8(a) Program Changes: What Small Businesses Need to Know to Win More Government Contracts Like Rolls Royce!
The 8(a) Business Development Program is a federal government program that helps small disadvantaged businesses (SDBs) compete for government contracts. The program provides SDBs access to technical assistance, management training, and other resources to help them grow and succeed.
In recent years, several changes have been made to the 8(a) program, including some significant changes made in 2023. These changes are designed to make the program more effective and to help SDBs achieve even greater success.
New Laws and Changes to the 8(a) Program
The following are some of the key changes that have been made to the 8(a) program in recent years:
Social disadvantage must now be established through a narrative/evidence process for all individually owned 8(a) participants. Previously, individually owned 8(a) participants could rely on a rebuttable presumption of social disadvantage. However, a federal court ruling in 2023 held this presumption invalid. As a result, all individually owned 8(a) participants must now establish their social disadvantage through a narrative/evidence process.
Contracting officers are prohibited from restricting 8(a) competitions to participants who are also certified HUBZone small businesses, certified WOSBs, or certified SDVO small businesses. This change ensured that all SDBs have an equal opportunity to compete for 8(a) contracts.
Agencies may now award 8(a) sole source orders against a multiple award contract not set aside for competition only among 8(a) Participants. This change gave 8(a) Participants more contracting opportunities.
The Fictional Story of Sweet Treats Bakery!
To illustrate the changes to the 8(a) program, let's consider the following fictional example of a baking business:
Sweet Treats Bakery is a small, woman-owned baking business certified as an 8(a) Participant. The bakery has been in business for two years and has a strong record of providing high-quality products and services.
Under the old 8(a) program rules, Sweet Treats Bakery could have relied on the rebuttable presumption of social disadvantage. This would have meant that the bakery did not have to provide any evidence to support its claim of social disadvantage. However, under the new 8(a) program rules, Sweet Treats Bakery must establish its social burden through a narrative/evidence process.
To do this, Sweet Treats Bakery could write a narrative describing the challenges that it has faced as a woman-owned business. The bakery could also provide evidence of these challenges, such as financial statements showing that the bakery has been unable to obtain traditional financing or documentation of discrimination that the bakery has faced.
Once Sweet Treats Bakery has established its social disadvantage, it will be eligible to compete for 8(a) contracts. However, the bakery will now face competition from other SDBs that still need to be certified as HUBZone small businesses, WOSBs, or SDVO small businesses. This is because contracting officers are prohibited from restricting 8(a) competitions to certified participants in other small business programs.
Despite this change, Sweet Treats Bakery should still be able to compete successfully for 8(a) contracts. The bakery has a strong track record of success and a clear understanding of the 8(a) program.
In addition, Sweet Treats Bakery may take advantage of the new rule allowing agencies to award 8(a) sole source orders against a multiple award contract that was not set aside for competition only among 8(a) Participants. This could give the bakery more opportunities to win contracts and grow its business.
The 8(a) program changes should benefit Sweet Treats Bakery and other small, disadvantaged businesses. Indeed, although there are more hurdles to overcome, the new rules give SDBs more opportunities to compete for contracts and achieve their business goals-at least in theory.
We will have to see how this shakes out in real time.
