3x Learn How We use GSA Schedule Contracts to Triple Your 8(a) Firm’s Federal Sales
Select your industry below to see the average 8(a) sales for your industry as well the sales from our 8(a) + GSA Combination Strategy.
- Computer Hardware
- Computer Services
- Construction General Contractor (GC)
- Construction Trade
- Custodial / Landscaping / Janitorial Services
- Management Consulting Services
- Medical Offices / Doctors Offices
- Medical Supply
- Real Estate Firms
- Totals / Average
Totals / Average
|8(a) Average Sales this Industry||GSA Schedule Sales for a firm with an 8(a) in this Industry||Synergy (Generally adding an 8(a) to a GSA Creates More Sales than from the GSA Schedule Alone||Synergy Ratio|
|8(a) Industry Grouping||Total 8(a) Federal Sales||Number of 8(a) Firms||Average 8(a) Sales||GSA Schedule Only Sales 8(a) Firms||Number of 8(a) Firms w/ GSA Schedule||Average 8(a) Sales Directly from the GSA Schedule System||Total Federal Sales 8(a) GSA Contract Holders||Number of 8(a) Firms w/ GSA Schedule||Average Total 8(a) Federal Sales for firms with a GSA Schedule||GSA Schedule Sales Advantage|
Interested? Qualify Yourself
Use our Qualification tool to see if you are eligible to grow your firm utilizing the 8(a) Certification
Clarification 1: People with Heritage from the Iberian Peninsula (Spain/Portugal) are considered Hispanic for proving social disadvantage.
Clarification 2: People from the Middle East and North Africa can successfully apply, however they need a solid narrative.
Clarification 3: Native Alaskans, and Hawaiians often overlook their social disadvantage status.
Clarification 4: The Social Disadvantaged Individual or group of individuals needs to own 51% or more of the firm.
Is the 51% owner(s) of the firm U.S. Citizens
Is 25% or more of your blood heritage from a minority group or do you have a tribal card from a state or federally recognized Native American Indian Tribe?
Ok then are you?
A Women who has suffered substantial gender bias or a Service-Disabled Veterans who has suffered from handicap bias?
Clarification 1: If your business is a sole proprietorship, partnership, LLC or S Corp, the amount of income that rolls onto the owner's taxes does not count towards the $350,000 income threshold.
Clarification 2: Distributions that an owner takes from the firm that aren't used for taxes are added to their income and counts toward the $350,000 three year average.
Clarification 3: If an individual has money in excess of the $750,000 they can paydown the mortgage on their primary residence, which, in some cases, this can get them under the $750,000 threshold.
Clarification 4: The SBA will pull a credit report on the applicant, with the intention of looking for assets that have not been disclosed to the SBA.
Has the owner of the firm made more than $350,000 per year, on average, for the past 3 years.
Is the owner’s net worth less than $750,000 excluding (a.) the owner’s primary residence, (b.) the business applying for 8(a) (c.) the owners retirement accounts.
Is the owners’ total assets less than $6 million excluding retirement accounts.
Potential to Succeed at Federal Contracting
Clarification 1: Only the 51% owner of the firm needs to work full-time for the business.
Clarification 2: If a firm has a long-standing client representing 100% of the firm’s business, and the firm loses this client, and obtains another client which now has 100% of the firm’s work, there is often a point in time where the firm becomes compliant with the 8(a) 70% rule and can apply for 8(a).
Clarification 3: The SBA waives the 70% rule for firms applying for 8(a) with a two-year waiver.
Does the owner of the firm work full-time for the business; meaning Monday-Friday from 9am-5pm.
Did the firm make a profit on its most recent tax return.
Does the firm have a positive net worth.
Has the firm been in business for at least two-years?, meaning the business has filed two tax returns with revenue on both.
Two-year waiver: Has the firm had at least $150,000 in revenue since the inception of the firm as well as a profit on the firm’s most recent tax return. Note: The firm must have at least 1 tax return.
Has the firm obtained more than 70% of the firm’s revenue from a single source? This calculation is for the most recent calendar year to the date of the 8(a) application.
Clarification 1: Not more than 25% of the firm’s revenue should come from a past employer.
Clarification 2: The firm should not share employees, or office space with a past employer, or firm they have other dealings or entanglements.
Clarification 3: The owner of the firm should be the highest paid person at the firm, unless there is a strong and reasonable justification for this not being the case.
Is the owner of the firm the one managing the day-to-day operations, long-term strategic planning, and the highest compensated person at the firm.
Additional Benefits of the 8(a) Certification
Sole Source Contracts
The best description for a Sole Source Contract is a procurement officer meeting directly with the owner of the 8(a) firm to hash out the details and pricing of a contract. This occurs without a formalized bidding process, very similar to how small businesses conduct transactions with one another. The contract can be codified, provided the 8(a) firm is not more than 10% over market rates.
Sole Source Contracts are favorable to the contracting officer, as it gives them a means to award a contract much faster than going through a formalized bid process, days or weeks, compared to six to nine months.
Approximately half of all 8(a) sales occur using sole source contracts, or $16B annually. Sole sourcing is valuable for 8(a) firms as it greatly reduces the administrative burned on firms that are new to the federal marketplace.
Key Point: 8(a) firms that build rapport with contracting officers can routinely obtain sole source contracts from the same contracting officers. Therefore, being trustworthy and providing good work is very beneficial to the 8(a) firm.
Limits: Sole source contracts are limited to $4MM for goods and services and $7MM for manufacturing.
5% of all federal contract are earmarked for 8(a) firms. In reality, all agencies exceed this goal bringing the average to around 8-9%. There are approximately 24 million businesses in the United States. There are around 350,000 small business contractors in sam.gov. However, only around 6,500 firms have successfully navigated the process for becoming 8(a) Certified. As a result, 8(a) firms on average have sales in excess of $5MM per year.
Boosts GSA Schedule and GWAC Effectiveness
There are many contracting vehicles that federal agencies utilize. GSA Schedule and other Government-wide Contracting vehicles are among their favorites. When procurement officers are utilizing these contracting vehicles, in order to hit their 8(a) social inclusiveness goals they seek out the 8(a) firms on those contracts. This, in turn, boosts the performance of the 8(a) firms compared to other contract holders.
GWACs, such as 8(a) STARS, for Information Technology companies, can also provide an avenue for a major increase in sales due additional narrowing of competition.
8(a) firms are all small businesses with somewhat similar capabilities and cost structures. Due to these factors, they are generally able to receive better pricing than their peers, who do not have access to sole source and set-aside contracts.
Construction Contractor Friendly
8(a) Construction opportunities occur throughout the United States. This is because 80% of Federal Construction occurs at DoD facilities (Army, Navy, Air Force, and Marine Bases). These facilities are in all 50 states, as well as US Territories. Generally, a military facility will utilize 2-3 different 8(a) firms on an ongoing basis, providing those 8(a) firms routinely work near their firm’s headquarters.
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