8(a) Certification: Still the King of Federal Contracting?

8(a) Certification infographic highlighting higher federal contracting revenue and SBA certification advantages.

If we look closely at the data, the sheer power of holding an SBA certification becomes undeniable.

There are 400,000 active small businesses registered in SAM.gov. On paper, the average firm generates around $457,500 in federal sales. That sounds like a decent baseline until you strip away the companies holding SBA certifications. Once certified firms are removed from the equation, the average uncertified small business drops to just ~$210,000 a year.

How Do SBA Certifications Compare: 8(a), HUBZone, SDVOSB, and Others?

Compare that to the certified categories. Even the lowest-performing designation, SDVOSB, averages $914,000 per holder. That means simply having a veteran certification provides a 4.35x revenue boost over a “naked” small business.

But the undisputed heavyweight champion of the federal market is the 8(a) Certification.

At first glance, government data shows the average 8(a) firm brings in $8 million. To be fair, large Tribal and Alaska Native Corporations skew that number. However, even when you completely remove tribal entities, the true average for a standard 8(a) firm sits at ~$5.7 million. That is still a staggering 27 times more revenue than an uncertified small business.

Does Adding a GSA Schedule Boost 8(a) Certification Results?

How do you close the gap and get your business back up to that $8 million average? You stack it with a GSA Schedule. Data shows that 8(a) firms that add a GSA Schedule bring in double the sales of those that don’t.

Also read our article: Are 8(a) Joint Ventures Becoming a Game Changer

8(a) Certification vs Other SBA Programs: Data Comparison

As the data below highlights, the 8(a) is still King, HUBZone is a strong second, but holding any SBA certification pays massive dividends over holding none at all.

Contracting Category Statutory Government Target Annual Marketplace Size The Advantage for You
Total Small Business 23% baseline target $183+ Billion

 

• 400K Companies

 

• Avg Sales: $457,500

 

Drops to ~$210,000 without certifications

Eliminates giant corporations from bidding against you entirely.
Small Disadvantaged Business (SDB) / 8(a) 5% minimum floor $32 Billion

 

• 4K Companies

 

• Avg Sales: $8 Million

 

~$5.7 Million without tribal entities

Targets historically underrepresented or economically disadvantaged owners.
Women-Owned (WOSB) 5% minimum target $32 Billion

 

• 23K Companies

 

• Avg Sales: $1.4 Million

Levels the playing field in heavily male-dominated industries.
Service-Disabled Veteran (SDVOSB) 5% minimum target $32 Billion

 

• 35K Companies

 

• Avg Sales: $914,000

A massive priority across high-spending agencies like the VA and DoD.
HUBZone Small Business 3% minimum target $17 Billion

 

• 5K Companies

 

• Avg Sales: $3.4 Million

Reserved for businesses operating in and hiring from historically underutilized zones.

Ready to Pursue 8(a) Certification and Maximize Federal Opportunities?

Want to see what an 8(a) Certification, a GSA Schedule, or a combination of SBA designations could do for your bottom line?

Let’s look at your eligibility and build a roadmap. Give us a call at 859-442-3300 for a complimentary strategy session. We’re happy to help you turn the federal government into your largest client.

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