Four Pathways to Growth with 8a Certifications
Last year, when I was literally mad at my messed up finances, I came across a friend who told me about 8(a) certifications. It provides a gateway to the small business arena, which was practically my need of the hour. But, without proper contacts (I have been a housewife throughout), I really had no idea where to start. It was way later when I learned that 8(a) certifications are mandatory if you want to start a small business.
Certified 8a small business gives socially and economically backward people an opportunity to start an entrepreneurial journey. Having this certificate means you have the right to grow your business through federal contracts. Over the time, such firms become a large market players, however for me that was just the starting. Once you have this, you can accelerate your growth in the following ways.Sole Source Contracts
Certified 8a small business can use sole source contracts to expand their business. These are basically direct-award contracts, in which a 8a small business firm wins a contract directly from a federal procurement officer. However, the contract is done on the mutually agreed upon price. These contracts are great for small entrepreneurs, and have a contract limit of at least 4MM for most industry types.
Joint Venture (JV)
This is also known as Mentor Protégé Arrangements, where 8a small business firm can sign up a joint venture with other small businesses or large corporates. In this case, a combined entity can bid for a project, which offers them a great opportunity to broaden their spectrum and that too at a nascent stage. However, as a joint venture you can earn about $100MM of contract value in a lifetime.
Set-aside Contracts
Unlike other contracts, only 8(a) small business firms are permitted to bid. Obviously, this is extremely competitive though the contract value is quite high. Successful 8a small business bidders in this segment are mostly IT or Consulting agencies.
GWACs/IDIQ Contracts
This is ideally known as Government-wide Acquisition Contracts, and is essentially directed for IT firms. Since, this involves a high ticket size, quite obviously the contracting body takes a look at the firms’ past experience, and review its capabilities, and pricing model before awarding the project . However, the criteria of meeting goals are again pretty stringent in such contracts.
Final Thoughts…
8a Certifications can open up a whole new world for you. It opens doors to federal marketplace, and enables you to connect with profitable prospects in the shortest time span.
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