Current 8(a) Conundrum
The new administration is making changes to how procurement is going to work moving forward. They have already made large cuts to DEI programs. One of the major fears disadvantaged businesses face is how these changes will affect the future of 8(a) program, and should they even bother to join?
Past 8(a) Environment
During the Biden administration a pledge was made that the administration would increase the amount of federal procurement from the 5% congressionally mandated goal to 15%. Let’s look at what the reality was for 8(a) spending levels in 2024.
RESULTS: Eligible non-discretionary federal business sales for 2024 were $637 billion. The 8(a)-program accounted for $37 billion of these dollars or 5.8% of eligible federal sales. Very strong results for the 8(a) program however a large gap remained between the prior 5% target and the 15% the Biden administration was wanting to achieve. But on a firm-by-firm basis this resulted in a very sizeable average sales figure of $6.4 million dollars.
| 2024 | Federal Sales | No of Firms | Average Sales | |
| 8(a) | $ 37,161,560,536 | 5,804 | $ 6,402,750 |
Future of 8(a) Program
SBA Kelly Loeffler Day One Priorities:
https://www.sba.gov/article/2025/02/24/sba-administrator-loeffler-issues-memo-day-one-priorities
Contained in this memo is the following pertinent language as it relates to the 8(a) program:
Promoting fair competition by returning 8(a) contracting goals to statutory levels:
The previous Administration increased the 8(a) federal contracting goal for Small Disadvantaged Businesses to an all-time high of 15%. This action unfairly tipped the scales against any small business that did not qualify as “disadvantaged,” negatively impacting many veteran-owned small businesses. As part of a broader effort to support competition and equal access to federal contracting for all small business owners, SBA has returned the 8(a) SDB contracting goal to its statutory level of 5%.
Also read our article: Federal Sales Consultant Insights and Winning Strategies for Government Sales
This would result in average sales per 8(a) firm of $5.4MM:
| 2025 | Federal Sales 5% Case | No of Firms | Average Sales |
| 8(a) | $ 31,850,000,000 | 5,804 | $ 5,487,000 |
This basically returns the 8(a) program to its 2023 numbers. However, what we are currently seeing in the marketplace is a reluctance for 8(a) firms to join the program because many fear the 8(a) program is going away and based upon the Loeffler Memo this should not be a concern.
Additionally, because of Covid 8(a) firms received an additional year in the 8(a) program. Therefore, even if the number of firms applying each year stays the same, and this is doubtful, the 5,800 figure is likely to decrease by 10% over the next few years. Less firms with the same federal spending with 8(a) firms will also increase the 8(a) per firm’s average sales.
Contrarian Thinking
We have interviewed federal buyers in the past that simply put rely on the 8(a) program’s sole source capabilities to make quick purchases. Without this ability many of the smaller procurements would take much longer and have a much higher administrative burden. Simply put, the federal government needs the 8(a) program to function efficiently.
The old stock market saying “buy when the blood is in the streets” may hold true for the 8(a) program as it currently sits. Over the next six months we foresee things returning to normal with the 8(a) program and those firms that acted now will be well ahead of the game!
