If you are a small business you have heard of contractors
receiving a sole source because they are 8(a) certified. What does this mean
and how do you get one?
First, you have to go through the grueling 8(a) certification
process, which seems like you are allowing the Small Business Administration
access to your life. If you make it to the end of the process with a
certification than you are very lucky, these days SBA has been cracking down on
requirements. So what exactly does is mean and what is this sole source?
A sole source contract means that the agency that is
purchasing does not have to put that service and/or product out for bid. Right
now this can only be done for firms that hold the 8(a) status, soon to be woman
owned small businesses as well. The reasoning behind it comes from what it
means to be an 8(a) firm.
To qualify to submit an application for the certification
you need to meet the following:
·
Business must be majority-owned by an
individual(s) (aka no holding companies)
·
That individual(s) must be an American citizen
·
Business must be majority-owned and
controlled/managed by socially and economically disadvantaged individual (s)
o
In order to qualify as socially disadvantaged
you need to belong to one of the following:
§
Black American
§
Hispanic American
§
Native American
§
Asian Pacific American
§
Subcontinent Asian American
o
In order to qualify as economically
disadvantaged the individual(s) your net worth must be below $250,000
§
That does not include the value of the primary
home, business or any retirement funds
·
Business must be considered a small business
·
Business must demonstrate potential for success
·
Principals must show good character
These are just the initial requirements, if you want to find
out more information and if your firm qualifies take a look at the SBA’s 8(a)
Certification Q&A: https://www.sba.gov/blogs/sbas-8a-certification-program-explained
