8(a) Certification Continues with High IT Sales By: Mark Ryan & Todd Luttenegger

If your firm is in the IT industry and has been thinking about moving forward with an 8(a) Certification now maybe a great time to enter the federal marketplace as overall sales levels continue to be at all-time highs.??

From the table below the average 8(a) firm in the IT Industry had over $5MM sales in 2021.?Approximately 40% of 8(a) firms are in the IT industry.?Construction, Staffing, Consulting, Janitorial and Facilities maintenance are other industries that make strong showings.

8(a) firms that wish to boost their chances obtain a GSA Schedule as well.?Around 43% of 8(a) IT firms take this step and the sales results from obtaining a GSA Schedule were approximately $1.6MM last year.

Some 8(a) firms move onto the 8(a) STARS GWAC.?This GWAC is setup for 8(a) firms in the IT industry.?This GWAC is not open enrollment like a GSA Schedule and therefore it is common for an 8(a) firm to obtain a GSA Schedule contract first and then wait for enrollment to open for STARS.?On average a position on the STARS Contract was worth $2.3MM to the 8(a) IT firm in 2020.?We expect these sales were at the same level or higher for 2021.

As you can see from these three tables, 8(a) IT revenue on a per firm basis has remained strong over a long period of time.?To take full advantage of this growth we generally recommend for 8(a) firms to obtain both a GSA Schedule Contract simultaneously with the firm’s 8(a) submittal.?Then the firm should apply for 8(a) STARS during the first available enrollment period.?We generally contact our past clients when STARS becomes open so they do not miss this important date.?We find that taking these additional steps maximizes a firm’s value of their 8(a) certification.

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