Leaving the SBA 8(a) Nest
In the second stage of your SBA eligibility, it's time to plan your future and test your wings.

By Robert S. Frey

The term "8(a)" refers to the U.S. Small Business Administration (SBA) program begun in 1968 to assist qualified small and woman and minority-owned businesses during the early years of their operation through preferential contracting opportunities. Program participation is divided into two stages: developmental and transitional. The developmental stage is four years and the transitional stage spans five years.

Nearing the End
 When your company enters the transitional stage, it is vital to begin a structured, ongoing thinking and planning process to envision business life beyond the 8(a) program. One valuable approach is to conduct semi-annual focused planning sessions during which specific requirements associated with successful 8(a) graduation are identified, documented, communicated and then acted upon. You will want to assess and clarify such business parameters as your company's:

• Contractual performance monitoring and measurement program
• Bookings, revenue and profitability goals
• Core technical competencies and areas of excellence
• Required certifications and accreditations 
• Project management approaches, processes and tools
• Quality management system
• Procurement systems and practices
• Knowledge management and knowledge sharing practices
• Training requirements and schedules
• Delegation of authority process
• Internal lines of communication
• * Recruitment capacity and processes

Growing Up
From a business development perspective, it also is important to pursue non-8(a) contract opportunities several years in advance of graduation from the program. Winning full-and-open competitions is critical to your company's own confidence, as well as the confidence in your company of teaming partners and banking institutions.

Strongly consider investing in, developing and honing the competitive business skills necessary for your success in the full-and-open competitive arena. Building business development and proposal development infrastructures-and staffing them with seasoned, proven performers who are motivated in both the short and long term to win-are pivotal steps in the direction of successful graduation from the 8(a) program and sustained business growth beyond the protection offered by the SBA program.

Critical to your success beyond the 8(a) program is working closely with federal staff to communicate and explore acquisition strategies and contractual vehicles that allow your small company to bid your current work as prime contractor. This strategy will allow you to retain more of your financial business base than if you were limited only to a subcontractor role.

Don't Think Small
Most important, however, is for your company's executives to reinvent themselves and the company. Shortly, you will no longer be classified as an 8(a) business, able to enjoy a certain degree of protection from the broader forces of full market competition. So you cannot think "small" or "8(a)."

For example, contracts for $750,000 should not be in your business development opportunity pipeline any longer. If you are a $20 million, 100-person company, you should be identifying, qualifying and pursuing-as the prime-federal contracts greater than $5 million and 50 people. Note that these contract opportunities should align closely with your strategic plan and core competencies.

You have to build a business culture of people, processes, knowledge and supporting technologies that is focused on the future and on success at a higher level of achievement. The future is characterized by high-velocity competition that demands passion and commitment from every member of your organization.

Robert S. Frey, MSM, M.A., is vice president for Knowledge Management and Proposal Development with RS Information Systems Inc. Frey is the author of four editions of the book, Successful Proposal Strategies for Small Businesses: Using Knowledge Management to Win Government, Private Sector and International Contracts. You can reach him at (703) 734-7800, ext. 213 or at .