8(a) Advantages

Simplified Contracting Effort Using 8(a)

So why would you use an 8(a) company, more specifically KIHOMAC, for your program requirements?

What is 8(a)? Section 8(a) of the Small Business Act (15 U.S.C. 637(a)) established a program that authorizes the Small Business Administration (SBA) to enter into all types of contracts with other agencies and let subcontracts for performing those contracts to firms eligible for program participation. The SBA’s subcontractors are referred to as “8(a) contractors.”

What are advantages of using 8(a) contractors for my requirements? Contracts can be directly awarded to an 8(a) firm, under $3.5M for Services and $5.0M for Manufacturing, without much of the normal contracting process overheads:

  • A qualified 8(a) firm is considered to be a lock-tight sole source justification which means Justification & Approval (J&A) is not required for contract award per FAR 6.204, FAR 6.302-5(b)(4), and 15 U.S.C. 637
  • 8(a) contracts are one of the exceptions listed in FAR 5.202(a)(4), which waive the requirement to publish the synopses of contract actions for section 8(a) of the Small Business Act
  • Can continue to use same 8(a) firm for follow-on contracts per FAR 19.805-2(d).
  • 8(a) contracts can be issued much quicker than other processes, even IDIQ type task orders
  • Even over the $3.5M/$5M threshold, SBA may accept sole source if there is not a reasonable expectation that at least two eligible and responsible 8(a) firms will submit offers at a fair market price per FAR 19.805-1(b).

What are advantages of using KIHOMAC for my requirements? As a small business focused on delivering Systems Engineering & Integration (SE&I), Advisory and Assistance Services (A&AS), and Independent Validation and Verification (IV&V) services, KIHOMAC can assist government customers without Conflict of Interest (COI) concerns typical of larger industry firms. As a small business, we have inherently low overhead structure and costs. With technical competence and competitive rates, we strive to provide “the best value” service to our clients.

What are the steps required for 8(a) contract award to KIHOMAC for my requirements?

  • Draft a statement of work and a purchase request (PR). On block 12. REMARK section of the PR, add the statement “Recommend sole source award to 8(a) firm, KIHOMAC, Cage Code 3L2L3”
  • Coordinate PR through the normal approval process, including base/agency small business office and contracting
  • Base/Agency contracting office sends an “offer letter” to the SBA, and SBA sends an “acceptance letter” to base/agency contracting office.
  • Base/Agency contracting office negotiates directly with KIHOMAC for the contractual terms

To get started on issuing 8(a) contract to KIHOMAC, Contact Us.