| WHAT IS THE 8(A) PROGRAM AND WHAT ADVANTAGES DOES IT OFFER TO POTENTIAL BUSINESSES CERTIFIED UNDER THIS PROGRAM ?
The SBA administers two particular business assistance programs for small disadvantaged businesses. These programs are the 8(a) Business Development Program and the Small Disadvantaged Business Certification Program. The 8(a) Program offers a broad scope of assistance to socially and economically disadvantaged firms whereas the SDB certification strictly pertains to benefits in federal procurement. If a firm becomes 8(a) certified, they are automatically SDB certified as well. But, if a firm becomes SDB certified, they are not 8(a) certified.
The SBA 8(a) program is a nine year program. A firm may only be certified once under the 8(a) program. During the first 4 years of this program, firms are in a developmental stage or growth stage. For the next 5 years; firms are in a transitional stage. The 8(a) program is SBA's effort to promote equal access for socially and economically disadvantaged individuals to participate in the business sector the nation's economy. The SBA provides assistance to all small businesses. Socially and economically disadvantaged individuals represent a significant percentage of U.S. citizens, and, yet, account for a disproportionately small percentage of total U.S. business revenues.
The program recognizes the historical lack of equal access that minorities and other disadvantaged individuals have had to the resources needed to develop their small businesses. This program assists 8 (a) approved firms to participate in the business sector and to become independently competitive in the marketplace.
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WHAT ARE BENEFITS OF A FIRM BEING 8(A) CERTIFIED ?
- BUSINESS DEVELOPMENT ASSISTANCE
A Business Opportunity Specialist ( BOS ) from the SBA will be assigned to each firm once they have become 8 (a) certified. This person is responsible for providing the 8(a) firm with access 'to assistance that can help the firm fulfill its business goals. The BOS counselor can provide access to assistance in the following areas:
A - Procurement
B - Marketing
C - Financial
D - Management
E - Surety Bonding (this is particularly important to those in the construction field)
- GOVERNMENT CONTRACT OPPORTUNITIES
The SBA undertakes an extensive effort to provide contracting opportunities to those businesses certified under their 8(a) program. The SBA maintains close contact with various federal agencies to keep government personnel informed of the 8(a) program goals and procedures and to request that contract opportunities be reserved for the 8(a) program.
In fact, there are some federal contracts that are set aside so that only 8(a) certified or SDB certified firms can bid on them. There are other cases where federal contracts are awarded to 8(a) firms without being put out for open bidding. These are called sole source contracts. It is imperative that 8(a) certified firms conduct independent marketing activities for contract opportunities both in the public and private sector. When a 8(a) firm soliciting business with U.S. government departments and agencies identifies contractual opportunities, it may attempt to convince the federal department or agency that it is qualified to undertake the work, and that the firm's name should be sumitted to the SBA as the recommended contractor. The SBA does not and can not guarantee any specific amou/it of government business for each 8(a) firm.
- MAJOR BUSINESS SUPPORT
The goal of the 8(a) program is to support and assist small businesses to develop to the point that they can compete successfully in the marketplace without government assistance. To reach this goal, the SBA encourages and assists 8(a) businesses by referral or other methods to enter into contracts with major businesses. To achieve this goal, the SBA uses several tools:
A - Pro-Net(Procurement Marketing and Access Network)
Each 8(a) business is registered in Pro-Net which is used by major business and government procurement officials to identic small businesses capable of providing required goods and services.
B - Direct Marketing
The SBA undertakes activities designed to promote businesses relationships between 8(a) businesses and major businesses. These activities include
(1) establishing preliminary contact with major businesses on behalf of the 8(a) firm and
(2) providing necessary follow-up assistance to the 8(a) firm in the development of this relationship.
C - Indirect Marketing
Through SBA Specialists in Contact with Major Business- SBA officials maintain contact with representatives of major businesses and inform these representatives of the capabilities of the 8 (a) businesses in their various fields of endeavor.
D - Self-Marketing
with Support and Guidance from SBA Specialists- The SBA encourages 8(a) firms to market their products or services directly with major businesses. The SBA Business Opportunity Specialist can arrange for counseling on effective sales presentations and in any management or technical area that would enhance the firms ability to market their product or service.
"All of the above information, for the most part, has been obtained from an ABA 8(a) informational brochure offered for distribution to the general public, and marked "document 2 02/06/98"
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| WHAT IS THE SDB PROGRAM AND WHAT ADVANTAGES DOES IT OFFER TO POTENTIAL BUSINESSES CERTIFIED UNDER THIS PROGRAM ?
The SBA administers two particular business assistance programs for small disadvantaged businesses. These programs are the 8(a) Business Development Program and the Small Disadvantaged Business ( SDB ) Program. SDB certification strictly pertains to benefits in federal procurement. The SBA certifies SDBs to make them eligible for special bidding benefits when federal contracts are first put out for bidding.
BENEFITS OF SDB CERTIFICATION :-
- Under the government's reformed affirmative action rules, SDB certified firms are eligible for price evaluation adjustments of up to 10% when bidding on federal contracts in certain industries.
- The program also provides evaluation credits tor prime contractors who achieve SDB subcontracting targets. The program is intended to help federal agencies achieve the government-wide goal of 5% SDB participation in prime contracting.
The price evaluation credits are authorized in those NAICS (originally, they were the SIC codes) industry categories where the US Department of Commerce has determined that SOBS'are underrepresented because of.the effects of ongoing discrimination. As of 10/1/98, SDBs are eligible to receive the credit when competing in the following industry categories:
Agriculture
Fishing
Forestry
Construction
Mining
Manufacturing
Transportation
Communication
Services:
Electric
Gas
Sanitary services
Wholesale Trade
Retail trade
Finance
Insurance
Real estate services
- Effective 1/1/99, negotiated contracts where SDB participation is an evaluation factor can provide monetary incentives for prime contractors that meet specified targets for SDB -subcontracting in the NAICS major groups.
The US Department of Commerce" benchmarks" reflect the degree of SDB under- representation in each industry category. The price credit is not available for industry categories where benchmarks are not required. In addition, the price credit does not apply to
1. procurements that are below the simplified acquisition threshold of $100,000;
2. procurements that are set aside for small business;
3. procurements under the SBA8(a) program.
* All of the above information has been obtained from an SBA paper/ brochure offered for distribution to the general public and dated 4/17/00; it can be found on website http://www.sbaonlme.sba.gov/sdb/section06c.htm
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WHAT IS THE GSA SCHEDULE PROGRAM AND WHAT ADVANTAGES DOES IT OFFER TO POTENTIAL BUSINESSES WHICH ARE ON THE GSA SCHEDULE ? As a GSA Schedule Consultant we can help!
In layman's terms, the GSA ( General Services Administration) is the buying arm for many of the Federal Government's Departments and agencies. Chances are, if you have a product or service to sell, it's probably something that the U.S. General Services Administration ( GSA) buys. Each year, the GSA - the Federal Government's business manager, supplies and services buyer, real estate developer, telecommunications manager, and computer solutions provider-contracts for literally billions and billions of dollars worth of products and services.
Because it provides the workspace, supplies, equipment, and support that other Federal agencies and departments need to do their jobs, GSA is one of the Federal Government's biggest buyers.
There basically are no special requirements for those who wish to apply for the GSA schedule, unlike the SBA 8A certification process. You do not have to be a woman or minority owned business, and there are no limitations on your net worth and you do not have to be a US citizen.
To become a multiple award schedules contractor, you must first submit an offer (your schedule application along with substantiation documentation required) to the GSA. Once you are approved, under the multiple award schedules program, GSA establishes contracts with companies such as your own company who furnish commercial services and products to the government. GSA establishes the terms and conditions and negotiates the price with your company. Then, they publish a document called a Federal Supply Schedule which tells what products/ services are covered by that schedule, including you own products/ services, of course. The schedules are then distributed to federal agencies and the appropriate contracting officers who then can place orders directly from contractors such as you, following the ordering procedures.
The GSA will also give you a list of the various contracting officers who would handle and order your products / services, and have you write to each one, introducing yourself to them, and showing them your products/services. It is up to you to actively solicit these contracting officers tp promote your products/services with them.
In closing, The SBA 8A certification along with your approval of the GSA schedule should make your company very successful in the area of government contract as long as you aggressively market your company with the appropriae contracting officers.
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