You Are An 8(a) Government Contractor – Now What? [Podcast]
July 23, 2015 - By: SC&H Group
In the following podcast, Pete Ragone, a Principal with SC&H Group, discusses the state of business for 8(a) government contractors, and how they can best leverage business growth opportunities.
Right now is an ideal time to be an 8(a) government contractor. Despite the ongoing budget challenges, many federal and defense agencies are extending more opportunities to smaller businesses. For example, a representative from the Defense Information Systems Agency (DISA) in a recent speech at the SECAF annual awards gala stated that DISA is considering having an internal goal of up to 50 percent of its total awarded contracts be directly or indirectly awarded to small businesses, including contractors in the 8(a) and other SBA programs.
Conversely, this is also a very complex time for smaller contractors. There are potential new regulations that can impact the business growth of an 8(a) contractor, such as the recently approved legislation, The Contracting and Tax Accountability Act [H.R. 1562], by the U.S. House of Representatives. This law prohibits the awarding of federal contracts to individuals or contractors with delinquent tax debts.
Furthermore, although smaller contractors are eligible to compete for additional business opportunities, there is heightened competition between 8(a) contractors. To survive, contractors need to understand their competitive differentiators, as well as show past performance for winning contracts.
These contractors also need to be scalable to manage rapid growth, and require the right financial and business systems for dealing with growth. 8(a) contractors should have the right accounting system for properly reporting costs that are in compliance with Financial Acquisition Regulations (FAR).
Contractors need to consider future growth, and how to effectively graduate from being an 8(a) and compete in the open-bid market. Suitable partners can help small contractors develop the financial and business processes they need to survive and thrive in today’s federal marketplace.
SC&H Group helps 8(a) contractors navigate the federal arena by supporting the development of the right financial strategies for long-term success.
SC&H Group provides regional, national, and international government contractors ranging in size from emerging businesses to large primes with valuable operational, financial, and strategic solutions tailored to the unique needs of this market. We help contractors pursue government agency business and meet distinct cost accounting and auditing standards.
Our thought leaders possess extensive knowledge of issues affecting prime contractors, subcontractors, joint ventures, and various Defense and Civilian government agencies, in addition to small business programs such as 8(a)s, WOSB, VOSB, SDVOB, Native and Alaskan Native programs, Hub-Zone, and many others.
To learn more about SC&H Group’s services for government contractors, please click here. If you are an 8(a) contractor seeking support to enhance long-term growth, we welcome you to contact Pete here.