Named for Section 8(a) of the Small Business Act, this program was created to help small and disadvantaged businesses compete in the marketplace.
It also helps these companies gain access to federal and private procurement markets. The program is designed for socially and economically disadvantaged individuals. You can read more here in the article titled “What is 8(a)?” which is an excellent article describing the 8(a) program.
Why use the 8(a) program?
Contracts can be directly awarded to an 8(a) firm, under $4M for Services and $6.5M for Manufacturing, without much of the normal contracting process overheads:
- A qualified 8(a) firm is considered to be a lock-tight sole source justification which means Justification & Approval (J&A) is not required for contract award per FAR 6.204, FAR 6.302-5(b)(4), and 15 U.S.C. 637
- 8(a) contracts are one of the exceptions listed in FAR 5.202(a)(4), which waive the requirement to publish the synopses of contract actions for section 8(a) of the Small Business Act
- Can continue to use the same 8(a) company for follow-on contracts per FAR 19.805-2(d).
- 8(a) contracts can be issued much quicker than other processes, even IDIQ type task orders
- Even over the $4M/$6.5M threshold, SBA may accept sole source if there is not a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers at a fair market price per FAR 19.805-1(b).
What are the advantages of using DynaGrace Enterprises as an 8(a)?
As a small business, we have low overhead structure and costs. With technical competence and competitive rates, we strive to provide the best service and support to our clients.
Is the contracting process really that easy?
- The government customer has a requirement that could be awarded to an 8(a) firm. For sole source awards the amount will be under $4M for Services and $6.5M for Manufacturing.
- The government customer drafts a Performance Work Statement (PWS) and meets with the Small Business Office (SBO) or contracting agency.
- The Purchase Request (PR) is coordinated through the normal approval process, including base/agency small business office and contracting. On block 12, REMARK section of
the PR, the statement “Recommend sole-source award to 8(a) firm, DynaGrace Consultants, Cage Code 4KM96” is added.
- Base/Agency contracting office sends an “offer letter” to the SBA, and SBA sends an “acceptance letter” to base/agency contracting office.
- Request For Proposal (RFP) is sent to DynaGrace Enterprises where they present an oral or written offer. The rates and cost are negotiated.
- The Base/Agency contracting office negotiates directly with DynaGrace Enterprises for the contractual terms.
- The order is issued to the SBA.
How long does the contracting process take?
Typically between 30 and 60 days.
For more information Contact Us.
We have excellent references available upon request.