Service-Disabled Veteran and Handicap Applicants Now Have a Clearer Path to 8(a) Application Success
MAJOR CHANGE: There has been a change in the way that the SBA determines if an individual is Socially Disadvantaged for the purpose of applying for 8(a). This was brought on by the recent decision (July 19, 2023) by the United States District Court.
The 8(a) Certification can be a major sales growth engine for your small business. The average 8(a) has over $5.5 million per year in federal contracts.
NEW RULING: ULTIMA SERVICES V. U.S. DEPARTMENT OF AGRICULTURE
Currently Service-Disabled Veterans and those suffering from Handicap bias, can apply and be successful with an SBA 8(a) Application. This gives Service-Disabled Veteran Owned firms access to both the SDVOSB program as well as 8(a).
The SBA stopped presuming any applicants were Social Disadvantaged. A personal narrative must be submitted to the SBA for all 8(a) applicants that demonstrates their social disadvantage. A procedure that has already been required of individuals who were not members of one of the racial groups. Because all groups are now required to submit a narrative to prove social disadvantage the SBA reduced the evidentiary burden. This levels the playing field for SDVOSB applicants.
PRIOR RULE: Since 1978 or for 45 Years the 8(a) program was governed by presumption of social disadvantage for groups with minority heritage. These people fit into the following ethnic categories: Asian Pacific Americans, Black Americans, Hispanic Americans, Subcontinent Asian Americans, and Native Americans.
The past 8(a) application process for Service-Disabled Veterans and Handicap Individuals generally required the production of over 20 stories going over the handicap bias that these individuals suffered.
The application process for SDVOSB and Handicap individuals ended in a denial more than half of the time. Pushing forward past the denial required a time consuming and costly OHA appeal. In general, under this process we had about one to two clients per year that would move forward with this process to become 8(a) Certified. It was a high bar to get even the most Socially Disadvantaged Handicap Individuals 8(a) Certified.
To help Service-Disabled Veterans and Handicap Individuals the SBA created different runways for those people. Those were the SDVOSB program and the Ability One Program.
WHY HANDICAP INDIVIDUALS STILL WANT 8(a): The 8(a) Certification provides a second avenue for firms to obtain both sole source and set-aside contracts. The SDVOSB Certification is very powerful when working with the Veterans Administration. However, for most other agencies the 8(a) Certification provides an advantage. Having both certifications provides a stronger pathway to success in federal contracting.
NEW REQUIREMENTS: The Ultima Serv. Corp Decision changes this because now ALL applicants are required to submit a narrative, not just non-presumed group candidates such as handicap candidates. Furthermore, the SBA requires 2 stories no more no less and 3rd party verification of some percentage of these stories is no longer part of the process.
TIME TO ACT: The reality is that handicap individuals are currently treated the same for purposes of obtaining the 8(a) certification as all other applicants. Therefore, if you were ever considering obtaining the 8(a) certification now would be a good time before congress alters this loophole.
If you would like to find out if your experiences would qualify you for being socially disadvantaged based upon gender bias give us a call as we are always happy go over the requirements.
NOTE: Historically, the SBA only approves handicaps that are physical/visible in nature to justify suffering from bias/discrimination. We are happy to discuss those who suffer from other types of injuries, we just want you to know upfront before you call us so that we do not create disappointment for you. There are cases where we advise even this group to go forward with an application, but we hate to provide disappointment.
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