The owner of a Colchester construction company is starting to see how participation in a small business development program can help pave the way for federal government contracts.
Mark Aafedt, owner of A&A Construction in Colchester, is one of two 8(a) Business Development Program participants from Vermont. Aafedt, who has been in the U.S. Small Business Administration program for just over a year, has recently done business with the federal government as an 8(a) certified participant and is hoping to do a lot more.
As an enrolled member of the Chippewa-Cree Reservation of North Dakota, Aafedt met one of several requirements for socially and economically disadvantaged certification. Over a period of nine years, Aafedt will receive one-to-one business counseling, training workshops, and other guidance to help him expand into the federal government's contracting arena. Like other 8(a) participants, Aafedt's business is registered as an 8(a) firm on the federal government's Central Contractor Registration database.
The federal government, the largest purchaser of goods and services in the world, is a highly-prized customer for many small businesses. The U. S. Small Business Administration (SBA) offers a number of programs to help small firms compete for a fair share of business with the federal government. Under the 8(a) Business Development Program, SBA provides government contracting assistance to small firms owned and controlled by one or more socially and economically disadvantaged individuals. To participate in the 8(a) program, a business must be small, must be at least 51 percent owned by one or more socially and economically disadvantaged U.S. citizens, with initial net assests of no more more than $250,000, and the business must be established for two full years before applying.
Aafedt said the certification process took time and commitment. “I’ve made my living doing construction projects, brick, block, stonework, foundations and renovations, but this process was a little daunting because it involved computer skills I didn’t yet have,” Aafedt said. “Altogether, it took about eight months, but if you set your mind to it, you can do it.”
Being listed on the Central Contractor Registration database is an opportunity not only for Aafedt but for federal agencies striving to meet their purchasing goals. Federal agencies have goals established by law, such that 23 percent of what they purchase comes from small business suppliers, including but not limited to 8(a) firms.
Because 8(a) certified firms are also eligible to receive sole-source and set-aside contracts, it would be easy for an 8(a) business to hope federal contracts will readily come its way. However, this is not likely to happen without an effective marketing effort on the part of the business.
The other Vermont 8(a) firm is MIRACORP, an Hispanic-owned management consulting company operating in Northfield, as well as nationwide. MIRACORP’s owner, Cynthia Reed, said her 8(a) application was quickly processed and completed. Now in her second year as an 8(a) participant, Reed said the program has been the key to her success. In business for herself since 1999, MIRACORP grew from one employee to a staff of 30 in just the last two years.
Reed also attributes her company’s success to productive marketing. “I’ve gone to trade shows and although they work for certain business models, I didn’t find them very effective for consulting services,” Reed said. “But I found that advertising at those events does work. The other part of marketing that has been amazingly successful is being able to get your foot in the door and give a presentation. Once an audience sees you as a human being and realizes you have a sincere interest in doing quality work and being a good employer, it makes a significant difference.”
Small businesses often find it difficult to compete with established firms. General resources, marketing know-how, and organizational skills may be insufficient to take on the larger companies, so it’s important to be aware of and take advantage of assistance opportunities when they’re available.
SBA’s 8(a) Business Development Program is full of opportunity, as is the Vermont Department of Economic Development’s Procurement Technical Assistance Center (VtPTAC). “Kathy Andrus from SBA and Robin Miller from Vermont PTAC were more than helpful in getting me certified and explaining the program and how small business in general can make a go of it,” Mark Aafedt said.
For more information about the SBA 8(a) Business Development Program, call the SBA Vermont District Office at 802-828-4422 or visit www.sba.gov/gc.