Enhancing Federal Procurement: The Benefits to Program Offices by Partnering with 8(a) Small Disadvantaged Businesses

In the realm of federal procurement, the U.S. Small Business Administration’s 8(a) program, rooted in section 8(a) of the Small Business Act, presents a unique and advantageous avenue for government customers. This approach can lead to more efficient, effective, and socially responsible procurement outcomes.

1. Tailored Solutions Through Joint Scope Development

One of the standout features of the 8(a) program is the ability for contractors and government entities to collaboratively develop requirements. This ensures that the end user receives precisely what they need. The joint development process leads to more accurate fulfillment of requirements, aligning closely with the specific needs of the government customer.

Pro Tip: From Shauna Weatherly at Federal Subcontract Solutions – A best practice during what is called the joint development process in this article (a term I’ve never used but means basically working together to fully scope the project) is the ability of the cost estimators from each party to sit down together and build a common list of assumptions under which the Government will prepare its final Independent Government Cost Estimate (IGCE) and the 8(a) will develop its final price proposal. This step will highlight any gaps in understanding of performance requirements prior to negotiations, ensuring a successful negotiation process and often a better price.

2. Accelerated Procurement Process

The 8(a) program is synonymous with speed. The streamlined contracting process eliminates the need for lengthy development of detailed specifications or Performance Work Statements (PWS). Furthermore, the elimination of the open bidding process, along with the associated wait times and question periods, significantly reduces the time from initiation to contract award.

Pro Tip: Darlene Bullock, the Executive Director (SES), Office of Small and Disadvantaged Business Utilization for the Department of Homeland Security (DHS), says, “At DHS, in FY 2023, preliminary data indicates we obligated over $4.6 billion to SDBs inclusive of the 8(a) program. Annually SBA provides training to our acquisition professionals and I train on our 8(a) Partnership Agreement. I would also suggest having industry review the OMB memo on how contracting professionals can try to make more SDB awards. https://www.whitehouse.gov/wp-content/uploads/2022/07/SDB-Quick-Hits-Memo-508-1.pdf“

3. Reduced Risk of Contract Protests

A notable advantage of the 8(a) program is the minimized likelihood of contract protests. The ability to directly award contracts up to $4.5 million for services and $7 million for products to 8(a) SDBs under this program makes it almost impossible for these sole-source awards to be successfully protested. This aspect not only speeds up the process but also adds a layer of stability and certainty to procurement.

4. Alignment with Federal Goals and Objectives

Engaging with 8(a) SDBs aligns with the current Administration’s emphasis on contracting with small disadvantaged businesses. This not only helps in meeting the increased goals set for these engagements, often reflected in the objectives of Senior Executive Service (SES) members, but also demonstrates a commitment to fostering inclusive economic growth and equity.

5. Comprehensive Benefits of 8(a) Partnerships

In addition to these specific advantages, partnering with an 8(a) SDB continues to offer benefits such as cost-effectiveness, access to innovative and agile solutions, and the opportunity to build long-term, reliable supply chains. These partnerships not only meet immediate procurement needs but also contribute to building a more diverse and resilient economy.

Conclusion

Choosing to work with an 8(a) Small Disadvantaged Business under the Small Business Administration’s program offers U.S. federal government customers a pathway to efficient, effective, and socially responsible procurement. The combination of tailored solutions, expedited processes, reduced risk, and alignment with federal socio-economic goals makes the 8(a) program a strategically beneficial choice for government procurement.

Aldevra is a SBA certified 8(a) small disadvantaged business. Contact us at sales@aldevra.com or 269-350-1337 for more information.