In the past two years 100% of the federal contracts that I have knowledge of in my area have transitioned from open competitive bidding to only 8A corporations being eligible. In my experience I have found these types of corporations much more difficult to do business with. I was wondering what percentage of federal work is done by 8A corporations in your area and if this is a trend going forward?
This is a P&R topic.
Uh, no. Trends in government contracting preferences is a business topic. To the OP: in what ways have you found them more difficult to deal with?
I believe the moderator is the one making decisions about subjects like this but I would appeal to him/her to please allow discussions about these things because they are very pertinent to anyone in the private sector.
I disagree that this is a political subject. It’s a collection of federal laws that deeply affect all people trying to do business with the federal government. The fact that it deals with race is beside the point.
I believe that 8A participants want everyone to believe this is a racial or political issue so it doesn’t get discussed in the open.
I would rather talk about peoples experience as far as prevalence and trend as this is less “political to some sensitive types” than operating principles of 8A companies.
But I will answer your question about why I feel it’s more difficult to deal with these companies other than companies awarded projects by open bidding methods –
My experience is that, the more knowledgeable and experienced my client is, the more straight forward, cost effective and simply pleasurable the project goes. I would rather survey for a good surveyor any day than someone that doesn’t know anything about surveying. Unfortunately, most of the 8A clients I have dealt with are lacking experience and knowledge about what they are in charge of so it makes doing work for them less about surveying and more about baby sitting and brown nosing. To some this may be more opportunity for profit but since I am more focused on the task than the money it makes it more difficult for me.
How does one identify a 8A prime or sub?
It is in the solicitation when advertised by the government. Other than that it is usually advertised by the prime and most subs as a reason for hire.
In the past I have seen it sort of hush hush on a couple projects and found out through contacts that the prime is 8A.
It is extremely prevalent in Alaska and getting more so logarithmically. This year in my market area if you are not 8A than you will be doing virtually no federal work unless you are under the wing of an 8A.
Doesn't that have something to do with Indians?
This is from SBA website-
The program is intended to help disadvantaged businesses be competitive; it does this by offering these businesses support and the chance to secure federal contracts. Eligibility for the program requires a company to qualify as a small business and be owned and controlled by a person or group who is considered disadvantaged socially or economically.
8A certification is available to businesses that are owned and controlled by socially disadvantaged individuals. In the absence of evidence to the contrary, the following individuals are presumed to be socially disadvantaged:
Black Americans;
Hispanic Americans (persons with origins from Latin America, South America, Portugal and Spain);
Native Americans (American Indians, Eskimos, Aleuts, and Native Hawaiians);
Asian Pacific Americans (persons with origins from Japan, China, the Philippines, Vietnam, Korea, Samoa, Guam, U.S. Trust Territory of the Pacific Islands [Republic of Palau], Commonwealth of the Northern Mariana Islands, Laos, Cambodia [Kampuchea], Taiwan, Burma, Thailand, Malaysia, Indonesia, Singapore, Brunei, Republic of the Marshall Islands, Federated States of Micronesia, Macao, Hong Kong, Fiji, Tonga, Kiribati, Tuvalu, or Nauru);
Subcontinent Asian Americans (persons with origins from India, Pakistan, Bangladesh, Sri Lanka, Bhutan, the Maldives Islands or Nepal);
And members of other groups designated from time to time by the SBA.
Additionally the company only needs to be 51% owned by the disadvantaged individual.
Women owned businesses can not be 8A unless the women qualifies as a disadvantaged individual as above.