Unleashing Potential: How the 8(a) Program Propelled a Construction Firm to Success

Are you considering getting the 8(a) certification for your business? Are you concerned about whether this venture will be successful or not? Well, we would like to present you with the perspective of our client. 

Within just 7 years our client, which is a construction company grew substantially after getting into the 8(a) program. In this article, we will be presenting you with this success story and will help you understand how this certification can be a massive boost for your organization.

What is the 8(a) Certification? 

Before we get into how our 8(a) certification allowed our clients to reach success you need to understand what actually an 8(a) certificate is. The Small Business Act of 1953 allowed the Small Business Administration to create several business development initiatives for small businesses across the country. This certification program is known as the 8(a) Certification.  

The 8(a) Certification is a 9-year-long Federal program that helps commercial vendors who are from economically and socially backward sections of society. It allows these small commercial vendors to bypass the competition from larger firms and form Federal sales contracts with Government Agencies. 

The financial grant that businesses receive as part of the program allows these small commercial vendors to expand their operations. According to the requirements set by the North American Industry Classification System (NAICS) if you have, manufacturing operations as part of your business then you are eligible for a grant of up to USD 7 million, but for other businesses, the grant is maximized at USD 4.5 million. 

Hence, if you are a commercial vendor suffering from economic distress due to social and financial standing, the SBA-approved 8(a) program will act as a rocket booster to your business. In addition to providing separate contracts and clearing red tape for your business, the 8(a) programs also offer you the chance to get extensive business training from the Small Businesses Administration. 

8(a) Case Study

Here is the actual progression of one of our 8(a) clients in the construction industry who has been in the program for seven years. This client obtained their 8(a) Certification in 2017. According to our client, their big break occurred in 2020 when the 8(a)-program accounted for over 75% of their total revenue. This gave them the capabilities and capital they needed in order to rapidly expand their business and take it to the next level. The 8(a) program continues to be approximately 30-35% of their business. However, the big change happened in 2020 when the 8(a) program gave this firm the ability to transition from a relatively small business to an up-and-coming star of its industry. 

Year	Firm Revenue Total	8(a) Federal Revenue	Federal Clients
2016 – Pre 8(a)	700,000	0	N/A
2017 – Year 1	1,100,000	0	Navy
2018 – Year 2	1,500,000	50,000	Navy, GAO
2019 – Year 3	3,100,000	800,000	NAVY, GAO, GSA, NOAA, Air Force, Army, Dept of Energy
2020 – Year 4	10,000,000	7,700,000	SEC, Air Force, Dept of Energy, Army, GSA
2021 – Year 5	21,000,000	11,500,000	GSA, Navy, Army, DOL
2022 – Year 6	32,500,000	9,000,000	GSA, GAO, USDA, Air Force, NOAA, SEC, DOL, FBI
2023 – Year 7	38,000,000	12,000,000	GAO, GSA, NOAA, DOE, SEC, Air Force, Army, FBI, USDA, DOJ, DOI, NRC

The above table shows a detailed timeline for the construction company that has been working with us since 2016. Before the business received the certificate from the SBA, the revenue of the construction firm was USD 700,00 having zero revenue from Federal and other State government sources. 

By 2019, the construction company was generating USD 3,100,000 as their total revenue, with USD 800,000 being generated only for the 8(a) Certificates. As a result, the number of Federal clients also increased for the company, with only the Navy Office being the sole client of the company to seven different agencies by the end of 2019. 

Having a growth rate of over 300% in 3 years, it shows the leveraging power of the 8(a) certificate as well as how quickly you will be able to benefit as part of the program. 

Despite the massive growth spurt, the best was yet to come for our client, with the company having a total revenue of USD 10,000,000 in 2020 and a Federal Revenue of USD 7,700,000, which is a significant jump from 2019. The growth spurt however did not stop for our client with the construction company in 2023 reaching a total revenue of USD 38,000,000 with federal sales generating a staggering USD 12,000,000. Having over seven Federal clients there is no more looking back for the business. 

This success story shows that within just 7 years the construction company grew more than 5000%. This is mainly due to the increase in opportunities for the company due to the 8(a) program and due to the growth of Federal Clients for the company.  

Key Takeaway

The success of our client, a construction company, is evidence of the 8(a) program's revolutionary potential. From a small beginning with USD 700,000 in revenue, they seized the chances and assistance the certification offered, rising swiftly in just seven short years. Their revenue increased year after year, propelled by the developing federal contracts and an expanding list of esteemed clients.

The 8(a) Certification boosted finances while also acting as a catalyst for growth and innovation. The program's thorough instruction, along with the priceless advice from seasoned mentors, gave our client the skills needed to negotiate successfully the challenging world of federal contracts