The GSA plans to upgrade the well-known GSA 8(a) Small Business Program. The new 8(a) Program Partnership Agreement signed in November 2022 should expand small business opportunities and simplify interaction between GSA Schedules holders and agencies. Here is what is known about the upcoming changes.
What happened?
The General Services Administration and the Small Business Administration signed a new 8(a) Program Partnership Agreement. The idea behind the new PA is to provide more opportunities to small businesses selling to federal agencies within the 8(a) Program.
What is the 8(a) Program again?
The 8(a) Small Business Program is a nine-year program that allows eligible small businesses to more effectively sell to the government. Small and disadvantaged businesses participating in the 8(a) government contracting Program receive training and technical assistance as well as exclusive access to federal contracts that are often called “set-asides”.
What businesses are considered disadvantaged? Currently, the SBA defines several categories of socially or economically disadvantaged businesses:
- Veteran-owned businesses
- Woman-owned businesses
- Minority-owned businesses
- Businesses owned by a person with disabilities
Obviously, to participate in the 8(a) Program the business must be identified as small, and must be at least 51% owned and controlled by U.S. citizens.
The New 8(a) Program Partnership Agreement (PA)
The GSA anticipates to fully implement the new 8(a) Program Partnership Agreement by spring 2023, and should provide the following benefits:
- Increase opportunities for 8(a) companies, allowing them to compete in a set-aside environment
- Give government agencies more access to 8(a) companies for a wide array of products and services.
- Increase ordering flexibility through GSA Schedules, including sole source awards to 8(a) companies.
- Streamline acquisition to incentivize agencies to purchase 8(a) solutions from GSA Schedules
- Create standardized processes for reaching agreements on acquisition strategies between GSA and the SBA.
What does it mean, exactly? The GSA does not disclose full details of this optimization just yet, but according to acquisition regulations published by other agencies, the purpose of the new PA is to allow federal agencies to purchase products and services from 8(a) firms directly, without mediation by the GSA as it was before. Needless to say, this should greatly expand opportunities for such small businesses, as well as speed up procurement for federal buyers.
Also, the introduction of the standardized acquisition process should simplify the process both for GSA contractors and federal buyers.
Need help?
If you are new to the “set-aside” contracts and the entire 8(a) Certification Program, you сan look for information at SBA or contact local branches they have in your state. Also, please don’t hesitate to contact us, Price Reporter. We help small and disadvantaged businesses win GSA contracts under the 8(a) Program, set the best GSA pricing schedule, and find a viable marketing strategy.