Commentary: Proposal may triple Federal target for 8(a) small business goals by 2025

“After a tumultuous election, we need to take a closer look at President-Elect Joe Biden’s proposed economic plan that would cost an estimated $5.6 trillion, with a heavy focus on spending related to infrastructure, clean-energy projects, and federal R&D. He has done his best to explain various aspects of this plan to the American electorate during the presidential debates and over the course of his campaign. However, buried deep within his agenda is a proposal that’s gone mostly unnoticed, but one that could have massive implications for small, disadvantaged businesses seeking public sector revenue.”

“Among other initiatives aimed at stimulating economic growth within minority communities, Biden has proposed tripling agency spending on goods and services procured from small businesses owned by racial minorities. Currently, the government aims to award at least 5% of all federal contracting dollars to small, disadvantaged businesses as part of the SBA’s 8(a) Business Development program. If enacted, his proposal would move the target to 15% by 2025.”

“There are countless variables that will impact whether or not this proposal (or any other) comes to fruition, but if it does, it would be nothing short of a gamechanger for business leaders who qualify for 8(a) certification…”

Big Advantages for Small, Disadvantaged Businesses

“The fact that the public sector market for small, disadvantaged businesses could triple in size (virtually overnight) should get the attention of any opportunistic entrepreneur. However, that dramatic growth isn’t the only reason Biden’s win makes this market worth jumping into.”

“After President Barack Obama took office in 2009, he and Vice President Biden oversaw a government-spending program that spread funds fairly evenly across federal agencies. That administration also created numerous project-based opportunities for contractors through the American Recovery and Reinvestment Act (ARRA), a stimulus plan designed to help revive the economy after the Great Recession. Unlike President Trump, who aims to redirect even more spending to defense and homeland security under his proposed budget for FY21, Biden’s plan calls for an increased focus on a wide variety of domestic initiatives that would create opportunities for a much broader spectrum of government-supporting businesses…” Read the full article here.

Source: Why a Biden presidency could be a gamechanger for 8(a) businesses – By Tommy Benz, November 11, 2020. Federal News Network.

G2X TAKE: While this may never come to fruition, this Federal News Network article is worth a read as it details a proposal put forth that would have significant impacts on the competitive landscape and who and how companies partner for years to come.


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