We constructed a study of the 100 largest 8(a) Contractors that are non-tribally owned. These firms combined for $2.8B in federal contracts in 2014 or $27.9MM per firm.
Top Industries
In reviewing the data we see that IT and Construction are at the top of the table, and in general they represent approximately 70% of all 8(a) firms so it is not a surprise they are at the top of this list making up almost 80%.
DC Area vs Everywhere else
In 2014 the federal government spent $30.8B with 8(a) firms and $10.1B of those dollars were spent in the DC-Virginia-Maryland corridor or 33% of 8(a) spending occurred in this area. Although of firms that are in the top 100 / 45 are located in the DC area which is greater than the revenue average.
IT
IT firms can be successful outside of DC however the odds of it making this list were greater if it was located in DC. With that being said it appears that it is more important that the IT firm have a GSA Schedule to achieve superior sales than being located in DC.
Construction
Construction appears to not be affected whether the firm is located in DC or not. As the number of firms located in DC mirrors the 33% of federal spending with 8(a) firms in the area. Construction firms are not eligible for GSA Schedule Contracts.
Consulting
Consulting 5 out of the 6 firms that were in the top 100 firms were located in DC and all of the firms located in DC had a GSA Schedule.
GSA Schedule to Location Comparison
Excluding Construction 51% of Top 8(a) firms were located in the DC area while 72% of these top firms were GSA Schedule Contract holders. So an 8(a) firm might make plans to open an office at some point in DC to boost sales however the 8(a) firm should first choose the more cost effective approach and obtain a GSA Schedule contract first.
