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CMBD Workshop: Life After 8(a)

CMBD Workshop: Life After 8(a). Presented by: Exceed Corporation and MindFinders September 19, 2013. Agenda. What is the 8(a) Program? Benefits of the Program SBA Progress Monitoring 8(a) Program Statistics Ready to Graduate? Life After 8(a) How to Prepare for Life After 8(a)

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CMBD Workshop: Life After 8(a)

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  1. CMBD Workshop:Life After 8(a) Presented by: Exceed Corporation and MindFinders September 19, 2013

  2. Agenda • What is the 8(a) Program? • Benefits of the Program • SBA Progress Monitoring • 8(a) Program Statistics • Ready to Graduate? • Life After 8(a) • How to Prepare for Life After 8(a) • SBA Requirements and Measurements • Recommendations • Open Discussion

  3. What is the 8(a) Program? • It is a Business Development Program; not a Contracting Program • Designed by the U.S. SBA to assist small disadvantaged businesses with their efforts to compete in the federal procurement marketplace • Firms must be 51% owned and controlled by socially and economically disadvantaged individuals • Applicant must have a personal adjusted net worth of less than $250K at the time of 8(a) application submission • Program duration is nine years: a four-year development stage and a five-year transition • The overall goal of the Program is to graduate firms that will go on to thrive in a competitive business environment.

  4. Benefits of the Program • Sole-source awards up to: • $4M for goods and services • $6.5M for manufacturing • Compete for 8(a) set-aside procurements • Compete in limited, invitation only, procurements • Faster contract awards • 8(a) contracts cannot be protested; only the size of the 8(a) participant can be questioned • More frequent invoice submissions (twice per month, if requested) • Form joint ventures • Specialized training, counseling, marketing assistance, and executive development • Learn from more experienced firms through the Mentor-Protégé Program • Access to surplus government property and supplies • SBA-guaranteed loans and bonding assistance

  5. SBA Progress Monitoring • Annual reviews • Business planning • Systematic evaluations

  6. 8(a) Program Statistics • 5,400 8(a)s nationwide • 1,200 in DC Metropolitan area, which includes Maryland and Northern Virginia • 2012 - $4.2B awarded to 8(a) firms; 24,511 contracts ($171K per contract) • 2013 (through 8/19) – $3.6B awarded to 8(a) firms; 20,678 contracts ($174K per contract) • 111 terminated this year, including 37 dropouts • 200 per year graduate • 200 per year certified • Overall numbers declining

  7. Ready to Graduate? The Graduate

  8. Life After 8(a) • Large companies less eager to meet with you • 8(a)s more eager to meet with you; they want your business! • Profit margins will go down • M&A cold calls will go up • Unlike other graduations, champaign celebrations will not be in order • The only thing that matters is the value that you bring; contracting advantages are neutralized

  9. How to Prepare for Life After 8(a) Graduation

  10. SBA Requirements and Measurements • Establish non-8(a) business base: 55% of revenue on the 5th year of the Transition Stage • Comply with 8(a) reporting and review requirements • Fully utilize the Program training, counseling, and assistance programs

  11. Recommendations - General • Develop and implement a strategic plan • Document where you are going and how you will get there • Develop and maintain strategic relationships with viable trusted firms (large and small) based upon your company’s capabilities, not your certification • Put it in writing • Develop and maintain professional client relationships • Bring value and have a positive impact on your clients; don’t just answer the mail • Perform • Develop your organization, especially BD and finance • Strong opportunity identification, qualifying, and prepositioning capability • Strong proposal development capability • Strong pricing capability • Acquire corporate and staff certifications and credentials • Establish strong banking relationships • Maintain more than adequate cash reserves

  12. Recommendations – 8(a) Specific • Have trusted 8(a)s ready to prime your recompete(s); bring 8(a)s onto the team, prior to the recompete for past performance purposes • Collaborate with your clients to identify qualified successor 8(a)s to partner with • Bring on 8(a)s that offer something in return • Conduct comprehensive partner due diligence activities, even if you know and trust your partners, especially regarding financial strength and payment history • Put it in writing! • Graduate with competitive indirect rates and wrap rate(s) • Acquire as many long term, multi-year contracts as possible during the last year of certification • Perform • Resist the temptation to focus primarily on 8(a) opportunities • Delete all references to 8(a) from Company website and materials after graduation…it no longer matters • Become a mentor

  13. Open Discussion

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