The federal government allows certain groups to receive preferential treatment in the award of federal contracts. We recommend to clients to take full advantage of any certification in which they are eligible. Below is a comparison for each of the certifications. If you think you might be eligible for one or more of the following, feel free to call us to go over the qualifications.
| 8(a) | 8(a) WOSB/EDWOSB | SDVOSB | HUBZone | |
|---|---|---|---|---|
| Our Fee | $5,200 | $2,150/$2,700 | $2,400 | $1,700 |
| Number of firms | 6,297 | 95,633 | 26,116 | 7,781 |
| Disadvantaged Group | Typically Minority Owned Firms, Women and Service Disabled Veterans Can Apply. | Women Owned Businesses | Service Disabled Veteran Owned Small Businesses | Businesses and employees located in Historically Underutilized Areas. |
| Federal Budget Target %/$ | 5.00% $22.0 Billion |
5.00% $22.0 Billion |
3.00% $13.2 Billion |
3.00% $13.2 Billion |
| Results Actual | 9.10% $51.6 Billion |
4.71% $26.0 Billion |
4.05% $22.0 Billion |
1.65% $11.4 Billion |
| Approximate Federal Revenue per Firm | $6,-8,MM | $350K | $1MM | $1MM |
| Required Ownership and Control | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 51% in Disadvantaged Group | 35% of employees in HUBZone |
| US Citizen Requirement | Yes | Yes | Yes | Yes |
| Small Business Requirement based on NAICS Code | Yes | Yes | Yes | Yes |
| Economic Disadvantaged Metric | Owner makes less than $350K on average for past 3 years. Net worth under $750K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $6 million excluding retirement accounts. | None for WOSB and for EDWOSB owner must make less than $350K on average for the past 3 years. Net worth under $750k (with some exclusion). | No requirements | No requirements |
| Years in Business | 2 years – in some cases a firm can be eligible for a two year waiver. | No requirement | No requirement | No requirement |
| Certification Term | 9 years | No limit | No limit | No limit |
| Set-aside Condition | Sole source up to $6.5 MM manufacturing and up to $4.0 MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 designated NAICS codes; $5MM for manufacturing $3MM all other | Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 NAICS codes; $5MM for manufacturing $3MM all other | Sole source up to $5MM for manufacturing up to $3MM all other |
