Assisting socially and economically disadvantaged small businesses with gaining a foothold in the government contracting business is the key to success for the federal government's 8(a) Business Development Plan.
And holding that key to success are the contract specialists and contracting officers who make the effort to do business with 8(a) small businesses.
"The program is designed to help 8(a) small businesses grow and thrive, said Carol Ann House, lead business opportunity specialist with the Alabama District Office of the Small Business Administration.
"We have so many eligible firms in Huntsville and throughout Alabama, and in rural areas in Alabama. Small businesses offer good jobs and this program impacts those jobs. I appreciate the work you do to continue this program. It makes a difference."
House's comments came during the first quarterly Small Business Lunch and Learn hosted by the Aviation and Missile Command's Office of Small Business Programs on Oct. 11. The purpose of the event was to provide learning opportunities for contracting employees working for the Army Contracting Command-Redstone.
The 8(a) Business Development Program involves small businesses that are owned and controlled at least 51 percent by socially and economically disadvantaged individuals, including Alaskan Native Americans, Tribal, Native Americans, Asian Pacific Americans and Subcontinent Asian Americans.
AMCOM is known for providing numerous opportunities to small businesses through the 8(a) program. In fiscal year 2017, the command, working with ACC-Redstone, awarded 929 contracting actions to Small Disadvantaged Businesses. Those actions represent 2.02 percent of AMCOM's small business obligations for fiscal year 2017 and $330 million in contracting dollars obligated, which positively impact small business obligations reported by the Army Materiel Command and the Department of the Army.
"We consistently meet our 8(a) small business goals," said Donna Ragucci, director of AMCOM's Office of Small Business Programs. "But we want to do better than just meeting our goals. We want to exceed our goals.
"Our Small Business Office has a database of vetted 8(a) companies that match the capabilities that AMCOM requires. We work to ensure the companies being considered have the capability the contract requires."
When contracting with an 8(a) company, the Small Business Administration is considered the prime contractor with the 8(a) firm considered as a subcontractor while AMCOM and ACC-Redstone are responsible for contract performance, House said. The intent to award a contract to an 8(a) company must be submitted in an offer letter to the Small Business Administration by the contracting officer.
House emphasized that offer letters must include information about the contract, including a description of the work to be performed, an estimated period of performance, the type of contract to be awarded, and any special restrictions or geographical limitations. The letter should also include contact information on other small business contractors who have performed on the requirements during the past 24 months and a list of all companies that have expressed an interest in being considered for the acquisition.
Subsequent letters of eligibility and sources request information about the 8(a) small business being considered for the contract and additional information about the contract requirements.
The information required is essential to ensure that 8(a) regulations are followed, House said.
"We don't want to put the government at risk and that's our whole intent when we ask a lot of questions. We are protecting the government's interests," she said. "We must do our due diligence to make sure the small business meets the criteria."
Even with renewals, the Small Business Administration will request information to ensure the 8(a) small business still meets its requirements to be eligible for an 8(a) contract, she said.
Sole source procurements, where an 8(a) company is awarded a contract without a competitive process, can be awarded up to $4 million on service contracts and up to $7 million on manufacturing contracts. That threshold increases to $22 million for Alaskan Native companies, Native American tribally owned companies and Native American Hawaiian owned companies.
There are no thresholds on competitive 8(a) procurements.
"Once a contract is accepted in the 8(a) program for sole source or competitive source, it must remain an 8(a) program through renewals," House said.
Small businesses who qualify as an 8(a) company are enrolled in a nine-year program. During the first four years, the company can obtain an unlimited number of 8(a) contracts. During the last five years, the 8(a) company must show it has a growing number of non-8(a) contracts.
"When small businesses graduate from the program, we don't want them to be so reliant on 8(a) revenues that when they go past those nine years and are out of the program, they go out of business and close their doors," House said.
"We want to ensure they continue and thrive in their industries after the 8(a) program. We want 8(a) companies to learn from the experience and grow their business so that they can go on to win large contracts after they graduate."
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