2004 EDITION New Section on 8(a) Marketing. 8(a) Survival Guide
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1 2004 EDITION New Section on 8(a) Marketing 8(a) Survival Guide Practical How To Information to Obtain Your Certification And Market Your Business as an 8(a) Firm All the 8(a) Program Information You Need in One Book By Henry W. Washington and Richard J. Hernández, CPCM H.A. Enterprises Ltd. and E-MBE.net
2 8(a) Survival Guide 2004 Edition TABLE OF CONTENTS Introduction Why This Book Was Written.. 4 Author Information... 5 Part 1 Enrolling in the 8(a) Program Reasons to Get 8(a) Certified.. 8 Differences Between 8(a) and SDB Certifications History of the 8(a) Program.. 11 Related Programs (a) Start-Up Checklist.. 13 Required Forms and Documents. 15 Myths and Misconceptions Year Ownership Waivers & Example (a) Trends.. 22 Tips for Using a Consultant.. 23 Part 2 What to do After Becoming 8(a) Certified Development and Transitional Phases 25 Annual Reviews.. 26 Part 3 The 8(a) Marketing Plan Why 8(a) Companies Need to Market Themselves. 28 Set-Aside Process. 30 8(a) Marketing Plan.. 31 PRO-Net Registration.. 34 Putting Your Certification Online 34 Electronic Brochures 36 8(a) Success Factors Part 4 8(a) Reference Information Useful Web Sites for 8(a) Firms.. 42 Federal Acquisition Regulation (FAR) Part (a) FAR Contract Clauses CFR Form SBA Form 1010 [8(a) Program Application] (a) Related Forms Form 413 Personal Financial Statement Form 912 Personal History Statement Form 1623 Debarment Statement Form 4506 Access to IRS Records 8(a) Survival Guide (2004 Edition) Page 2
3 This book is dedicated to our wives, Alice Washington and Karen Hernandez No part of this publication may be reproduced or electronically stored in any manner except as permitted under exception Section 107 or 108 of the 1976 United States Copyright Act, without prior written permission of the author. Requests to republish should be addressed to: Richard J. Hernández, CPCM E-MBE.net P.O. Box Chicago, IL This publication is designed to provide practical information regarding 8(a) certification and development information for business selling to the federal government and its contractors. The book provides general business advice and is not intended as a substitute for seeking the help of qualified specialists. The authors assume no liability regarding the use of the information in this book. Printed in the United States of America Copyright 2003, 2004 Henry W. Washington and Richard J. Hernández, CPCM 8(a) Survival Guide (2004 Edition) Page 3
4 INTRODUCTION Why This Book Was Written. This book is meant to be a reference guide for all of those entrepreneurs who wish to grow and develop their businesses in both the commercial and government sectors. The 8(a) program has a reputation for being complex, expensive, and taking a long time to complete. This book is a guide to make it easy to understand the how s and why s of getting certified as an 8(a) participant. The book puts all the required information in one place. The 8(a) Survival Guide also discusses growing your business once you ve been 8(a) certified. Growth and development is an issue since not enough 8(a) firms understand how to effectively market their companies or conduct the annual reviews required by the SBA. The authors want to see minorities take advantage of 8(a) program to access the $200 billion annual U.S. government procurement market, which is why this book was written. Who Can Use This Book? This book was written primarily to provide an easy to understand guide on the 8(a) program. Potential users of this book are: Small Businesses Contracting Officers Small Business Liaison Officers Small Business Development Centers Supplier Diversity Managers Corporate Buyers Contract Compliance Officers Subcontracting Specialists Contract Administrators Marketing and Sales Managers Technical Assistance Providers Procurement Technical Assistance Centers Consultants Governmental Agencies Colleges and Universities How to Use This Book. This book is an all-in-one reference for prospective and current 8(a) program participants and the agencies supporting them. Prospective 8(a) program applicants should read Part 1 for information on getting started. Current 8(a) firms should read Part 2 to understand how to market their firms and do the annual reviews. Both prospective and current 8(a) firms should use the documents in Part 4, either to enroll in the program or for reference information. What This Book Offers. It is the only book of its kind and is an invaluable resource for 8(a) companies who need to understand the 8(a) process and types of assistance that is available. Also what type of support resources are available and how to best use consultants to get certified. Henry W. Washington and Richard J. Hernandez 8(a) Survival Guide (2004 Edition) Page 4
5 ABOUT THE AUTHORS Henry W. Washington President H.A. Enterprises, Ltd. Henry W. Washington is a nationally-recognized expert in 8(a) certification based in Chicago. He is the President of H.A. Enterprises, a professional services company specializing in providing hands-on 8(a) certification and business development services to small businesses. His qualifications include: 22 years of experience with the U.S. Small Business Administration (SBA). Directly assisting with 2000 plus 8(a) applications Training over 2,000 prospective 8(a) companies from 1995 to As a Business Opportunity Specialist, Mr. Washington has in-depth knowledge of SBA policies and procedures. He was responsible for doing the hands on with 8(a) program applicants, helping them prepare all required forms and advising them on how to navigate their applications through a multi-level approval process. Mr. Washington also conducted numerous half-day workshops with groups of prospective 8(a) companies, providing practice & hands-on advice to help them. Mr. Washington has a Bachelor of Science degree in Business Management from Calumet College in East Chicago, Indiana. He has also received additional training on credit analysis, personnel management, procurement, and contract negotiations. Mr. Washington has received numerous awards for outstanding service and accomplishments during his tenure with the SBA. For example, he was cited for his expeditious processing of 8(a) applications, far exceeding normal standards. He also received an award from the Chicago SBA District Office for timely completion for the annual review of 8(a), far exceeding normal standards. Mr. Washington was a regular panelist at small business forums. For example, he was a speaker at the November 2002 Global Diversity Forum. He has also published a Web-based tutorial on 8(a) certification procedures. 8(a) Survival Guide (2004 Edition) Page 5
6 Richard J. Hernández, CPCM Founder E-MBE.net Richard J. Hernández is a nationally-known e-commerce consultant based in Chicago. He heads E-MBE.net, an e-commerce education company focusing on small, minorityowned businesses. Mr. Hernandez is the author of the technology column for Corporate Corridors magazine ( He writes on supplier diversity and e-commerce issues for the Chicago s Minority Business newsletter, the National Association of Purchasing Management InfoEdge magazine, and Contract Management magazine. He also has a Web site, which provides free basic and advanced e-commerce tutorials for minority-owned businesses. Previously, he was a Vice President of Education for a business-to-business e- commerce company. Mr. Hernández was also a Senior Sourcing Specialist with the BP Amoco Corporation in Chicago, IL. He was responsible for developing strategies for locating diverse suppliers for all business units, Web site management, training, and supplier outreach programs to achieve a $1 billion corporate supplier diversity goal. Formerly, a Corporate Supplier Diversity Manager, for the USPS Postal Service. Also has served as a contract / project manager for a small business and a contracting Officer with the US Air Force. Mr. Hernández achieved the elite designation of Certified Professional Contracts Manager (CPCM) from the National Contract Management Association (NCMA). He has also earned an Advanced Professional Designation in Logistics Management. Mr. Hernandez graduated from the Air Force academy with a degree in Business Administration / Management. Mr. Hernández s other achievements are as the author of the textbook "Negotiating a Quality Contract, reviewer of two contracting textbooks, and editor of a contract management newsletter for 2 years. He is also a Fellow in the National Contract Management Association. 8(a) Survival Guide (2004 Edition) Page 6
7 Part 1 Enrolling in the 8(a) Program 8(a) Survival Guide 2004 Edition 8(a) Survival Guide (2004 Edition) Page 7
8 Reasons to Get 8(a) Certified Benefits. There are five key reasons for a business to become 8(a) certified by the U.S. Small Business Administration. They are to: Take advantage of the annual $240 billion in federal government contracts. Take advantage of being able to get no-bid (sole source) contracts up to $5 million in manufacturing and up to $3 million in non-manufacturing areas. Take advantage of the Small Business Administration (SBA) resources such as: Workshops Networking Forums Executive Training Management Assistance Technical Assistance Take advantage of being assigned a SBA Contract Specialist and a Business Opportunity Specialist. Take advantage of the opportunities to grow your business to the next level by expanding into new and broader markets. Other 8(a) Certification Benefits. Besides the above, there are other benefits for a company to become 8(a) certified. They are: 8(a) certification is accepted by many corporations. Many state, county, and city government buying agencies accept the 8(a) as a basis for their certification process. Since many State and local certification programs are modeled after the 8(a) program, this makes it easier for an 8(a) to get certified with them since many of the forms and processes are similar. The 8(a) certification lasts nine years. This means your company has access to the above benefits for nine years. One or more 8(a) contracts can provide a steady stream of income which allows you to grow your business during the nine-year period. 8(a) firms can also be grandfathered meaning if they receive a multi-year contract in the final year, then they can be considered an 8(a) for that particular contract beyond the nine-year period. Other Certifications. In addition to 8(a), there are several other types of certifications eligible small business may want to consider. Below is a summary of them. Corporate Certifications National Minority Supplier Development Council (NMSDC) Women s Business Enterprise National Committee (WBENC) Government Certifications Small Disadvantaged Business (SDB) State and City Certifications Historically Underutilized Business Zone (HUBZone) 8(a) Survival Guide (2004 Edition) Page 8
9 Differences Between 8(a) and SDB Certifications Type Certification 8(a) SDB Certification Purpose Focus is on socially and economically disadvantaged businesses Focus is on socially and economically disadvantaged businesses Burden of Proof Black, Hispanic, Asian- American and Native Americans are presumed to be socially and economically disadvantaged. Others not in these categories must submit a claim for social and economic disadvantage. Black, Hispanic, Asian- American and Native Americans are presumed to be socially and economically disadvantaged. Others not in these categories must submit a claim for social and economic disadvantage. Length 9 years 12 years Certifying Agency SBA SBA Set-Aside Eligibility Yes No SBA Business Opportunity Specialist Support Owner Net Worth (Personal Net Worth) Yes Must be less than $250,000 (upon program entry) Can reach up to $750,000 by end of program No Must be less than $750,000 Non-Competitive Procurements (Set-Aside) Yes Up to $5 million in manufacturing and up to $3 million in nonmanufacturing areas Bid Preference No Get 10% bid preference on all federal government contracts Size Standard Must qualify as a small business in their NAICS code area Must qualify as a small business in their NAICS code area No Subcontracting Subcontracting plan not required Subcontracting plan not required History Program started in 1953 Program started in 1989 Federal Acquisition Regulation (FAR) FAR 19.8 FAR (a) Survival Guide (2004 Edition) Page 9
10 Differences Between 8(a) and SDB Certifications (Continued) The above table illustrates the differences between the 8(a) and SDB programs. However, there are some additional differences between the 8(a) and SDB programs. Some important points to understand about both programs are summarized below. 8(a) and SDB Differences and Similarities The 8(a) program is for the growth and development of your business. The SDB is contract preference program only. 8(a) status automatically provides your company SDB certification Both programs take about the same amount of time to get certified. If your net worth is over $250,000 then your best bet is to seek SDB certification only. There are other differences between the 8(a) and SDB certifications. It s best to seek the advice of a qualified consultant in this area to determine which options are best. 8(a) Survival Guide (2004 Edition) Page 10
11 History of the 8(a) Program Legislation. The 8(a) program began as a public law and was named after Section 8(a) of the Small Business Act of The original program: Had no time limits Was strictly a minority program Was managed by the SBA The 8(a) program is governed by the Code of Federal Regulations at 13 CFR (please see the attachments section for a complete copy of this document) A related piece of legislation, Public Law , passed in 1978, established the four major ethnic / racial categories for minority businesses, which are: African-Americans Hispanics Asian-Americans Native Americans Federal Acquisition Regulation. The 8(a) program was incorporated in Part 19, Small Business Programs, of the FAR starting in The FAR has the force of law and establishes the policies and procedures for federal government agencies using the 8(a) program. The 8(a) program is the oldest and most established minority business program development in the United States. It has served as the template for many corporate as well as State and local government minority business programs. There were approximately 7,000 certified 8(a) firms in late (a) Survival Guide (2004 Edition) Page 11
12 Related Programs In addition to 8(a) opportunities, companies should also know there are other categories where their company might also be qualified to compete for government contracts. They are: Small Business Small Disadvantaged Business (SDB) Women-Owned Small Business (WOSB) Historically Underutilized Business (HUBZone) Veteran-Owned Business Service Disabled Veteran-Owned Businesses (SDV) Please refer to FAR Part 19 for specific information about all the Federal government s supplier diversity programs. Please see the table of contents below to get more information about the 8(a) and other small business programs. Table of Contents Federal Acquisition Regulation Part 19-Small Business Programs 19.1 Size Standards 19.2 Policies 19.3 Determination of Small Business Status for Small Business Programs 19.4 Cooperation with the Small Business Administration 19.5 Set-Asides for Small Business 19.6 Certificates of Competency and Determinations of Responsibility 19.7 The Small Business Subcontracting Program 19.8 Contracting with the Small Business Administration (The 8(a) Program) 19.9 Very Small Business Pilot Program Small Business Competitiveness Demonstration Program Price Evaluation Adjustment for Small Disadvantaged Business Concerns Small Disadvantaged Business Participation Program Historically Underutilized Business Zone (HUBZone) Program Having certification in the above areas, provides companies additional ways to market themselves to government buying agencies and their prime (tier 1) contractors. 8(a) Survival Guide (2004 Edition) Page 12
13 8(a) Start-Up Checklist Introduction. This section provides a summary of the key steps for becoming 8(a) certified by the US Small Business Administration. This checklist is designed to provide a process model of what is involved in becoming 8(a) certified) and save time. Though the 8(a) certification may require investing some time and money, the reward is well worth it since it opens the door to accessing the $240 billion federal procurement market. Being 8(a) certified can also eliminate the tradition delays and red tape by allowing government agencies to make direct awards to 8(a) firms. This avoids the typical 6-month lead time required when contracts are competitively bid. Key Steps. The 8(a) certification process involves the following key steps: 1. Orientation. Attend an 8(a) orientation at your local district office. (See for a listing of locations) 2. Application Package. Complete the 8(a) Application Package you received at the orientation. The total application package will contain 30 to 41 forms and documents that you must complete and/or provide. 3. Assistance Decision. Prospective 8(a) firms must decide if they want to hire a consultant to help them complete the application package. 4. SBDC Review. Given the complexity and extent of the 8(a) application package, many prospective 8(a) firms have their local Small Business Development Center (SBDC) review their applications for completeness. 5. Submit Application. Once the package is completed, the next step to send it to one of the three SBA Offices. The offices are located in Dallas, TX, Philadelphia, PA and San Francisco, CA. (See for the exact address) 6. Application Decision. Once the application is reviewed, the Division of Program Certification and Eligibility (DPCE) forwards the package to SBA Headquarters in Washington, DC. for final approval. 7. Reconsideration. If SBA Headquarters declines to approve the application, the applicant is allowed 60 days to correct the deficiencies. 8. Program Entry. Once SBA Headquarters approves the package, a welcome letter is sent to the new 8(a) that they are a participant in the 8(a) program providing them complete a business plan. SBA District Offices are responsible for ensure the required business plans are completed by the 8(a) participant. 9. Business Plan. New 8(a) firms must complete a business plan that discusses how they will market and grow their company over their 9-year period of being 8(a) certified. Business plans are submitted to the appropriate District Office. 8(a) Survival Guide (2004 Edition) Page 13
14 Time Requirements. Technically, a properly completed 8(a) application, should take 90 days to process. However, this is seldom the case. Applications usually take longer period of time for a variety of reasons to include: Limited SBA personnel to process the volume of applications Companies submit poorly prepared application packages Incomplete packages submitted Delays in submitting the package (results in changes requiring reworks) Assistance Resources. Given the complexity of the process, many prospective 8(a) firms elect to hire a consultant. Consultants typically provide the following types of services: Prepare business plans Assist in preparing the 8(a) application Review the package before submission to the SBA (DPCE Office) Help them market their 8(a) status to federal buying agencies Assist with preparing for annual reviews Getting 8(a) certified can take some effort. However, getting the certification can open the door to many new contract opportunities. To save time and money, you may want to consider using a consultant to help you with preparing the application package. 8(a) Survival Guide (2004 Edition) Page 14
15 Required Forms and Documents Approximately 40 forms and documents are required to complete the 8(a) application. The SBA will not accept any application without all the required paperwork. Below is a summary of the required forms and corresponding information required by each. FORMS SBA Form (a) Application SBA Form 912 History Statement SBA Form Personal Financial Statement SBA Form 1623 Debarment Statement SBA Form 4506 Access to IRS DOCUMENTS Statement Supporting 8(a) and/or SDB Economic Statement Articles of Incorporation Company Meeting Minutes Partnership Agreement Owner and Key Personnel Resumes Copies of All Stock Certificates (to include dollar value of certificates) Certificate of Good Standing Special Licenses Rental Agreement(s) Management Agreement(s) Bonding Agreement(s), If Applicable Company Organizational Structure Income Tax Statements Personal Business History of the Business Personal History Fingerprint Card (If Required) Balance Sheets Owners & Key Personnel Company Personal Net Worth Statement(s) Owner(s) Key Personnel W-2 Forms Copy of Signed SBA Form 1623 Copy of Signed IRS Form (a) Survival Guide (2004 Edition) Page 15
16 Required Forms and Documents (Continued) The above paperwork requirements can vary depending on several factors to include the legal structure of the business and the number of key owners. Some practical suggestions about preparing the above paperwork are: Make 3 copies. Two for the SBA and one for yourself (reference copy) The two copies should be sent to the address listed on the SBA Form It helps to put your application package in a pocket binder or ring binder. This helps organize your materials and makes it easier to read. The binder should be organized to follow the seven areas listed on the SBA Form All the above numbered forms are available on the SBA Web site (click Online Library on the home page and then click Forms ). To speed the approval process, it s a good idea to have your 8(a) application document package reviewed by a qualified consultant or your local Small Business Development Center (SBDC). 8(a) Survival Guide (2004 Edition) Page 16
17 Myths and Misconceptions As the oldest and most established minority business development program, the 8(a) process has some practices and policies that are not completely understood. This has resulted in some misinformation about the program. The chart below is designed to help clarify myth from reality. MYTH Applicant companies have to be in business 2 years to be eligible. Only minorities are eligible for 8(a) status. 8(a) certification guarantees government business. The certification process is expensive and can take years. 8(a) doesn t help you with getting commercial work. Program requires too much ongoing paper work such an annual reviews and workshops.. REALITY Can get a waiver. Non-minorities are being admitted into the program, e.g., Caucasian women. Not true. Statistics show a small group of 8(a) get most of the business. The law says certification can be done in 90 days as long as the SBA Division of Program Certification and Eligibility (DPCE) has a properly completed application. Most applications are incomplete which requires reconsideration, which takes time. The SBA Business Opportunity Specialist (BOS) does encourage the firm s commercial effort and will assist in that effort. It is true paperwork is required; but it is necessary for continued 8(a) eligibility. For example Annual Reviews are conducted to determine if the 8(a) firm is still in operation and meets all ownership and other eligibility requirements. Workshops are for networking with other agencies and providing valuable information for your firm s operation. In reality, the 8(a) program is what you make it. Having a plan to grow your business and know when to get help are the keys to success. Your options to grow your business as an 8(a) participant are only limited by your imagination. 8(a) Survival Guide (2004 Edition) Page 17
18 2-Year Ownership Waivers Many small businesses don t understand the 8(a) waiver program. The standard rule is a company must be in business for two years before they can apply for entry in the 8(a) program. However, exceptions may be made on a case-by-case basis for relevant experience. Below is a summary of key elements of the waiver process. Waiver Requirements The SBA may waive the 2-year rule if: The individual or individuals upon whom eligibility is to be based have substantial and demonstrated business management experience; The applicant has demonstrated technical expertise to carry out its business plan with a substantial likelihood of success if admitted to the 8(a) business development program; The applicant has adequate capital to carry out its business plan as a participant; The applicant has a record of performance on contracts from government and nongovernment sources in the primary category; The applicant has, or can demonstrate its ability to timely obtain the personnel, facilities, equipment, and any other requirements needed to perform such contracts as a participant. All of the above requirements must be met to be considered to get a waiver of the two-year rule. Who Approves Process SBA Headquarters has the final approval authority. The Waiver is submitted with the 8(a) Application Form There are many variables involved with obtaining a waiver. The key point to remember is waivers can be obtained depending on how well you explain your case. For best results, it s best to seek the advice of a qualified consultant to maximize your chances of successful getting a waiver approved. The authors recommend the waiver format example provided below. 8(a) Survival Guide (2004 Edition) Page 18
19 EXAMPLE (Page 1 of 3) 2-Year Ownership Waiver Request Diversity Office Furniture Diversity Office Furniture is 100% owned and managed by myself, Caitlin Hernandez. I am requesting a waiver to the two-year ownership requirement for the following reasons: Experience. I have been in the office furniture business for 12 years. I have worked in the sales, design, and customer support areas in the following companies: Leeds Furniture, System-Tech Office Equipment, and HOMME. As Operations Manager, I have developed the administrative & operational processes and procedures for HOME, Inc. from 1992 to the present. These responsibilities included the following: Sales and Marketing Inventory Management Customer Service Vendor Relation Financial Planning Strategic Planning Human Resources Space Planning As a direct result of my efforts sales increased between 20% annually. The HOMME company started with $10 thousand and went to $2.3 million over 7 years. Performance. I have completed 257 successful office furniture and business interior installation projects over the last 10 years for 3 companies. These represent a wide variety of skills, knowledge and experience. Please see attachment 1 for additional information recently completed government and non-government contracts. Education. I have a Bachelor s degree in Business Management from State University and have done some graduate work. In addition, I have successfully completed the following furniture industry and inteior design courses from 1993 to present: Training Course / Workshop Date Completed Office Furniture Design June 1993 Interior Design Aug Computer-Aided Design Feb Office Furniture Ergonomics Apr Customer Support Nov Product Related Training Done Monthly 8(a) Survival Guide (2004 Edition) Page 19
20 EXAMPLE (Page 2 of 3) 2-Year Ownership Waiver Request Diversity Office Furniture Diversity Office Furniture is a member of the Office Furniture Dealers Alliance. Resources. Diversity Office Furniture has a $50,000 line of credit and cash flow to implement its business plan. I own a 75,000 square foot office and showroom facility to service customers and operate my business. Technology. Diversity Office Furniture has a state-of-the art Web site. The site was developed to use technology to provide a new channel for marketing and customer support. The site is located at: In addition we have developed an ergonomic software design program. This program helps us design and install office furniture products that meet the stringent OSHA work place safety and environmental guidelines. This program is proprietary to Diversity Office Furniture. In addition to the above, I have hired two consultants to assist me with marketing to the federal government. These gentlemen are experts in government contract and minority business development with over 50 years of combined experience. Please see their attached professional biographies for additional information. Prior to forming Diversity Office Furniture, my experience in the furniture industry and interior design spans twelve years. I also have experience providing office furniture to a variety of industries such as petrochemical, manufacturing, sports, legal, and health care. Your approval of this wavier, would allow me to obtain an 8(a) certification so that my firm could grow and develop as a successful minority enterprise. Respectfully, Caitlin E. Hernandez Caitlin E. Hernandez Owner Diversity Office Furniture NOTE: The companies and persons mentioned in this example letter are fictitious. Any resemblance to any living person living or dead is purely coincidental. 8(a) Survival Guide (2004 Edition) Page 20
21 EXAMPLE (Page 3 of 3) 2-Year Ownership Waiver Request Diversity Office Furniture Public Safety Office ( ) ATTACHMENT Recently Completed Contracts Project Task Action Result Install 5 floors of Developed the furniture at city specifications. municipal building. Designed and installed Integrate the design approximately 250- and installation of the employee workstation. products of 15 Integrated 8 union manufacturers, e.g., installers, 2 carpet, tiling, lighting, supervisors, and an furniture, etc. interior designer and project manager. Completed on time, and within budget of $2.1 million. Baseball Stadium Interior Design (2002) Design and Furnish 10 Corporate Skyboxes Developed and designed the furniture specification along with fabric and finish selections. Created storyboards. Fast paced project, completed in 5weeks on time and in within budget limits. Energy Source (1995-Present) Create an inventory asset program for this customer to track furniture at multiple office locations. On a weekly basis we provide space planning/drawings for Energy Source. We integrate new and existing office furniture and interior designs. Customer has hired us to manage their inventory at over 20 locations. Also received a new contract to do office space planning. Riverboat Casino (2002-Present) Turn an existing nonrevenue space into revenue generating conferencing center. Designed and manufactured manufacture decorative high-end wood designs and trimmings. Also installed special lighting in conference center areas. This project had a timeline of 60 days and a tight budget. We completed the project on time and in the budget of $100,000. Performed as an acting general contractor. 8(a) Survival Guide (2004 Edition) Page 21
22 8(a) Trends A lot has happened since the 8(a) program was first started in Several major new laws regarding minority businesses have been passed. In addition, there have been regulatory and court decisions that have effected the 8(a) program. A brief summary of trends Federal Acquisition Regulation. The FAR was created in It unified a previously fragmented set of federal agency-specific procurement programs. The 8(a) program was incorporated into the FAR. The FAR has the force of law and is used by all federal government buying organizations. Public Law This law established the Small Disadvantaged Business Program. The SDB program paralleled many of the features of the 8(a) program. Adarand v. Peña Decision. In 1995, the U.S. Supreme Court ruled that use of minority business preference for federal contracting must pass a strict scrutiny test. This means that preference for minority businesses can be used only if there is evidence they are needed. Preferences must be targeted to specific underrepresented groups and must have a phase-out plan. The 8(a) program was largely unaffected by the Adarand decision since companies have already proved they were socially and economically disadvantaged as a condition of program eligibility. Expanded Scope. The scope of the term socially and economically disadvantaged has changed over time. In the late 1970 s, Asian-Indians were added to the 8(a) program. Members of this groups were also presumed to be socially and economically disadvantaged. In addition, Caucasian women also claimed to be socially and economically disadvantaged. In the 1990 s several Caucasian received the 8(a) certification; however, this was very limited. Small business programs continue to evolve. Despite the addition of several new categories such as SDB, HUBZone, women-owned businesses, veteran-owned businesses, and service disabled veteran-owned businesses, the 8(a) program continues to survive. The future will undoubtedly bring new changes. Stay tuned. 8(a) Survival Guide (2004 Edition) Page 22
23 Tips for Using a Consultant Types of Services. Consultants can provide 8(a) program applicants with many services to save them time and money. For example, they can: Compile all forms required to complete 8(a) certification application Help prepare for annual 8(a) program reviews Help the 8(a) market their company to government buying agencies Supplement services of SBA Business Opportunity Specialist Rules on Using Consultants. Consultants need specialized knowledge and experience with the 8(a) program, not just a legal or academic degree. Some ways to determine if a consultant can help you with the 8(a) process is ask the following questions: How many years of experience do you have in the 8(a) area? How many 8(a) applications have you processed or assisted with? Were you a contracting officer? What federal agencies have you worked with? Can you provide me three references? Benefits. There are several benefits of using a consultant versus trying to complete the 8(a) application on your own. The table below summarizes the pros and cons. Using an 8(a) Consultant PROS CONS Saves time Cost money Get quality advice Quality varies Receive individualized service May be hard to find Reduce need to re-work application Hard to determine qualifications How Much Does It Cost? Costs vary for preparing the 8(a) program application package. Small Business Development Centers (SBDCs) offer free services. However, they do not provide hands on assistance, which many companies need. The SBDCs may not have the specialized knowledge to help you complete the application. Consultants charge fees; however, they can provide hands on services that make it easier to get package ready for SBA review. 8(a) Survival Guide (2004 Edition) Page 23
24 Small Business / Supplier Diversity $25.00 USA 8(a) Survival Guide Does this Describe You? Intimidated by all the paperwork involved with the 8(a) process? Frustrated by not being access the federal contract market? Want to diversify your client base? Want to access the Federal contracting market but don t know how to become an 8(a)? Don t have enough time to do all the 8(a) paperwork? Concerned about it takes too long to get certificated? Overwhelmed by having to fill out over 40 forms? Can t find agency procurement forecasts? Tired of seeing out-of-state firms getting local Federal contracts? Phone not ringing? Not having an 8(a) certification can cost you money. However, many minority businesses don t take advantage of this program and lose out of millions of dollars of potential contract opportunities. The 8(a) Survival Guide provides a step-by-step approach to identifying all requirements to succeed. Using the guide makes it easy to plan what your certification can do, how it will work, and help ensure it has the maximum impact on prospective customers. E-MBE.net H.A. Enterprises Ltd. Hands-on 8(a) Certification Assistance Services awashi9712@aol.com Specializing in E-Commerce Services for Minority- and Women-Owned Businesses rhernandez@e-mbe.net Printed in the United States of America 8(a) Survival Guide (2004 Edition) Page 24
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