8(a) Certification Versus SDB Certification

	Greater Knoxville Chapter
Library \| Biblioteca \| FAQ \| Counseling \| Tips \| Success \| Our Volunteers \| Find SCORE \| Links \| Contact Score \| Home

8 (a) Certification versus SDB Certification

PRINT PAGE

In the procurement of products and service, federal agencies often have set-aside projects to be allocated to 8 (a) or 'small disadvantaged businesses' (SDBs). The Small Business Administration (SBA) has program guidelines as well as applications on its web site www.sba.gov for businesses to fill out in order to qualify for certification in these programs.

Business owners who request certification under either or both programs must be qualified as a "small business" under SBA's guidelines.

The 8 (a) Small Business Administration Program

8(a) is a business development program that offers a broad scope of assistance to firms that are owned or controlled by individuals who are socially and economically disadvantaged. The 8(a) program is designated for business owners, who feel they have been subjected to racial or ethnic prejudice or culture bias because of their identities as members of groups, without regard to individual qualities. Certified firms are eligible to participate in procurements that have been set-aside only for this group.

Small Disadvantaged Business (SDB)Certification Program

SDB strictly pertains to benefits in Federal procurement. Firms designated 8 (a) automatically qualify for SDB certification. When competing for government contracts, SDBs in industries that show the ongoing effects of discrimination will be able to receive a ten percent price evaluation adjustment over non-disadvantaged business owners.

If non-minority females can show a pattern of discrimination in education, employment and business history, they are eligible to apply for 8 (a) and SDB. However, the argument is theirs to prove, no assumptions are considered.

An 8(a)/SDB comparison/contrast chart is attached. It is fairly self explanatory except for:

Opposite "Economically Disadvantaged" are the amounts $250,000 for 8(a) and $750,000 for SDB.
An individual can not have a personal net worth that exceeds these amounts, excluding their residence and the assets of the business.
Opposite "Certification Term" is shown "9 years period" which means you can not obtain 8 (a) certification for longer than 9 years. However a person may submit an application for SDB certification every 3 years and be certified indefinitely.
"Price Evaluation Adjustment" is shown as 10% for SDB certification. Where mandated, qualified SDBs receive up to a 10% price evaluation adjustment on procurements. This means all non-SDB qualified bidders will have up to 10% added on to their bids.

SCORE and SBA counselors are available to assist qualified business owners with filling out these certification forms.

8(a)/SDB Comparison/Contrast Chart

Certification	8(a)	SDB
Small Business	Per 13 CFR 121	Per 13 CFR 121
Ownership	51% minority	51% minority
Socially Disadvantaged	Blacks Hispanics Native Americans Asians Subcontinent Asians ***************************** Individuals not members of designated groups	Blacks Hispanics Native Americans Asians Subcontinent Asians *************************** Individuals not members of designated groups
Economically Disadvantaged	$250,000	$750,000
Control and Management	By 51% owner	By 51% owner
Potential For Success	2 years in business or meet waiver provisions	N/A
Character analysis	Review of SBA Form 912-Statement of Personal History	SBA Form 912 not required as part of the application
Application Processing Time	90 days	30 days
Certification Term	9 years period	3 years
Set Aside Contracts	Sole source and competitive Sole Source $5,000,000 and under for manufacturing $3,000,000 and under for all other services Competitive > $5,000,000 in mfg. >$3,000,000 for all other services	N/A
Price Evaluation Adjustment	N/A	10%
Reciprocal Certification	Yes-All 8(a) firms are SDBs	No-All SDBs are not 8(a)s
Application Submission Address	Small Business Administration San Francisco Central Office Duty Station Division of Program Certification and Eligibility 455 Market St., 6^th Floor San Francisco, CA 94105	Small Business Administration Office of Small Disadvantaged Business (SDB) Certification and Eligibility Mail Code 8800 409 3^rd Street, SW Washington, DC 20416


Library \| Biblioteca \| FAQ \| Counseling \| Tips \| Success \| Our Volunteers \| Find SCORE \| Links \| Contact Us \| Home
			web design by:

Greater Knoxville Chapter