The 8 (a) program is intended to benefit both the client as well as the contractor through mechanisms that ensure quality performance.
A Rigorous Review
Prior to acceptance into the program, the contractor is subjected to a rigorous review of its ownership, daily management, operations, experience and financial status. Only those contractors that can document disadvantaged business status and demonstrate the viability of the organization are accepted into the program. Once accepted, the contractor is required to provide the SBA with a detailed business plan that must be updated annually.
Upon acceptance, each contractor is assigned Standard Industrial Classification (SIC) codes based on the qualifications and experience of the company and key personnel. Performance of 8(a) contracts is then limited to those SIC codes. As a company gains experience and expertise, it may request additional codes from the SBA based on documentation of this experience.
One of the goals of the 8(a) program is to allow non-8(a) contractors to expand their scope of services. Therefore, the 8(a) contractor is permitted, with approval of the SBA, to subcontract a portion of this work to other qualified firms. While subcontracting is restricted to maintain the integrity of the program as an opportunity for disadvantaged businesses, subcontracting limits can be as high as 85 percent, depending on the industry. Contractors develop valuable relationships, while the client benefits from a qualified, experienced, well-rounded team.