (a) Federal Contracting Business Program.
The first mentor-protégé program — the DoD Pilot Mentor-Protégé Program—was established by DOD as a pilot under the National Defense Authorization Act for Fiscal Year 1991. Since the pilot program was authorized, it has been continuously extended. The largest program—the SBA 8(a) Mentor-Protégé Program—was established in 1998. It is offered under SBA’s 8(a) Business Development Program, which is one of the federal government’s primary vehicles for developing small businesses owned and controlled by socially and economically disadvantaged individuals. Firms in SBA’s 8(a) program receive SBA technical assistance and management training and may be eligible for contracts that federal agencies set aside for 8(a) firms. SBA’s mentor-protégé program serves as an additional developmental tool for 8(a) participants. Protégés in SBA’s mentor-protégé program must also be
participants in its 8(a) program.
A mentor-protégé program is an arrangement in which mentors — businesses, typically experienced prime contractors—provide technical, managerial, and other business development assistance to eligible small businesses, or protégés. In return, the programs provide incentives for mentorparticipation, such as credit toward subcontracting goals, additional evaluation points toward the awarding of contracts, an annual award to the mentor providing the most effective developmental support to a protégé, and in some cases, cost reimbursement.
Select OGM with Your Federal Contract Business
Selling to the Federal Government can provide significant revenues for your business and the process is not as complicated as you may think. We perfect provides information that can assist you position your company for contracting opportunities.The Federal Government has strict guidelines regulating its purchase of goods and services.
Small businesses must meet certain qualifications, and government contracting officials use standardized procedures. As a small business owner seeking to sell to the government, you first have to understand how the contracting process works, determine whether your business qualifies, and decide whether government contracting is right for you.
OGM will help you understand the basics of selling to the government, show you how to get started and pursue opportunities, and provide resources that will give you the knowledge and skills you need to help you succeed. Just call us to get more details.