8(a) Suspended - Why It Actually Happened

What was the core case that caused the Small Business Administration (SBA) to halt all new ad applications and suspend making any new ad set aside awards??

The plaintiff, Ultimate Services, is a white woman-owned small business since 2004. They have provided a variety of admin and professional services to the federal government, having been awarded millions of dollars in contract vehicles. But in 2018, things started to change. A lot of their work was moved to the 8(a) program, and they are not an 8(a).

Missed Opportunities

I don't know why during this time, Ultimate Services didn't form a joint venture. One of the benefits of forming a joint venture is you can take on the set aside of a company who you are mentoring. So, Ultimate Services could have created a joint venture, which is a brand new company, you have your own cage code, UEFI, and become an 8(a) because of the set aside of the mentee, and maybe use the joint venture to capture the work that was removed from their contracts and sent into the 8(a) program.

Nonetheless, the owner of Ultimate went ahead and filed this lawsuit in Tennessee, basically stating that the 8(a) program excluded her because she didn't apply. And that in essence, it automatically allowed people to get into the program simply based on their race. Now, there are many websites you can go to to read the details. And we're waiting for more information to follow.

So, one of the biggest lessons from this situation is it really pays to take advantage of your set aside. So especially for those of you who are in the 8(a) program, maybe you've been in a couple of weeks, several years take full advantage because there are probably hundreds if not thousands of 8(a) firms who are waiting to find out if they're going to get it, who wanted to apply, maybe they even paid someone to apply, and then they can't. So, take full advantage.

Joint Ventures and Mentor-Protege Program

Next, look into a joint venture. Anytime you joint venture, and it's two small companies, you take on the set asides of the mentee. You can also form joint ventures with large companies like SpaceX and Boeing and Amazon. In order to do that, you must go through the formal mentor-protege program.

As a result of this case, the court ordered that the SBA could no longer presume social disadvantage when administering the 8(a) program. In other words, if you fit one of the race or ethnic categories, it is no longer presumed that you receive a social disadvantage.?

Back in about 2010-2011, when I was getting my 8(a) application together and then subsequently submitted it, we had to write a narrative. It was not assumed because I am a Black woman that I received some type of social disadvantage. Throughout the years, the narrative requirement had been removed. So, there's thought that the narrative will once again be required in order for one to show, with evidence, proof, and other support, that one has received or been a victim to maybe not received social disadvantage. So again, more information is to come.

But for now, would you like more tips on how to find, bid, and win profitable government contracts? If so, click here now to subscribe to my official YouTube channel.?

_______________________________________________________________

I’m the author of the newly released book “The GovCon Winners Way: How To Win Government Contracts Faster Than Trying to Do It Alone!” At 28, I was awarded my first 5-figure federal government contract. I own and operate multiple government contracting businesses and have over $50 million in federal government contract awards. Today, I’ve helped my students win over $3M in Federal Government Contracts in less than 6 months, and I’ll help you, too!?

-#EverythingIsPossible