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Small Disadvantaged Businesses (SDB) & 8(a) Program

A SDB concern means a small business concern that is at least 51 percent unconditionally owned by one or more individuals who are both socially and economically disadvantaged or a publicly owned concern that has 51 percent of its stock owned by such individuals and that has its management and daily business controlled by one or more socially and economically disadvantaged individuals. Individual groups falling into this category are:

· Black Americans

· Hispanic Americans

· Native Americans

· Asian-Pacific Americans

· Subcontinent-Asian Americans

The 8(a) Program

Section 8(a) of the Small Business Act ( 15 U.S.C. 637 (a) ) established a program that authorizes the Small Business Administration (SBA) to enter into contracts with other agencies and subcontract the work to eligible firms – known as "8(a) contractors."

SBA has delegated this authority to some Federal agencies through the execution of a Partnership Agreement (PA). Department of Defense has a PA in place. 

The PA eliminated the tri-part contract, however the offering and acceptance is still required. Offering letters are written and processed by the OSBP. Provide the small business office with the applicable information needed to prepare the Offering Letter. Requirements with an anticipated price, including options, not exceeding $6.5M for manufacturing or $4 M for all others may be awarded sole source. Awards above these thresholds must be competed and they must be made at a fair and reasonable price.

NOTE: Requirements that have been accepted in the 8(a) program shall remain in the program unless SBA agrees to release the requirement from the program.