The 8 (a) Program – it’s not for everyone

Yesterday, I had a meeting with SBA; the purpose of the meeting was to share information with SBA regarding feedback I received during my presentations regarding the 8 (a) program. The goal of the meeting was for both sides to walk away with valuable information that will be used to create workshops and programs for 8 (a) firms. The team at JKA is currently in the development stage of a series of workshops and seminars designed to assist 8 (a) firms with locating procurement opportunities by tracking existing 8 (a) contracts and monitoring their expirations dates/option periods; and utilizing government procurement forecasts to develop a pipeline for business opportunities. Concurrently, the JKA team will deliver step by step instructions on the implementation of well rounded marketing plan that includes the development of high quality marketing materials, networking, stay-in-touch, social media and database management. We hope to work with SBA and the small business community by providing this training a combination of onsite meetings, seminars and tele-classes. Every firm has a different story to tell about the 8 (a) programs; my overall experience with 8(a) was extremely positive. What I constantly hear at meetings from 8 (a) participants is a high level of dissatisfaction stemming from a lack of contracts; in fact, I heard from many 8 (a) firms that have been in the program for several years and had not received any contracts. I can certainly understand the frustration level for those firms. When I work with potential 8 (a) firms to assist them with processing their application one of the first things I do is research to make sure that there are potential opportunities in the 8 (a) programs that match the client’s core competencies, no sense in completing the application. 8 (a) is not for everyone. Once the decision is made to pursue the 8 (a) program, I share with clients that according to published surveys that it takes the average firm 12-18 months, and approximately 80K before most receive their first government contract. There is no magic to the program, it requires a lot of work, a lot of work. The common misconception that once you are in the program, you get set-aside contracts is a complete fallacy. The truth of the matter is although completion is limited to 8(a) participants, there is still competition amongst 8(a) firms and those that stand out and deliver will continue to get the contracts. When I was in the program, I made my presence known to contracting officers and delivered the highest level of contract performance to ensure that if my contracting officer had a choice between Armrest and another firm, they would choose Armrest. My full time job was marketing, networking, research, and client relations. One of the other key things to ensuring success is to make certain that you have adequate financing. All too often I hear contractors talk about going to the bank after receiving a government contract for a line of credit – that’s a risky gamble that could cost your firm big. There are a few banks that understand government contracting receivables; however I see banking relationships the same way I see government contracting, your banker is someone you need to market to, develop a relationship with and stay in touch. Make certain that you professionally prepared financial reports, and that you are current with taxes. Be prepared for the government to ask you for financial statements. The 8 (a) program does not provide financing for contracts. In my opinion, as a business owner with over 25 years of experience I appreciate small business certification programs because I know how to use them to my advantage. During a brief transition from business owner to sales person for a large firm, I know firsthand that getting your foot in the door is not easy for anyone. I am thrilled as a minority and women owned business owner to take advantage of government set-asides and certification programs because my personal experience is that I would not be where I am today without them – simple.