How to Speed Up the Procurement Process by Selecting an 8(a) Certified Small Business

If you’re a procurement officer looking to speed up your contracting process, consider using an 8(a) business. That’s because usually the government requires every solicitation they receive to be publicly posted on a centralized business website. This can net hundreds of proposals and slow down the process. That’s not the case with an 8(a) company.

The award time is much quicker if you consider an 8(a) certified business, a company that is 51 percent owned and operated by one or more U.S citizens that the government deems, according sba.gov, as “socially and economically disadvantaged entrepreneurs.” This includes various minority groups or people – including females and/or those of the disabled population – who have proven they have been discriminated against who also run a small business and have a personal net worth that doesn’t exceed $250,000. Hiring an 8(a) company can shorten the process of awarding a contract, because it’s acceptable for specific work to be set aside for an 8(a) or HUBZone (Historically Underutilized Business Zone), which includes companies located in urban and rural communities or an 8(a) certified business. 

Because contracting officers do not have to solicit bids, according to SBA 8(a) and Hubzone specialists at Cloveer, Inc., they can choose a specific 8(a) contractor to execute contract obligations by naming an 8(a) business in an offering letter to the SBA so the specified company wins the contract. As with any other potential job hire that is pre-screened and interviewed, you have the ability to vet a company before rewarding an 8(a) business a contract, says Darryl Hairston, associate administrator for the 8(a) Business Development Program of the SBA. If many 8(a) companies appear to have the capability to perform the required work, adds Hairston, contractor officers have the freedom to look at past performance while getting to know the company personally.   

Using this specialized process can save time and money, Hairston says, because the business receives the contracts quickly, making the procurement faster and easier. It’s a unique opportunity to personally know the business, unlike any other procurement contracting process. Procurement officers have more freedom and authority to deal with 8(a) businesses on a one-on-one basis. 

“If you plan on participating in the normal small business set-aside or open competition,” Hairston says, “you can’t sit down and spend time with particular vendors unless you meet with all of them equally.” 

That’s because a contacting officer cannot act in any manner that would appear to give a particular company a competitive advantage, Hairston says.

 That’s not the case with an 8(a) business.

 “You don’t have to worry about being protested,” Hairston says, “for spending time with a business.” 

What you should know 

Implemented by the U.S. Small Business Administration (SBA), the Section 8(a) Program of the Small Business Act was created in 1968 to help small disadvantaged businesses compete in the marketplace by helping them become competitive in government contracting. These companies offer products and services that are used for government contracts. 

The federal program helps participants in a two phases: The first is a developmental stage during which the program, over a four-year period, focuses on providing development assistance to those of economic disadvantage. The second phase, the transitional stage, helps participants with their remaining business hurdles, while transitioning the participants out of the program over a five-year period.

Companies that are 8(a) certified have typically been in business for at least two years and are on the Central Contractor Registration (CCR) database. The 8(a) program offers its vetted participants:

• One-on-one business counseling
• Mentoring
• Procurement assistance
• Financial assistance
• Surety bonding
• Management and training assistance
• Access to government contracts
• Help in positioning 8(a) companies as competitors for federal projects
• Sole-source contracts
• A ceiling up to $4 million for goods and services and $6.5 million for manufacturing

From commercial to 8(a)

For eight years, Molly K. Gimmel, a Maryland-based certified professional contract manager and the co-owner of a government contracts consulting firm, helped large accounting consulting firms – Deloitte Consulting, Arthur Andersen and KPMG - win government contracts. 

Then in 2001, Gimmel co-founded Design To Delivery Inc. (D2DInc), a minority and woman-owned consulting firm that specializes in helping other 8(a) small businesses win and manage government contracts. At first, D2DInc’s focus was on the commercial market.  

“But we wanted to increase our bottom line,” says Gimmel, whose company has now assisted more than 300 private-sector clients with government contracting. 

So D2DInc expanded into government sector to gain more clients, bigger contracts and more opportunities.  Gimmel quickly realized that meant becoming 8(a) certified. Winning a competitive government contract prior to becoming certified, she says, was very difficult. “When we decided to start going after government contracts,” Gimmel says, “this was the best method to get more clients.”  

Thanks to the 8(a) certification, Design to Delivery Inc. has gained three prime contracts with federal government agencies, which would be impossible without the certification. “It’s helped us to grow,” Gimmel says. “We now have 10 employees just working on those three contracts.”

How to assess 8(a) businesses for your next job

For organizations looking to do business with 8(a) companies, conducting a substantial amount of market research is the first step to assessing an 8(a) business, Gimmel says. Develop a Sources Sought notice, an outline announcing that a government agency is seeking possible sources for a project. It’s an easy way to identify companies with experience in the areas you are looking to contract, but it’s not an actual bid or proposal solicitation. Many organizations use Sources Sought Notice as a way to perform market research, Gimmel says, to determine the capabilities and interests of a particular market or businesses, such as marketing or creative services. It’s also a way to verify requirements, validate an approach to a solution and ensure competition. 

Allow the bidders to discuss the strengths, solutions and services they will use to fulfill your contract, Gimmel suggests, instead of focusing on the fact that they are an 8(a) business.

“By awarding 8(a) contracts,” Gimmel says, “you’re helping to boost minority and disadvantaged communities while supporting the engine that’s fueling our economic recovery — small businesses.”

Considering being certified?

Companies that are considering becoming 8(a) certified can take an online assessment to see if is a good fit for them.