The 8(a) contracting method is the most powerful and flexible contracting tool available to the government contracts manager. The 8(a) program, designed to assist small disadvantaged businesses, is a procurement technique that allows the contracts manager sole discretion to choose the specific contractor team for his tasks. The method also will save substantial time, work, and cost during the procurement cycle. By adding this contracting method to his other available means of procurement and using it when appropriate, the contracts manager will be able to better achieve the goals and objectives of his program.

This brief overview is designed to acquaint the government contracts manager with the 8(a) method of contracting. It provides a brief description of the 8(a) program and how it is administered by the small business administration (SBA), tells how the contracts manager can use the method, and explains the benefits of using the 8(a) contracting method.

I.  The 8(a) Program

1. The 8(a) program is our country�s effort to promote equal access for socially and economically disadvantaged companies to participate in the mainstream of our nation�s economy. The term �8(a)� refers to Section 8(a) of the Small Business Act of 1968 which permits the Small Business Administration (SBA) to enter into contracts with federal procuring agencies directly (as the prime contractor) for the supply of goods and services, and then to subcontract the actual performance of the work to 8(a) certified companies.

2. The SBA�s role in the 8(a) Program, as viewed by the government contracts manager, is quite simple and straightforward.

The SBA:

• Selects and certifies the firm for initial participation in the 8(a) program;

• Certifies that the firm is in good standing, is competent to fill the government�s specific requirement, and authorizes the procuring agency to negotiate directly with the firm;

• Provides technical, management, and financial assistance to the firm to aid in its general development, as well as to perform on a specific government requirement, if necessary; and,

• Administers the contract with the firm, although this is usually delegated by the SBA to the procuring agency.

8(a) Bullets and Quotes

• 8(a) is a goods or services the government is going to buy

• There are 547 Native American 8(a) firms in the U.S. and Alaska, of these 51 are Tribal Enterprises

• 8(a) is to assist Native American small businesses into growing

• 8(a) is NOT a contract program

• You have to prove you are socially disadvantaged

• Tribal Enterprises have to prove they are economically disadvantaged- (Alaskan Native Corporation�s don�t)

• You have to submit Financial Statements for the past Three (3) years

• 8(a) is NOT a guarantee program

• 8(a) is NOT to start a business

• 8(a) is NOT a give away program

• 8(a) is NOT a mom and pop program

• 8(a) is a two (2) year viable operated business with contracts and experience (can be waived by the development of a business plan and if the market is evident)

• 8(a) is a 90 day processing program

• 8(a) is like the �Marines� � They want to fine a few good ones

• SBA Applications are registered at the local office. T&TA is offered �Orientation�

• 8(a) Bond � The guarantee bond comes from the agency that puts out the work.

• Tribal � 8(a) Waivers: Before waivers are given � SBA needs to know before hand that Tribe is eligible for 8(a) waivers

• Tribal 8(a) owned are covered by an exception which permits them to receive a contract award of Any Size on a non-competitive basis.

• Companies have to be for- profit

• A legal entity

• Tribal Enterprises have to negotiate on waiving sovereign immunity

The 8(a) Program

A powerful and flexible tool to assist Native American businesses and Tribal Enterprises improvement

1. Overview of The 8(a) Program

�         Created by the Small Business Act of 1968

�         In FY 1969, 28 contracts totaling $5 million

�         Amended by the Business Opportunity Development Reform Act of 1988, PL 100-656

�         In FY 1992, 4,600 contracting totaling $5.1 billion

NATIONAL:                           6100 Certified 8(a) firms

NATIVE AMERICAN:           547 Certified 8(a) firms

TRIBAL ENTERPRISE:          52 Certified 8(a) firms

ANC�s 8(a)                              104 Certified 8(a) firms

2. Purpose of The 8(a) Program

�         Assist minority-owned businesses to become viable and competitive

�         Provide the opportunity to perform federal contracts to apply proven technical and managerial capabilities

�         Open the federal marketplace to minority-owned businesses previously excluded

3. Advantages of The 8(a) Program

�         Reduces time and manpower compared to normal procurement cycle

�         May save overhead costs associated with large prime contracts

�         Allows technical and contracting personnel to select the qualified 8(a) firm

�         Allows full negotiation of price and technical requirements

�         Assists in meeting SDB goals

4. Federal Acquisition Regulations

�         Part 6 � Competition requirements require full and competition to the greatest extent possible

�         Subpart 6.2 � Competition after exclusion of sources

o       Allows competition among eligible 8(a) contractors without justification or determination and findings

�         Subpart 6.3 � Other than full and open competition

o       Allows seven expectations to full and open competition 6.302-5(b) (4) allows sole program without a written justification or approval required for other expected sole source procurement

5. Capabilities of The 8(a) Portfolio

• Wide diversity of goods and services in professional and non-professional services, construction, and manufacturing

Capabilities in high-tech areas including computers, telecommunications, aerospace industry, and defense