SBA’s 8(a) Program—Cost Effective and Efficient

The 8(a) Program Costs Less

-          The administrative cost to the Government to oversee traditional competitions is 2-5% of the total value of the contract. In contrast, the administrative cost of the 8(a) program is never more than one half of one percent.

-          Fully transparent negotiations allow for line-by-line cost analysis by the Government, ensuring low costs and reasonable margins.

The 8(a) Program is Not Race Based and Not DEI

-          Statutory Definition of Socially Disadvantaged Individuals—Anyone May Qualify by Demonstrating Disadvantage—Regardless of Race.

-          Many 8(a) Certified Companies are geographic regions (HUBZones), Service-Disabled Veteran Owned Businesses, and Women Owned Small Businesses that must prove social disadvantage.

8(a) Awards are Faster and More Efficient for the Government than Other Procurements

-          A 2023 GAO Study Found that 8(a) awards were on average 2 months faster than their Full and Open counterparts.

8(a) Award Avoids Costly and Obstructionist Protests

-          Direct awards using the 8(a) program cannot be protested. Contract protests massively delay procurements and cost the taxpayers millions annually—while the contract in limbo may not be updated with current requirements.

-          Many protests are of bad faith, designed to game the system: For example, an incumbent loses a bid and protests in order to keep the contract during the protest.

-          DoD protest costs may affect national security: (e.g. a 2009 Congressional Research report showed that maintenance of the KC-135 tankers was severely deferred due to lengthy protests associated with the maintenance contract award.)