8(a) construction contracts: sole-source and competitive 8(a) work
The SBA 8(a) Business Development program gives eligible small firms access to sole-source awards and 8(a)-only competitions. In construction it is one of the most common routes onto a multiple-award vehicle.
How the program works
The 8(a) program is open to small businesses owned and controlled by socially and economically disadvantaged individuals. Participation lasts up to nine years. Contracts are awarded through SBA, which contracts with the buying agency and subcontracts to the 8(a) firm, and agencies can award below certain dollar thresholds on a sole-source basis.
In construction
USACE, NAVFAC and AFCEC frequently award 8(a) MATOCs and MACCs, and GSA PBS uses 8(a) set-asides for regional construction work. 8(a) joint ventures — including joint ventures under the SBA mentor-protégé program — let a small firm team with a larger mentor on work it could not win alone.
Limits on subcontracting
On any small business, SDVOSB, 8(a), HUBZone or WOSB set-aside, the prime must do a real share of the work itself: a general construction contractor may not pay more than 85 percent of the amount paid by the government to firms that are not similarly situated, and a specialty trade contractor may not pay more than 75 percent. Cost of materials is excluded from the calculation.
Current status
The 8(a) program has been under heightened federal review since 2025. Confirm current SBA and agency guidance before building a pursuit strategy around 8(a) awards.
Other guides: Small business · SDVOSB · HUBZone · WOSB
General information, not legal advice. Confirm eligibility and current thresholds with SBA and the solicitation.
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