ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel
  • »
  • Business and Employment»
  • Small Businesses & Entrepreneurs

8a Company

Updated on November 29, 2012
The SBA 8(a) is the pinnacle designation for minority owned companies to get contracts from the federal government and others.
The SBA 8(a) is the pinnacle designation for minority owned companies to get contracts from the federal government and others.

8(a) Company Benefits

There are many benefits to running an 8(a) company. Obviously, with the 8a program being a SBA designation, the primary benefit is for federal contracts. However, there are plenty of tremendous benefits that are derived from the 8(a) program.

Federal Contracts

Selling to federal contractors can be easier for an 8a company. Indeed, lightning does strike and there are purchasing officers who will buy from you simply because you’re an SBA 8(a) company. Once heard from a GSA official that exact story, a lady who’s business is office supplies received her 8(a) certification and began to make a lot of money just because in the CCR vendor database she had her 8(a) certification, HUBZone certification, and was designated as being woman owned business. This is the exception and not the rule.

The reality is that even with 8(a) certification an 8(a) company will need to work at acquiring sales and contracts. Certification is only another arrow in the quiver. Once one learns to wield their certification, is can become an formidable sales asset. 8(a) companies can be contracted without competition for contracts under $3 million dollars and some contracts can be designated 8(a) set-asides, meaning only 8(a) companies can compete for those contracts. Once contracting officers see the value of keeping incumbent 8(a) companies (see my hub on the Definition of Procurement), there will be no better ally for your company. Those contracting officers will do what they can to work with you, and will begin to utilize your 8(a) status for you.

Other Governmental Minority Programs

Getting your certification as an 8(a) company is a slow and convoluted process, but most who set out make it eventually. The same can be said for other minority certifications outside of the federal government, like state and local governments. They often want the same paperwork and assurances that your company is truly minority owned and not just a shell company. They have their own minority assistance programs which can help you acquire contracts and sales with them. The benefit to having 8(a) certification is that these programs often take having 8(a) status in lieu of having to go through a more formal vetting process. This substitution makes your state or local certification much easier and quicker to acquire.

Government Prime Contractors

Prime government contractors also have small and disadvantaged business requirements also. They are on the lookout for 8(a) companies to do business with or to subcontract with. Sometimes as part of their governmental contracts they set-aside a portion of the contract just for small businesses. This can be your “in with” with the large contractor. Also, just like a federal contracting officer, prime contractors also like to continue to do business with 8(a) companies that they know and have utilized before. The upside is that they have little incentive to compete contracts, and can meet their requirements by just giving your company a subcontract. But these tidy arrangements only happen after they know your company and it has proven itself. However, your 8(a) certification can be your foot in the door.

Corporate Diversity

Large public corporations will have a diversity program and an 8(a) company will have a leg up. The company’s certification will authenticate a company as being minority owned. This will allow the corporate diversity personnel to give you all the access that they can.

Realize that the corporate diversity department will not have anything canned for you, but what they do have is access to all their departments. It will be up you to work all leads and make it happen. There are times when departments within the corporation will inquire about possible businesses to do work with and guess who the diversity personnel will recommend? The businesses they are most familiar with, those that that have been actively working within the corporation.

Minority Owned B2B

Utilizing the SBA database one can find a number of registered businesses. Searchable by company size, age, location, industry code, and any number of other variables the database can produce a list of businesses. This list is often utilized by other minority businesses to find a company for a service or product. This is the golden rule at work, if a minority company wants business as a minority business, they need to give other minority business work.

Also, the SBA database can bring opportunities from companies that would like to utilize an 8(a) company for a teaming or joint venture arrangement. There are times the government may approach an 8(a) company to utilize another businesses for a contract where all parties win. The government gets what it wants, the utilized business gets the work, and your business just got money for doing little work or prospecting.

Small Business Resources For Government Contracts

Minority Business Success: Refocusing on the American Dream
Minority Business Success: Refocusing on the American Dream

Finally, someone who knows has written the book on minority business. Leonard Greenhalgh is a professor from Dartmouth who has been instrumental in working with the US Department of Commerce's Minority Business Development Agency.

 

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://hubpages.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)