5 Federal Certifications for Small Business Owners to Ace the Competition

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4. SBA 8(a) Business Development

The SBA 8(a) Business Development Program was created to assist socially and economically disadvantaged small businesses. According to the SBA, this program is broken up into two parts: first, the development process covers the first four years, followed by the five-year transition stage. Once certified, you can receive specialized contracts and form partnerships with fellow 8(a) organizations. Some small business groups require formal certifications in order to receive the benefits of their specific small business program for purpose of federal procurement. Some groups merely self-represent their business status when completing the solicitation representations and certifications clauses.

Section 8(a) of the Small Business Act, authorizes SBA to contract for goods and services with federal agencies. SBA then subcontracts actual performance of the work to socially and economically disadvantaged small businesses, which have been certified by SBA as eligible to receive these contracts. The major advantage of this program is that it allows the government to contract, on a noncompetitive basis, with socially and economically disadvantaged small businesses. SBA also offers managerial, technical, and financial support to participating firms.

DOT gives special emphasis to identifying procurement requirements for matching with the capabilities and potential of approved 8(a) firms. DOT has obtained special authority to negotiate directly with 8(a) firms on the behalf of SBA.

Program participation is divided into two stages.

• The developmental stage is designed to help 8(a) certified firms overcome their economic disadvantage by providing personalized business assistance in expanding their business and fostering meaningful business relationships.
• The transitional stage is designed to help program participants become more effective in both the large business and government sector market in dealing with complex business deals and to prepare them for post 8(a) program expansion and development. Formal certification is required by the SBA.

5. Veteran Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) Certification

As a veteran-owned small business, certification can provide access to prime federal government contracts and subcontracts through set-asides. Federal regulations help ensure small businesses get a fair share of work in the federal market, and federal agencies must set aside a percentage of their contracts for veteran-owned small businesses each year.

Veteran Owned Small Business (VOSB) and Service-Disabled Veteran-Owned Small Business (SDVOSB) Certifications require a series of steps, which can get a bit complicated, as there is no single government body or third party that manages the certifications. Start by getting certified as a veteran-owned business by registering with VetBiz Registry, a veteran business database. If you are service-disabled, you’ll need a disability status letter from the VA during the application process.

Once you’ve obtained VOSB or SDVOSB Certification, your company is eligible to participate in the U.S. Department of Veterans Affairs (VA) Veteran’s First Contracting Program, which provides access to set-aside contracts with the VA. After registering with the VA, you’ll also need to register with the Central Contractor Registration (CCR) to become eligible for government contracts. Lastly, if you’re interested in seeking larger contracts with the federal government, you’ll also want to register with the General Services Administration (GSA).

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