Your 8(a) status can give your business an advantage in selling your products to the government.
Let’s define an 8(a) company:
Must be a small business as defined by the SBA, as determined by their NAICS code.
51% must be owned by a US citizen.
The net worth of the business owner cannot exceed $250,000, excluding the business equity and the owner’s home.
Must be of good moral standing (no felony convictions.)
The business must have been in business for at least 2 years (waivers are available for one year).
The preceding 12 months’ revenue must be at least $150,000.
The Multiple Award Schedules Program is the fastest and most efficient way for contracting officers to buy products and services. The government is committed to buying from small disadvantaged 8(a) companies. GSA sets goals to help small, disadvantaged, women-owned, Veteran-owned, and HUBZone businesses. Each agency must report on how well they accomplish these goals for awarding contracts and subcontracting with small businesses. Some use “set-asides” on certain contracts that reserve sales to 8(a) or other small businesses. The 8(a) FAST multiple award, indefinite delivery, indefinite quantity contract vehicle offers a full range of information technology support services from nearly 150 proven 8(a) small disadvantaged industry partners for federal agency use. Through this contract, federal agencies can meet their information technology requirements as well as their socioeconomic goals. As of November 2003, more than 12,600 orders were issued for a total of $1.8 billion. Blanket Purchase Agreements are typically given only to multi-billion dollar companies and are not common. That sounds like only large companies are going to have an advantage with state agencies.
WRONG!
Remember, 8(a) companies are the exception to the rule. They are able to receive a contract with a 90 million dollar ceiling. Each single purchase order can be up to 3 million dollars for services, or 5 million dollars for manufactured goods without bidding. When you have a contract with GSA, you will be able to place your Pricelist on GSA’s online purchasing site, GSA Advantage!®, through which government buyers place tens of thousands of orders per month. Government customers browse this website to look for products and services. Your 8(a) status will be clearly visible on this site. Government buyers prefer to use GSA Advantage® because they can:
Place orders directly online.
Use their government credit cards to make purchases.
Compare products and prices.
View the history of their order online.
Search for companies that fit their criteria, such as an 8(a) company, or a company located in a certain state or area.
Your Schedule will enable you to contract directly with government ordering agencies who are looking for businesses just like yours. Active 8(a) companies average about 10 million dollars a year in sales to GSA. The program is designed for a total of nine years, unless your sales are above the threshold over a three-year period, as determined by your NAICS codes. Every year hundreds of 8(a) companies are “promoted” out of the program. Many are “promoted” out before the nine year period, as they were so successful their sales exceeded the allocated sales ceiling, as determined by their NAICS code. JoMel Consulting wants to help with sales and marketing for 8(a) companies with whom they have an agreement. JoMel is prepared to use the unique strategic sales and marketing advantage 8(a) companies have. JoMel has the resources, the experience, and the connections to make sure that the first year is successful, as well as the remaining eight years of your 8(a) program.
