SBA Certified 8(a)

8(a) AND INDIAN INCENTIVE PROGRAM

8(a) Program Contract Benefits: The Small Business Administration (SBA) 8(a) program is designed to benefit the client as well as the contractor by assisting small disadvantaged businesses by providing:
• The ability to pursue large sole-source procurements regardless of the dollar amount.
• Limited-competition opportunities in the government arena.
• The client is assured that bonding, insurance, and other legal requirements will be met.
• The three types of contracts mirror those of the Hubzone program below.

How the program works

The 8(a) program is intended to benefit the client as well as the contractor through mechanisms that ensure quality performance. Prior to acceptance into the program, the contractor is subjected to a rigorous review of its ownership, daily management, operations, experience and financial status. Only those contractors that can document disadvantaged business status and demonstrate the viability of the organization are accepted into the program. Once accepted, the contractor is required to provide the SBA with a detailed business plan that must be updated annually.

Upon acceptance, each contractor is assigned North American Industrial Code System based on the personnel. Performance of the 8(a) contracts is then limited to those NAICS codes. As a company gains experience and expertise, it may request additional codes from the SBA based on documentation of this experience.

Advantages

The Small Business Administration’s 8(a) program is designed to benefit the client as well as the contractor by assisting small disadvantaged businesses and by providing:

The ability to pursue sole-source procurements.
Limited-competition opportunities in the government arena.
The client is ensured that bonding, insurance and other legal requirements will be met.
Though sole-source contracts, businesses are given an opportunity to enter the government contracting arena and gain the experience necessary to compete in the full and open market. Competitive bidding on limited opportunities allows 8(a) contractors to gain valuable experience in various market arenas.

As an Alaska Native Corporation (ANC), Ahtna and its Subsidiaries are eligible to receive sole-source contracts greater than $3 million dollars. Per 13 CFR 124.506(b), ANC’s are exempt from competitive threshold limitations.

The 8(a) program offers many additional advantages to government project managers as well. By allowing for sole source acquisition, even on major projects, it streamlines the competitive acquisition process. It allows project managers the discretion to define a scope of work and to hand pick the contractor to perform the work.

Subcontracting

One of the goals of the 8(a) program is to allow non-8(a) contractors to expand their scope of services. Therefore, the 8(a) contractor is permitted, with approval of the SBA, to subcontract a portion of this work to other qualified firms.

While subcontracting is restricted to maintain the integrity of the program as an opportunity for disadvantaged businesses, subcontracting limits can be as high as 85%.

Contractors develop valuable relationships, while the client benefits from a qualified, experienced, well-rounded team.


Indian Incentive Program Contract Benefits: The Indian Incentive Program provides for the payment of 5 percent of the amount subcontracted to an Indian organization or Indian-owned economic enterprise, when authorized under the terms of the contract. Department of Defense (DoD) contracts with Contractors, regardless of the size of the company, that contain the FAR clause 52.226-1, Utilization of Indian Organization and Indian Owned Economic Enterprise, are eligible for incentive payments under the FY 1999 program.

These contracts require contractors to use their best efforts to give Indian Organization and Indian-owned economic enterprises the maximum practicable opportunity to participate in subcontracts awarded to the fullest extent consistent with efficient performance of the contract(s).

Contracting officers, subject to the terms and conditions of the contract, shall authorize an incentive payment of 5 percent of the amount paid to subcontractors that are Indian organizations or Indian-owned economic enterprises.