8a certification is the subject of a lot of hype among the socially and disadvantaged people in America and that is not without solid reasons for the same either. 8a certification benefits that a business can avail after having gotten their applications successfully approved by SBA can unlock a lot of benefits for the business which can significantly the business get more business. The benefits thus explain all the hype surrounding 8a certification in the first place as they can turn out to be life-changing for some businesses. Let?s have a look at the top 10 different benefits of 8a certification to understand how significant can 8a certification turn out to be for the socially and economically disadvantaged in America.
(1.) Sole-sourcing contracts ? One of the most prominent benefits arising out of 8a certification, these are contact vehicles that allows the federal government to award contracts to 8a certified firms, without even putting them up for a bid. It allows 8a firms to win contracts a fair price without competitors ever knowing about it. 8a firms in their 3rd and 4th years and beyond being certified win most of their contracts using their vehicle. (2.) Limited competitors ? SBA certification limits the field of competition on federal contracts. Out of approximately 24 million businesses in USA, only 8500 are 8a certified. (3.) Large federal Spending ? Federal government spent over $30 billion dollars in the 8a program which is approximately an average of $3 million per 8a firm and thus facilitates a lot of economic activity for 8a certified businesses.
(4.) Reduction of red tape ? Sole sourcing of 8a certified firms , reduces or eliminates the red tape involved in red tape involved in federal contracting. That allows the business owners to focus on running their business, rather than submitting complex RFQ forms. (5.) Large contracts ? Contracts awarded can be pretty large for 8a firms, contracts are always $4million for products and services and $65 million for manufacturing firms which is again a major opportunity for 8a certified firms to avail contracts of high value.
(6.) Better pricing ? A full and open source adjustment can be given up to 10% of the contract amount. For example ? an 8a firm bidding $100,000 is treated as $90,000 when compared to their non-8a competitors. (7.) Joint venture/ Mentor protge programs ? 8a firms are permitted to partner with other firms in what is known as joint venture or mentor protge agreements. This helps the 8a firms, expand their knowledge of the government works, be awarded contracts they otherwise would not have been able to win and it helps them build their federal performance history, so that they can ultimately win contracts on their own, in the future without the help of a partner. (8.) Growth ? 8a certified firms grow much faster than their peers. In a recent report by Washington Post on the fastest 50 IT firms in the United States of America 31 out of the 50 firms were 8a certified. ( 9.) Construction Friendly ? 8a construction firms are very effective at winning federal and military contracts which can be gauged by the fact that 41% of the 8a certified firms are in the construction industry. (10.) FEMA CONTRACTS ? 8a certified firms were mandated to help the victims first in the 560 presidential disasters where $11.5 billion worth of federal contracts were awarded.