Government agencies can shorten the procurement process to days instead of months

• Benefits:
  
  Allows you to select and order from a qualified 8(a) firm normally within days instead of weeks or even months
  
  You can initiate a contract with a simple high level statement of work
  
  Lowered administrative costs: procurement process and time is reduced to a minimum
  
  Credit for promoting small business participation within your agency or company


• Rules For Government Agencies:
  
  Under an 8(a) procurement, you are allowed to hold discussions with an 8(a) firm related to technical requirements, timing, capabilities and rough sizing without fear of violating the Procurement Integrity rules. The only time you cannot hold these discussions is if your contracting officer (CO) is already working on your requirement and has declared that the procurement process has officially begun.
  
  Federal law allows and encourages agencies to enter into a sole source contract with companies that are certified by the SBA under the 8(a) program. In general, a sole source contract can be awarded up to a contract ceiling of 3.5M million for services and $5 million for manufacturing. Using an Indefinite Delivery/Indefinite Quantity contract with a Guaranteed Minimum Buy quantity can increase these ceilings.
• How To:
  
  • Once you are satisfied that the 8(a) firm can meet your requirements, contact your CO and/or the Small Business Specialist at your agency for guidance. Just like any other procurement, they will want a description of the requirement, a purchase request and your estimate of the contract value. The name and qualifications of your chosen 8(a) firm should also be included in the package.
  • Once the internal paperwork is completed, your CO will send an Offer and Acceptance letter to the SBA asking for permission to hold sole source negotiations with the chosen 8(a) firm. The SBA will formally accept the procurement into the 8(a) program, certifying that the chosen 8(a) is qualified. The SBA will then delegate authority to your CO to negotiate with the 8(a) firm.
  • If the effort exceeds the Simplified Acquisition Threshold, your CO will send the RFP to the chosen 8(a) firm, requesting a technical and cost proposal and negotiate cost and terms with the firm. A technical proposal is not required for requirements under Simplified Acquisition. The CO will ensure that you receive the best value price from the 8(a) firm.
  • After negotiations are completed, your CO will send the contract to the SBA for signature. The process should take only a few days to a couple of weeks – then work can begin.
• About 8(a):
  
  Section 8(a) of the Small Business Act as amended by Congress, created the 8(a) business development program. This program enables SBA to assist small disadvantaged firms to develop their businesses. In applying to the program, a firm is rigorously evaluated on its ownership, operations, financial health, and past performance. Once accepted, the firm is required to provide SBA a detailed business plan and annually show continued success as a viable, strong business entity. Firms that are approved are certified by the SBA for a period of nine years. The SBA has signed Memorandums of Understanding (MOUs) with Federal Agencies allowing them to contract directly with certified 8(a) firms. Participants can receive sole source contracts, up to a ceiling of $3.5 million for services and $5.0 million for products.