[SEK Tactical] The 8(a) Advantage

SEK Solutions - 8(a) Advantage

Government Not Meeting Small Business Goals:
The federal government purchases billions of dollars in goods and services each year. To ensure that small businesses get their fair share, statutory goals have been established for federal executive agencies. For 2004, they are:

	23 percent of prime contracts for small businesses;
	5 percent of prime and subcontracts for small disadvantaged businesses;
	5 percent of prime and subcontracts for women-owned small businesses;
	3 percent of prime contracts for HUBZone small businesses;
	3 percent of prime and subcontracts for service-disabled veteran-owned small businesses.

According to Scorecard IV and V reports for the fourth consecutive year, federal agencies have not met their small business goals nor did the federal government meet its women or minority-owned business goals. These two groups represent the fastest-growing in the small business sector. The government continues to overlook their potential. This oversight cost minority and women-owned businesses almost $10 billion in lost contracting opportunities in 2003. The 8(a) program, the main vehicle to enter government contracting for most small disadvantaged businesses, saw the steepest decline with only 2.39 percent achievement of its 5 percent goal. Women-owned business contract awards for 2003 represented 2.9 percent out of 5 percent goal.

Even though the economy is struggling to make a rebound, the federal government is not. In fact, from 2002 to 2003 federal procurement dollars rose 7 percent, yet small business opportunities declined. The government is buying more than ever, but it still failed to meet small business goals – costing small businesses approximately $900 million in lost contracting opportunities. Small businesses need a chance to get a foot in the door so they can show federal agencies what they can do.

Realize the Benefits of the 8(a) Procurement Process:
	Ease of Use
	Sole-source contracts, up to a ceiling of $3 million for goods/services and $5 million for manufacturing. The SBA has signed Memorandums of Understanding (MOUs) with 25 Federal agencies allowing them to contract directly with certified 8(a) firms. Non-competitiveness of 8(a) procurements with significant latitude for negotiating changes to the statement of work.

	Meeting Federal and DOD Needs and Goals
	Federal acquisition policies encourage Federal agencies to award a certain percentage of their contracts to SDBs – 5% for SDB/8(a) awards and 5% for WOB awards. Using SEK Solutions as a contractor satisfies three government small business goals (SDB, 8(a), and WOB); and our services addresses technical needs.

	Maximization of Competencies and Skill Sets
	SEK Solutions can form joint ventures and teams to bid on contracts

	8(a) firms save time
	A sole source 8(a) award is a quick and easy contracting alternative. 8(a) firms have an advantage over other companies conducting government work as they are essentially pre-approved to conduct government work and do not have to undergo time consuming bidding, qualifications and approval processes. An 8(a) firm is a contractor that is pre-approved with the Federal government whom upon issuance of a contract, can start work immediately.

SEK Solutions is a Small Business Administration’s (SBA) certified, 8(a), small disadvantaged and women-owned business. Our participation in the 8(a) program is concurrent with both the SBA's Small Disadvantaged Business (SDB) and Women-Owned Business (WOB) programs.