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The SBA Section 8(a) Program by Mike Pope Used with permission from the www site  http://www.national8aassociation.org/   ...
What is the Section 8(a) Program? <ul><li>What is it? </li></ul><ul><ul><li>Created in 1974 to help minority and other sma...
What is the Section 8(a) Program? <ul><li>American Indian Tribal Entity or Alaska Native Corporation (ANC), are not restri...
What is the Section 8(a) Program? <ul><li>Federal acquisition policies encourage Federal agencies to award a certain perce...
What is the Section 8(a) Program? <ul><li>Program goals require 8(a) firms to maintain a balance between their commercial ...
Who Qualifies for the 8(a) Program? So Just Who Can Access the 8(a) Benefits?
Who Qualifies as a Small Business? <ul><li>Am I a Small Business Concern? </li></ul><ul><ul><li>`You may take it for grant...
Who Qualifies as a Small Business? <ul><li>In addition, SBA defines a U.S. small business as a concern that: </li></ul><ul...
Who Qualifies as a Small Business? <ul><li>Size Standards </li></ul><ul><ul><li>Since all federal agencies must use SBA si...
Understanding “Set Asides” How Section 8(a) Qualifying Business Benefit
Small Business Set-Asides <ul><li>What is a small business set-aside? </li></ul><ul><ul><li>A &quot;set-aside for small bu...
Small Business Set-Asides  (continued) <ul><li>Sole Source </li></ul><ul><ul><li>Used when it is determined that the antic...
Federal Government Allocations <ul><li>Small Business Goaling </li></ul><ul><ul><li>Did you know that formal goals are in ...
Federal Government Allocations <ul><li>The groups that are covered by these goals are small businesses, some with specific...
How Agency Goals are Established <ul><li>SBA is responsible for ensuring that the government-wide goal for participation o...
How Agency Goals are Established  <ul><li>Here is how the process works: </li></ul><ul><ul><li>1.  SBA negotiates with age...
Agency Goals <ul><li>The Federal Procurement Data System (FPDS) is the government’s official system for collecting, develo...
Agency Goals <ul><li>Agencies report each award over $25,000, including details such as: </li></ul><ul><ul><li>Industry </...
To Find Out More <ul><li>Used with permission from the www site  http://www.national8aassociation.org/   of our friends at...
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SBA Section 8a Program - The Basics

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This presentation is an introduction to the basic facts surrounding the SBA Section 8(a) program for contracting. f you are a business needing more information on how to participate in 8(a) opportunities, feel free to contact Mike Pope in San Antonio, via Linked In.

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Transcript of "SBA Section 8a Program - The Basics "

  1. 1. The SBA Section 8(a) Program by Mike Pope Used with permission from the www site http://www.national8aassociation.org/ of our friends at the National 8(a) Association. Please feel free to visit their site often or contact them anytime for more information regarding 8(a) and small business government contracting:
  2. 2. What is the Section 8(a) Program? <ul><li>What is it? </li></ul><ul><ul><li>Created in 1974 to help minority and other small disadvantaged businesses to grow through a program of Federal contracting preferences and set-asides. </li></ul></ul><ul><ul><li>Eligible firms can be awarded Government contracts on a sole-source, non-competitive basis. </li></ul></ul><ul><li>  Benefits of the Program </li></ul><ul><ul><li>Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and up to $6 million for manufacturing, including construction. </li></ul></ul><ul><ul><li>While SBA helps 8(a) firms build their competitive and institutional know-how, the agency also encourages them to participate in competitive acquisitions. </li></ul></ul>
  3. 3. What is the Section 8(a) Program? <ul><li>American Indian Tribal Entity or Alaska Native Corporation (ANC), are not restricted by established SBA rules limiting dollar thresholds on sole source contracts.  </li></ul><ul><li>Companies in which a controlling interest is owned by a Native Hawaiian Organization (NHO) are not restricted by established SBA rules limiting dollar thresholds on sole source Department of Defense contracts.  An NHO must be a non-profit organization incorporated in the State of Hawai’i by Native Hawaiians. </li></ul>
  4. 4. What is the Section 8(a) Program? <ul><li>Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to Small Disadvantaged Businesses. </li></ul><ul><ul><li>To speed up the award process, the SBA has signed Memorandums of Understanding (MOUs) with 25 Federal agencies allowing them to contract directly with certified 8(a) firms. </li></ul></ul><ul><li>8(a) firms are permitted to form joint ventures and teams to bid on contracts. </li></ul><ul><ul><li>This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract. </li></ul></ul>
  5. 5. What is the Section 8(a) Program? <ul><li>Program goals require 8(a) firms to maintain a balance between their commercial and government business. </li></ul><ul><ul><li>There is also a limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primary SIC code. The overall program goal is to graduate firms that will go on to thrive in a competitive business environment. </li></ul></ul>
  6. 6. Who Qualifies for the 8(a) Program? So Just Who Can Access the 8(a) Benefits?
  7. 7. Who Qualifies as a Small Business? <ul><li>Am I a Small Business Concern? </li></ul><ul><ul><li>`You may take it for granted that your company is a &quot;small business.&quot; The distinction is important if you wish to register for government contracting as a small business. Once you register as a government contractor, you must adhere to industry size standards established by the U.S. Small Business Administration. </li></ul></ul><ul><li>The SBA, for most industries, defines a &quot;small business&quot; either in terms of the average number of employees over the past 12 months, or average annual receipts over the past three years. </li></ul>
  8. 8. Who Qualifies as a Small Business? <ul><li>In addition, SBA defines a U.S. small business as a concern that: </li></ul><ul><ul><li>Is organized for profit; </li></ul></ul><ul><ul><li>Has a place of business in the US; </li></ul></ul><ul><ul><li>Operates primarily within the U.S. or makes a significant contribution to the U.S. economy through payment of taxes or use of American products, materials or labor; </li></ul></ul><ul><ul><li>Is independently owned and operated; and </li></ul></ul><ul><ul><li>Is not dominant in its field on a national basis.  </li></ul></ul><ul><ul><li>The business may be a sole proprietorship, partnership, corporation, or any other legal form. In determining what constitutes a small business, the definition will vary to reflect industry differences, such as size standards. </li></ul></ul>
  9. 9. Who Qualifies as a Small Business? <ul><li>Size Standards </li></ul><ul><ul><li>Since all federal agencies must use SBA size standards for contracts identified as small business, you need to select NAICS codes that best describe your business and then determine if the business meet size standards for the selected NAICS codes. Once you have determined you are indeed a small business, you can then Register as a Government Contractor. </li></ul></ul>
  10. 10. Understanding “Set Asides” How Section 8(a) Qualifying Business Benefit
  11. 11. Small Business Set-Asides <ul><li>What is a small business set-aside? </li></ul><ul><ul><li>A &quot;set-aside for small business&quot; is the reserving of an acquisition exclusively for participation by small business concerns.  </li></ul></ul><ul><li>When set-asides are used: </li></ul><ul><ul><li>Acquisition of supplies or services valued between $2,500 to $100,000 are automatically reserved exclusively for small business and shall be set aside for small business unless there is not a reasonable expectation of obtaining offers from two or more responsible small business concerns that are competitive in terms of market prices, quality and delivery. Contracting Officers shall set aside any acquisition over $100,000 for small business participation when there is a reasonable expectation that offers will be obtained from at least two responsible small business concerns, and award will be made at fair market prices. </li></ul></ul>
  12. 12. Small Business Set-Asides (continued) <ul><li>Sole Source </li></ul><ul><ul><li>Used when it is determined that the anticipated award price, including options, will not exceed $6 million for manufacturing or $4 million for all other requirements, and the vendor is a responsible 8(a) with respect to performance, and the award can be made at a fair and reasonable price. </li></ul></ul>
  13. 13. Federal Government Allocations <ul><li>Small Business Goaling </li></ul><ul><ul><li>Did you know that formal goals are in place to ensure that small businesses get their fair share of work with the federal government? In fact, each federal agency must set an annual goal for participation in its contracts by various groups. </li></ul></ul><ul><li>For example, here is a sampling of the statutory goals established by federal executive agencies:  </li></ul><ul><ul><li>23% of prime contracts for small businesses; </li></ul></ul><ul><ul><li>5% of prime and subcontracts for women-owned small businesses; </li></ul></ul><ul><ul><li>5% of prime contracts for Small Disadvantaged Businesses; </li></ul></ul><ul><ul><li>3% of prime contracts for HUBZone small businesses; </li></ul></ul><ul><ul><li>3% of prime and subcontracts for service-disabled veteran-owned small businesses . </li></ul></ul>
  14. 14. Federal Government Allocations <ul><li>The groups that are covered by these goals are small businesses, some with specific characteristics: </li></ul><ul><ul><li>Small business concerns </li></ul></ul><ul><ul><li>SB </li></ul></ul><ul><ul><li>Small business concerns owned and controlled by service-disabled veterans </li></ul></ul><ul><ul><li>SDVOB </li></ul></ul><ul><ul><li>Qualified HUBZone small business concerns </li></ul></ul><ul><ul><li>HUBZONE </li></ul></ul><ul><ul><li>Small business concerns owned and operated by socially and economically disadvantaged individuals SDB </li></ul></ul><ul><ul><li>Small business concerns owned and controlled by women </li></ul></ul><ul><ul><li>SWOB </li></ul></ul>
  15. 15. How Agency Goals are Established <ul><li>SBA is responsible for ensuring that the government-wide goal for participation of small business concerns is established annually at the statutory levels and the reporting agencies' achievements are relative to the goals. </li></ul>
  16. 16. How Agency Goals are Established <ul><li>Here is how the process works: </li></ul><ul><ul><li>1. SBA negotiates with agencies to establish individual agency goals that, in the aggregate, constitute government-wide goals. In addition, SBA also negotiates a small business subcontracting goal based on recent achievement levels, and a HUBZone subcontracting goal equivalent to the required prime HubZone goal. </li></ul></ul><ul><ul><li>2. Before the beginning of the fiscal year, agencies submit their proposed goals to SBA. </li></ul></ul><ul><ul><li>3. SBA's Office of Government Contracting determines if these individual agency goals, in the aggregate, meet or exceed the government-wide statutorily mandated goals in each small business category. </li></ul></ul><ul><ul><li>4. SBA notifies the agencies of their final agency goals. </li></ul></ul>
  17. 17. Agency Goals <ul><li>The Federal Procurement Data System (FPDS) is the government’s official system for collecting, developing and disseminating procurement data. SBA uses the information in the FPDS to monitor agencies' achievements against goals throughout the year. </li></ul>
  18. 18. Agency Goals <ul><li>Agencies report each award over $25,000, including details such as: </li></ul><ul><ul><li>Industry </li></ul></ul><ul><ul><li>Place of performance </li></ul></ul><ul><ul><li>Type of contractor </li></ul></ul><ul><ul><li>Whether the contractor meets SBA's size standards </li></ul></ul>
  19. 19. To Find Out More <ul><li>Used with permission from the www site http://www.national8aassociation.org/ of our friends at the National 8(a) Association. Please feel to visit their site often or contact them anytime for more information regarding 8(a) and small business government contracting: </li></ul><ul><li>National 8(a) Association </li></ul><ul><li>1200 G Street NW, Suite 800 </li></ul><ul><li>Washington, D.C. 20005 </li></ul><ul><li>Phone: (202) 286-0557 </li></ul><ul><li>Email: info@national8aassociation.org </li></ul>
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