We are the Proven Leader
in 8(a) Consulting

Sole Sourcing accounts for about half of all 8a sales or approximately $16 Billion dollars annually. A sole source contract functions similar to how contracts are awarded in the normal small business market place where a formalized bidding process is not relied upon. The Federal procurement officer meets with the owner of the 8a firm and they agree to project specifics and price. As long as the 8a firm is not found to be more than 10% above market the federal procurement officer can direct award the contract to the 8a firm. A side benefit of an 8a company’s ability to obtain sole source contracts is that often the 8a firm can obtain contracts from their federal buyers before other businesses are even given notice that an opportunity was present. In many cases 8(a) firms in their third year and beyond do not even respond to bids any more as the relationships they have developed lead to enough sole sourced contract to keep them busy.

An 8a certification limits the field of competition for bidding on federal contracts. There are approximately 24 million businesses in the United States only 6,500 have successfully completed the process of obtaining their 8a certification. 5% of all federal spending is earmarked for 8(a) firms which accounts to more than $34 billion per year in federal contracts. This is more than $4 million per year in federal spending per 8a firm.

The SBA acts as a liaison with the 8(a) firm in order to help the 8(a) firms obtain federal contracts. This benefits the 8a firm in the reduction of time necessary to achieve its first federal sale. For most 8a firms the SBA will send out letters of introduction which help the 8a firm make initial contact with their targeted market.