8(a) Program Versus GSA Schedule – What’s a Small Business To Do?
Originally posted on Federal Small Biz Savvy:
One of my fellow scholars from the Goldman Sachs 10,000 Small Business Program called me recently to inquire about the difference between the 8(a) Program versus GSA Schedule, and why BucknerMT recently elected to get a GSA Schedule instead of pursuing the 8(a) Program. Below is what I shared with her:
8(a) Program versus GSA Schedule
It is important to understand that the 8(a) Program and GSA Schedule serve two totally different purposes. The first is a business development program to assist in growing your business and the second is a negotiated contracting vehicle for the government to purchase their services.
Both are great tools to grow your business. In fact, the SBA encourages 8(a) contractors to consider participating in the GSA Schedules program to increase their sales.
As you determine the next step for your business, here are a few things for you to consider:
- The 8(a) Business Development Program is a business assistance program designed to assist small disadvantaged businesses compete in the marketplace. It is a two-phased program over nine years – a four-year developmental stage and a five-year transition stage.
- 8(a) program participants are consistently encouraged to “ensure you build a pipeline prior to entering the program.” Meaning, it is to critical to build relationships with both potential clients who may use your services, as well as graduating 8(a) companies who are potential partners. The goal is to maximize your time in the program.
- Having a GSA Schedule contract simplifies the acquisitions process because terms and pricing are negotiated up front. That makes it the contracting officer’s vehicle of choice. Getting a GSA contract gives you that prestige of being an approved vendor.
- The greatest benefits of being a schedule holder are that there is less competition, access to exclusive eBuy opportunities, and the average award period is two weeks. As well, GSA Schedules can be negotiated for as many as 20 years with step increases in rates.
- As a GSA holder, you will receive a listing in GSA Advantage and GSA eLibrary. However, you must also actively market your schedule to potential buyers, i.e., put it on your Capability Statement and all of your company’s digital media, and notify current and potential clients, your peers, OSDBUs, etc. We also shared our news in a blog post.
Both the 8(a) program and a GSA Schedule are great tools to grow your business. We are positioning BucknerMT for the 8(a) program, however, we made a business decision to pursue the GSA IT70 Schedule first. This decision allowed us to position ourselves for prime opportunities and, most importantly, it is the method by which our target clients purchase their services. In the meantime, we are focusing on building our pipeline to maximize our time once we are in the 8(a) program.
Lastly, it is critical to understand and remember that both the 8(a) program and the GSA Schedule give you a license to fish, but neither guarantees opportunities. Working with the government is complex, but if you are willing to put in the effort, it is also very rewarding.