All 8(a) certified minority-owned companies are entitled to receive sole-sourced government contracts up to a maximum of $4 million on a per-contract basis for those dealing in goods and services. For small businesses that are in manufacturing, the firm’s sole-sourced contracts can reach a maximum of $6.5 million on a per-contract basis. 8(a) firms can participate in set-aside contracts whereby the competition for the contract is only other 8(a) contractors. This limits the bidding field to a pool of relatively homogenous contenders with similar sizes and capabilities.
Another benefit for 8(a) firms is that they can learn from, as well as take part in larger projects by partnering with another firm, while still receiving the benefits of an 8(a) certification. These partnerships are mentor protégé or joint venture arrangements. They enable small business firms to increase their skills and experience by taking part in larger contracts in a much lower risk environment.