Current 8a Companies Must Create Social Disadvantage Narrative to Receive Sole Source Awards
August 14, 2023 - I posted several weeks ago about a judge’s recent ruling regarding the 8a program (blog post on that here). The SBA paused all 8a applications last week and we’ve been waiting to hear what the solution is. It seems like we finally have some movement.
I had a late-night conversation with Robb Wong, former SBA Associate Administrator, Office of Government Contracting & Business Development, last night and he has been working his contacts at SBA and DOJ. Here’s where we are right now based on his conversations with SBA, DOJ, and OSDBUs:
While waiting for the SBA to modify its regulations, all potential and current 8a members claiming social disadvantage need to submit a Social Disadvantage Narrative. The DOJ is set to release official guidelines this week. The SBA and DOJ have agreed that for the ongoing processing of 8a applications and the allocation of 8a-focused contracts, every applicant for 8a certifications or 8a-based contracts must put forth a narrative detailing their social disadvantage, which has to gain SBA's approval before certification or the contract award. (ANCs, Tribals, and NHOs are exempted because their classification is solely hinged on economic, not social disadvantage.) Here are some of the major points:
Key Insights:
Social Disadvantage Narrative: Whether you're awaiting your 8a certification or are on the brink of sealing an 8a-based contract, you'll have to craft a narrative underscoring your social disadvantage. This MUST receive the green light from the SBA before you're certified or awarded a contract.
SBA's Role: The SBA has the final say in deciding (approval/rejection) on narratives, whether it's about certifying your enterprise for 8a involvement or permitting an Agency to finalize a contract with your firm.
Clarity on the Requirement: If you're in the middle of your 8a application process (and haven’t received an acceptance) or are an approved 8a company seeking a contract, you MUST narrate your personal encounters with social disadvantage. Highlight how these experiences have put roadblocks in your path in areas like education, finance, and business. I recommend adhering to the guidelines mentioned in section 13 CFR 124.103(c) to create a comprehensive narrative.
No Exceptions: This rule is absolute. Everyone must comply, and it's exclusive to 8a-based SBA certifications or contracts.
Time Sensitivity: Given that the fiscal year is drawing to a close, time is crucial. If you think that there is a chance of your company getting a sole source award before the end of the fiscal year, you need to get this narrative in immediately.
8a Program Status: The 8a program is active and the SBA is working to put things in place to keep this program working.
Agencies & 8a Awards: Some agencies are sidestepping 8a awards, and discussions with the SBA are in progress.