GSA + Federal Certifications Comparison

By: Admin | Date: 2021-01-08

The federal government is increasing the amount of spending dollars available for small business.  Small Business now receives 26.5% of all federal contracting dollars.  Firms that have also obtained an SBA/VA certification/Verification are more effective at carving out a piece of these small business dollars.

Small Business Federal Spending 132.9B

Of this the following amounts are spent with the following Certification Types:

8(a) Certification / SDB 51.6B
WOSB Certification 26.0B
SDVSOB Verification 22.0B
HUBZone Certification 11.4B

The table below shows the Average Sales by Certification Type as well as the additional sales this certification receives by obtaining a GSA Schedule Contract.  I have also listed the qualification for these certification types.

  8(a) 8(m) WOSB/EDWOSB SDVOSB HUBZone
Number of firms 5,843 64,834 22,746 7,391
Disadvantaged Group Typically Minority Owned Firms, Women and Service Disabled Veterans Can Apply. Women Owned Businesses Service Disabled Veteran Owned Small Businesses Businesses and employees located in Historically Underutilized Areas.
Average Federal Revenue per Firm $8.8MM $401K $967K $1.5MM
Average Boost with GSA Schedule $1.MM $1.5MM $1.4MM $.9MM
Federal Budget Target %/$ 5.00%
$24.0 Billion
5.00%
$24.0 Billion
3.00%
$14.4 Billion
3.00%
$14.4 Billion
Results Actual 9.10%
$51.6 Billion
4.71%
$26.0 Billion    
4.05%
$22.0 Billion
1.65%
$11.4 Billion
Required Ownership and Control 51% in Disadvantaged Group 51% in Disadvantaged Group 51% in Disadvantaged Group 35% of employees in HUBZone
US Citizen Requirement Yes Yes Yes Yes
Small Business Requirement based on NAICS Code Yes Yes Yes Yes
Economic Disadvantaged Metric Owner makes less than $350K on average for past 3 years. Net worth under $750K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $6 million excluding retirement accounts. None for WOSB and for EDWOSB owner makes less than $350K on average for past 3 years. Net worth under $750K less primary residence, IRA, 401K and value of the business. Total assets of applicant under $6 million excluding retirement accounts. No requirements No requirements
Years in Business 2 years – in some cases a firm can be eligible for a two year waiver. No requirement No requirement No requirement
Certification Term 9 years No limit No limit No limit
Set-aside Condition Sole source up to $6.5 MM manufacturing and up to $4.0 MM all other Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 designated NAICS codes; $5MM for manufacturing $3MM all other Sole source as long as 2 offers or more are expected to be submitted; must be in one of 83 NAICS codes; $5MM for manufacturing $3MM all other Sole source up to $5MM for manufacturing up to $3MM all other
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