We are often approached by business owners that want to apply their company for the 8(a) program but who at the same time, still hold full-time (or even part-time) employment with another company and/or have ownership interests in other companies. Quite honestly, this is understandable - most people don't have the financial resources to quit their job and start a business unless they have guaranteed customers and/or sources of revenue. However, when it comes to the 8(a) program, what many don't understand is that the program is not a program for startup businesses.
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8(A) CERTIFICATION: WILL OUTSIDE EMPLOYMENT AND OWNERSHIP IN OTHER COMPANIES IMPACT YOUR APPLICATION?
8(a) Certification: Should You Be Concerned If You Derive More than 70 Percent Of Your Revenue From a Single Source?
We often hear about companies in year 5 (or later) of their 9-year 8(a) BD program term voluntarily withdraw from the program and/or express unhappiness with the program because they haven't yet received an 8(a) contract. More often than not, this situation is a result of a misconception on the firm's part that once in the 8(a) program, Federal contracts will just miraculously fall into their lap. The reality is that getting an 8(a) sole-source contract requires a lot of time and effort on the part of the 8(a) firm. This blog post will provide a general overview of the various paths to an 8(a) sole-source award.
Recent GAO Decision Reminds Us That 8(a) Sole-Source Contracts Are Difficult to Protest (And Prevail on)