8(a) Eligibility Concerns Raised for Some Accepted Firms

August 10, 2017

Recent SBA OIG Report Reveals Continuing Concerns With 8(a) Approvals

Source: SmallGovCon, Matthew Schoonover, July 19, 2017

To be eligible to participate in the 8(a) Business Development Program, an applicant firm must be a small business that is at least 51% owned and controlled by a socially- and economically-disadvantaged individual (or individuals) who are of good character and citizen(s) of the United States. The firm, moreover, must show a potential for success.

The Small Business Administration’s internal watchdog (the Office of Inspector General, or OIG) recently raised its continuing concerns regarding the admission of several entities to the 8(a) Program. The OIG’s report is worth reading, as it may lead to changes in the 8(a) Program’s eligibility criteria.

Before getting into the OIG’s recommendations, a bit of history is helpful. In April 2016, the OIG reviewed the eligibility of 48 different 8(a) firms and concluded that the Associate Administrator for Business Development (AA/BD) didn’t adequately address eligibility concerns for 30 of them (a whopping 62.5%). In July 2017, the OIG conducted an audit to determine whether the eligibility concerns for these 30 firms were adequately resolved. READ MORE….

Contact your nearest PTAC to learn about the 8(a) program and government contracting.


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