Difference Between SDB and 8a
SDB – Small Disadvantaged Business
On December 9, 2004, statutory authority to use the SDB price evaluation adjustment (which was 10%) ended for the majority of federal procuring agencies. Authority to use the adjustments was still permitted to three agencies, the Department of Defense, NASA, and the Coast Guard, which used it under separate authority running through 2009.
The reason for this change was that in 1999 3.3% of federal procurement or $6.2 Billion dollars went to SDB. By 2004 this percentage almost doubled so it was not longer needed necessary to offer a price adjustment to SBB firms since they were already being well represented.
8a Certification – Named after the section in the SBA code that established the certification for both socially and economically disadvantaged business.
8a companies are slated for 5% of Federal Procurement which has historically been approximately 10+ billion dollars. 8a companies are eligible for sole-source contracts of up to 4 million dollars for goods and services and 6.5 million dollars for manufacturing firms. 8a companies are also eligible for joint venture and mentor protégé programs.
Conclusion – the SDB Program for all practical purposes no longer provides contracting opportunities for firms since 2009. Because this program was not limited to a certain number of firms the program quickly filled up with firms and the benefits due to natural market forces became negated. The 8a certification differs because the number of firms is limited to between 9,000-10,000 businesses and the 8a certification expires after 9 years. Therefore this certification has not lost its value and still provides great opportunities for business growth.
The 8a application process can be a vexing process and very few candidates meet all 50 plus SBA requirements for getting an 8a certification. This is where the professionals at Advance 8a provide a partnership that lead to the end goal of getting your firm 8a certified. We take the overwhelming task of the 8a application down into small bite sized pieces. In many cases even the most difficult situations, if explained properly to the SBA, cam be overcome.